Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help Xinhong Company is considering replacing one ofits manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of

Please help

image text in transcribedimage text in transcribedimage text in transcribed
Xinhong Company is considering replacing one ofits manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost $124,000 $113,000 Variable manufacturing costs per year 22, 300 10 , 700 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced. which alternative new machine should Xinhong purchase? Complete this question by entering your answers In the tabs below. Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outows should be indicated by a minus sign.) Cost to buy new machine $ (124.000) Cash received to trade in old machine 49,000 Reduction in variable manufacturing costs Total change in net income 3% (75.000) Alternative B > Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost $124,000 $113,000 Variable manufacturing costs per year 22,800 10,700 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this questlon by enterlng your answers In the tabs below. Alternative A Alternative B Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outows should be indicated by a minus sign.) Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs ( AlternativeA Xinhong Purchase ) Total change in net income Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative 3 Alternative 5 Cost $124,000 $113,000 Variable manufacturing costs per year 22 , 300 10 , 100 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced. which alternative new machine should Xinhong purchase? Complete this question by entering your answers In the tabs below. Alternative A Alternative B Xinhng Purchase Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? ( Alternative B

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Multicolumn Journal

Authors: Claudia Gilbertson

11th Edition

1337565423, 9781337565424

More Books

Students also viewed these Accounting questions

Question

3. Im trying to point out what we need to do to make this happen

Answered: 1 week ago