Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $49,000 Variable manufacturing costs are $33,000 per year for this machine Information on two alternative replacement machines follows. Alternative A Alternative B $118,000 $114,000 Variable manufacturing costs per year 23,000 10,400 Cost Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine? It 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 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 $ (118,000) Cash received to trade in old machine 49.000 Reduction in variable manufacturing costs Total change in net income $ (69,000) ANA Alternative B > Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39.000 and a remaining useful life of five years, at which time its salvage value will be zero. It has a current market value of $49,000 Variable manufacturing costs are $33,000 per year for this machine. Information on two alternative replacement machines follows Cost Variable manufacturing costs per year Alternative A $118,680 23,880 Alternative B $114,080 10,400 Calculate the total change in net income i 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 Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus ign.) 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 (Altemative A Xinhong Purchase >