Final answer:
The overall impact of the new machine on Flanders manufacturing's costs cannot be determined without knowing the number of parts produced. If the saved variable costs outweigh the increased fixed costs, overall costs will decrease; otherwise, they may increase.
Step-by-step explanation:
The impact of a new machine on the overall costs for Flanders manufacturing depends on the number of parts produced. Since the machine will reduce variable costs per part by $0.15 and increase fixed costs by $18,250 per year, the overall effect on costs will vary. If the reduction in variable costs multiplied by the number of parts produced exceeds the increase in fixed costs, the overall costs will decrease. Conversely, if the reduction in the variable costs does not outweigh the increased fixed costs, the overall costs will increase. Without knowing the number of parts produced, we cannot determine the exact impact on the overall costs. Therefore, the correct answer is 4) Cannot be determined without additional information.