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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life
Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for 9552.000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price 5 115,066 $ 125,066 Variable manufacturing costs per year 19,666 15,066 [3} Compute the income increase or decrease from replacing the old machine with Machine A. lb} Compute the income increase or decrease from replacing the old machine with Machine El. [1:] Should Lopez keep or replace its old machine? [d] lfthe machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Rea C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) Revenues Sale of existing machine Purchase of new machine Variable manufacturing costs Income {loss} Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 115,066 5 125,066 Variable manufacturing costs per year 19,066 15,066 [3} Compute the income increase or decrease from replacing the old machine with Machine A. [b] Compute the income increase or decrease from replacing the old machine with Machine B. (1:) Should Lopez keep or replace its old machine? [d] If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) ( Rqu ReqCandD ) Lopez lCompany is considering replacing one of its old manufacturing machines. The old machine has a book value of$45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $30000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B Purchase price $ 115,000 $ 125,000 Variable manufacturing costs per' year' 19,000 15,000 in} Compute the income increase or decrease from replacing the old machine with Machine A. lb} Compute the income increase or decrease from replacing the old machine with Machine B. it] Should Lopez keep or replace its old machine? id} lfthe machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Req A Req B Req C and D {c} Should Lopez keep or replace its old machine? {d} If the machine should be replaced, which new machine should Lopez purchase? (c) Should Lopez keep or replace its old machine? (d) Which new machine should Lopez purchase?
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