Starling Co. is considering disposing of a machine with a book value of $20,800 and estimated remaining life of five years. The old machine can be sold for $5,900. A new high-speed machine can be purchased at a cost of 67,100. 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 $23,200 to $19,800 if the new machine is purchased. The differential effect on income for the new machine for the entire five years is

increase of $44,200

decrease of $44,200

decrease of $57,460

increase of $57,460