BusinessCourse Return to course this decision, the company's controller gathered the following data: Old Equipment New Equipment Original cost $350,000 $396,000 Remaining life 5 years 5 years Accumulated depreciation $158,000 $0 Annual cash operating costs $64,000 $16,000 Current salvage value $88,000 Salvage value in five years 50 NA $0 a. What is the total dollar amount of any sunk costs in the data. $ 350,000 b. What is the total dollar amount of any irrelevant (nondifferential) future costs. $ 16,000 c. What is the total dollar amount of all relevant costs to the equipment replacement decision. $ 396,000 x d. What is the total dollar amount of the opportunity costs associated with the alternative of keeping the old equipment? $ 88,000 e. What is the incremental cost to purchase the new equipment? $ 308,000 Support Dashboard Claudia Aguinaga Outsourcing Glass Tech manufactures fiberglass housings for portable generators. One part of the housing is a metal latch. Currently, the company produces the 120,000 metal latch units required annually. Company management is considering purchasing the latch from an external vendor. The following data are available for making the decision: Cost per Unit to Manufacture Direct material Direct labor Variable overhead Fixed overhead-applied Total cost Cost per Unit to Purchase Purchase price Freight charges Total cost $1.40 1.36 0.72 1.12 $4.60 $3.92 0.08 $4.00 a. Assuming that all of Glass Tech's internal production costs are avoidable if the company purchases rather than makes the latch, what would be the net annual cost advantage to purchasing the latches? $ 3.48 b. Assume that some of Glass Tech's fixed overhead costs could not be avoided if it purchases rather than makes the latches. How much of the fixed overhead must be avoidable for the company to be indifferent as to making or buying the latches? $ 0.6 x per unit Retail organization joint cost Wilke Realty separates its activities into two operating divisions: Rentals and Sales. In March, the firm spent $32,500 for general company promotions (as opposed to advertisements for specific properties). John, the corporate controller, has decided to allocate general promotion costs to the two operating divisions. He is considering whether to base his allocations on the (1) expected increase in divisional revenue from the promotions or (2) expected increase in divisional profit from the promotions (before allocated promotion costs). General promotions had the following effects on the two divisions: Increase in divisional revenue Rentals Sales $770,000 $105,000 Increase in profit (before allocated promotion costs) 104,500 85,500 a. Allocate the total promotion cost to the two divisions using change in revenue. Rental $ Sales Total Allocated Cost b. Allocate the total promotion cost to the two divisions using change in profit before joint cost allocation. Allocated Cost Rental $ Sales Total $