ROBLEM 6-INCREMENTAL ANALYSIS What are the two characteristics that describe relevant costs? A. Hickman Manufacturing purchased a piece of equipment costing $15,000 to produce light-up sneakers for adults. The product is not selling, and the firm is losing money on the adult light-up sneakers. If the company stops producing the adult light-up sneakers, the equipment can be sold for $5,000. In addition, the factory is currently at capacity, so if the company stops producing the adult light-up sneakers, it could produce more of its trail running sneakers, which would result in $7,000 of additional income. Pretend you are the CEO of Hickman Manufacturing. B. What type of cost is the $15,000 cost of the equipment? a. Should this impact your decision to stop producing the adult light-up sneakers? i. b. What type of cost is the $7,000 potential additional income from the trail-running sneakers? Should this impact your decision to stop producing the adult light-up sneakers? i. C. Hickman Corp. produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows Product A Product B Product C $40.00 $30.00 Selling price Variable cost per unit Direct labor hours per unit 3 Demand $30.00 $50.00 $35.00 1.5 $10.00 2,000 500 1,000 In what order should Hickman prioritize production of the products