Use this information for Stryker Industries to answer the question that follow. Stryker Industries received an offer from an exporter for 30,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: $23 Domestic unit sales price Unit manufacturing costs: Variable 11 Fixed 5 What is the amount of income or loss from the acceptance of the offer? Oa. $150,000 income Ob. $690,000 loss Oc. $480,000 income Od. $330,000 loss Starling Co. is considering disposing of a machine with a book value of $24,400 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased a cost of $69,700. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $23,300 to $19,400 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is an) Oa. decrease of $57,980 Ob. increase of $44,600 Oc. decrease of $44,600 Od increase of $57,980 Mighty Safe Fire Alarm is currently buying 57,000 motherboards from Motherboard, Inc. at a price of $66 per board. Mighty Safe is considering making its own motherboards. The costs to make the motherboards are as follows: direct materials, $28 per unit; direct labor, $9 per unit; and variable factory overhead, $16 per unit. Fixed costs for the plant would increase by $79,000. Which option should be selected and why? Oa. buy, $79,000 more in profits Ob. buy, $661,770 more in profits Oc. make, $741,000 increase in profits Od, make, $661,770 increase in profits Keating Co. is considering disposing of equipment with a cost of $56,000 and accumulated depreciation of $39,200. Keating Co. can sell the equipment through a broker for $30,000, less a 7% broker commission. Alternatively, Gunner Co. has offered to lease the equipment for five years for a total of $49,000. Keating will incur repair, insurance, and property tax expenses estimated at $11,000 over the five-year period. At lease-end, the equipment is expected to have no residual value. The net differential income from the lease alternative is Oa. $7,070 Ob. $10,100 Oc. $15,150 Od. $12,120