She determines that the expected useful life of the

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She determines that the expected useful life of the new oven w it would have no salvage value at the end of its useful life. Current Designs would be able to se $10,000 Instructions (a) Prepare an incremental analysis to determine if Current Designs should purchase the ne assuming that the average price for natural gas over the next 10 years will be $0.65 per th (b) Diane is concerned that natural gas prices might increase at a faster rate over the next 10 projects that the average natural gas price of the next 10 years could be as high as $0.85
how that might change your conclusion in (a). Situation 3 One of Current Designs' competitive advantages is found in the ingenuity of its owners and CE involvement in the design of kayak molds and production techniques has led to Current Design industry leader in the design and production of kayaks. This ingenuity was evident in an improv most important component of a kayak, the seat. The "Revolution Seating System" is one-of-a-k that gives unmatched, full contact, under-leg support. It is quickly adjustable with a lever-lock s customizable seat position that maximizes comfort for the rider. Having just designed the "Revolution Seating System", Current Designs must now decide w internally or buy them from an outside supplier. The costs for Current Designs to produce the s Direct materials $20/unit Direct labor $15/unit Variable overhead $12/unit Fixed overhead $20,000 Current Designs will need to produce 3,000 seats this year; 25% of the fixed overhead will be a purchased from an outside vendor. After soliciting prices from outside suppliers, the company d cost $50 to purchase a seat from an outside vendor. Instructions (a) Prepare an incremental analysis showing whether Current Designs should make or buy th System." (b) Would your answer in (a) change if the productive capacity released by not making the se produce income of $20,000? NOTE: Enter a number in cells requesting a value; enter either a number or a formula in Situation 1 (a) Prepare an incremental analysis to determine whether Current Designs should accept this produce the coolers.

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