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Sheridan Company has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available:

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Sheridan Company has two divisions-Standard and Premium. Each division has hundreds of different types of tennis racquets and tennis products. The following information is available: Premium Division $600000 460000 Total $1000000 Standard Division $400000 300000 $100000 Sales Variable costs Contribution margin Total fixed costs $140000 $300000 What is the break-even point in dollars? $1200000 in with table attempts D. $652174 $1250000 Sunland's Manufacturing Company can make 100 units of a necessary component part with the following costs: Direct Materials Direct Labor Variable Overhead Fixed Overhead $126000 31000 42000 30000 If Sunland's Manufacturing Company can purchase the component externally for $200000 and only $2000 of the fixed costs can be avoided, what is the correct make-or-buy decision? Buy and save $13000 Buy and save $1000 Make and save $1000 Make and save $13000 Vaughn Manufacturing produces three versions of baseball bats: wood, aluminum, and hard rubber. A condensed segmented income statement for a recent period follows: Wood $630000 385000 Aluminum $320000 260000 Hard Rubber $65000 58000 Sales Variable expenses Contribution margin Fixed expenses Net income (loss) Total $1015000 703000 312000 245000 60000 7000 75000 $170000 35000 $ 25000 22000 $(15000) 132000 $180000 Assume none of the fixed expenses for the hard rubber fine are avoidable. What will be total net income if the line is dropped? $173000 $260000 $195000 $45000 Sheridan Company is contemplating the replacement of an old machine with a new one. The following information has been gathered Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs Old Machine $288000 86400 10 years -O- $230400 New Machine $588000 -0- -0- 10 years $170400 If the old machine is replaced, it can be sold for $24000. The net advantage (disadvantage) of replacing the old machine is $36000 $23040 $(5880) $(58800)

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