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please help solve for variable manufacturing costs for req A and req B Lopez Company is considering replacing one of its old manufacturing machines. The

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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $49,000 and a remaining useful life of four years. It can be sold now for $59,000. 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 Machine B Purchase price $. 116,000 $ 129,000 variable manufacturing costs per year 19.000 15,000 (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? Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts indicated with a minus sign.) Machine A: Keep or Replace Analysis Keep Replace Income Increase (Decrease) from Replacing $ of $ 59,000 Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) $ (116,000) $ $ (192,000) (192,000) $ (57,000) $ 135,000 RoqA ReqB> Req A Req B Req C and D Compute the income increase or decrease from replacing the old machine with Machine B. indicated with a minus sign.) Income Increase (Decrease) from Replacing Keep Replace Machine B: Keep or Replace Analysis $ 59,000 or $ Revenues Sale of existing machine Costs Purchase of new machine Variable manufacturing costs Income (loss) $ $ 0 (129,000) (192,000) $ $ 122,000 (192,000) $ (70,000) $

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