Question

prouctwhen ol measure a pe a firm operating s operating under production bottlenecks practice Exercises EE9-1 p 1A Lease or sell Claxon Company of $65,000 that can be sold for $262,000, less a 5% sales conmsson. machine can be leased by Claxon Company end of which there is no residual value. In addition, the repair, i tax expense that would be incurred by Claxon Compan $21,600 over the three years. Prepare a differential analysis on January 12s Claxon Company should lease (Alternative 1) or sell Alternative 2) the mac owns a machine with a cost of $305.000 and accumulated depreciation Alternatively, the for three years for a total of $272,000, at the insurance, and property y on the machine would total EE9-1 p.369 PE 9.1B Lease or sell Timberlake Company owns equipment tion of S60,000 that can be sold for $82.XO, less a 6% sales commission A equipment can be leased by Timberlake Company for five years for a t the end of which there is no residual value. In addition, the repair, insurance tax expense that would be incurred total $7.950 over the five years. Prepare a differential analysis on March 23 as to whether Timberlake Company should lease (Altemative 1) or sell (Altermative 2) the equipment. OBJ. 1 with a cost of $165,000 and accumulated deprecia- ernatively, the otal of $84,600, at and property by Timberlake Company on the equipment would EE9-2 p en PE 9-2A Product TS-20 has revenue of $102,000, variable cost of goods sold of $52,500, variable selling expenses of $21,500, and fixed costs of $35,000, creating a loss from operations of $7,000, Prepare a differential analysis as of September 12 to determine if Product TS-20 should be continued (Alternative ) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. Discontinue a segment OBJ. 1 EE9-2 p 37 PE 9-2B Discontinue a segment OBJ.1 Product IB has revenue of $39.500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision. EE 9-3乒372 Make or buy PE9.3A A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $43 per unit. A proposal is offered to purchase bread from an outside source for $110 per unit, plus $15 per unit for delivery. Prepare a differential analysis dated August 16 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming fixed costs are unaffected by the decision. OBJ.

Answer 1