Dechico Corporation purchased a machine 3 years ago for $456,000 when it launched product G29L. Unfortunately, this machine has broken down and cannot be repaired The machine could be replaced by a new model 330 machines costing $474,000 or by a new model 260 machine costing $418,000. Management also decided to buy the model 260 machine. It has less capacity than the model 330 machine, but its capacity is sufficient to continue making product G92L Management also considered, but rejected, the alternative of dropping product G92L and not replacing the old machine. If that were done, the $418,000 invested in the new machine could instead have been invested in a project that would have returned a total of $496,000. In making the decision to buy the model 260 machine rather than the model 330 machine the differential cost was $18,000 $56,000 $38,000 $40,000 Seals Corporation, a merchandising company, reported the following results for July: Cost of goods sold is a variable cost in this company. The contribution margin for July is: $534, 600 $699, 300 $359, 900 $1, 453, 400