Question: Question 6 Yahya Industries is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement

 Question 6 Yahya Industries is considering replacing a machine that is
presently used in its production process. The following information is available: Old

Question 6 Yahya Industries is considering replacing a machine that is presently used in its production process. The following information is available: Old Machine Replacement Machine $45,000 $35,000 Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs $25,000 $8,000 $0 $0 $7,000 $4,000 Which of the information provided in the table is irrelevant to the replacement decision? Question 7 Baden Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one-time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows

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