Chapter 12 - Homework Help Save & Exit Submit Check my work 15 Exercise 12-1 Identifying Relevant Costs [LO12-1) 042 Svahn AB is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts Case A The company chronically has no idle capacity and the old Model 8100 machine is the company's constraint Management is considering purchasing a Model 300 machine to use in addition to the company's present Model 0100 machine. The old Model 100 machine will continue to be used to capacity as before, with the new Model 300 machine being used to expand production This will increase the company's production and sales. The increase in volume will be loge enough to require increases in fixed seling expenses and in general administrative overhead, but not in the fixed manufacturing overhead Case Bi The old Model 8100 machine is not the company's constraint, but management is considering replacing it with a new Model 8300 machine because of the potential savings in direct materials with the new machine The Model B100 machine would be sold. TNS change will have no effect on production or other than some savings in direct materials costs due to less waste Required Based on the information provided above indicate in the approprime column whether each nem is relevant or relevant to the decision context described in Case A and Case B. case A Case 0 Direct labor praw 15 m 17 Next > Chapter 12 - Homework Help Save & Submit Check my work 15 expenses and in general administrative Overhead, but not in the fixed manufacturing overhead Case The old Model 8100 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 te 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 Case Case B Se revenue bom