QUESTION 8 Janko Wellspring Inc. has a pump with a book value of $27,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $48,000. Janko can also receive $8300 for trading in the old pump. The new pump will reduce variable costs by $11,200 per year over its four-year life. Should the pump be replaced? O No, because the company will be $5100 worse off in total. O No, Janko will record a loss of $16,600 if they replace the pump. Yes, because income will increase by $5100 in total. Yes, because income will increase by $5100 per year. O No, because income will decrease by $11,200 per year. QUESTION 9 Janko Wellspring Inc. has a pump with a book value of $36,000 and a 4-year remaining life. A new, more efficient pump, is available at a cost of $57,000, Janko can also receive $9200 for trading in the old pump. The new pump will reduce variable costs by $13,200 per year over its four-year life. Should the pump be replaced? O No, Janko will record a loss of $18,400 if they replace the pump. No, because the company will be $5000 worse off in total. Yes, because income will increase by $5000 per year. O No, because income will decrease by $13,200 per year, Yes, because income will increase by $5000 in total. QUESTION 10 Logan Company can sell all of the standard and premier products they can produce, but it has limited production capacity. It can produce 8 standard units per hour or 5 premier units per hour, and it has 35,000 production hours available. Contribution margin per unit is $23.00 for the standard product and $25.00 for the premier product. What is the total contribution margin if Logan chooses the most profitable sales mix? O $8,330,000. $10,930,000 $6,440,000 $9.040,000 $6,160,000