Sunland's Manufacturing Company can make 100 units of a necessary component part with the following costs:

Direct Materials$126000Direct Labor31000Variable Overhead42000Fixed Overhead30000

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?

Make and save $1000

Buy and save $1000

Make and save $13000

Buy and save $13000

Coronado Industries is considering the replacement of a piece of equipment with a newer model. The following data has been collected:

Old EquipmentNew EquipmentPurchase price$305000$496000Accumulated depreciation122000- 0 -Annual operating costs400000313000

If the old equipment is replaced now, it can be sold for $82300. Both the old equipment's remaining useful life and the new equipment's useful life is 5 years.

Which of the following amounts is irrelevant to the replacement decision?

$183000

$413700

$82300

$496000