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EE 9-1 p 369 PE 9-1B Timberlak tion of $60,000 that can be sold for $82 Lease or sell OBJ. 1 e Company owns equipment

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EE 9-1 p 369 PE 9-1B Timberlak tion of $60,000 that can be sold for $82 Lease or sell OBJ. 1 e Company owns equipment with a cost of $165,000 and accumulated deprecia- ,000, less a 6% sales commission. Alternatively, the equipment can be leased by Timberlake Company for five years for a total of $84,600, at ch there is no residual value. In addition, the repair, insurance, and property total $7,950 over the five years. Prepare a differential analysis on March 23 as to whether tax expense that would be incurred by Timberlake Company on the equipment would Timberlake Company should lease (Alternative 1) or sell (Alternative 2) the equipment PE 9-2A Product TS-20 has revenue of $102,000, variable cost of goods sold of $52,500, variable selling expenses of $21,500, and fixed costs of $35,000, creating a loss from operations of $7,000. Prepare a differential analysis as of September 12 to determine if Product TS-20 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision EE 9-2 p.371 Discontinue a segment OBJ. 1 Discontinue a segment OBJ. 1 PE 9-2B Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500 Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued Alternative 2), assuming fixed costs are unaffected by the decision EE 9-2 p 371 OBJ. 1 9-3 p. 372 PE 9-3A Make or buy A restaurant bakes its own bread for a cost of $165 per unit (100 fixed costs of $43 per unit. A proposal is offered to purchase bread f source for $110 per unit, plus $15 per, unit for delivery. Prepare a diffe dated August 16 to determine whether the company should make (Altern (Alternative 2) the bread, assuming fixed costs are unaffe EE loaves), including rom an outside delivery. Prepar ative 1) or buy cted by the decision

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