Stelloh Company reported the following information about the production and sale of its only product during the first month of operations: Selling price per unit $65 Sales $78,000 Direct materials used $25,000 Direct labor $35,000 Variable factory overhead $15,000 Fixed factory overhead $10,000 Variable selling and administrative expenses $3,000 Fixed selling and administrative expenses $5,000 Ending inventory, Direct Materials 0 Ending inventory, Work-in-process 0 Ending inventory, Finished Goods 1,200 units Under variable costing, what is the product cost per unit? A) $30.00 B) $31.25 C) $35.42 D) $39.00

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine