Coronado Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

Old Equinment New Equipment

Purchase price $210000 $390000

Accumulated depreciation 100000 0

Annual operating costs 313000 243000

If the old equipment is replaced now, it can be sold for $62000. En the old equipment's remaining useful life and the new equipment's useful life is 5 years Which of the following amounts is irrelevant to the replacement decision?

$110000

$62000

$390000

$328000

Sheridan Company produces facial moisturizer. Each bottle of moisturizer costs $10 to produce and can be sold for $13. The bottles can be sold as is, or processed further into sunscreen at a cost of $20 each. Sheridan Company could sell the sunscreen for $28 per bottle. What decision should the company make and why?

O Moisturizer must not be processed further because it decreases profit by $2 each

O Moisturizer must be processed further because its profit is $8 per bottle.

O Moisturizer must be processed further because it increases profit by $3 each.

O Moisturizer must not be processed further because costs increase more than revenue