## Answers

a.

Differential Analysis | |||

Lease Machinery (Alt.1) or Sell Machinery ( Alt.2) | |||

May 25 | |||

Lease Machinery (Alternative 10 | Sell Machinery (Alternative 2) | Differential Effect on Income ( Alternative 2) | |

Revenues | 285,600 | 275,300 | -10,300 |

Costs | -25,100 | -13765 | 11,335 |

Income (Loss) | 260,500 | 261,535 | 1,035 |

b. On the basis of the data presented, would it be advisable to **sell the machinery**

The net gain from selling is $1,035.

*Kindly comment if you need further assistance. Thanks‼!*

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