Question: Just need question marks responded too please. Keep or Replace Machine: Skiles Coporation is a manufacturer of classic rocking chairs. The company has been using

Just need question marks responded too please.

Keep or Replace Machine:

Skiles Coporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine.

Old Machine:
Original cost $431,500
Current accumulated depreciation 305,000
Estimated annual variable manufacturing costs for machine 72,650
Estimated selling price of machine 175,500
Estimated remaining useful life (in years) 6
New Machine:
Purchase cost $813,600
Estimated annual variable manufacturing costs for machine 51,550
Estimated residual value 0
Estimated useful life (in years) 6

Select the relevant or irrelevant information below:

Annual variable costs of old machine RelevantIrrelevantRelevant
Selling price of old machine RelevantIrrelevantRelevant
Matching lives RelevantIrrelevantRelevant
Purchase price of new machine RelevantIrrelevantRelevant
Accumulated depreciation of old machine RelevantIrrelevantIrrelevant

Fill in the differential analysis.

Replace or Keep Decision Differential Analysis Report
Cost of replacing old machine:
Annual differential decrease in cost ?
x number of years

?

Total differential decrease in cost

?

Proceeds from sale of present machine

?

?
Cost of new machine

?

Net differential (increase)/decrease in cost, six year total ?

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