Starling Co. is considering disposing of a machine with a book value of $23,500 and estimated remaining life of five years. The old machine can be sold for $5,600. A new high-speed machine can be purchased at a cost of 72,800. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $22,800 to $19,500 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is

decrease of $65,910

increase of $65,910

decrease of $50,700

increase of $50,700