Question 2 Kween Bee Products Ltd is the supplier of honey to Arokya Bee. Kween Bee is in the midst of replacing its machinery that produces the honey supplied to Arokya Bee. The machinery is depreciated at the rate of 25% per annum using the reducing balance method. It currently has a carrying amount of $85,000. The directors are considering replacing all the old machinery with new machinery costing $160,000. The new machinery, if purchased, would cause direct labor costs to fall by $14,000 a year. REQUIRED: Advise the directors of Kween Bee Ltd whether or not they should proceed with the purchase of the new machinery. Justify your answer and include the impacts of Kween Bees decision to replace the machinery on Arokya Bees business.