Boyer Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $62,600, the accumulated depreciation is $25,000, its remaining useful life is 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 automatic machine that has a purchase price of $130,200. The automatic machine has 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 on present and proposed operations:

	Present Operations		Proposed Operations
Sales	$198,400		$198,400
Direct materials	$67,600		$67,600
Direct labor	47,000
Power and maintenance	4,400		23,200
Taxes, insurance, etc.	1,600		5,200
Selling and administrative expenses	47,000		47,000
Total expenses	$167,600		$143,000

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). Prepare the analysis over the useful life of the new machine. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 4

	Continue with Old Machine (Alternative 1)	Replace Old Machine (Alternative 2)	Differential Effects (Alternative 2)
Revenues:
Sales (5 years)	$fill in the blank 05474e036070f95_1	$fill in the blank 05474e036070f95_2	$fill in the blank 05474e036070f95_3
Costs:
Purchase price	fill in the blank 05474e036070f95_4	fill in the blank 05474e036070f95_5	fill in the blank 05474e036070f95_6
Direct materials (5 years)	fill in the blank 05474e036070f95_7	fill in the blank 05474e036070f95_8	fill in the blank 05474e036070f95_9
Direct labor (5 years)	fill in the blank 05474e036070f95_10	fill in the blank 05474e036070f95_11	fill in the blank 05474e036070f95_12
Power and maintenance (5 years)	fill in the blank 05474e036070f95_13	fill in the blank 05474e036070f95_14	fill in the blank 05474e036070f95_15
Taxes, insurance, etc. (5 years)	fill in the blank 05474e036070f95_16	fill in the blank 05474e036070f95_17	fill in the blank 05474e036070f95_18
Selling and admin. expenses (5 years)	fill in the blank 05474e036070f95_19	fill in the blank 05474e036070f95_20	fill in the blank 05474e036070f95_21
Profit (Loss)	$fill in the blank 05474e036070f95_22	$fill in the blank 05474e036070f95_23	$fill in the blank 05474e036070f95_24