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Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus
Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Income Increase Machine A: Keep or Replace Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine $ 0 $ 55,000 Costs Purchase of new machine $ 0 (121,000) Variable manufacturing costs $ 101,000 Income (loss) $ 101,000 $ (66,000) $ 35,000 < Req A Req B > Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Income Increase Machine B: Keep or Replace Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) $ 0 $ 0 $ 0
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