Instructions Labels and Amount Descriptions Differential Analysis Final Questions MI Instructions A company is considering replacing an old place of machinery, which cost $813,200 and has $332,700 of accumulated depreciation to date, with a new machine that has a purchase Dice of $545,060. The old machine could be told to $230.800. The annual variable production gouts associated with the old machine are estimated to be $60,660 per year for eight years. The annual variable production costs for the new machine are estimated to be $17,360 per year for eight years. Required: a Preowo a differentiat anule dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) med machine. Retor to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must en strand or negative number a minus in her las no amount or an amount is zero, unter "en A colon () ww automatically appear it required b. Dedemine whether the company should continue with (Alemative 1) or replace (Altemal ve 2) the old machine What is the son cost in this situation? Differential Analysis Continue with (Alternative. 1) or Replace (Alternative. 2) Old Machine September 13 Continue with Replace Old Old Machine Machine (Alternative 1) (Alternative 2) 1 Differential Effect on Income 2 (Alternative 2) 3 Label 4 5 Label I b. Determine whether the company should continue with Alternative 1) or replace (Alternative 2) the old machine. Continue with old machine O Replace the old machine c. What is the sunk cost in this situation? Book value of the old machine O Future variable production costs Cost of the new machine