Replace Equipment A machine with a book value of $251,000 has an estimated six-year life. A proposal is offered to sell the old machine for $216,100 and replace it with a new machine at a cost of $283,900. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $50,400 to $40,300. Prepare a differential analysis dated October 3 on whether to continue with the old machine (Alternative 1) or replace the old machine (Aiternative 2) i an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) October 3 Continue with Old Machine (Alternative 1) (Alternative 2) Replace Old Machine Differential Effect on Income (Alternative 2) Revenues: Proceeds from sale of old machine $ Costs: Purchase price Direct labor (6 years) Income (Loss) Should the company continue with the old machine (Atemat 1) or nep he a mein ( Accept Business at Special Price Product D is normally sold for $49 per unit. A special price of $31 is offered for the export market. The variable production cost is $24 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume that there is sufficient capacity for the special order Prepare a differential analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Differential Effect on Income Reject Order Accept Order (Alternative 1) (Alternative 2) (Alternative 2) 31 18 49 Revenues, per unit Costs: 24 24 Variable manufacturing costs, per unit 445 4.65 Export tariff, per unit 2.35 25 Income (Loss), per unit 2) Should the special order be rejected (Alternative 1) or accepted (Aermat Accept the special order Process or Sell Product A is produced for $3.38 per pound. Product A can be sold without additional processing for $4.15 per pound or processed further into Product at an additional cost of $0.41 per pound. Product B can be sold for $4.32 per pound. Prepare a differential analysis dated November 15 on whether to sell A (Alternative 1) or process further into B (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Sell Product A (Alt. 1) or Process Further into Product B (Alt. 2) November 15 Differential Effect on Income (Alternative 2) Process Further Sell Product A into Product (Alternative 1) B (Alternative 2) 0.17 4.32 Revenues, per unit 4.15 041 3.79 3.78 Costs, per unit 424 0.53 0.77 Income (Loss), per unit Should Product A be sold (Alternative 1) or processed further into Product &(Atamative 2 Sell Product A
