Income from Operations for Profit Center The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of 4,000 hours of service for the period. The Retail Division has used 2,750 hours of computer technology service during the period, and the Commercial Division has used 1,250 hours of computer technology service. Additional data for the two divisions is following below: Retail Division Commercial Division Sales $1,200,000 $2,150,000 1,300,000 150,000 Cost of goods sold Selling expenses 800,000 175,000 Determine the divisional income from operations for the Retail Division and the Commercial Division. Do not round interim calculations. Hardy Company Divisional Income from Operations Retail Division Commercial Division Income from operations Lease or Sell Casper Company owns equipment with a cost of $364,800 and accumulated depreciation of $54,100 that can be sold for $273,800, less a 4% sales commission. Alternatively, Casper Company can lease the equipment for three years for a total of $286,700, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Casper Company on the equipment would total $16,700 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Casper Company should lease (Alternative 1) or sell (Alternative 2) the equipment. Differential Analysis Lease (Alt. 1) or Sell (Alt. 2) Equipment February 18 Differential Effect Lease Equipment Sell Equipment DI on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs Income (Loss) $ b. Should Casper Company lease (Alternative 1) or sell (Alternative 2) the equipment? Make or Buy A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $168 per unit (100 bottles), including fixed costs of $30 per unit. A proposal is offered to purchase small bottles from an outside source for $105 per unit, plus $10 per unit for freight. a. Prepare a differential analysis dated July 31 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles, assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Use a minus sign to indicate a loss. Accounting numeric field Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) July 31 Make Bottles (Alternative 1) Buy Bottles (Alternative 2) Differential Effect on Income (Alternative 2) Sales price Unit costs: Purchase price Freight Variable costs Fixed factory overhead Income (Loss) b. Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bottles