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8 2 points Check my Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46.000
8 2 points Check my Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46.000 and a remaining useful life of four years. It can be sold now for $56,000. Variable manufacturing costs are $44.000 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 $ 124, Bea $ 139, eee Variable manufacturing costs per year 22,800 (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? 13, eee ebook Hint Complete this question by entering your answers in the tabs below. Print Reg A Reg B Reg C and D References Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be dec be indicated with a minus sign.) Keep Replace Income Increase Decrease) from Replacing S OS 56,000 Machine A: Keep or Replace Analysis Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) (124.000) $ $ (88.000) (88.000) $ (68,000) s 20.000 3 Rega ReqB >
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