7. Paula's Pie Co. has a machine that packages her product (pies). The machine has a book value of $18,926, a buyer willing to pay $19,800 cash for it, a remaining useful life of 4 years, and no salvage value. A new, more efficient machine is available at a cost of $223,000 that will have a 4-year useful life with no salvage value. The new machine will reduce annual variable production costs from $100,000 to $48,000 per year. Calculate the total cost savings (or additional cost) from replacing the old machine.