Coronado Company nas a Factory machine with a DOOK value OF p159,UUYU and a remaining userul tire OF 6 years. Anew machine Is available at a cost of $247,000. This machine will have a 6-year useful life with no salvage value. The new machine will lower annual

variable manufacturing costs from $593,500 to $510,000.

Prepare an analysis that shows whether Coronado should retain or replace the old machine. (If an amount reduces the net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000, (15,000).)

Net Income Keep Replace Increase Equipment Equipment (Decrease)

Variable costs

New machine cost