Business
Business, 01.12.2021 22:10, blueheeter1461

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $44,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. Machine A Machine B
Cost $121,000 $113,000
Variable manufacturing costs per year $22,500 $10,200

Required:
Calculate the total change in net income if Machines A is adopted.

answer
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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a...

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