Current Attempt in Progress

Ivanhoe Company has a machine that affixes labels to bottles. The machine has a book value of $$68,800$ and a remaining useful life of $3$ years and no salvage value. A new, more efficient machine is available at a cost of $$258,000$ that will have a $3-$year useful life with no salvage value. The new machine will lower annual variable production costs from $$447,200$ to $$352,600.$

Prepare an analysis showing whether the old machine should be retained or replaced. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Ivanhoe Company has a machine that affixes labels to bottles. The machine has a book value of $$68,800$ and a remaining useful life of $3$ years and no salvage value. A new, more efficient machine is available at a cost of $$258,000$ that will have a $3-$year useful life with no salvage value. The new machine will lower annual variable production costs from $$447,200$ to $$352,600.$

Prepare an analysis showing whether the old machine should be retained or replaced. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Retain Equipment

Replace Equipment

Net Income Change

Net savings over $3$ years

$ $$ $ $$ $

New machine cost

Fixed manufacturing costs $$

$$

Variable manufacturing costsCurrent Attempt in Progress

Ivanhoe Company has a machine that affixes labels to bottles. The machine has a book value of $$68,800$ and a remaining useful life of $3$ years and no salvage value. A new, more efficient machine is available at a cost of $$258,000$ that will have a $3-$year useful life with no salvage value. The new machine will lower annual variable production costs from $$447,200$ to $$352,600.$

Prepare an analysis showing whether the old machine should be retained or replaced. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Ivanhoe Company has a machine that affixes labels to bottles. The machine has a book value of $$68,800$ and a remaining useful life of $3$ years and no salvage value. A new, more efficient machine is available at a cost of $$258,000$ that will have a $3-$year useful life with no salvage value. The new machine will lower annual variable production costs from $$447,200$ to $$352,600.$

Prepare an analysis showing whether the old machine should be retained or replaced. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Retain Equipment

Replace Equipment

Net Income Change

Net savings over $3$ years

$ $$ $ $$ $

New machine cost

Fixed manufacturing costs $$

$$

Variable manufacturing costs