2440 Letton best Cover Letter-My P. Quis Lesson 7. Shoe B-12x7 Value Booksh. A Summary & The Book Home Uniteddo P Dferental Analysis for Machine Replacement Ridgeway Digital Components Company assembles circuit boards by using a m years, and its residual valus la negligible. On October 1 of the anet Sales Direct materials Direct labor Power and maintanance Taxes, insurance, etc. Selling and administrative expe Tatal expenses Present Proposed Operations Operations $201.300 $201.300 $68.000 $500 47100 1,400 1.000 47,00 23,500 5.300 a. Prepare a differential analysis dated October i to detersite whether to continue with Aative pace (Aerative 2) the old madine epare the analysis aver the the of the new machine. If we'r required, use a minius sign to indicate a loss Differential Analysis Continue with (Alt. 1) or Replace (Alt. 2) old Machine Line Item Description Revenues Sales (5 years) Costs October 1 Continge with Old Machine (Alternative 1) Replace Old Machine Differential Effects (Alternative 2) (Alternative) Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Check My Work Previous t Activate and ofw Alwirk Stand Salt Sage for G Revenues Line Item Description Sales (5 years) Costs: Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Taxes, insurance, etc. (5 years) Selling and admin. expenses (5 years) Profit (loss) October Continue with Old Machine (Alternative 1) Q0000 Replace Old Machine Differential Effects (Alternative 2) (Alternative 2) 0000000 Check My W a. For the continue and replace alternatives subtract the costs from the revenues. Multiply the sales and costs for the 5 year life. Determine the differential effect un income of the revenues, sosts, and incorns (as) by sutom alternative 1 from alternative 2. b. Based only on the data presented, should the proposal be accepted? Should not be accepted c. Differences in capacity between the two alternatives is relevant to consider before a final decision is made. b. Which alterative has the most desirable effect on lecome? c. What is the effect of each alternative on the capacity, the opportunity costs, and tases Check My Work Prev Activate dow