A machine purchased three years ago for $319,000 has a current book value using straight-line depreciation of $190,000; its operating expenses are $39,000 per year. A replacement machine would cost $227,000, have a useful life of nine years, and would require $10,000 per year in operating expenses. It has an expected salvage value of $65,000 after nine years. The current disposal value of the old machine is $75,000; if it is kept 9 more years, its residual value would be $19,000. Required Calculate the total costs in keeping the old machine and purchase a new machine. Should the old machine be replaced? Keep Old Machine Purchase New Machine Total costs Should the old machine be replaced? Yes Thornton Company manufactures a personal computer designed for use in schools and markets it under its own label. Thornton has the capacity to produce 40,000 units a year but is currently producing and selling only 14,000 units a year. The computer's normal selling price is $1,680 per unit with no volume discounts. The unit-level costs of the computer's production are $540 for direct materials, $190 for direct labor, and $110 for indirect unit-level manufacturing costs. The total product- and facility-level costs incurred by Thornton during the year are expected to be $2,140,000 and $804,000, respectively. Assume that Thornton receives a special order to produce and sell 3,070 computers at $1,260 each. Required Calculate the contribution to profit from the special order. Should Thornton accept or reject the special order? Contribution to profit Should Thornton accept or reject the special order? Accept