Svahn, AB, is a Swedish manufacturer of saling yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A: The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Moder B100 machine will continue to be used to capacity as before, with the new Model B3oo machine being used to expand production. This will Increase the company's production and sales. The increase in volume will be large enough to require increases in fored seling expenses and in general odministrative overhead, but not in the fored manufacturing overhead. Case B: The ofd Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B3o0 machine because of the potental savings in direct materials with the new machine. The Model Bioo machine would be sold. This. change will have no effect on production or sales, other than some savings in direct materials costs due to less waste. Required: Based on the information provided above indicate in the appropriate column whether oach item is relevant or irrelevant to the decision context described in Case A and Case B. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Item } \\ \hline a. Sales revenue \\ \hline b. Direct materials \\ \hline c. Direct labor & Case A \\ \hline d. Variable manufacturing overhead \\ \hline e. Depreciation-Model B100 machine \\ \hline f. Book value-Model B100 machine \\ \hline g. Disposal value-Model B100 machine \\ \hline h. Market value-Model B300 machine (cost) \\ \hline i. Fixed manufacturing overhead (general) & \\ \hline j. Variable selling expense & \\ \hline k. Fixed selling expense & \\ \hline I. General administrative overhead & \\ \hline \end{tabular} Svahn, AB, is a Swedish manufacturer of saling yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts. Case A: The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the company's present Model B100 machine. The old Moder B100 machine will continue to be used to capacity as before, with the new Model B3oo machine being used to expand production. This will Increase the company's production and sales. The increase in volume will be large enough to require increases in fored seling expenses and in general odministrative overhead, but not in the fored manufacturing overhead. Case B: The ofd Model B100 machine is not the company's constraint, but management is considering replacing it with a new Model B3o0 machine because of the potental savings in direct materials with the new machine. The Model Bioo machine would be sold. This. change will have no effect on production or sales, other than some savings in direct materials costs due to less waste. Required: Based on the information provided above indicate in the appropriate column whether oach item is relevant or irrelevant to the decision context described in Case A and Case B. \begin{tabular}{|l|l|l|} \hline \multicolumn{1}{|c|}{ Item } \\ \hline a. Sales revenue \\ \hline b. Direct materials \\ \hline c. Direct labor & Case A \\ \hline d. Variable manufacturing overhead \\ \hline e. Depreciation-Model B100 machine \\ \hline f. Book value-Model B100 machine \\ \hline g. Disposal value-Model B100 machine \\ \hline h. Market value-Model B300 machine (cost) \\ \hline i. Fixed manufacturing overhead (general) & \\ \hline j. Variable selling expense & \\ \hline k. Fixed selling expense & \\ \hline I. General administrative overhead & \\ \hline \end{tabular}