Question: 5.6 will like thank you! Differentiat Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert


Differentiat Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The oriqinal cost of the machine is $79,300, the accumulated depreciation is $31,700, its remaining useful life is 5 years, and its residual value is negligible. On October 1 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $164,900. The automatic machine has an estimated useful life of 5 years and no significant residual value. For use in evaluating the proposal, the managerial accountant aceumulated the foliowing annial data on present and proposed operations: a. Prepare a differential analysis dated October 1 to determine whether to continue with (Altemative 1 ) or replace (Alternative 2) the old machine Prepare the aralysis over the useful life of the new machine. If an amount is zero, enter " 0, If required, use a minus sign to indicate a loss. b. Based only on the data presented, should the proposal be accepted? c. Differences in capacity between the two alternatives is to consider before a final decision is made. Product Cost Method of Product Pricing La Femme Accessories Inc. produces women's handbags. The cost of producing 800 handbags is as follows: The selling and administrative expenses are $17,000. The management desires a profit equal to 22% of invested assets of $250,000. a. Determine the amount of desired profit from the production and sale of 800 handbags. b. Determine the product cost per unit for the production of 800 handbags. c. Determine the product cost markup percentage for handbags. d. Determine the selling price of handbags
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