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Exercise 10-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000

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Exercise 10-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are Alternative A Alternative B $123,e00 Cost Variable manufacturing costs per year22,100 1e, 500 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? in the tabs below. Bpurchase to trade in old machine in variable Alternative B > Exercise 10-12 Keep or replace LO A1 machines. The machine has a book value of $43,000 and a g useful life of 4 at which time its salvage value will be zero. It has a current market value of $53,000. Variable $114,000 1e,5e0 IN in Exercise 10-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $43,000 anda remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $53,000. Variable manufacturing costs are $33,300 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost Variable manufacturing costs per year $123,000 22,100 $114,000 10, 500 Calculate the total change in net income if Alternative A. B is adopted. Should Xinhong keep or replace its manufacturing machine the machine should be re Purchase Xinhong Purchase ive new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Bpurchase Should Xinhong keep or replace its manufacturing machine should Xinhong purchase? the mec new

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