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 similar job classifications, When you look at the pay of unionized ...

When you look at the pay of unionized employees vs non-union in similar job classifications, what are the differences in terms of amount of pay, how the pay levels are determined,

Operation Management and POM QM sums , The assignment consists of 3 exercis...

The assignment consists of 3 exercises, and the marks for each question varies. Printouts provided with the prose solutions and explanation of the POM-QM solutions must be original

What are the responsibilities of operation manager, 1. What are an operatio...

1. What are an operations manager's responsibilities?  Answer: They design the operation; they plan and control activities by:  1. Developing an operations strategy  2. Un

Explain what is the risk premium for the payoff, A decision maker has the f...

A decision maker has the following utility function. Payoff Indifference Probability 250 1.00 200 .90 100 .80 50 .50 -50 0 What is the risk premium for

Explain what goes wrong in organizations, During the past five weeks, you h...

During the past five weeks, you have written several papers examining various organizational behaviour problems that materialize in organizations. Review all of those papers and ot

Explain reliable when choosing health care providers, Look at this website:...

Look at this website: customer satisfaction WHYY news report.mht 1. Do you feel that consumer/patient reviews are reliable when choosing health care providers? 2. Do you feel tha

MB 0044 - Production and Operation Management, What do you understand by “l...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain what both the plaintiff and defendant must do, What are the procedu...

What are the procedural steps necessary to sue a person or company for business law dispute? Discuss and illustrate what both the plaintiff and defendant must do.

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