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J&H Company has a router platform with a book value of $68,000 and a three-year remaining life. A new router platform is available at a
J\&H Company has a router platform with a book value of $68,000 and a three-year remaining life. A new router platform is available at a cost of $128,000, and J\&H can receive $16,300 for trading in the old router platform. The old router platform has variable manufacturing costs of $54,000 per year. The new router platform will reduce variable manufacturing costs by $31,300 per year over its threeyear life. Should the router platform be replaced? Multiple Choice No, it will decrease income by $17,800 in total. Yes, as it is always important to have current technology. Yes, as will increase income by $31,300 in total Yes, as the company will increase income by $17,800 total. J&H will be not be better or worse off by replacing the router platform
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