Kim Kwon Diital Components Company assembles dirauit boards by using a marually cperated machine to insert electronic five years, and iks residual value is negligble. On May 4 of the aurrent year, a proposal was made to replace the present manufad estimated usefu ife of five years and na significant residual value. F components. The criginal cost of the machine s ,, the accumulated degreciation a,aseu e was made to rplace the present manufacturing procedure with fully automatic machine that has a purdhase price of $180,0o0. The autonatic machine has an For use in evaluating the proposal, the accountant accumalated the following annual data on present and preposed operations: PresentProposed Operations Operations $205,000$205,000 $72,000$72,000 Sales Diredt materials Direct labor Power and maintenance Taxes, insurance, etc. Selling and administrative expenses Total expenses 51,000 5,000 1,500 45,000 18,000 4,000 45,000 $174,500$139,000 a. Prepare a ifferential analysis dated May 4 to determine whether to continue with the old machine (Altermative 1) or replace the old machine (Alternative 2). Prepare the analysis over the usehul Itfe of the newx nadhine Ya anout s aes et or. For those boxes in which you must enter subtracted or negative runbers use a minus sign, Differential Anahysis Continue with Old Machine (At. 1) or Replace Old Machine (AIt. 2) Hay 4 Continue ReplaceDifferential with oid Machine Machineon Income Effect (Alternative 1) (Alternaltive 2) (Alternative 2) Purchae price ored materals (an Continue ReplaceDifferential Old MachineMachine on Income (Alternative 1) (Alternative 2) (Alternative 2) with Old Effect Revenues: Sales (5 years) Costs: Purchase price Direct materials (5 years) Direct labor (5 years) Power and maintenance (5 years) Taves, insurance, etc. (5 years) Selling and admin. expenses (5 years) Income (Loss) b. Based only on the data presented, should the proposal be accepted? c. Differences in capacity between the two alternatives is to consider before a final decision is made. Check My Work 3 more Check My Work uses remaining Addre