Replace Equipment proposal is offered A machine with a book value of $249,200 has an estimated six-year life. sell the old machine for $218,000 and replace it with a new machine at a cost of $280,100. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,500 to $39,600 Prepare a differentlal analysis dated October 3 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) October 3 Continue with Old Machine Differential Effect Replace Old Machine (Alternative 1) (Alternative 2) on Income (Alternative 2) Revenues: Proceeds from sale of old machine Costs: Purchase price Direct labor (6 years) Income (Loss) Should the company continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)? Accept Business at Special Price Product D is normally sold for $45 per unit. speclal price of $30 is offered for the export market. The variable production cost is $22 per unit. An additional export tariff of 15 % revenue must be paid for all export products. Assume that there sufficient capacity for the special order. Prepare differentlal analysis dated March 16, on whether to reject (Alternative 1) or accept (Alternative 2) the special order. If required, round your answers to two decimal places. If an zero, enter "0". For those boxes which you must enter subtracted or negative numbers use a minus sign. amount Differential Analysis Reject Order (Alt. 1) or Accept Order (Alt. 2) March 16 Differential Effect on Income Reject Order (Alternative 1) (Alternative 2) Accept Order (Alternative 2) Revenues, per unit Costs: Variable manufacturing costs, per unit Export tariff, per unit Income (Loss), per unit or accepted (Alternative 2)? Should the special order be rejected (Alternative Make or Buy A restaurant bakes its own bread for a cost of $152 per unit (100 loaves), including fixed costs of $33 per unit. A proposal is offered to purchase bread from an outside source for $100 per unit, plus $11 per unit for delivery. Prepare a differentlal analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed costs are unaffected by the those boxes in which you must enter subtracted or negative numbers use a minus sign. decision. If an amount is zero, enter "0". Differential Analysis Make Bread (Alt. 1) r Buy Bread (Alt. 2) July 7 Differential Effect Make Bread Buy Bread (Alternative 1) (Alternative 2) on income (Alternati Sales price $0 $0 en Unit Costs: Purchase price Delivery Variable costs Fixed factory overhead $ Income (Loss) Determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread Process or Sell Product T is produced for $3.44 per pound. Product T can be sold without additional processing for $4.27 per pound pound. Product U can be sold for $4.42 per pound processed further into Product U at an additional cost of $0.46 per Prepare a differentlal analysis dated November 15 on whether to sell T (Alternative 1) or process further into U (Alternative 2). If required, round your answers to the nearest whole dollar. For those boxes in which you must enter subtracted or negative numbers use a minus sign. cia ... Differential Analysis Sell Product T (Alt. 1) or Process Further into Product U (Alt. 2) November 15 Process Further Differential Effect Sell Product T (Alternative 1) ternative (Alternative 2) 2) Revenues, per unit Costs, per unit Income (Loss), per unit Should Product T be sold (Alternative 1) or processed further into Product U (Alternative 2)