please just answer A, B, C. not essay
Case Study You were appointed the manager of Drive Systems Division (SD) at Tunes2Go, a manufacturer of portable music devices using the latest development in hard drive technology, December 15 last year. DSD manufactures the drivessembly, M.24. for the company's most popular product. Your bonus is determined as a percentage of your division's operating profits before takes One of your first major investment decisions was to invest $5.8 million in automated testing equipment for the M-24. The equipment was installed and in operation on January 1 of this year This morning, Bradley Finch III, the assistant manager of the division and not coincidentally, the grandson of the company founder and son of the current CEO told you about an offer by Panitie Flectronic Pan Pacific wants to rent to DSD a new testing machine that could be installed on December 31 only two weeks from now) for an annual rental charge of 1.440,000. The new equipment would enable you to increase your division's annual revenue by 6 percent. This new, more efficient machine would also decrease fixed cash expenditures by 7 percent Without the new machine, operating revenues and costs for the year are estimated to be as follow Sales revenue and fixed and variable operating costs are all cash Sales revenue Variable operating costs Fixed operating costs Equipment depreciation Other depreciation $9,370,000 1.290,000 4,410,000 850.000 780,000 If you rent the new testing equipment, DSD will love to write of the cost of the matomated texting equipment this year bermuse it has no salvage value Equipment depreciation shown in the income statement is for this automated testing equipment Equipment losses are included in the bonus and operating profit computation Because the new machine will be installed on a company holiday, there will be no effect on operations from the changeover, noto any possible tax effects. Assume that the data given in your expected income statement are the actual amounts for this year and next year if the current equipment is kupt Required: The Case Brief response to the questions below is a 23 page paper submitted to instructor prior to the start of the Thursday class (Due Date: Thursday, 01/27/2022 5:00 PMD. The case brief must be in an APA format. The case study will be discussed in class on Thursday, 01/27/2022 2. Assume the new toning oquipment is rented and installed on December 31, What will be the impact on this year's divisional operating profil b. Assume the new testing equipment is rented and installed on December 31. What will be the impact on next year's divisional operating pro c. Would you root the new aptent
