The following are the budgeted profit functions for X Company's two products, A and B, for next year: Product A: P = .40 (R) - $32,370 Product B: P = .52 (R) - $55,320 where R is revenue. Budgeted revenue for the two products are $89,000 and $90,000, respectively. Unavoidable fixed costs for the two products are $12,624 and $23,234, respectively. The company is considering dropping Product B because it appears to be losing money. If it does, the resulting freed-up resources can be used to increase revenue from sales of Product A by $37,500, but that will require $2,600 of additional fixed costs. If X Company drops B and increases revenue from A, firm profits will change by OA: $-1,256 B: $-1,419 C: $-1,604|| OD: $-1,813|| OE: $-2,048|| OF: $-2,314 One of X Company's production machines was badly damaged recently. Unfortunately, the machine was purchased just three years earlier for $50,000. The company must either repair the machine or purchase a new machine. The estimated cost of repairing the machine is $21,000, after which operating costs will be $66,000 a year. It will also require a maintenance check in the second year that is estimated to cost $2,000. A new machine will cost $82,000, but it will be more efficient than the repaired machine, with annual operating costs of only $50,000. Both the repaired machine and the new machine will last for six years, at which time the repaired one would be worthless, and new one would be worth $7,000. If it is not repaired, the damaged machine can be sold immediately for $6,000. Assuming a discount rate of 7%, what is the net present value of repairing the damaged machine instead of buying the new machine? [Use the present value tables in the Coursepack.] A: $-9,070 B: $-11,338 C: $-14,172 D: $-17,715| OE: $-22,144 F: $-27,680