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Differential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $106,400 Annual depreciation (straight-line) 10,640 Annual manufacturing costs, excluding depreciation 39,200 Annual nonmanufacturing operating expenses Annual revenue 12,400 95,300 Current estimated selling price of the machine 36,700 New Machine Cost of machine, six-year life $136,800 Annual depreciation (straight-line) 22,800 Annual manufacturing costs, excluding depreciation 17,300 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Flint Tooling Company Proposal to Replace Machine Differential Analysis ReportDifferential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.

Differential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $106,400 Annual depreciation (straight-line) 10,640 Annual manufacturing costs, excluding depreciation 39,200 Annual nonmanufacturing operating expenses Annual revenue 12,400 95,300 Current estimated selling price of the machine 36,700 New Machine Cost of machine, six-year life $136,800 Annual depreciation (straight-line) 22,800 Annual manufacturing costs, excluding depreciation 17,300 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Flint Tooling Company Proposal to Replace Machine Differential Analysis ReportDifferential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.2.2P: Differential analysis report for machine replacement proposal Catalina Tooling Company is...
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Differential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $106,400 Annual depreciation (straight-line) 10,640 Annual manufacturing costs, excluding depreciation 39,200 Annual nonmanufacturing operating expenses Annual revenue 12,400 95,300 Current estimated selling price of the machine 36,700 New Machine Cost of machine, six-year life $136,800 Annual depreciation (straight-line) 22,800 Annual manufacturing costs, excluding depreciation 17,300 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Flint Tooling Company Proposal to Replace Machine Differential Analysis ReportDifferential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.
Transcribed Image Text:Differential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Cost of machine, 10-year life $106,400 Annual depreciation (straight-line) 10,640 Annual manufacturing costs, excluding depreciation 39,200 Annual nonmanufacturing operating expenses Annual revenue 12,400 95,300 Current estimated selling price of the machine 36,700 New Machine Cost of machine, six-year life $136,800 Annual depreciation (straight-line) 22,800 Annual manufacturing costs, excluding depreciation 17,300 Annual nonmanufacturing operating expenses 10,000 Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine. Prepare a differential analysis report comparing operations utilizing the new machine with operations using the old machine. The analysis should indicate the differential income that would result over the six-year period if the new machine is acquired. Flint Tooling Company Proposal to Replace Machine Differential Analysis ReportDifferential Analysis Report for Machine Replacement Proposal Flint Tooling Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows: Old Machine Annual nonmanufacturing operating expenses and revenue are not expected to be affected by the purchase of the new machine.
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