Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,100 per year for this machine. Information on two alternative replacement machines follows. Alternative A Alternative B Cost $ 124,000 $ 118,000 Variable manufacturing costs per year 22,300 10,200 Calculate the total change in net income if Alternative A, B is adopted. Should Xinhong keep or replace its manufacturing machine

Explanation:

ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME

Cost to buy new machine(121,000)

Cash received to trade in old machine49,000

Reduction in variable manufacturing costs54,500=(33600-22700)*5

Total change in net income(17,500)

2

ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME

Cost to buy new machine(115,000)

Cash received to trade in old machine49,000

Reduction in variable manufacturing costs116,500=(33600-10300)*5

Total change in net income50,500

3

Alternative B should be selected

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.

if it is for a job, then you should learn everything you can about the job, like what does it involve, what qualification is required and how you are the right person for that job. dress appropriately for the interview. get plenty of rest the night before. good luck!