Exercise 10-12 Keep or replace LO A1 nhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $40,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $50,000. Variable manufacturing costs are $33,500 per year for this machine. Information on two alternative replacement machines follows. Alternative A $124,00 Alternative B Cost Variable manufacturing costs per year 22,800 10,800 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Purchase keep or replace its manufacturing machine? If the machine should be replaced, which alternative new Should > machine should Xinhong purchase? e to search