Windsor Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra three ho per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its comput with a faster model that would eliminate all of the overtime processing. Data for the two computers are as follows: Original purchase cost Accumulated depreciation Estimated operating costs Useful life Current Computer $15.000 $5.400 $23.700 5 years New Computer $25,100 $0 $19,600 5 years If sold now, the current computer would have a salvage value of $10,400. If it is used for the remainder of its useful life, the currer computer would have zero salvage value. The new computer is expected to have zero salvage value after five years. Determine whether the current computer should be replaced. (Ignore the time value of money.) Current computer should be The incremental analysis shows that net income for the five-year period will be $ Sheffield Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,800 units of subcomponent JXY per month. Direct materials costs Direct labour costs Variable overhead Fixed overhead" $38.500 28,500 14.900 12.200 "Fixed overhead includes $5,200 supervisor's salary. International Firm agrees to supply Sheffield with 10.800 units per month for a total cost of $156,300. If subcomponent JXY is outsourced, Sheffield will be able to increase the production and sales of its final product by 1,080 units per month; the product is sold for $125 per unit and its average variable costs per unit are $65. The supervisor's salary will be eliminated if subcomponent JXY is outsourced. Prepare an incremental analysis for subcomponent JXY. (If an amount reduces the incremental costs then enter with a negative sign preceding the number eg.-15,000 or parenthesis, eg. (15,000). While alternate approaches are possible, irrelevant fixed costs should be included in both options when solving this problem.) Incremental Costs (Savings) Make Buy S $ $ >