Differential Analysis Report for Machine ReplacementLone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $75,000, the accumulated depreciation is $30,000, its remaining useful life is five years,and its residual value is zero. A proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $141,600. The automatic machine has an estimated useful life of five years and no significant residualvalue. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations:CurrentProposedOperationsOperationsSales$237,800$237,800Direct materials$81,000$81,000Direct labor56,30018,800Power and maintenance5,3009,000Taxes, insurance, etc.1,9006,200Selling and administrative expenses56,30056,300Total expenses$200,800$171,300a. Prepare a differential analysis report for the proposal to replace the machine. Include in the analysis both the net differential change in costs anticipated over the five years and the net annual differential change in costs anticipated.LONE WOLF TECHNOLOGIESReplace MachineDifferential Analysis ReportAnnual costs and expenses-present machineAnnual costs and expenses-new machineAnnual differential decrease in costs and expenses vNumber of years applicableTotal differential decrease in costs and expenses vCost of new machineNet differential decrease in costs and expenses, five-year total vAnnual net differential decrease in costs and expenses-new machine

The cost function is a function that is used to show how production expense will change at different…

- Prepare a differential analysis report for the proposal to replace the machine. Include in the analysis both the net differential change in costs anticipated over the five years and the net annual differential change in costs a LONE WOLF TECHNOLOGIES Denlase Mashine

- Prepare a differential analysis report for the proposal to replace the machine. Include in the analysis both the net differential change in costs anticipated over the five years and the net annual differential change in costs a LONE WOLF TECHNOLOGIES Denlase Mashine

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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need to find ways to cut operating costs to make a profit.please answer asap.if answered within 30mins,it would be apprciable!