Saved Help Save & Ch Exercise 10-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33.500 per year for this machine. Information on two alternative replacement machines follows Alternative AAlternative B Cost variable manufacturing costs per year $119,000 22,900 $112,000 10,300 Calculate the total change in net income if Alternative A B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below Xinhong Purchase Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) Cost to buy new machine Cash received to trade in oid machine Reduction in variable manufacturing costs Total change in net income Alternative B > newconnect 0-12 6 Saved Help Save & Exercise 10-12 Keep or replace LO A1 Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,500 per year for this machine. Information on two alternative replacement machines follows. Alternative A $119,000 Cost Variable manufacturing costs per year $112.000 0.300 22,900 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs Alternative A Alternative B Xinhong Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase. Which option should Xinhong choose? Alternative B