Exercise 23-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42.000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33100 per year for this machine. Information on two alternative replacement machines follows Alternative A Alternative B Cost Variable manufacturing costs per year $118,000 22, 600 $117,000 10,200 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