Gutenberg Publishers Inc. 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 $120,000 12,000 Annual depreciation (straight-line) Annual manufacturing costs, exduding depreciation 30,000 Annual nonmanufacturing operating expenses Annual revenue 22,500 90,000 Current estimated selling price of the machine 40,000 New Machine Purchase price of machine, 6-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, exduding depreciation $160,000 16,000 7,500 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 30 comparing operations using the present machine (Altemative 1) with operations using the new machine (Altemative 2). The analysis should indicate the total differential profit that would result over the 6-year period if the ne machine is acquired. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential Analysis Continue with (Alt. 1) or Replace (Alt. 2) Old Machine Line Item Description Revenues: Proceeds from sale of old machine Costs: Purchase price Annual manufacturing costs (6 yrs.) Profit (loss) November 30 Continue with Old Machine (Alternative 1) Replace Old Machine Differential Effect (Alternative 2) Q 000 (Alternative 2) 1000 0