Question 5. (20 marks) Embrace Inc. manufactures a series of glasses. Data from last three years are given below: 2017 2018 2019 Direct material partial productivity Overtime hours worked Defect rate On time delivery Set up time Numbers of machine breakdowns Downtime (hours) Number of products return Throughput time (hours) 0.95 82 0.8 99% 7 0.92 77 1.2 97% 6.6 0.88 72 1.9 96% 6 I 3 4 5 8 9 13 11 9.5 10 15 7 8 You are the controller of Embrace Inc, have been asked by the CFO of the company to review the performance over the past three years using balance scorecard. Use the above given information in your assessment and write a summary report to be presented to the CFO. FleshSlice Lonsdale Inc. replaced the convection oven just six months ago. Today, Commercial Ovens Manufacturing announced the availability of a new convection oven that cooks more quickly with lower operating expenses. The company is considering the purchase of this faster, lower-operating cost convection oven to replace the existing one they recently purchased. Selected information about the two ovens is given below: New Oven $67,000 Original cost Accumulated depreciation Current salvage value Remaining life Annual operating expenses Disposal value in 5 years Existing $70,000 $3,500 $55,000 5 years $10,000 $0 5 years $8,500 $0 a. Required: What costs are sunk? b. What costs are relevant? What are the net cash flows over the next 5 years assuming the bakery purchases the new convection oven? d. What other items should the company consider when making this decision? C