Lease or Sell Bullwinkle Company owns equipment with a cost of $366,800 and accumulated depreciation of $55,100 that can be sold for $273,600, less a 5% sales commission. Alternatively, Bullwinkle Company can lease the equipment for three years for a total of $286,800, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $16,100 over the three year lease. a. Prepare a differential analysis on February 18, as to whether Bullwinkle 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 Sell Equipment Lease Equipment (Alternative 1) (Alternative 2) on Income (Alternative 2) Revenues $ 286,800 $ 275,600 $ 13,200 Costs Income (Loss) $ Yuld Sell (Alte b. Should Bullwinkle Company lease (Alternative 1) or sell (Alternative 2) the equipment? Lease the equipment wenta Le ISCUNUNe d segment roduct AG52 has revenues of $193,300, variable cost of goods sold of $115,900, variable selling expenses of $33,800, and fixed costs of $58,600, creating a loss from operations of $15,000. a. Prepare a differential analysis as of October 7 to determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Product AG52 (Alt. 1) or Discontinue Product AG52 (Alt. 2) October 7 Continue Product AG52 Discontinue Product AG52 Differential Effect on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling expenses Fixed costs / NE Income (Loss) b. Determine if Product AG52 should be continued (Alternative 1) or discontinued (Alternative 2). 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 $31 per unit. A proposal is offered to purchase small bottles from an outside source for $95 per unit, plus $11 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. It an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Make Bottles (Alt. 1) or Buy Bottles (Alt. 2) July 31 Make Bottles Buy Bottles Differential Effect on Income (Alternative 1) (Alternative 2) (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