Sunland Company has a machine that affixes labels to bottles. The machine has a book value of $75,200 and a remaining useful life of 3

years and no salvage value. A new, more efficient machine is available at a cost of $282.000 that will have a 3-year useful life with no

salvage value. The new machine will lower annual variable production costs from $488,800 to $385,400.

Prepare an analysis showing whether the old machine should be retained or replaced. (Enter negative amounts using either a negative sign

preceding the number e.g. -45 or parentheses eg. (45).)

Retain Equipment

Replace Equipment

Net Income Change