Lease or Sell Bullwinkle Company owns equipment with a cost of $362,800 and accumulated depreciation of $54,600 that can be sold for $274,000, less a 4% sales commission. Alternatively, Bullwinkle Company can lease the equipment for three years for a total of $288,000, at the end of which there is no residual value. In addition, the repair, insurance, and property tax expense that would be incurred by Bullwinkle Company on the equipment would total $15,600 over the three year lease. a. Prepare a differential analysis on August 7 as to whether Bullwinkle Company should lease (Alternative 1) or sell (Alternative 2) the equipment. If required, use a minus sign to indicate a loss. Differential Analysis Lease Equipment (Alt. 1) or Sell Equipment (Alt. 2) August 7 Lease Sell Differential Equipment Equipment Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues $ Costs Profit (Loss) Discontinue a Segment Product Tango has revenue of $194,300, variable cost of goods sold of $114,900, variable selling expenses of $32,900, and fixed costs of $60,600, creating an operating loss of $(14,100). a. Prepare a differential analysis as of February 13 to determine if Product Tango should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue Product Tango (Alt. 1) or Discontinue Product Tango (Alt. 2) February 13 Continue Discontinue Differential Product Product Effects Tango Tango (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of goods sold Variable selling and admin. expenses Fixed costs Profit (Loss) $