$1$

$10$

points

rUILIIase $|{)}_{L}E$

Variable manufacturing costs per year

$120,000$

$21,000$

$100,060$

$17,000$

$($a$)$ Compute the income increase or decrease from replacing the old machine with Machine $A.$

$($b$)$ Compute the income increase or decrease from replacing the old machine with Machine $B.$

$($c$)$ Should Lopez keep or replace its old machine?

$($d$)$ If the machine should be replaced, which new machine should Lopez purchase?

Complete this question by entering your answers in the tabs below.

Req A Req B Req C and D

Compute the income increase or decrease from replacing the old machine with Machine B$.$

Note: Amounts to be deducted should be indicated with a minus sign.

$\backslash$table$[[$Machine B: Keep or Replace Analysis,Keep,Replace,$\backslash$table$[[$Income Increase$],[($Decrease$)$ from$],[$Replacing$]]],[\backslash$table$[[$Revenues$],[$Sale of existing machine$]]],[\backslash$table$[[$Sale of existing machine$],[$Costs$]]],[$Costs$],[$Purchase of new machine,,,$],[$Variable manufacturing costs$],[$Income $($loss$),$$$,$$$,$$