6 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,500 per year for this machine Information on two alternative replacement machines follows 16.7 DONE Alternative $115,000 22,400 Cost Variable manufacturing costs per year Alternative $115.000 10.100 Speed Calculate the total change in net income i Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine if the machine should be replaced, which alternative new machine should Xinhong purchase? Doo Complete this question by entering your answers in the tabs below. Hi Alternative A Alternative Xinhong Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign) ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income 5 KA Alternative B > 6 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $52.000. Variable manufacturing costs are $33,500 per year for this machine Information on two alternative replacement machines follows 16.7 points Cost Variable manufacturing costs per year Alternative A $115,000 22,480 Alternative $115,000 10,10 Calculate the total change in net income if Alternative AB is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? ebook Complete this question by entering your answers in the tabs below. Hint Alternative Are native 8 Xinhong Purchase Print Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign) References ALTERNATIVE 3: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income $ 0 6 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42.000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $52.000 Variable manufacturing costs are $33,500 per year for this machine. Information on two alternative replacement machines follows. 167 points Cost Alternative $115,000 22,400 Alternative B $115,000 10.100 Skipped variable manufacturing costs per year Calculate the total change in net income of Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? 11 the machine should be replaced, which alternative new machine should Xinhong purchase? eBook Complete this question by entering your answers in the tabs below. Hint Point Alternative Alternative B Xinhong Purchase Should Xinhong keep or replace its manufacturing machine if the machine should be replaced, which alternative new machine should Xinhong purchase? References Which option should Xinhong chou?
