Exercise 23-10 Keep or replace LO PS Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $37,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $47,000. Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. Alternative Coat Alternativ $121,000 $115,000 Variable manufacturing costa per year 22.400 10.500 Calculate the total change in net income it Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alternative Xinhong Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflow should be indicated by a minus ign) ALTERNATIVE A INCREASE OR (DECREASE IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income $ 0 Alternativ> Exercise 23-10 Keep or replace LO P5 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $37,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $47000, Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows Alternative Alternative $121,000 $115,000 Variable manufacturing costs per year 22.400 10,500 Coat Calculate the total change in net income if Alternative A, B is adopted. Should Xinhang keep or replace its manufacturing machine? the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Alternative Alternative B Xinhong Purchase Calculate the total change in net income if Alternative is adopted. Cash outflow should be indicated by a minus sign) ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME Cont to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income 5 Exercise 23-10 Keep or replace LO P5 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $37,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $47000 Variable manufacturing costs are $34,000 per year for this machine. Information on two alternative replacement machines follows. Alternative Alternative Variable manufacturing conta per your Coat $121,000 22,400 $115,000 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 replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Aternative Alternative Xinhong Purchase should Xinhong keep or replace its manufacturing machine of the machine should be replaced, which aitomative new machine should Xinhong purchase? Which option should Xinhong choose?
