Machine Replacement Decision A company is considering replacing an old piece of machinery, which cost $597,900 and has $350,400 of accumulated deprecation to date, with new machine that has a purchase price of $487,000. The old machine could be sold for $63,400. The annual variable production costs associated with the old machine are estimated to be $157,300 per year for eight years. The annual variable production costs for the new machine are estimated to be $102,200 per year for eight years. a.1 Prepare a differential analysis dated May 29 to determine whether to continue with (Alternative 1} or replace (Alternative 2) the old machine. Il en amourit is zero, enter ** If required, use a minus sign to indicate a loss Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) May 29 Continue Replace with Old Differential Machine Machine Effects (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine 130,000 X 221,000 X Costs Purchase pnce 343,750X 566,150 X 635X Variable productions costs (8 years) 365 X 365 X Profit (Loss) 127 X 34 X 127 X Old 120,000 X Oh My Wor For the continue and replace alternatives subtract the costs from the revenues. Multiply the variable production costs for the eight year life. Determine the differential effect on income of the revenues, costs, and income foss) by subtracting alternative 1 from alternative 2