Sunland Industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. A supplier offers to make 13,400 of the assembly part at $5 per unit. If the offer is accepted, Sunland will save all variable costs but no fixed costs. Prepare an analysis showing the total cost saving, if any, Sunland will realize by buying the part. (Enter negative amounts using either a negative sign preceding the number e-3.-45 or parentheseses (45).) Make Net Income Increase (Decrease) Buy $ $ $ Variable manufacturing costs Fixed manufacturing costs Purchase price Total annual cost $ $ The decision should be to the part. Carla Vista Verde manufactures unpainted furniture for the do-it-yourself (DIY)market. It currently sells a table for $66. Production costs per unit are $43 variable and $13 fixed. Carla Vista Verde is considering staining and sealing the table to sell it for $107. Variable costs per unit to finish each table are expected to be an additional $16 per unit, and fixed costs are expected to be an additional $3 per unit. Prepare an analysis showing whether Carla Vista Verde should sell unpainted or finished tables. (Enter negative amounts using either a negative sign preceding the number eg. 45 or parentheses eg. (45).) Process Further Net Income Increase (Decrease) Sell $ 66 $ 107 41 Sales price per unit Cost per unit Variable $ 43 $ 59 Fixed Total $ $ Net income per unit $ $ 22 The tables should be processed further Wildhorse Roofing is faced with a decision. The company relies very heavily on the use of its 60 foot extension lift for work on large homes and commercial properties. Last year, Wildhorse Roofing spent $72,000 refurbishing the lift. It has just determined that another $37,500 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $160,000. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $24,000 per year. Wildhorse Roofing could also rent out the new lift for about $9,500 per year. The old lift is not suitable for rental. The old lift could currently be sold for $23.500 if the new lift is purchased. Prepare an incremental analysis showing whether the company should repair or replace the equipment. (Enter negative amounts using either a negative sign preceding the numberes.-45 or parentheses es. (45).) Retain Equipment Replace Equipment Net Income Increase (Decrease) Operating expenses $ s Repair costs Rental revenue New machine cost Sale of old machine Total cost $ $ Total cost $ Should company repair or replace the equipment? The equipment be replaced. e Textbook a should should not Save for Later Type here to search