apter 23 Homework Machine replacement decision A company is considering replacing an old piece of machinery, which cost $600,300 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $483,900. The old machine could be sold for $64,300. The annual variable production costs associated with the old machine are estimated to be $157,800 per year for 8 years. The annual variable production costs for the new machine are estimated to be $99,700 per year for 8 years. a.1 Prepare a differential analysis dated December 10 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Line Item Description Revenues: Proceeds from sale of old machine Costs: Differential Analysis Continue with (Alt. 1) or Replace (Alt. 2) Old Machine December 10 Purchase price Variable productions costs (8 years) Profit (loss) Feedback Check My Work Score: 54.57% Continue with Old Machine (Alternative 1) 5071 $ Replace Old Machine Differential Effects (Alternative 2) (Alternative 2) Check My Work For the continue and replace alternatives subtract the costs from the revenues. Multiply the variable production costs for the eight year life. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting Previous Next > 0 000 All work sav Email Instructor 10000 NOV Save and Exit m tv Submit Assignment for Grading A

Machine replacement decision A company is considering replacing an old plece of machinery, which cost $600,300 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $483,900. The old machine could be sold for $64,300. The annual variable production costs associated with the old machine are estimated to be $157,800 per year for 8 years. The annual variable production costs for the new machine are estimated to be $99,700 per year for 8 years. a.1 Prepare a differential analysis dated December 10 to determine whether to continue with (Alternative 1) or replace (Aiternative 2) the old machine. If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. Feodback TCheck My Work For the continue and replace altematives subtract the costs from the revenues. Multiply the variable production costs for the eight year life, Determine the differential effect on income of the rovenues, costs, and income (loss) by subtracting differential effect on income? b. What is the sunk cost in this situation? The sunk cost is $ Machine replacement decision A company is considering replacing an old plece of machinery, which cost $600,300 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $483,900. The old machine could be sold for $64,300. The annual variable production costs associated with the old machine are estimated to be $157,800 per year for 8 years. The annual variable production costs for the new machine are estimated to be $99,700 per year for 8 years. a.1 Prepare a differential analysis dated December 10 to determine whether to continue with (Alternative 1) or replace (Aiternative 2) the old machine. If an amount is zero, enter " 0 ". If required, use a minus sign to indicate a loss. Feodback TCheck My Work For the continue and replace altematives subtract the costs from the revenues. Multiply the variable production costs for the eight year life, Determine the differential effect on income of the rovenues, costs, and income (loss) by subtracting differential effect on income? b. What is the sunk cost in this situation? The sunk cost is $