Please show me the step by step answer, I'm totally stuck in it.

I promise I won't copy your work because this is just practice question!!!

Thank you very much!!!!!!!!

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A company has been using a truck for eight years. For this year, this old truck requires repairs estimated at $7,000 to make it road worthy again. The company management is considering to replace the old truck and instead buy a 5-year-old used truck for $7,000 cash. The following costs are estimated for the two trucks:

Old TruckNew Truck

Acquisition cost$30,000$7,000

Repairs$7,000

Annual operating costs

(Gas, maintenance, insurance)$2,580$1,700

During the year, the company is approached by a potential customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers:

Variable costs:

Direct materials$130

Direct labour60

Manufacturing support105

Other costs95

Fixed costs:

Manufacturing support175

Marketing costs65

Total costs630

Markup (50%)315

Targeted selling price$945

Required:

1. Which truck should the company choose if financial factor is the only consideration? Support your answer with computation of the cost savings amount.
2. What is the change in operating profits if the one-time-only special order for 1,030 units is accepted for $550 a unit by the company?