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Casper Company owns equipment with a cost of $362,200 and accumulated depreciation of $57,000 that can be sold for $277,900, less a 4% sales commission.

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Casper Company owns equipment with a cost of $362,200 and accumulated depreciation of $57,000 that can be sold for $277,900, less a 4% sales commission. Alternatively, Casper Compony can lease the equipment for three years for a total of $285,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $16,400 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Casper Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt, 1) or Sell Equipment (Alt. 2) Auaust 7 b. Should Casper Company lease (Alternative 1) or sell (Alternative 2) the equipment? Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for mmall bottles is $156 per unit ( 100 bottles), including fixed costs of $37 per unit. A proposal is offered to purchase small botties from an outside source for $104 per unit, plus $9 per unit for freight. a. Prepare a differential analysis dated January 25 to determine whether the company should make (Alternative 1 ) or buy (Alternative 2) the botties, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "O". b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles

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