Instructions A company is considering replacing an old piece of machinery, which cost S613,200 and has $332,700 of accumulated depreciation to date, with a new machine that has a purchase price of $545,050. The old machine could be sold for $230,800. The annual variable production costs associated with the old machine are estimated to be $59,550 per year for eight years. The annual variable production costs for the new machine are estimated to be $17,350 per year for eight years. Required: A. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. B. Determine whether the company should continue with (Alternative 1) or replace (Alternative 2) the old machine (2 C. What is the sunk cost in this situation? Labels and Amount Descriptions Differential Analysis Shaded cells have feedback. X Labels April 29 Cash flows from investing activities Costs A. Prepare a differential analysis dated April 29 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon () will automatically appear if required. Score: 49/93 Differential Analysis Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2) April 29 Revenues Amount Descriptions Gain on sale of investments Income (loss) ) Loss on sale of investments Proceeds from sale of old machine Purchase price Total costs Variable production costs (8 years) 1 Continue with Old Machine Replace Old Machine (Alternative 2) Differential Effect on Income 2 (Alternative 1) (Alternative 2) 3 Revenues: 4 Proceeds from sale of old machine $0.00 $230,800.00 $230,800.00 5 Costs: (545,050.00) 6 Purchase price 7 Variable production costs (8 years) 8 8 Total costs 9 Income (LOSS)