Differential Analysis for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for 4 years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $106,900 Annual depreciation (straight-line) 10,690 Annual manufacturing costs, excluding depreciation 39,400 Annual nonmanufacturing operating expenses 12.300 Annual revenue 95,700 Current estimated selling price of the machine 36,600 New Machine Cost of machine, 6-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, exclusive of depreciation $130,000 23,000 18,400 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Required: 1. Prepare a differential analysis as of November B comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the differential profit that would result over the 6-year period if the new machine is acquired. If an amount is zero, enter "0". If required, use a minus sign to Indicate a loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) Line Item Description Proceeds from sale of old machine Costs Purchase price Annual manufacturing costs (6 yrs.) Profit (loss) November 8 Continue with Old Machine (Alternative 1) Replace Old Machine Differential Effects (Alternative 2) (Alternative 2) 0000 10000. 1000 0