Answer:-
Question .1 = Option (C) $35
Dffrential Revenue= selling price with further process ung - selling price after further proccesing
= $95-$65
= $35
Question.2 = Option (A) $4
Contribution margin per Machine hrs for tales
= (Selling price - vatale post )/ No of machine hrs
= ( $78 - $50 )/ 7 hrs
= $4 per machine hour
Question.3 = Option (B) Competition based pricing
Question.4 = Option (D) $14160
Written Down value of equipment = $50000-$40600= $9400
Net Income under Leasing Option
=$27000-8%*$27000-$9400 = $15440
Net Income under lease option
=$50000-$11000-$9400 = $29600
Hence Differential net income under lease option will be
= $29600-$15440= $14160
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