Rory Company has a machine with a book value of $91,000 and a remaining five-year useful life. A new machine is available at a cost of $120,000, and Rory can also receive $88,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,500 per year over its five-year useful life. Calculate the incremental income.

The company is experiencing an increase in competition, and at the same time they are building more production facilities in southeast asia. in this scenario, the top management team is most likely to multiple choice increase the cost of their products. restructure to reflect a more bureaucratic, stable organization. pull decision-making responsibility from low-level management, taking it on themselves. give lower-level managers the authority to make decisions to benefit the firm. rid themselves of all buffering product.