Starling Co. is considering disposing of a machine with a book value of $23.100 and estimated remaining life of five years. The old machine can be sold for $5,500. A new high-speed machine can be purchased at a cost of 70.100. 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 $22,700 to $19,700 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n) a decrease of $49,600 b. decrease of $54,480 c. increase of $49,600 d. Increase of 164,480