Cu rrent Attempt in Progress Cherry, |nc., currently has a machine that costs $50,000 per year to operate. The machine can produce 60,000 units per year. Two years ago, the company borrowed $450,000 to purchase the machine; it still owes $325,000 of that amount. Cherry could sell the machine for $295,000 and purchase a new, more efcient machine at a cost of $480,000. The new machine can produce 85,000 units per year; its annual operating costs would be $55,000. Indicate whether each piece of information in this scenario is relevant or irrelevant to the decision to purchase the new machine. J Relevant Operating cost of old machine Irrelevant A V Production of old machine Purchase price of old machine 1b Loan balance 4} Market value of old machine 1b Cost of new machine 4} Production of new machine 1b Operating cost of new machine eTextbook and Media Save for Later 0 Attempts: 0 of 3 used Cu rrent Attempt in Progress Whispering Winds Company is a leading manufacturer of sunglasses. One of Whispering Winds's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Whispering Winds about purchasing 29,900 pairs of these sunglasses. Whispering Winds's unit manufacturing cost, based on a full capacity of 254,000 units, is as follows: Direct materials $7 Direct labor 5 Manufacturing overhead (75% xed) 19 Total manufacturing costs $31 Whispering Winds also incurs selling and administrative expenses of $75,400 plus $3 per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in manufacturing the sunglasses. Whispering Winds's normal price for these sunglasses is $42 per pair. The sporting goods store has offered to pay $36 per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid. What would be the effect on Whispering Winds's income if the special order were accepted? Whispering Winds's income wi " decrease increase -T-_.J.I_--I. _.-.I IA-_IS_