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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $35,000 and a remaining useful life of five

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Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $35,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $45,000. Variable manufacturing costs are $33.300 per year for this machine. Information on two alterative replacement machines follows. Cost Variable manufacturing costs per year Alternative A $12e,eee 22,990 Alternative 8 $112,eee 10,eee 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Alternative Alternative Xinhong Purchase 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 (DECREASEJIN NET INCOME Cost to buy new machine Cash received to trade in old machine Reduction in variable manufacturing costs Total change in net income Alternative B > Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $35,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $45,000. Variable manufacturing costs are $33,300 per year for this machine Information on two alternative replacement machines follows. Cost Alternative A $12e,eee 22,989 Alternative B $112,eee 10,eee Variable manufacturing costs per year 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? Answer is not complete. Complete this question by entering your answers in the tabs below. Alternative Alternative 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 Alternative A Xinhong Purchase >

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