Sprockets corporation is thinking about replacing a piece of manufacturing equipment with a remaining useful life of six years. the book value of the equipment is $55,000, and the machine could be sold in its current condition for $29,000. the new machine would cost $125,000 and would have a salvage value of $25,000 at the end of its six-year useful life. with the new machine, sprocket’s annual variable manufacturing costs would drop from $78,000 to $65,000. given these figures, sprockets will over the next six years if it purchases the new machine.
a : decrease its net income by $47,000
b : increase its net income by $7,000
c : decrease its net income by $18,000
d : increase its net income by $22,000

Exercise 15-7 crawford corporation incurred the following transactions. 1. purchased raw materials on account $53,000. 2. raw materials of $45,200 were requisitioned to the factory. an analysis of the materials requisition slips indicated that $9,400 was classified as indirect materials. 3. factory labor costs incurred were $65,400, of which $50,200 pertained to factory wages payable and $15,200 pertained to employer payroll taxes payable. 4. time tickets indicated that $55,000 was direct labor and $10,400 was indirect labor. 5. manufacturing overhead costs incurred on account were $81,700. 6. depreciation on the company’s office building was $8,100. 7. manufacturing overhead was applied at the rate of 160% of direct labor cost. 8. goods costing $89,400 were completed and transferred to finished goods. 9. finished goods costing $76,000 to manufacture were sold on account for $105,100. journalize the transactions. (credit account titles are automatically indented when amount is entered. do not indent manually.) no. account titles and explanation debit credit (1) (2) (3) (4) (5) (6) (7) (8) (9) (to record the sale) (to record the cost of the sale) click if you would like to show work for this question: open show work