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

OPERATION REASERCH.., #question.six operators are to be assinged with 5 job...

#question.six operators are to be assinged with 5 jobs with cost of assingment in rs given in the matrix below 1 2 3 4 5 62526 25877 78698 62345 93897 47468

Explain mental and physical skills, When selecting members for a team, cert...

When selecting members for a team, certain skills are very important. These skills are best described as: a. Technical skills and interpersonal skills b. Analytical and intuitive s

Explain the objectives of work study for any management, Explain the object...

Explain the objectives of work study for any management. The objectives of work study for any management are:- a) Enhanced working processes and standard procedures. b) L

Examine netflix''s current strategy, Evaluate Netflix's current strategy an...

Evaluate Netflix's current strategy and determine if the strategy is sustainable. Identify a Netflix strength may be leveraged in the market place to ensure a competitive advantage

Explain what are competencies, What are "competencies?" Explain, and provid...

What are "competencies?" Explain, and provide two or three examples.

Capacity planning, why is capacity planning important in operations managem...

why is capacity planning important in operations management

Line balancing, what do you understand by line balancing what happens if ba...

what do you understand by line balancing what happens if balance

Depict an aon diagram of the project, The following is a table of activitie...

The following is a table of activities associated with a project at Bill Figg Enterprises, their durations and what activities each must precede- Activity Duration (weeks) Prece

Supply chains using the order-up-to inventory model, Demand for Caruso's Fr...

Demand for Caruso's Frozen Pizza (CFP) is normally distributed. The demand for CFP averages 400 per day with a standard deviation of 200. Weekly demand (5 days) averages 2,000 unit

List formulate a response to questions employees, Persuade management that ...

Persuade management that that the transitioning process is a very important step in the BPO contract. Anticipate issues that will have to be decided on prior to the outsourcing. Li

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