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Accept Business at Special Price Product D is normally sold for $49 per unit. A special price of $33 is offered for the export market.

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Accept Business at Special Price Product D is normally sold for $49 per unit. A special price of $33 is offered for the export market. The variable production cost is $26 per unit. An additional export tariff of 13% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order. Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Reject Order Accept Order (Alternative 1) (Alternative 2) Differential Effect on Income (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unit Should the special order be rejected (Alternative 1) or accepted (Alternative 2)? Differential Analysis for a Lease-or-Sell Decision Sure-Bilt Construction Company is considering selling excess machinery with a book value of $279,800 (original cost of $399,200 less accumulated depreciation of $119,400) for $274,300, less a 5% brokerage commission. Alternatively, the machinery can be leased to another company for a total of $284,700 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Construction Company's costs of repairs, insurance, and property tax expenses are expected to be $24,800. a. Prepare a differential analysis, dated May 25 to determine whether Sure-Bilt should lease (Alternative 1) or sell (Alternative 2) the machinery. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Lease Machinery (Alt. 1) or Sell Machinery (Alt. 2) May 25 Differential Effect Lease Machinery Sell Machinery on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Revenues $0 Costs Income (Loss) $ b. On the basis of the data presented, would it be advisable to lease or sell the machinery? Explain. The net from selling is $ A company is considering replacing an old piece of machinery, which cost $602,400 and has $349,700 of accumulated depreciation to date, with a new machine that has a purchase price of $485,800. The old machine could be sold for $62,100. The annual variable production costs associated with the old machine are estimated to be $158,100 per year for eight years. The annual variable production costs for the new machine are estimated to be $101,900 per year for eight years. a. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) April 29 Continue Replace Differential with Old Old Effect Machine Machine o n Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Proceeds from sale of old machine $ Costs: Purchase price Variable productions costs (8 years) Income (Loss) Determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. b. What is the sunk cost in this situation? The sunk cost is $

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