Calculate the two missing amounts, Operation Management

Assignment Help:

A company is considering whether to replace a machine. The old machine costs $90,000 and is being depreciated at 10% per annum using the straight line method. It is written down value is no $36,000 and it has a trade in value of $20,000. The new machine would cost $220,000 after it has a trade-in but would double production, all of which could be sold.

The new machine would also be depreciated using the straight line method over ten years. Currently the contribution margin per month is $8000.

a.  What information is relevant to the replacement of the machine?

b.  Do you consider that the machine should be replaced?


Related Discussions:- Calculate the two missing amounts

Explain emotional intelligence a key factor to success, Emotional intellige...

Emotional intelligence; a key factor to success I want a 20 question survey for this topic, based on these 5 factors self-awareness, self-regulation, motivation, empathy, and socia

Distinctive of the growth stage of the product life cycle, Which of the fol...

Which of the following is a characteristic of the growth stage of the product life cycle? Advertising emphasis switches to selective demand. There is a growing proportion of

Attitudes as well bargaining behaviours of the participants, Do you think t...

Do you think the attitudes and bargaining behaviours of the participants in collective bargaining negotiations are more or less important in the final outcome than economic conditi

Forward scheduling - scheduling techniques, Forward Scheduling - Scheduling...

Forward Scheduling - Scheduling Techniques Forward scheduling means assigning customers orders or job to various work centers based on the as early as possible approach. Thus

Define elasticity of demand, In considering the price part of the 4Ps, and ...

In considering the price part of the 4Ps, and the customer demand aspect of that, I'd like you to leave this course knowing about "elasticity of demand". Can you explain how that c

Explain which goal is likely to lead to the best performance, if the averag...

if the average worker can produce 15 widget an a hour/which goal is likely to lead to the best performance/1.10/2 15/3.

Assimngnet, racing cars prefers nickel based alloys for engine components

racing cars prefers nickel based alloys for engine components

Internal factors - factor affecting productivity improvement, Internal Fact...

Internal Factors - Factors affecting productivity improvement These are the factors which may be modified by the company and may, in themselves, be sub-divided into two catego

Find the loss for a quality characteristic, A quality characteristic has a ...

A quality characteristic has a manufacturing specification (in cm) of 0.200 ± 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd