View Policies Current Attempt in Progress Cullumber Company has a machine that affixes labels to bottles. The machine has a book value of $102,400 and a remaining useful life of 3 years and no salvage value. A new, more efficient machine is available at a cost of $384,000 that will have a 3-year useful life with no salvage value. The new machine will lower annual variable production costs from $665,600 to $524,800. Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Retain Equipment Replace Equipment Net Income Change Variable manufacturing costs 1996800 1574400 $ 422400 New machine cost 384000 384000 0 Net savings over 3 years $ 38400