answer the following questions

5. Chung Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected Old Equipment $225,000 90,000 300,000 New Equipment $375,000 Purchase price Accumulated depreciation Annual operating costs 0- 240,000 If the old equipment is replaced now, it can be sold for $60,000. Both the old equipment remaining useful life and the new equipment's useful life is 5 years. What is the net cost of the new equipment? a. $375,000 b. $315,000 C. $150,000 d. $75,000 Abel Company produces three versions of baseball bats: wood, aluminum, and ha rubber. A condensed segmented income statement for a recent period follows: 6. AluminumHard Rubber Total $500,000 175,000 $100,000 $65,000 58,000 7,000 22,000 S(15,000) $765,000 523,000 242,000 32,000 $200,000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) 60,000 35,000 S110,000 Assume all of the fixed expenses for the hard rubber line are avoidable. What will be t net income if the line is dropped? a. $125,000 b. $103,000 c. $105,000 d. $140,000 A cost that cannot be changed by any present or future decision is a(n) a. incremental cost. b opportunity cost. c. sunk cost. d. variable cost. 7. Chapter 13 If there were 60,000 pounds of raw materials on hand on January 1, 120,000 pound desired for inventory at January 31, and 410,000 pounds are required for Ja production, how many pounds of raw materials should be purchased in January? a. 350,000 pounds b. 530,000 pounds c. 290,000 pounds d. 470,000 pounds 8