Differential Analysis Report for Machine Replacement Proposal

Flint Tooling Company is considering replacing a machine that has been used in its factory for four 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

Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should

indicate the differential income that would result over the six$-$year period if the new machine is acquired.

Flint Tooling Company

Proposal to Replace Machine

Differential Analysis Report