Question 3 Send Copy considering the purchase of a new machine. The invoke of the machine $129.000 gr after of Extinguiment could be retained and used for an addion years then would have to be scrapped Sandhills accountants Hang has accumulated the folowing dat geding in sales and expenses with and $4000 and nations are expected be $6,000 that the age of the equipment would be the the machine value of the new enticed to be machine is purchased tow the ding machine L Without the new machine. Sandhill can set 11.000 units of product annually at aperuising price of $300 the new machine is purchased the number of units produced and sold would increase by 10% and the selling price would the sa 2. The new machines der than the old machine and it more ficient in its age of material With the old machine the prostate 25% of sales whenthe rate wille 30% of sales with the new much 3. Aalling 4 are $566,000 with the current equipment. Because the new equipment would produce a greater number of units best, annual seling expenses are expected to increase by 10% it sched peres pected tote $92.000 with the old machine and $504,000 with the The book value of the existing machine is $33,000 Sendes straight depreciations Prep for the 5 years. Ignore income tax effects) (Entering there sig preceding the 45 or (45) Costs and Con of goods sold Adres Purchase price Should Sandle the existing machine or by the new machine Decreas