Kim Kwon Digital Components Company Assembles routes by unga yopered machine to set electronic components. The original cost of the machine is 563,400, the accumulated depreciation 125.400. Its remangel eyears, and its residual value is negligible on May of the current years as made to replace the present manufacturing procedure with ly automatic machine that as a purchase pnce of $131.00 The automatic machine has an estimated use of five years and no significant residual value for use in evaluating the propose the accountant accumulated the following annut data on rent and proposed operations Present Proposed Operations Operations Sales 3201.000 5201,600 Direct manale $68,500 168.500 Det labor 47,600 Power and maintenance 4.400 23,500 Teretandet 1.600 5.300 Selling and administrative expenses 47,600 47.600 Tot expert $169,700 $144,900 a. Prepare a differential analysis at May 4, to determine whether to continue with the old machine (Alternatives) or replace the old machine (Alternative 2). Prepare the analysis over the useful life of the new machine. Dan amount is, anter Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 1 Continue with Old Machine Replace Old Machine Dierential Effect on Income (Alternative 1) Alternative 23 Alternative 2) Sales years 1,005,000 1.000.000 Costa Purchase price Direct material is wears) Direct labor 15 years Power and maintenance (5 years) Thes, insurance, st. (5 years Selling and admin expenses (years) Income (1955) Bin Arifor Machine Teplacement com ww Digital components Company Assambles circuit boards by using a manual operated machine to intertelectronic components. The original cost of the machines 363,400, the accumulated depreciation 125.400, its remaining users five years, and its residual values negliga. On May 4 of the current year proposal was made to replace the present manufacturing procedure with a fully automate menine that has a purchase price of $131900. The automatic manne has an estimated teave years and significant residual value. For use in evaluating the proposal, the accountant accumulated the wing data on present and prepared operation! Present Proposed Operations Operations $201.000 $201.000 Direct 180.500 $50,00 Director 47,500 Pomerand maintenant 4.400 23,500 These 1.000 5.300 47.100 49,600 Total $169,700 $144,000 referential analyse dated Hav 4. to determine whether to continue with the old machine (Alternative 1) or replace the maine Alternative 2). Prepare the analysis over the useful life of the new machine 1 an amount is er were Differential Analysis Continue with old Machine (AR) or Replace Old Machine (Alt. 2) May Continue with Dis Machine Replace Od Machine Deferent tect an income Atentative 1) (Altamive 2) (Alternative 2 Sayans LOL.000 100.000 Costa Purchase Direma 366.500 16800 Director 49.500 Power and maintenance 4400 23.500 Tries, 1.600 5.300 gandante expenses 47.000 47,600 5169,700 $144.900 Prepare a realidated May to determine whether to conue with the old machine (Alamat 1)e the old machine (Alternative 2). Prepare the analysis over the ide of the new machine Intrer etter 0 Differential Analysis Continue with Old Machine (AIL. 1) or Replace Old Machine (Alt. 2) May 4 Continue with Old Machine Replaced Machine Diferential Effect on Income (Atematives) (Alternative 2) (Alternative) Se (years) T. L.000 Coute spice Direct mana yard) Direct labor (5 years) Power and maintenance 5 years) Taxence, s. 15 years sing dadin expenses (5 years)