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Keating Co. is considering disposing of equipment with a cost of $60,000 and accumulated depreciation of $42,000. Keating Co. can sell the equipment through a

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Keating Co. is considering disposing of equipment with a cost of $60,000 and accumulated depreciation of $42,000. Keating Co. can sell the equipment through a broker for $27,000, less a 7% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $45,000. Keating will incur repair, insurance, and property tax expenses estimated at $9,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $10,890 OD $7,623 Oc $13,068 Oa $16,335 Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and wouldd require an additional cost of $8.55 per pound to produce. What is the differential revenue of producing Product D? Oa $22.25 per pound Ob. $18.00 per pound Oc 56.25 per pound Od $6.75 per pound

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