Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $38,000 and a remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $48,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A $116,000 22,700 Alternative B $118,000 10,160 Cost 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? 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 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 remaining useful life of four years, at which time its salvage value will be zero. It has a current marke manufacturing costs are $33,100 per year for this machine Information on two alternative replacem Alternative A $116,900 22,790 Alternative B $118,900 19,190 Cost Variable manufacturing costs per year Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or res 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 Alternativel Xinhong Purchase Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicat 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 remaining useful life of four years, at which time its salvage value will be zero. It has a current market value of $48 manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines Cost Variable manufacturing costs per year Alternative A $116,800 22,700 Alternative B $118,000 10,109 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manuf 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 Burchase Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase? Which option should Xinhong choose?
