A commercial oven with a book value of $68,900 has an estimated remaining 5-year life. A proposal is offered to sell the oven for $8,320 and replace it with a new oven costing $112,600. The new machine has a 5-year life with no residual value. Annual maintenance costs for the old machine were $51,200. The new machine would reduce annual maintenance costs by $24,800.

Provide a differential analysis on the proposal to replace the commercial oven. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Differential Analysis
Continue with Old Oven (Alternative 1) or Replace Old Oven (Alternative 2)
	Continue with Old Oven (Alternative 1)		Replace Old Oven (Alternative 2)		Differential Effects (Alternative 2)
Revenues:
Proceeds from sale of old oven	fill in the blank 1		fill in the blank 2		fill in the blank 3
Costs:
Purchase price	fill in the blank 4		fill in the blank 5		fill in the blank 6
Variable maintenance costs (5 years)	fill in the blank 7		fill in the blank 8		fill in the blank 9
Total costs	$fill in the blank 10		$fill in the blank 11		$fill in the blank 12
Profit (loss)	$fill in the blank 13		$fill in the blank 14		$fill in the blank 15