Exercise #13: Analysis of differences and product prices Morning Coffee Co has an outdated piece of machinery that the company is considering replacing Use the information below for the two pieces of machinery. Prepare a differential analysis to determine if the company should continue with the old piece of machinery (Alternative 1) or replace the piece of machinery (Alternative 2). Old machine: Estimated annual variable manufacturing costs $15.000 Estimated selling price... $3,200 Remaining useful life.... New machine: Purchase price $42.000 Estimated annual variable manufacturing costs $6,000 Estimated residual value Estimated useful life Differential Analysis Continue with Old Machine Alt. 1) or Replace Old Machine (Alt. 2) Replace Differential (Alt.) (Alt. 2) Effect on Income ( A2) Coatings