Singapore Digital Components Company assembles circuit boards using hand-held machinery to insert electronic components. The original cost of the machine is $60,000, accumulated depreciation is $24,000, its remaining useful life is five years, and its salvage value is zero. On February 20, 20Y9, the company was presented with a proposal to replace the current manufacturing process with a fully automatic machine that will cost $111,000. The automatic machine has an estimated useful life of five years and a residual value of zero. The following annual data information regarding current operations was accumulated from the use of the machine and the results to be produced if the machine in use is replaced by automated equipment: Present Operations Proposed Operations Sales Direct materials Direct labor Power and maintenance Taxes, insurance, etc. $290,000 $ 86,000 $290,000 $ 86,000 40,000 8,000 30,000 4,000 7,000 Selling and administrative expenses 65,000 65,000 Total expenses $203,000 $188,000 Instructions: A. Prepare a differential analysis report to assess whether to continue using the machinery currently in use or to replace it with the automated machine. B. According to the results obtained, should the current machine continue to be used or should it be replaced by the automated machine?