Blossom Company has a machine that affixes labels to bottles. The machine has a book value...
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Blossom Company has a machine that affixes labels to bottles. The machine has a book value of $81,600 and a remaining useful life of 3 years and no salvage value. A new, more efficient machine is available at a cost of $306,000 that will have a 3-year useful life with no salvage value. The new machine will lower annual variable production costs from $530,400 to $418,200. Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Retain Equipment Variable manufacturing costs New machine cost Net savings over 3 years Replace Equipment Net Income Change $ Blossom Company has a machine that affixes labels to bottles. The machine has a book value of $81,600 and a remaining useful life of 3 years and no salvage value. A new, more efficient machine is available at a cost of $306,000 that will have a 3-year useful life with no salvage value. The new machine will lower annual variable production costs from $530,400 to $418,200. Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Retain Equipment Variable manufacturing costs New machine cost Net savings over 3 years Replace Equipment Net Income Change $
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