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 is the best production order quantity, Johnson Plastics makes ...

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnsons expected demand for the display cases is 1,000 units, and ave

Explain trench coat and improve profitability, 1. How did the overall consu...

1. How did the overall consumer behaviour of Burberry customers change from 2006 to 2010. 2. What measures did Burberry take to improve sales of Burberry merchandise, especially th

Difference between, Give difference between assembler, compiler and interpr...

Give difference between assembler, compiler and interpreter

Explain marketing research process, Discuss the six steps in the Marketing ...

Discuss the six steps in the Marketing Research process and relate to any company/product/service that you know or are familiar with.

Rent-a-car liable for any claims, U.S. v. Farraj contended that he transmit...

U.S. v. Farraj contended that he transmitted information, not goods. Do you think that position is correct? Q2) Phillips v. Budget Rent-a-Car Answer the question "Is Budget Rent-a-

Explain the four-step framework, Describe the four-step framework for one-t...

Describe the four-step framework for one-to-one marketing that can be adapted to CRM marketing?

Explain what impact did this have on team performance, In 100 words or less...

In 100 words or less, please describe a team situation, which has included the type of people you find it difficult to work with. What impact did this have on team performance? How

Give specific example of all type of strategy marketing plan, Imagine that ...

Imagine that you are creating a marketing plan for a company that will sell motor scooters . As you consider the marketing program, what types of strategy should you consider inc

Explain the current yield on alaska power company bonds, Alaska Power Compa...

Alaska Power Company issued $1,000 bonds that have an annual coupon rate of 7.5%. The present market value of the bonds is $1,125. If the bonds have 15 years remaining until maturi

Explain milestones and key deliverables, When developing the milestone sche...

When developing the milestone schedule for the project charter it is helpful to identify relatively few milestones and key deliverables

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