Replace Equipment A machine with a book value of $245,000 has an estimated six-year life. A proposal is offered to sell the old machine for $215,400 and replace it with a new machine at cost of $283,500. The new machine has a six-year life with no residual value. The new machine would reduce annual direct labor costs from $49,700 to $39,800. Prepare a differential analysis dated October 3 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2). If an amount is zero, enter "O". For those boxes in which you must enter subtracted or negative numbers use a minus sign Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) October 3 Continue with Replace Old Differential Effect Old Machine Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Proceeds from sale of old machine 215,400 Costs Purchase price 23.800 x Direct labor (6 years) 291200X 238.ADOX 58.400 29.200 x 306.900 X 2.700 X Income (Loss) Feedback Check My Work For the continue and replace alternatives subtract the costs from the revenues. Multiply the direct labor for the sex year life. Determine the differential effect on income of the revenues, costs, and income (loss) by subtracting alternative 1 from alternative 2. Previous Next Make or Buy A restaurant bakes its own bread for a cost of $156 per unit (100 loaves), including fixed costs of $36 per unit. A proposal is offered to purchase bread from an outs source for $104 per unit, plus $10 per unit for delivery. Prepare a differential analysis dated July 7 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the bread, assuming that fixed com are unaffected by the decision. If an amount is zero, enter "0". For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Make Bread (Alt. 1) or Buy Bread (Alt. 2) July 2 Make Bread Buy Bread Differential Effect (Alternative 1) (Alternative 2) on Income (Alternative 2) Sales price $0 $0 $0 Unit Costs: Purchase price 104 X 104 X Delivery 10 X 10 X Variable costs 120 X 120 36 x Fixed factory overhead 156 X 150 X Income (Loss) 36 Feedback Check My Work Next Previous For the make and buy alternatives provide the unit costs. Determine the differential effect on income of the revenues, costs, and income (s) by subtracting My Work uses remaining sent for Grade