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	$89,070
Annual depreciation (straight-line)	8,915
Annual manufacturing costs, excluding depreciation	23,445
Annual non-manufacturing operating expenses	6,105
Annual revenue	74,115
Current estimated selling price of machine	29,520

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 if 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 "0". A colon (:) will automatically appear if required.

New Machine
Purchase price of machine, six-year life	$119,640
Annual depreciation (straight-line)	19,965
Estimated annual manufacturing costs, excluding depreciation	6,820

Labels Cash flows from investing activities Costs Revenues Amount Descriptions Annual manufacturing costs (6 yrs.) Gain on sale of investments Loss on sale of investments Purchase price Proceeds from sale of old machine Income (Loss)