A machine with a book value of $248,000 has an estimated 6-year life. A proposal is offered to sell the old machine for $217,400 and replace it with a new machine at a cost of $281,700. The new machine has a 6-year life with no residual value. The new machine would reduce annual direct labor costs from $50,700 to $40,600.

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Prepare a differential analysis dated October 3 on whether to Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2). If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign.

	Continue with Old Machine (Alternative 1)	Replace Old Machine (Alternative 2)	Differential Effect (Alternative 2)
Revenues:
Proceeds from sale of old machine	$fill in the blank ee5ac1f5c07701e_1	$fill in the blank ee5ac1f5c07701e_2	$fill in the blank ee5ac1f5c07701e_3
Costs:
Purchase price	fill in the blank ee5ac1f5c07701e_4	fill in the blank ee5ac1f5c07701e_5	fill in the blank ee5ac1f5c07701e_6
Direct labor (6 years)	fill in the blank ee5ac1f5c07701e_7	fill in the blank ee5ac1f5c07701e_8	fill in the blank ee5ac1f5c07701e_9
Profit (loss)	$fill in the blank ee5ac1f5c07701e_10	$fill in the blank ee5ac1f5c07701e_11	$fill in the blank ee5ac1f5c07701e_12