Tomate, inc., a tomato ketchup manufacturing company, was producing at 75 percent of its production capacity, which was 500,000 bottles a year. a retail giant from a different region offered to buy 150,000 bottles of ketchup at $2 per bottle. the normal selling price is $2.25 bottle. based on the given scenario, which of the following tactical decision alternatives should tomate, inc., consider?
a. sell-or-process further
b. keep-or-drop
c. make-or-buy
d. accept-or-reject special order

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