Differential Analysis for Machine Replacement

Kim Kwon Digital Components Company assembles circult boards by using a manually operated machine to insert electronic components. The original cost of the machine is $$83,700,$ the accumulated depreciation is $$33,500,$ its remaining useful life is $5$ years, and its residual value is negliglble. On May $4$ of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $$174,100.$ The automatic machine has an estimated useful life of $5$ years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations:

$\backslash$table$[[,\backslash$table$[[$Present$],[$Operations$]],\backslash$table$[[$Proposed$],[$Operations$]],],[$Sales$,$$$265,300,,$$$265,300$