boyer digital components company assembled circuit boards by using a manually operated machine to insert electrical components.

eBook Printeen Ciferential Analysis for Machine Replacement Boyer Digital Components Company assembles circuit boards by using a manually operated machine to Insert electronic components. The original cost of the ma five years, and its residual value is negligible. On May 4 of the current year, a proposal was made to replace the present manufacturing procedure with a fully au an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data Present Operations Proposed Operations $245,000 Sales $245,000 383,500 583,500 Direct materials Direct labor Power and maintenance 58.000 5,400 1,900 58,000 $206,800 28,600 6.400 Taxes, insurance, etc. Selling and administrative expenses Total expenses 58,000 $176,500 a. Prepare a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). enterTo". If required, use a minus sign to indicate a loss. 13 mually operated machine toner electronic components. The original cost of the machine is 577,300, the accumulated depreciation is $30,000, it remaining edullife a proposal was made to replace the present manufacturing procedure with a fly automatic machine that has purchase price of $160,000. The wtomatic machines Be in evaluating the proposal the accountant accumulated the following annual data on present and proposed operations: Proposed Operations $245,000 $83,500 26,600 5,400 58,000 $170,500 inue with the old machine Alternative 1) or replace the old machine (Alternative 2. Prepare the analysis over the useful life of the new machine. If an amount is zero (Alt. 2) Total expenses $206,800 $176,500 . Prepare a differential analysis dated May 4 to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). Pre enter" if required, use a minus sign to indicate loss. Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 4 Continue with Old Replace Differential Machine Old Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Sales (5 years) Cost: Purchase price Direct materials yours) Direct labor (5 years) Power and maintenance (5 years) Takes Insurance, H. (years) Selling and admine (5 years) Profit (Los O blog 00000000 IIIITTO $8.000 3,000 5.600 5176,500 her to continue with the old machine (1) lace the old machine (Alternative rear the analyse over the wall of the new machine. If Id Machine (Alt. 2) Replace Differential IdMachine Elects ternative 2) Alternative 23 Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Taxes, insurance, etc. (5 years) Selling and admin, expenses (5 years) Profit (Loss) b. Based only on the data presented, should the proposal be accepted? c. Differences in capacity between the two alternatives is to consider before a tinal decision is made Check My Work 10 more Check My Work uses remaining *