Obj. 1 chine and the new PR 24-2B Differential analysis for machine replacement proposal Flint Tooling Company is considering replacing a machine that a machine that has been used in its fact for two years. Relevant data associated with the operations of the old machine and th machine, neither of which has any estimated residual value, are as follows: DE TIMPLATE Old Machine Cost of machine, eight-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses Annual revenue Current estimated selling price of the machine $38,000 4,750 12,400 2,700 32,400 12,900 New Machine Cost of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, exclusive of depreciation $57,000 9,500 3,400 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Chapter 24 Differential Analysis and Product Pricing 1255 Instructions 1. Prepare a differential analysis as of November 8 comparing op machine (Alternative 1) with operations usin should indicate the differential income that would result over machine is acquired. 15 as of November 8 comparing operations using the present ative 1) with operations using the new machine (Alternative 2). The analysis income that would result over the six-year period if the new List other factors that should be considered before a final decision is reached