Keep or Replace Machine: Sl-(iles 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 $437,200 Current accumulated depreciation 303,500 Estimated annual variable manufacturing costs for machine 73,600 Estimated selling price of machine 172,100 Estimated remaining useful life (in years) 6 New Machine: Purchase cost $801,400 Estimated annual variable manufacturing costs for machine 45,850 Estimated residual value 0 Estimated useful life (in years) 6 Select the relevant or irrelevant information below: Annual variable costs of old machine Relevant V Selling price of eld machine Relevant ' Matching lives Relevant v 'K'K'K'. Purchase price of new machine Relevant ' Accumulated depreciation of old machine II'I'EIEVBH'E ' J Fill in the differential analysis. Replace or Keep Decision Differential Analysis Report Cost of replacing old machine: Annual differential decrease in cost $:I X x number of years :I J Total differential decrease in cost :I X Proceeds from sale of present machine I 172,100 I J $I I X Cost of new machine 801,400 J Net differential (increase)/decrease in cost, six year total $:] X