Kiddy toy corporation needs to acquire the use of a machine to be used in its manufacturing process. the machine needed is manufactured by lollie corp. the machine can be used for 10 years and then sold for $22,000 at the end of its useful life. lollie has presented kiddy with the following options: buy machine. the machine could be purchased for $172,000 in cash. all maintenance and insurance costs, which approximate $17,000 per year, would be paid by kiddy. lease machine. the machine could be leased for a 10-year period for an annual lease payment of $37,000 with the first payment due immediately. all maintenance and insurance costs will be paid for by the lollie corp. and the machine will revert back to lollie at the end of the 10-year period. assuming that a 10% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, find the present value for the following options. ignore income tax considerations

Walsh company manufactures and sells one product. the following information pertains to each of the company’s first two years of operations: variable costs per unit: manufacturing: direct materials $ 25 direct labor $ 12 variable manufacturing overhead $ 5 variable selling and administrative $ 4 fixed costs per year: fixed manufacturing overhead $ 400,000 fixed selling and administrative expenses $ 60,000 during its first year of operations, walsh produced 50,000 units and sold 40,000 units. during its second year of operations, it produced 40,000 units and sold 50,000 units. the selling price of the company’s product is $83 per unit. required: 1. assume the company uses variable costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 2. assume the company uses absorption costing: a. compute the unit product cost for year 1 and year 2. b. prepare an income statement for year 1 and year 2. 3. reconcile the difference between variable costing and absorption costing net operating income in year 1.