QS 23-15 Keep or replace LO A1 Rory Company has a machine with a book value of $99,000 and a remaining five-year useful life. A new machine is available at a cost of $123,500, and Rory can also receive $86,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $23,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Incremental Income From Replacing Machine Incremental income (incremental cost) QS 23-16 Product pricing LO P1 Garcia Co. sells snowboards. Each snowboard requires direct materials of $109, direct labor of $39, and variable overhead of $54. The company expects fixed overhead costs of $653,000 and fixed selling and administrative costs of $110,000 for the next year. It expects to produce and sell 10,900 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 10% of total cost? (Round your answer to 2 decimal places.) Selling price Per Unit QS 23-17 Product pricing LO P1 Jose Ruiz wants to start a company that makes snowboards. Competitors sell a similar snowboard for $360 each. Jose believes he can produce a snowboard for a total cost of $305 per unit, and he plans a 20% markup on his total cost. 1-a. Compute Jose's planned selling price. Selling price Per Unit 1-b. Can Jose compete with his planned selling price? Yes No