Starling Co. is considering disposing of a machine with a book value of $23,100 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased at a cost of $66,500. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,800 to $19,700 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is an Oa. increase of $45,400 Ob. decrease of $45,400 c. increase of $59,020 Od. decrease of $59,020 keAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take&inprogres. CengageBrain- CengageNOW2 - New Tab Calculator Keating Co. is considering disposing of equipment with a cost of $56,000 and accumulated depreciation of $39,200. Keating Co. can sell the equipment through a broker for $27,000, less a 9% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $50,000. Keating will incur repair, insurance and property tax expenses estimated at $11,000 over the five-year penod. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is a. $14.430 b. $21,645 c. $10,101 Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product to produce Product D. Product is currently selling for $21.90 per pound and costs $14.90 per pound to produce. Product D would sell for $42.60 per pound and would require an additional cost of $8.50 per pound to produce. What is the differential cost of producing Product D? Oa. $8.50 per pound b. $6.80 per pound Oc. $10.20 per pound d. $5.10 per pound