Keep or Replace Machine: Skiles Coporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and nishing machine for over 10 years and believes that it may be time to replace the machine. The company is trying to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine, Old Machine: Original cost $421,000 Current accumulated depreciation 318,500 Estimated annual variable manufacturing costs for machine 70,150 Estimated selling price of machine 172,500 Estimated remaining useful life (In years) 6 New Machine: Purchase cost $808,400 Estimated annual variable manufacturing costs for machine 43,600 Estimated residual value 0 Estimated useful life (in years) 6 Select the relevant or irrelevant information below: Annual variable costs of old machine WV v/ Selling price of old machine Relevant v v/ Matching Ilves Relevant ' V/ Purchase price of new machine Relevant ' J Accumulated depreciation of old machine Irrelevant V \\l Fill in the differential analysist Replace or Keep Decision Differential Analysis Report Fill in the differential analysis. Replace or Keep Decision Differential Analysis Report Cost of replacing old machine: Annual differential decrease in cost s: x number of years I: Total differential decrease in cost I: Proceeds from sale of present machine :] Cost of new machine Net differential (increase)/decrease in cost, six year total