Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of $278,900 (original cost of $400,800 less accumulated depreciation of $121,900) for $274,000 less a 6% brokerage commission. Alternatively, the machinery can be leased for a total of $284,400 for five years, after which it is expected to have no residual value. During the period of the lease, Sure-Bilt Industries' costs of repairs, insurance, and property tax expenses are expected to be $26,500. a. Prepare a differential analysis report for the lease or sell decision. SURE-BILT INDUSTRIES Proposal to Lease or Sell Machinery Differential Analysis Report Differential revenue from alternatives: Differential cost of alternatives: $ b. Based on the data presented, which is the most appropriate plan of action? Differential Analysis Report for a Discontinued Product A condensed income statement by product line for Crown Beverage Inc. indicated the following for Royal Cola for the past year: Sales $233,200 Cost of goods sold (109,000) Gross profit $124,200 Operating expenses (144,000) Operating loss $(19,800) It is estimated that 15% of the cost of goods sold represents fixed factory overhead costs and that 22% of the operating expenses are fixed. Since Royal Cola is only one of many products, the fixed costs will not be significantly affected if the product is discontinued. a. Prepare a differential analysis report for the proposed discontinuance of Royal Cola. Crown Beverage Inc. Proposal to Discontinue Royal Cola Differential Analysis Report Differential revenue from annual sales of Royal Cola: o Differential cost of annual sales of Royal Cola: b. Should Royal Cola be retained