Rory Company has a machine with a book value of $89,000 and a remaining five-year useful life. A new machine is available at a cost of $120,500, and Rory can also receive $77,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $15,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Answer is not complete. Incremental Income From Replacing Machine Reduction in variable manufacturing costs (150) Cost of new machine Cash received from trade in of old machine 77,000 Incremental income (incremental cost) 61,500 Should the machine be replaced? Rory Company has a machine with a book value of $89,000 and a remaining five-year useful life. A new machine is available at a cost of $120,500, and Rory can also receive $77,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $15,500 per year over its five-year useful life. Calculate the incremental income. (Any losses or outflows should be entered with a minus sign.) Answer is not complete. Incremental Income From Replacing Machine Reduction in variable manufacturing costs (150) Cost of new machine Cash received from trade in of old machine 77,000 Incremental income (incremental cost) 61,500 Should the machine be replaced?