(Solved): Warner Corporation purchased a machine 7 years ago for \( \$ 398,000 \) when it launched product \ ...

Warner Corporation purchased a machine 7 years ago for \( \$ 398,000 \) when it launched product \( \mathrm{P} 50 \). Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 300 machine costing \( \$ 389,350 \) or by a new model 200 machine costing \( \$ 339,600 \). Management has decided to buy the model 200 machine. It has less capacity than the model 300 machine, but its capacity is sufficient to continue making product P50. Management also considered, but rejected, the alternative of dropping product \( \mathrm{P} 50 \) and not replacing the old machine. If that were done, the \( \$ 339,600 \) invested in the new machine could instead have been invested in a project that would have returned a total of \( \$ 468,400 \). Required: 1. What is the total differential cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?