problem 1 and 2

Rory Company has an old machine with a book value of $79,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $107,000. Rory can sell its old machine now for $84,000. The old machine has variable manufacturing costs of $37,000 per year. The new machine will reduce variable manufacturing costs by $14,800 per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Prepare a keep or replace analysis of income effects for the machines. QS 23-20 (Algo) Special offer pricing LO P7 Radar Company sells bikes for $460 each. The company currently sells 4,300 bikes per year and could make as many as 4,630 bikes per year. The bikes cost $235 each to make: $185 in variable costs per bike and $50 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 330 bikes for $420 each. Incremental fixed costs to make this order are $80 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer