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Please see the attachment for the problem and assist with differential analysis report. Thanks. Keep or Replace Machine: Skiles Corporation is a manufacturer of classic
Please see the attachment for the problem and assist with differential analysis report. Thanks.
Keep or Replace Machine: Skiles Corporation is a manufacturer of classic rocking chairs. The company has been using a particular sanding and finishing machine for over 10 years and believes that it may be time to replace the machine. The company is Owing to decide whether replacing the old machine is a wise economic decision. The company's controller pulled together the following information on the old machine and the new possible replacement machine. Old Machine: original cost $447,900 Current accumulated depreciation 334,500 Estimated annual variable manufacturing costs for machine Estimated selling price of machine 176,900 Estimated remaining useful life (in years) New Machine: Purchase cost $790,600 Estimated annual variable manufacturing costs for machine Estimated residual value Estimated useful life (in years) 6 Fill in the differential analysis.l 70,600 48,100 Replace or Keep Decision Differential Analysis Report Cost of replacing old machine: $fill in the blank Annual differential decrease in cost fill in the blank x number of years fill in the blank Total differential decrease in cost fill in the blank Proceeds from sale of present machine Cost of new machine Net differential (increase)/decrease in cost, Y-eu total $fill in the blank fill in the blank $fill in the blank
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