Widgets Inc. is thinking about replacing a piece of manufacturing equipment with a remaining useful life of three years. The book value of the equipment is $25,000, and the machine could be sold in its current condition for $7,000. The new machine would cost $83,000 and would have no salvage value at the end of its three-year useful life. With the new machine, Widgets variable manufacturing costs would drop from $189,500 to $169,900 per year. If Widgets opts to buy the new machine

a. its total variable manufacturing costs over the next three years will be $58,800 lower than with the current machine.

b. it will see a $58,800 increase in income over the next three years.

c. it will be recording a loss of $25,000 on the current machine.

d. it will see a $24,200 decrease in income over the next three years.

I think it is either a or b?