Differential Analysis Report Involving Opporturity Costs Five Star 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 $149,200 of 6% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled: Cost of equipment $149,200 Life of equipment 16 years Estimated residual value of equipment $27,200 Yearly costs to operate the warehouse, excluding depreciation of equipment $55,600 Yearly expected revenuesiyears 178 84,500 Yearly expected revenuesyears 9-16 73,000 ) Required: 1. Prepare a differential analysis report of the proposed operation of the warehouse for the 15 years as compared with present conditions. (L... Cl,- Five Star Proposal to Operate Warehouse Differential revenue from alternatives: 7 V Differential cost of alternatives: D |:| ' D S 2. Based on the results disclosed by the differential analysis, should the proposal be accepted? 7 3. If the proposal is accepted, What is the total estimated operating income of the warehouse for the 16 years? SD Procht Cost Concept of Product Pricing Willis Products Inc. uses the product cost concept of applying the cost-pius approach to product pricing. The costs of producing and selling 8,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $83 Factory overhead $232,000 Direct iabor 30 Selling and admin. exp. 80,000 Factory overhead 26 Selling and admin. exp. 21 Total $150 Willis Products desires a prot equal to a 20% rate of return on invested assets of $508,400. a. Determine the total manufacturing costs for the production and sale of 8,000 units. Total Manufacturing Costs Fixed factory overhead :] Total $:] Determine the cost amount per unit for the production and sale of 8,000 units. b. Determine the product cost markup percentage per unit. Round vour percentage answer to one decimal place. c. Determine the selling price per unit. Use the rounded product cost markup percentage in your calculations, and round the amount of the markup to the nearest whole dollar. 5:] per unit