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Total Gruden aise Incurs 5 sales commission (1035) on each od McGee Corporation offers Gruden 14.00 per disc for 5.000 disco, HcGee would sell the dies under brand name in not yet served by Gruden. If Gruden accept the offers ncrease from $40,000 to 46,000 twed overhead will incr to new imprinting machine. No sales commission will result from the special order. (15 PTS) Instructions Prepare an incremental analysis for the special order. Should Gruden accept the special order? Why or why not? What assumptions undertie the decision made in part (1) 2. On January 2, 2016, Twilight Hospital purchased a $100.000 special radiology scanner from Bella Inc. The scanne 4 years and was estimated to have no disposal value at the end of its usefule. The straight-line method of deprec scanner. Annual operating costs with this scanner are $105,000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who di the scanner in 2016 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 and has th the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new Scanner value. Jacob agrees to buy the old scanner from Twilight Hospital for $50,000 Instructions (15 PTS) (a) If Twilight Hospital sells its old scanner on January 2, 2017, compute the gain or loss on the sale. (b) Using Incremental analysis, determine if Twilight Hospital should purchase the new scanner on January 2, (C) Explain why Twilight Hospital might be reluctant to purchase the new scanner, regardless of the results in analysis in (b) 3. Cawley Company makes three models of tasers. Information on the three products is given below. (15 Tingler Shocker 83 Sales $300,000 $500,000 Variable expenses 150,000 200,000 Contribution margin 150,000 300,000 Fixed expenses 120,000 230,00 Net Income $ 30,000 $70,0 Fixed expenses consist of $300,000 of common costs allocated to the three products based on relati expenses of $30,000 (Tingler), $80,000 (Shocker), and $35.000 (Stunner). The common costs will models are produced. The other fixed expenses would be eliminated if a model is phased out. net income for Cawley Contralor Cawley Company James Watt, an executive with the company, feels the Stunner line should be discontinued to incre Instructions (a) Compute current net income for Cawley Company. (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $300,000 common costs to the two re relative sales.) (c) Should Cawley eliminate the Stunner product line? Why or why not? loss to the two re Total Gruden aise Incurs 5 sales commission (1035) on each od McGee Corporation offers Gruden 14.00 per disc for 5.000 disco, HcGee would sell the dies under brand name in not yet served by Gruden. If Gruden accept the offers ncrease from $40,000 to 46,000 twed overhead will incr to new imprinting machine. No sales commission will result from the special order. (15 PTS) Instructions Prepare an incremental analysis for the special order. Should Gruden accept the special order? Why or why not? What assumptions undertie the decision made in part (1) 2. On January 2, 2016, Twilight Hospital purchased a $100.000 special radiology scanner from Bella Inc. The scanne 4 years and was estimated to have no disposal value at the end of its usefule. The straight-line method of deprec scanner. Annual operating costs with this scanner are $105,000 Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who di the scanner in 2016 from Bella Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $110,000 and has th the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new Scanner value. Jacob agrees to buy the old scanner from Twilight Hospital for $50,000 Instructions (15 PTS) (a) If Twilight Hospital sells its old scanner on January 2, 2017, compute the gain or loss on the sale. (b) Using Incremental analysis, determine if Twilight Hospital should purchase the new scanner on January 2, (C) Explain why Twilight Hospital might be reluctant to purchase the new scanner, regardless of the results in analysis in (b) 3. Cawley Company makes three models of tasers. Information on the three products is given below. (15 Tingler Shocker 83 Sales $300,000 $500,000 Variable expenses 150,000 200,000 Contribution margin 150,000 300,000 Fixed expenses 120,000 230,00 Net Income $ 30,000 $70,0 Fixed expenses consist of $300,000 of common costs allocated to the three products based on relati expenses of $30,000 (Tingler), $80,000 (Shocker), and $35.000 (Stunner). The common costs will models are produced. The other fixed expenses would be eliminated if a model is phased out. net income for Cawley Contralor Cawley Company James Watt, an executive with the company, feels the Stunner line should be discontinued to incre Instructions (a) Compute current net income for Cawley Company. (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $300,000 common costs to the two re relative sales.) (c) Should Cawley eliminate the Stunner product line? Why or why not? loss to the two re

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