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ys for Mache Replacement Prope Old Machi Ct of mache 10-year 10.000 Aal depreciation (straight) Anal manufacturing us excluding depreciatin Amal nachring sperating expenses 13.300
ys for Mache Replacement Prope Old Machi Ct of mache 10-year 10.000 Aal depreciation (straight) Anal manufacturing us excluding depreciatin Amal nachring sperating expenses 13.300 95.708 Cerent det selling price of the machine 360 New Machine (e) py Estimated annual manufacturing costs exclusive of depreciat $138,000 23,000 1,400 Mnual manufacturing operating expenses and revenue are eat expected to be affected by purchase of the new machine Required 1. Prpes dfferential analysis ac of November & compacing sperations emg the present machine (Aternative 13 with cperations using the new machine (Alternative 2), The analysis should indicate the afferential pest that would red the 6-year perod t the new machine is acquired. If an amount is zen, enter a If required, use a minis sight to indicate a loss Differential Analysis Continue with Old Machine (All. 1) or Replace Old Machine (Alt. 2) November Differential Analysis Continue with Old Machine (Alt. 1) or Replace Old Machine (Alt. 2) Line Item Description Revenues Proceeds from sale of old machine Costs Purchase price Annual manufacturing costs (6 yrs.) Profit (loss) November B Continue with Old Machine (Alternative 1) Replace Old Machine Differential Effects (Alternative 2) (Alternative 2) Feedback CheckMc 2. What other factors should be considered before a final decision is reached? a. Are there any improvements in the quality of work turned out by the new machine? b. What opportunities are available for the use of the funds required to purchase the new machine? c. Are there any improvements in the quality of work turned out by the new machine and what opportunities are available for the use of the funds required to purchase the new machine? d. What affect would this decision have on employee morale? e. None of these choices are correct
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