OBJ. 1 EX 25-10 Differential analysis for machine replacement using a manually Kim Kwon Digital Components Company assembles circuit boards by of the machine is operated machine to components. The original cost years $00.000, the insert remaining useful life is five the accumulated depreciation is $24,000, its made to replace and its residual value is negligible. On May 4, was will cost $180,000 present manufacturing procedure with a fully automatic machine that re The automatic has an estimated useful life of five years and no significant sidual For use in evaluating the proposal, the accoun the following annual data on present and proposed operations: Proposed Present Operations Operations $205,000 $205,000 Sales 72,000 72,000 Direct materials 51,000 Direct labor 18,000 Power and maintenance 5,000 4,000 1,500 Taxes, insurance, etc. 45,000 Selling and administrative expenses 45,000 $139,000 $174,500 Total expenses a. Prepare a differential analysis dated May 4, 2014, to determine whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 20. Prepare the analysis over the useful life of the new machine should the proposal be accepted? b. Based only on the data presente What are some of the other factors that should be considered before a final decision is made