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 total quality improvement has changed healthcare, Analyze how total...

Analyze how total quality improvement has changed healthcare delivery on both the macro and micro levels.

Capacity Planning of Computer Systems and Networks, Problem:- 1 A system c...

Problem:- 1 A system containing one CPU and a disk is serving database transactions. A transaction gets service from CPU and then from the main memory before leaving this system. I

Compute the movement cost or load, Registration at Southern University has ...

Registration at Southern University has always been a time of emotions, commotions and lines. Students must move among 4 stations to complete the process. Last semester's registrat

Define disputes and the contractual means used for resolving, What is the c...

What is the cause of disputes and the contractual means used for resolving them?

LEAN STNCHRONIZATION, what are the wastes and how to overcome them?

what are the wastes and how to overcome them?

Explain evaluating their own virtual teams, Is Volvo's approach to evaluati...

Is Volvo's approach to evaluating the effectiveness of its virtual teams one that could serve as a useful model for other organizations to follow in evaluating their own virtual te

Explain sells radio frequency inventory, National Scan, Inc., sells radio f...

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows: Month/Sales (000) Units Feb 16 Mar.17 Apr. 11 May. 29 Jun. 19 Jul

20110907, I have already ordered and you all gave me a false link to the re...

I have already ordered and you all gave me a false link to the reference number above. I want my results now. And I want a refund for being late.

Change as well generating positive organizational behaviour, One of the con...

One of the constants in organizations is the presence of change. In almost all change scenarios, human behaviour is impacted. However, organizational members often resist change. W

Explain benefits package related to your dream job, Design a compensation a...

Design a compensation and benefits package related to your dream job.

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