Homework Answers
| Answer | |||
|
a |
|||
| Differential Analysis Report | |||
| Differential revenue from alternatives: | |||
| Revenue from lease | $ 285,500 | ||
| Revenue from sale | $ 274,300 | ||
| Differential Revenue from lease | $ 11,200 | 285500-274300 | |
| Differential cost of alternatives: | |||
| Repairs, Insurance, property tax expenses from lease | $ 24,500 | ||
| Commission on sale | $ 16,458 | 274300*6% | |
| Differential cost of lease | $ 8,042 | 24500-16458 | |
| Net differential gain from lease alternative | $ 3,158 | ||
| b | |||
| Lease Machinery is appropriate plan of action. | |||
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