A company is considering replacing an old piece of machinery, which cost $605,400 and has $367,000 of accumulated depreciation to date, with a new machine that has a purchase price of $578,650. The old machine could be sold for $250,300. The annual variable production costs associated with the old machine are estimated to be $61,800 per year for eight years. The annual variable production costs for the new machine are estimated to be $17,950 per year for eight years. . Prepare a differential analysis

The area of accounting concerned with the effect of alternative courses of action on revenues and costs.

dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

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Continue with Old Machine (Alternative. 1) or Replace Old Machine (Alternative. 2)

September 13

1		Continue with Old Machine	Replace Old Machine	Differential Effect on Income
2		(Alternative 1)	(Alternative 2)	(Alternative 2)