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C v2.ceng entMain.do?invoker-assignments&takeAssignmentSessionLocator-assignment-take;&inprogress; false ngnocccdedurenc D cengage E Cal State Apply[My Honda Car Purchase -Blackboard Learn C BUS129 26615 Busr McGraw-Hill Corre pter S: Homework Differentialanahysis for machine replacement proposal Analysis Final Question Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data assooiated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year lfe $88,890 8,855 Annual manufacturing costs, exduding depreciation23,450 Annual non-manufacturing operating expenses Annual revenue Current estimated selling price of machine 6,275 74,120 29,685 New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufactuning costs, excluding depreciation 119,580 19,900 6,765 Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Check My Work S more Check My Work uses remaining ent Score: 0% ype here to search

Explanation / Answer

Differential Analysis :

2. Other factors that are relevant :

Continue with Old Machine Replace Old Machine Differential Effect on Income Purchase Price of New Machine - 119,580 (119,580) Annual Manufacturing Costs 140,700 ( 23,450 x 6) 40,590 ( 6,765 x 6) 100,110 Proceeds of disposal of old machine ( Opportunity Cost) - 29,685 29,685 Totals 140,700 130,485 10,215

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