1. New equipment being considered by the Johnny Pickles Brewing Company is projected to increase current...

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1. New equipment being considered by the Johnny Pickles BrewingCompany is projected to increase current sales from $12850 to$14291. Direct labor resulting from increased production will gofrom $3732 to $4659. Direct material will increase from $4382 to$4903. Variable overhead is expected to stay the same at $961. Thefixed expenses are expected to stay the same at $1038. What is thechange to the Johnny Pickles Brewing Company net operating incomeif the brewery decides to proceed with the purchase of the newequipment? Increases in net operating income should be expressed asa positive number while decreases should be expressed as a negativenumber.
2. New equipment being considered by the Johnny Pickles BrewingCompany is projected to increase current sales from $11355 to$12376. Direct labor resulting from increased production will gofrom $4015 to $5755. Direct material will increase from $3463 to$4037. Variable overhead is expected to stay the same at $563. Thefixed expenses are expected to stay the same at $1170. What are thetotal differential direct labor costs for the Johnny PicklesBrewing Company if it decides to purchase the new equipment?

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Part 1 Johnny Pickles Brewing Company Income statement Current Projected Differential incomecost Sales 1285000 1429100 144100 Less Variable cost Direct labor See Answer

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1. New equipment being considered by the Johnny Pickles BrewingCompany is projected to increase current sales from $12850 to$14291. Direct labor resulting from increased production will gofrom $3732 to $4659. Direct material will increase from $4382 to$4903. Variable overhead is expected to stay the same at $961. Thefixed expenses are expected to stay the same at $1038. What is thechange to the Johnny Pickles Brewing Company net operating incomeif the brewery decides to proceed with the purchase of the newequipment? Increases in net operating income should be expressed asa positive number while decreases should be expressed as a negativenumber.2. New equipment being considered by the Johnny Pickles BrewingCompany is projected to increase current sales from $11355 to$12376. Direct labor resulting from increased production will gofrom $4015 to $5755. Direct material will increase from $3463 to$4037. Variable overhead is expected to stay the same at $563. Thefixed expenses are expected to stay the same at $1170. What are thetotal differential direct labor costs for the Johnny PicklesBrewing Company if it decides to purchase the new equipment?