Differential Analysis involving Opportunity Costs On July 1, Coastal Distribution Company is considering leasing a building and buying the necessary equipment to operate a public warehouse. Alternatively, the company could use the funds to invest in $740,000 of 5% U.S. Treasury bonds that mature in 14 years. The bonds could be purchased at face value. The following data have been assembled: $740,000 14 years $75,000 Cost of equipment Life of equipment Estimated residual value of equipment Yearly costs to operate the warehouse, excluding depreciation of equipment Yearly expected revenues--years 1-7 Yearly expected revenues-Years 8-14 $175,000 $280.000 $240,000 Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 14 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2) If an amount is zero, enter zero Differential Analysis Operate Warehouse (Alt. 1) or Invest intends (Alt. 2) July 1 Operate Invest Differential Warehouse in Bonds Effect on Income (Alternative 1) (Alternative) (Alternative 2) De Previous Next Check My Work AGRON Required: 1. Prepare a differential analysis as of July 1 presenting the proposed operation of the warehouse for the 14 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). If an amount is zero, enter zero "O". Differential Analysis Operate Warehouse (Alt. 1) or Invest in Bonds (Alt. 2) July 1 Operate Invest Differential Warehouse in Bends Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs to operate warehouse Cost of equipment less residual value Income (Loss) 2. Based on the results disclosed by the differential analysis should the proposal to operate the warehouse be accepted 3. If the proposal is accepted, what is the total estimated income from operations of the warehouse for the war? Previous Next > Ouck My Wik Product Cost Markup Percentage Light Force Inc. produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of which $100 is product cost and $80 is selling and administrative expenses. In addition, the total cost of $180 is made up of $110 variable cost and $70 fixed cost. The desired profit is $45 per unit. Determine the markup percentage on product cost. Round the answer to nearest whole number Previous Ouck My Work