Answered step by step
Verified Expert Solution
Question
1 Approved Answer
the sending photo is a screen shot of the blank fields that need to be filled please. Differential analysis for machine replacement proposal OBJ. 1
the sending photo is a screen shot of the blank fields that need to be filled please.
Differential analysis for machine replacement proposal OBJ. 1 PR 25-2A 1. Loss to replace the Lexigraphic Printing Company is considering replacing a machine that has been used in old machine, -$131,400 its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine $89,000 8,900 23,600 6,100 74,200 29,700 Excel Cost of machine, 10-year life Annual depreciation (straight-line) Annual manufacturing costs, excluding depreciation Annual nonmanufacturing operating expenses Annual revenue Current estimated selling price of machine New Machine Purchase price of machine, six-year life Annual depreciation (straight-line) Estimated annual manufacturing costs, excluding depreciation $119,700 19,950 6,900 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine. Instructions 1. Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired List other factors that should be considered before a final decision is reached. 2. Number Alignment Font Clipboard 121 N O P 13 Differential Analysis Continue with Old Machine or Replace with New Machine April 30 14 1. 15 16 17 18 19 20 21 Differential Effect Replace old Machine Continue with Old Machine on income (Alternative 2) (Alternative 2) (Alternative 1) Revenues: Proceeds from sale of old machine Costs: Purchase price Annual manufacturing costs (6 yrs.) 23 24 25 26 27 28 29 30 2. 31 32 Income (loss) The proposal to replace the machine should be Key essay answer here] 34 35 36 Pr. 25-2A Enter Type here to searchStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started