***EXPLAIN WHY THE WRONG ANSWERS(THE ONES THAT ARE NOT IN BOLD) ARE WRONG.***

8) Frank Co. is currently operating at 80% of capacity and is currently purchasing a part used in its manufacturing operations for $25 unit. The unit cost for Frank Co. to make the part is $30, which includes $3 of fixed costs. If 20,000 units of the part are normally purchased each year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease for making the part rather than purchasing it? a) S60,000 decrease b) $40,000 decrease *c) $40,000 increase d) $60,000 increase 9) Dinkins Inc. is considering disposing of a machine with a book value of $50,000 and an estimated remaining life of five years. The old machine can be sold for $15,000. A new machine with a purchase price of $150,000 is being considered as a replacement. It will have a useful life of five years and no residual value. It is estimated that variable manufacturing costs will be reduced from $70,000 to $45,000 if the new machine is purchased. The net differential increase or decrease in cost for the entire five years for the new equipment is *a) $10,000 increase b) $25,000 decrease c) $10,000 decrease d) $25,000 increase 10) A business received an offer from an exporter for 10,000 units of product at $13.50 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price Unit manufacturing costs: Variable Fisted What is the amount of the gain or loss from acceptance of the offer? a) $75,000 loss b) $40,000 gain *e) $15,000 gain d) $85,000 gain