Instructions Labels and Amount Descriptions Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for tour 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 Labels Cash fiows from investing activities Costs Revenues Old Machine Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual non-manufacturing operating expenses Annual revenue Current estimated selling price of machine $89,090 8,705 23,780 6,185 74,385 29,795 Annual manufacturing costs (6 yrs.) Gain on sale of investments Loss on sale of investments Purchase price Proceeds from sale of old machine Income (Loss) New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, excluding depreciation $119,680 19,815 7,075 Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine Required: 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Aternative 2). The analysis should indicste the total dlifferentiel income that would result over the six-year period if the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 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 "O". A colon (:) will automatically appear if required 2. List other factors that should be considered before a final decision is reached. 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. 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 "o" A colon () will automatically appear if required. Differential Analysis Continue with Old Machine (Alternative 1) or Replace Old Machine (Alternative 2) April 30 Continue with Rpce Old Differential Effect Old Machine Alternative 1) Alternative 2)(Alternative 2) Machine on Income 3 | (Label) 5 (Label)