With process please To know if I did it right.
Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $41,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $51,000 Variable manufacturing costs are $33,200 per year for this machine. Information on two alternative replacement machines follows. Cost Variable manufacturing costs per year Alternative $116,000 22,500 Alternative a $113,000 10,700 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alternative B Xinhong Purchase ce's Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $41,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $51,000. Variable manufacturing costs are $33,200 per year for this machine. Information on two alternative replacement machines follows. Cost variable manufacturing conts per year Alternative A $116,000 22,500 Alternative B $113,000 10,700 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Alternative A Alterative B Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.) ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Suresh Co. expects its five departments to yield the following income for next year. Dept. M $89,000 Dept. N $ 47,000 Dept. P $ 73,000 Dept. 1 $ 48,000 Total $342,000 Sales Expenses Avoidable Unavoidable Total expenses Net income (loss) 19,800 59,800 79,600 $ 9,400 48,400 24,600 73,000 $126,000) Dept. 0 $85,000 19, 100 6,200 25, 300 $59,700 24,000 59,700 83,700 $(10,700) 55,800 167,100 23,800 174,100 79,600 341,200 $(31,600) $ (800) Recompute and prepare the departmental income statements (including a combined total column) for the company under each of the following separate scenarios. (1) Management eliminates departments with expected net losses. DEPARTMENTS WITH EXPECTED NET LOSSES ELIMINATED Dept.M Dept. N Dept. Dept. P Dept. T Total Sales Expenses: Avoidable Unavoidable Total expenses Not Income (loss)
