Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information...

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Svahn, AB, is a Swedish manufacturer of sailing yachts. The company has assembled the information shown below that pertains to two independent decision-making contexts Case A The company chronically has no idle capacity and the old Model B100 machine is the company's constraint. Management is considering purchasing a Model B300 machine to use in addition to the compa machine will continue to be used to capacity as before, with the new Model B300 machine being used to expand production. This will ncrease the company's production and sales. The increase in volume will be large enough to require increases in fixed selling ny's present Model B100 machine. The old Model B100 expenses and in general administrative overhead, but not in the fixed manufacturing overhead Case B The old Model B100 mechine is not the company's constraint, but management is considering replacing it with a new Model B300 machine because of the potential savings in direct materials with the new machine. The change will have no effect on production or sales, other than some savings in direct materials costs d Model B100 machine would be sold. This ue to less waste Required: Copy the information below onto your answer sheet and place an X in the appropriate column to indicate whether each item is relevant or irrelevant to the decision context described in Case A and Case B

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