Multiple Choice Question 148 Swifty Corporation is contemplating the replacement of an old machine with a new one. The following information has been gathered: Old Machine $208000 62400 10 years New Machine $410000 Price Accumulated Depreciation Remaining useful life Useful life Annual operating costs 10 years $124800 $166400 If the old machine is replaced, it can be sold for $15000. The company uses straight-line depreciation with a zero salvage value for all of its assets. The net advantage (disadvantage) of replacing the old machine is Multiple Choice Question 153 A company has three product lines, one of which reflects the following results: Sales Variable expenses Contribution margin Fixed expenses Net loss $187000 103000 84000 130000 $ (46000) If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company's net income will increase by $6000. increase by $46000. decrease by $84000 decrease by $6000