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 what can they do to prevent cost overruns, Why do you think it's di...

Why do you think it's difficult to understand some of the basic cost terms in this chapter? Why aren't many technical people interested in cost-related subjects? What could be done

Explain how the project scope will be defined, The project scope planning p...

The project scope planning processes include all of the following EXCEPT: A. How the project scope will be defined B. How the requirements will be collected C. How the work brea

Explain why does it appeal to an approach to leadership, Write several para...

Write several paragraphs describing the aspects of a servant leader. Why does it appeal to an approach to leadership? What are some concerns? Why does servant leadership seem appro

Explain a recruitment process, Describe a recruitment process that would pr...

Describe a recruitment process that would provide a pool of pre-qualified candidates for the seven open trainer positions.

Explain optimized the websites for taking applications, What are your thoug...

What are your thoughts on this article ?According to an article dated February 24, 2013 in the Tech section USA Today News (electronic issue), many employers maybe missing out on h

How the job of industrial manager becomes more difficult, How the job of in...

How the job of industrial manager becomes more difficult? However, the job of industrial Manager becomes still more difficult because of: (i) Change in technology; (ii) C

Explain hides the information from the other side, Research suggests that a...

Research suggests that a party with an attractive BATNA will likely receive a more positive outcome if it hides the information from the other side.

Explain complete the forward and backward pass, You are creating a customer...

You are creating a customer database for Winston-Salem Warthogs minor league baseball team. Draw a project network given the information below. Complete the forward and backward pa

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