It costs Rodriguez Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income? Select one A. Increase $12,000 OB. Increase $108,000 OC. Decrease $12,000 OD. Increase $24,000 Sierra's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $120,000 25,000 45,000 30,000 If Tex's Manufacturing Company can purchase the component externally for $190,000 and only $5,000 of the fixed costs can be avoided, what is the correct make or buy decision? Select one: OA. Make and save $5,000 OB. Make and save $15,000 OC. Buy and save $15,000 OD. Buy and save $5,000 A company decided to replace an old machine with a new machine. Which of the following is considered a relevant cost? Select one: OA. The current disposal price of the old equipment OB. The book value of the old equipment OC. Depreciation expense of the old equipment OD. The loss on disposal of the old equipment Villani Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $300,000 New Machine Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs $600,000 90,000 0 10 years 0 10 years $180,600 0 $240,000 If the old machine is replaced, it can be sold for $24,000. The net advantage (disadvantage) of replacing the old machine is Select one OA. $16,000) OB. $18,000 OC. $160,000)