Answer Happy

Riener Hospital has an X-ray machine with a book value of $60,000 and a remaining useful life of three years. At the end of the three years the equipment will have a zero-salvage value. Reiner can sell the old machine now for $32,000 and can purchase a new machine for $145,000. The old machine has variable manufacturing costs of $50,000 per year. The new machine will reduce variable manufacturing costs by $27,000 per year over the three-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is.
Minor Electric has received a special one-time order for 1,500 light fixtures (units) at $5.00 per unit. Minor currently produces and sells 7.500 units at $6.00 each. This level represents 75% of its capacity Production costs for these units are $4.50 per unit, which includes $3.00 variable cost and $150 fixed cost. Accepting the offer would require incremental fixed general and administrative costs of $1,000. Management expects no other changes in costs as a result of the additional production Should the company accept the special order?