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help Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new
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Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $107,000. Rory can sell its old machine now for $71,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 per year over its five-year usefut life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare a keep or replace analysis of income effects for the machines. Garcia Company sells snowboards. Each snowboard requires direct materials of $108, direct labor of $38, variable overhead of $53, and variable selling. general, and administrative costs of $11. The company has fixed overhead costs of $651,000 and fixed selling. general, and administrative costs of $159,000. It expects to produce and sell 10,800 snowboards. What is the selling price per unit if Garcia uses a markup of 10% of total cast? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amounts.) Step by Step Solution
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