Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $48,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Purchase price Machine A $ 119,000 20,000 Machine B $ 131,000 12,000 Variable manufacturing costs per year. (a) 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. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Answer is not complete. 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 A. (Amounts to be deducted should be indicated with a minus sign.) Machine A: Keep or Replace Keep Replace Income Increase (Decrease) from Replacing Analysis Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs 243,000 Income (loss) $ $ $ 0 $ (48,000) x (48,000) $ 56,000 119,000 20.000 x 195,000 S Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $46,000 and a remaining useful life of five years. It can be sold now for $56,000. Variable manufacturing costs are $48,000 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 Purchase price $ 119,000 Machine B $ 131,000 12,000 Variable manufacturing costs per year. 20,000 replacing the old machine with Machine A. (a) Compute the income increase or decrease from (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Answer is not complete. 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.) Machine B: Keep or Replace Keep Replace Income Increase (Decrease) from Replacing Analysis Revenues Sale existing machine Costs Purchase new machine Variable manufacturing costs $ 0 Income (loss) $ 0 $ 0