Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $45.000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $55,000. Variable manufacturing costs are $34.000 per year for this machine. Information on two alternative replacement machines follows. Cost variable manufacturing costa per year Alternative $123,000 22,900 Alternative $115,000 10,200 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? 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 $ 0 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 $ 0 Which option should Xinhong choose?