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Cullumber Company has a machine that affixes labels to bottles. The machine has a book value of $84,800 and a remaining useful life of
Cullumber Company has a machine that affixes labels to bottles. The machine has a book value of $84,800 and a remaining useful life of 3 years and no salvage value. A new, more efficient machine is available at a cost of $318,000 that will have a 3-year useful life with no salvage value. The new machine will lower annual variable production costs from $551,200 to $434,600. ' Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Retain Equipment Replace Equipment Net $ $ Cullumber Company has a machine that affixes labels to bottles. The machine has a book value of $84,800 and a remaining useful life of 3 years and no salvage value. A new, more efficient machine is available at a cost of $318,000 that will have a 3-year useful life with no salvage value. The new machine will lower annual variable production costs from $551,200 to $434,600. Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Retain Equipment Replace Equipment LA $ Net Income Change
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