If Diamond Computer Company manufactures carrying cases computers, factory overhead fixed costs will not increase, and...

  

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If Diamond Computer Company manufactures carrying cases computers, factory overhead fixed costs will not increase, and Variable factory overhead costs will be 15% of direct labor cost. A. Prepare differential analysis report dated July 19 to determine if the company should produce (make) or buy (buy) the briefcases (carrying cases) to transport the computers. B. According to the results obtained from the differential analysis, would it be recommendable to produce (make) or buy (buy) the briefcases (carrying cases) to transport the computers? explain. Differential analysis to rent or sell (lease or sell) Inman Construction Company is considering selling a piece of equipment with a book value of $280,000 (original cost of $400,000 less accumulated depreciation of $120,000) for the price of $292,000, less a 5% commission on the sale. In the alternative, the machinery can be leased for a total of $312,000 for five years, after which it is expected to have no residual value. During the lease period, Inman Construction Company's costs for repairs, insurance, and property taxes are expected to be $36,000. Instructions: A. Prepare a differential analysis report, dated January 3, 20Y9, to evaluate the decision to lease or sell the machinery. B. According to the results obtained, would it be advisable to rent or sell the machinery? Differential analysis for machine replacement or to continue its use. If Diamond Computer Company manufactures carrying cases computers, factory overhead fixed costs will not increase, and Variable factory overhead costs will be 15% of direct labor cost. A. Prepare differential analysis report dated July 19 to determine if the company should produce (make) or buy (buy) the briefcases (carrying cases) to transport the computers. B. According to the results obtained from the differential analysis, would it be recommendable to produce (make) or buy (buy) the briefcases (carrying cases) to transport the computers? explain. Differential analysis to rent or sell (lease or sell) Inman Construction Company is considering selling a piece of equipment with a book value of $280,000 (original cost of $400,000 less accumulated depreciation of $120,000) for the price of $292,000, less a 5% commission on the sale. In the alternative, the machinery can be leased for a total of $312,000 for five years, after which it is expected to have no residual value. During the lease period, Inman Construction Company's costs for repairs, insurance, and property taxes are expected to be $36,000. Instructions: A. Prepare a differential analysis report, dated January 3, 20Y9, to evaluate the decision to lease or sell the machinery. B. According to the results obtained, would it be advisable to rent or sell the machinery? Differential analysis for machine replacement or to continue its use.

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A Differential Analysis Report for Diamond Computer Company Make Produce Option Direct Materials 45 Direct Labor 20 Variable Factory Overhead 15 of di... View the full answer