Sweet Wave Bakery has a machine that is continuing to break down and requires constant maintenance. The operations manager is estimating that this machine has only 2 more years of life. The machine produces an average of 50 units per day at a cost of $6.50 per unit. The bakery is considering replacing this machine with a similar machine. The new machine would cost $55,000 with a 2 year life but could produce twice the production of the existing machine. The units sell for $8.50. Sweet Wave operates the line with this machine 260 days each year. The sales are equal to production on this line.

Given the information above, what are the consequences of Sweet Wave replacing the machines that is slowing down production because of breakdowns?

Revenues (Retain): Sell price x units per day x 260 days x 2 years Production Costs (Retain): Cost per unit x units per day x 260 days x 2 years Revenues (Replace): Sell price x Units per day (x2) x 260 days x 2 years Production Costs (Replace): Cost per unit x Units per day (x2) x 260 days x 2 years

Please give the following answers:

A. Retain Machines Revenues

B. Retain Machines Production Costs

C. Replace Machines Revenue

D. Replace Machine Production Costs

E. Replace Machine New Macine Costs

F. Revenues Net Income Increase(Decrease)

G. Production Costs Net Income Increase(Decrease)

H. New Machine Costs Net Income Increase(Decrease)

I. Net Income Increase(Decrease) Total

J. Replace Machine Total

K. Retain Machine Total

L. Profits from machine for 2 years- Retain Machine

M. Profits from machine for 2 years- Replace Machine

N. Income Change

O. Cost of Machine