10 points smpped eBook HI'1L Pm Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of 9548.000 and a remaining useful life of ve years. It can be sold now for $58,000. Variable manufacturing costs are $46,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 122,000 S l3Q,UUD Variable manufacturing costs per year 13,000 14,000 ta} Compute the income increase or decrease from replacing the old machine with Machine A. 1b] Compute the income increase or decrease from replacing the old machine with Machine B. it) Should Lopez keep or replace its old machine? id] If the machine should be replaced, which new machine should Lopez purchase? Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be Indicated with a minus sign.) Revenues Sale of exisiing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) Req A Fieq B Req C and D Compute the income increase or decrease from replacing the old machine with Machine 3. (Amounts to be deducted should be Indicated with a minus sign.) Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) Req A Req B Req C and D (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? (c) Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase?