Homework Answers
| a | |||
| Differential Analysis Report | |||
| Differential revenue from alternatives: | |||
| Revenue from lease | 286000 | ||
| Revenue from sale | 276500 | ||
| Differential Revenue from lease | 9500 | ||
| Differential cost of alternatives: | |||
| Repairs, Insurance, property tax expenses from lease | 25900 | ||
| Commission on sale | 16590 | =276500*6% | |
| Differential cost of lease | 9310 | ||
| Net differential gain from lease alternative | 190 | ||
| b | |||
| Lease Machinery is appropriate plan of action. |
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Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of...
Lease or Sell Decision Sure-Bilt Industries is considering selling excess machinery with a book value of...
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