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 five years at which time its salvage value will be zero. It has a current market value of $52.000 Vartable manufacturing costs are $36.000 per year for this machine Information on two alternative replacement machines follows Alternative Alternativ cost 5115,000 $125,00 Variable manufacturing cost per year 19,000 15.000 Calculate the total change in net income it Alternative A B is adopted should Xinhong Keep or replace its manufacturing machine the machine should be replaced which akternative new machine should Xinhong purchase Complete this question by entering your answers in the tabs below. Alternative Alternative Xinbond Purchase Calculate the total change in net income i Alternativo Als adopted (Cash outflows should be indicated by a minuten ALTERNATIVE AI 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 not income Alternative B> 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 five years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $36.000 per year for this machine Information on two alternative replacement machines follows. Alternative A Alternative Cost $115,000 $125,000 Variable manufacturing costs per year 19,00 15,000 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 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 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 five years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $36,000 per year for this machine Information on two alternative replacement machines follows. Cost Variable manufacturing costs per year Alternativa A $115,000 19,000 Alternative $125,000 15,000 Calculate the total change in net income If Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? the machine should be replaced, which alternative new machine should Xinhong purchase? Complete this question by entering your answers in the tabs below. Altemative A Alternative B Xinhong Purchase Should Xinhang koop or replace its manufacturing machine? tf the machine should be replaced, which altomative new machine should Xinhong purchase? Which option should Xinhong choose?
