Ch. 23 HW i Saved 4 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. 25 points Cost Variable manufacturing costs per year Alternative A $119,000 22,300 Alternative B $110,000 10,300 eBook Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? 000 Hint Complete this question by entering your answers in the tabs below. Print Alternative A Alternative B Xinhong Purchase Alternative B Calculate the ti -- .et income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) References ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs 22,500 Total change in net income $ 22,500 Ch. 23 HW 0 Saved 4 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. 25 points Cost Variable manufacturing costs per year Alternative A $119,000 22,300 Alternative B $110,000 10,300 eBook Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Hint Complete this question by entering your answers in the tabs below. Print Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.) References ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income $ 0 Ch. 23 HW i Saved 4 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. 25 points Cost Variable manufacturing costs per year Alternative A $119,000 22,300 Alternative B $110,000 10,300 eBook Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? 10 Hint Complete this question by entering your answers in the tabs below. Print Alternative A Alternative B Xinhong Purchase References Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Which option should Xinhong choose?
