Instructions Labels and Amount Descriptions ! Differential Analysis Final Questions Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The onginal cost of the machine is s60,10, the acdumulated depreciation is $25,700, its remaining useful life is five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully automatic machine that has a purchase price of $181,990. The automatic machine has an estmated usefut life of five years and no significant For use in evaluating the proposal, the accountant accumulated the following annual data on present and proposed operations residual value Present Proposed Operations 20693000 $206,930.00 71405.00 $71405,.00 0.00 17,850.00 5,475.00 5,955.00 $176,575.00 $140 665.00 2 Sales s Direct materials 57,920.00 4910.00 ,585.00 45,955.00 Direct labor s Power and maintenance Taxes, insurance, etc Selling and administrative expenses 8 Total expenses Previous Required: a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace machine. Refer to the ad A. Prepare the old machine (Alternative 2), prepare the analysis over the useful Me of the new Amount Descriptions for the exact wording subtracted or negative numbers use a minus sign. If there is no amount dr automatically appear if required of the answer choices for text entries. For those boxes in which you must enter an amount szero, enter "O". Acknw B. Based only on the data presented, should the proposal be accepted? C. What are some of the other factors that should be considered before a finaW decision is made