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Case B: The old Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B300 machine because

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Case B: The old Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B300 machine because of the potential savings in direct materials with the new machine. The Model B100 machine would be sold. This change will have no effect on production or sales, other than some savings in direct materials costs due to less waste Required: Based on the information provided above indicate in the appropriate column whether each item is relevant or irrelevant to the decision context described in Case A and Case B. Item Case A Case B a Sales revenue b. Direct materials c. Direct labor d. Variable manufacturing overhead e. Depreciation-Model B100 machine Book value-Model B100 machine 9. Disposal value-Model B100 machine h Market value--Model B300 machine (cost) Fixed manufacturing overhead (general) Variable selling expense k Fixed selling expense General administrative overhead Case B: The old Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B300 machine because of the potential savings in direct materials with the new machine. The Model B100 machine would be sold. This change will have no effect on production or sales, other than some savings in direct materials costs due to less waste Required: Based on the information provided above indicate in the appropriate column whether each item is relevant or irrelevant to the decision context described in Case A and Case B. Item Case A Case B a Sales revenue b. Direct materials c. Direct labor d. Variable manufacturing overhead e. Depreciation-Model B100 machine Book value-Model B100 machine 9. Disposal value-Model B100 machine h Market value--Model B300 machine (cost) Fixed manufacturing overhead (general) Variable selling expense k Fixed selling expense General administrative overhead

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