Angie Co$.$ makes several products, among them is a product that it sells for $$120$ per unit. They expected to sell $14,000$ units of the product in $2024.$ Information related to the production of this product is provided below.

Revenue $$1680000$

Materials $$240000$

Labor $$360000$

Variable Manufacturing overhead $$108000$

Shipping and Handling $$36000$

Sales Commission $$24000$

Depreciation on manufacturing equipment $$45000$

Warehousing rent expense $$98000$

Salary of production manager $$100000$

Allocated company level expenses $$125000$

Additional information:

Angie Co$.$ has the ability to buy a new machine to make the switch at a cost of $$475,000$ with a $$31,000$ salvage value and a $6-$year life. This new machine reduces materials cost by $$2,$ labor costs by $$3$ a unit, manufacturing overhead by $$2$ a unit, and cuts warehouse costs by $25\%.$ The original equipment used to make the switch originally cost $$250,000$ with a $$25,000$ salvage value and a $5-$year life. It has $2$ years of life remaining.

Angie also has the option of buying the product from an outside supplier for $$66$ per unit. If Angie buys the product only $50\%$ of the original warehousing costs will be incurred.

If they do not use the old equipment, it can be leased for $$42,000$ per year. The production manager only the manages the production the switches.

$1.$What would be the difference in Angie's projected $2024$ pretax income be if they make the product and replace the old the new equipment? SHOW YOUR WORK CLEARLY!

$2.$What would be the difference in Angie's projected $2024$ pretax income be if they buy the product from the outside supplier versus make with the old equipment? SHOW YOUR WORK CLEARLY!