Differential Analysis Report for Machine Replacement Proposal Franklin Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $108,700 Annual depreciation (straight-line) 10,870 Annual manufacturing costs, excluding depreciation 39,200 Annual nonmanufacturing operating expenses 11,300 Annual revenue 95,500 Current estimated selling price of the machine 35,500 New Machine Cost of machine, six-year life $136,200 Annual depreciation (straight-line) 22,700 Annual manufacturing costs, excluding depreciation 18,300 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.Required: 1. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Franklin Printing Company Proposal to Replace Machine Differential Analysis Report Number of years applicable 2. What are some of the other factors that should be considered before a final decision is made? 1. Are there any improvements in the quality of work turned out by the new machine? 2. What other opportunities are available for the use of the funds that are required to purchase the new machine? 3. What effect does the federal income tax have on the decision? 4. What is the book value of the machine that will be replaced? Select the relevant factor(s) from the list above.Total Cost Concept of Product Costing Willis Products Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The costs of producing and selling 7,000 units of medical tablets are as follows: Variable costs per unit: Fixed costs: Direct materials $94 Factory overhead $224,000 Direct labor 34 Selling and admin. exp. 77,000 Factory overhead 29 Selling and admin. exp. 23 Total $130 ) Willis Products desires a profit equal to a 25% rate of return on invested assets of $412,104. a. Determine the amount of desired prot from the production and sale of 7,000 units. 4:] b. Determine the total costs for the production of 7,000 units. Variable ${:] Total $:] Determine the cost amount per unit for the production and sale of 7,000 units. 5:] per unit c. Determine the total cost markup percentage per unit. [rounded to one decimal place]. d. Determine the selling price per unit. Round to the nearest cent. 5:] per unit