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Can someone check my answer, please? 1. Given the following data: Units Produced: 10,000 Direct Materials cost per unit: $5 Direct Labor cost per unit:

Can someone check my answer, please?

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1. Given the following data: Units Produced: 10,000 Direct Materials cost per unit: $5 Direct Labor cost per unit: $4 Variable Overhead Costs per unit: $3 Fixed Overhead costs per unit: $6 (will not change) Purchase Price per unit if bought: $15 Additional rent revenue generated if the product is bought: $35,000 Should the business make or buy the product? Make the product because it will save $30,000. buy the product because it will save $30,000. make the product because it will save $5000. buy the product because it will save $5000. 2. funk Inc. is considering the replacement of a piece of equipment with a newer model. The following data has been collected: OLD EQUIPMENT Purchase price $150,000 Accumulated depreciation $60,000 Annual operating costs $200,000 NEW EQUIPMENT Purchase Price $250,000 Accumulated Depreciation -0- Annual operating costs $160,000 If the old equipment is replaced now, it can be sold for $40,000. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years. The net advantage (disadvantage) of replacing the old equipment with the new equipment is. $40,000 $(10,000) $(50,000) $60,000

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