Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $36,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. It has a current market value of $46,000. Variable manufacturing costs are $33,500 per year for this machine. Information on two alternative replacement machines follows. Cost Variable manufacturing costs per year Alternative A Alternative $117,000 111,000 10,900 22,500 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