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tps://newconnect.mheducation.com/flow/connect.html ch IV and moviehtps/www.myhert Inbox(6,717 alica 21, 23. 24 6 My Schedule and CreBookmarksMyUTEP Hm HB Saved 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 4 years, at which time its salvage value will be zero. It has a current market value of $55.000. Variable manufacturing costs are $33,600 per year for this machine Information on two alternative replacement machines follows. Alternative B $112,000 Alternative A $122,000 Cost Variable manufacturing costs per year 22,600 10,200 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 Xinhong Purchase Alternative A Alternative B Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.) TERNATIVE 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 Alternative B > K Prev 4 of 6Next>Explanation / Answer
Alternate A:-increase or decrease in net income-
1.cost to buy new machine ($122000)
2.cash received to trade in old machine. $ 55000
3.Reduction in variable manufacturing cost. $43800
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