Sales Direct materials Direct labor Power and maintenance Taxes, insurance, etc. Selling and administrative expenses Total...
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Sales Direct materials Direct labor Power and maintenance Taxes, insurance, etc. Selling and administrative expenses Total expenses Present Proposed Operations Operations $177,200 $177,200 $60,400 $60,400 41,900 3,900 20,700 1,400 4,600 41,900 41,900 $149,500 $127,600 a. Prepare a differential analysis dated October 1 to determine whether to continue with (Altemative 1) or replace (Altemative 2) the old machine. Prepare the analysis over the useful life of the new machine. 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 October 1 Continue with Line Item Description Revenues: Replace Old Machine Differential Effects Old Machine (Alternative 1) (Alternative 2) (Alternative 2) Sales (5 years) Costs: Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Taxes, insurance, etc. (5 years) Selling and admin. expenses (5 years) Profit (loss) Q 000000Q Sales Direct materials Direct labor Power and maintenance Taxes, insurance, etc. Selling and administrative expenses Total expenses Present Proposed Operations Operations $177,200 $177,200 $60,400 $60,400 41,900 3,900 20,700 1,400 4,600 41,900 41,900 $149,500 $127,600 a. Prepare a differential analysis dated October 1 to determine whether to continue with (Altemative 1) or replace (Altemative 2) the old machine. Prepare the analysis over the useful life of the new machine. 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 October 1 Continue with Line Item Description Revenues: Replace Old Machine Differential Effects Old Machine (Alternative 1) (Alternative 2) (Alternative 2) Sales (5 years) Costs: Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Taxes, insurance, etc. (5 years) Selling and admin. expenses (5 years) Profit (loss) Q 000000Q
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