Sheridan Company is considering the purchase of a new machine. The invoice price of the machine is $$154,000,$ freight charges are estimated to be $$4,000,$ and installation costs are expected to be $$7,000.$ Salvage value of the new equipment is expected to be zero after a useful life of $5$ years. Existing equipment could be retained and used for an additional $5$ years if the new machine is not purchased. At that time, the salvage value of the equipment would be zero. If the new machine is purchased now, the existing machine would have to be scrapped. Sheridan's accountant, Lisa Huang, has accumulated the following data regarding annual sales and

eynenses with and without the new machine

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Without the new machine, Sheridan can sell $13,000$ units of product annually at a per unit selling price of $$100.$ If the new machine is purchased, the number of units produced and sold would increase by $10\%,$ and the selling price would remain

the same

The new machine is faster than the old machine, and it is more efficient in its usage of materials. With the old machine the gross profit rate will be $25\%$ of sales, whereas the rate will be $30\%$ of sales with the new machine.

Annual selling expenses are $$198,000$ with the current equipment. Because the new equipment would produce a greater number of units to be sold, annual selling expenses are expected to increase by $10\%$ if it is purchased.

Annual administrative expenses are expected to be $$110,000$ with the old machine, and $$124,000$ with the new machine.

The current book value of the existing machine is $$40,000.$ Sheridan uses straight$-$line depreciation.

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Prepare an incremental analysis for the $5$ years. $($Ignore income tax effects.$)($Enter negative amounts using either a negative sign preceding

lumber e$.$g$.-45$ or parentheses e$.$g$.(45).)$