10 2 Exercise 23-10 (Algo) Keep or replace LO P5 points eBook Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $44,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years Purchase price Variable manufacturing costs per year Machine A $ 124,000 21,000 Machine B $ 139,000 14,000 Hint Print References (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 pid 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 A. (Amounts to be deducted should be indicated with a minus sign.) 2 10 points by IG HVITE HI Fren (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 Book Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Hint Income Increase Print Machine A: Keep or Replace Analysis Keep Replace (Decrease) from Replacing References Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) $ 0 $ 0 $ CHA Req B > 2 Complete this question by entering your answers in the tabs below. Req A Req B Req C and D 10 points Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minis sign.) ellook Machine B: Keep or Replace Analysis Replace Income Increase (Decrease) from Replacing Hint Revenues Print Sale of existing machine References Costs Purchase of new machine Variable manufacturing costs Income (loss) $ 0 $ 10 2 (a) it the macnine snouia de replaced, which new machine should Lopez purchase! Complete this question by entering your answers in the tabs below. points Req A Req B Req C and D (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Hint Print References (c) Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase? < Req B Reg C and D >