70.2K

Verified Solution

Link Copied!

answer all three for a thumbs up please

Starling Co. is considering disposing of a machine with a book value of $24,900 and estimated remaining life of five years. The old machine can be sold for \$5,700. A new high-speed machine can be purchased at a cost of 65,100 . It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,800 to $21,000 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n) inctase of 550,400 b. decrcase of $65.520 c. increase of 565,520 d. decrnase of 5$0,400 Lofty Airlines has a flight for which the regular ticket price is $2.00 and the variabie costs per passenger are $50. Fixed costs assigned to each fight are \$12,000. Each flight has a capacity of 125 seats, with an average of 95 seats sold at the regular price. To attract customers to the last 30 unsold seats, Lofty discounts the tickets by 50% for standby passengers. The contribution margin per standby passenger is a. 5100 b. 5150 c. $25 d. 550 The condensed income statement for a Fletcher inc. for the past year is as follows: Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. The amount af change in profit for the current year that will result from the discontinuance of Product G is a 2590,000 decrease b. $30,000 incroue c $20,000 lacrane A. 320,000 docrease

Answer & Explanation Solved by verified expert

See Answer