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!!!! Differential Analysas Report for Machine Replacement White Noise Technoligies Inc, assembies circuit bosids by using a manually operated machine to insert electronic components. The
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Differential Analysas Report for Machine Replacement White Noise Technoligies Inc, assembies circuit bosids by using a manually operated machine to insert electronic components. The original cost of the machine is $58,000, the accumulated depreciation is $23,200, its remaining usehil life is fove years, and its residual valiae is zero. A proposal was mode to replace the present manufecturing procedure with a fully automatic machine that wil cost $109,400. 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 current and proposed operations: a. Prepare a differentiat analysis report for the proposal to replace the muchine. Indude in the analysis both the net differential change in costs ancicipated over the five rears and the net annual differential change in costs anticipated. 90 more Cleck My Work uses remanng b. Based only on the data prevented, shaild the proposal be sccepted? C. What are some of the other tactors that should ba considered before a final decsion is made? 1. Do-present and proposed operations provide the same capacity? 2. What are the opportunity costs associated with alternative vses of the 5109,400 ouciay requed to purchase that autionatic machine? 3. Is the product improve of ty uting nutomaric machinerv? 4. What is the took value of the manually operated machine that will pe replaced Step by Step Solution
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