Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $38,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $48,000. Variable manufacturing costs are $33,500 per year for this machine Information on two alternative replacement machines follows. Alternative A Alternative B $124, eee $110,000 Variable manufacturing costs per year 22,700 11, eee Cost 1. Calculate the total change in net income if Alternative A and B is adopted. 2. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Required 1 Required 2 Calculate the total change in net income if Alternative A and B is adopted. (Cash outflows should be indicated by a minus sign.) INCREASE OR (DECREASE) IN NET INCOME ALTERNATIVE ALTERNATIVE B: A: Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income $ 0 $ Required 1 Required 2 Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Which alternative new machine should Xinhong purchase?