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Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of

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Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual non-manufacturing operating expenses $89,070 8,915 23.445 6,105 Annual revenue 74 115 Current estimated selling price of machine 29 520 New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, excluding depreciation 19.965 Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine, Required: 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period I the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. there is no amount or an amount is zero, enter 0 A colon () will automatically appear if required 2. List other factors that should be considered before a final decision is reached Umerential Analysis 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative f) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "O". A colon () will automatically appear it required. Differential Analysis Continue with (Alternative 1) or Replace (Alternative 2) Old Machine April 30 Continue with Old Machine Replace Old Machine (Alternative 2) Differential Electon Income (Altensative 2) (Alternative 1)

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