Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $17 per unit. Fixed costs are $22,900 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,530 units with a special price of $20 per unit. Falcon has the capacity to handle the special order, and for this order, a variable seling cost of $2 per unit would be eliminated. If the order is accepted, the differential effect on profit would be an) Starling Co. is considering disposing of a machine with a book value of $24,500 and estimated remaining life of five years. The old machine can be sold for $5,200. A new high-speed machine can be purchased at a cost of 67,500. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,000 to $19,300 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is an) a decrease of $43,800 b. increase of $43,800 c. Increase of $56,940 d. decrease of $56,940