E7-3 Leno Company manufactures toasters. For the first 8 months of 2014, the company reported the following operating results while operating at 75% of plant capacity: Sales (350,000 units) $4,375,000 Cost of goods sold 2,600,000 Gross profit 1,775,000 Operating expenses 840,000 Net income $ 935,000 Cost of goods sold was 70% variable and 30% fixed; operating expenses were 75% variable and 25% fixed. In September, Leno Company receives a special order for 15,000 toasters at $7.60 each from Centro Company of Ciudad Juarez. Acceptance of the order would result in an addi- tional $3,000 of shipping costs but no increase in fixed operating expenses. Instructions (a) Prepare an incremental analysis for the special order. (b) Should Leno Company accept the special order? Why or why not? Aiman Richard the department manager of Futuristic Hub has been approached by Bruce Wayne to purchase a new machine that is currently available in the market.According to Bruce Wayne the machine can result in reducing operating costs and thus increase the company's profit. Aiman has been using the old machine for one year and the following are the details of the old machine Old Machine $100,000 Original cost Remaining useful life in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs $75,000 $9,500 $0 $15,000 The new machine will cost $120,000 and it has a useful life of 4 years. The annual operating costs for the new machine is $10,000. What will be the relevant costs associated with buying the new machine