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

How technology is changing the customer service, How technology is changing...

How technology is changing the customer service and service offerings?

Describe fully and provide citations, On February 1, Mary verbally agrees t...

On February 1, Mary verbally agrees to work as a businessperson on a temporary basis for the firm of Blacke & Blewe, P.C. The job that Mary is assigned to do will take eight months

Explain does anyone have any insight, Does anyone have any insight into Dis...

Does anyone have any insight into Discussion Question, This was not discussed in class.

LINE BALANCING, What do you understand by “line balancing”? What happens if...

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

Explain student aid and scholarships office, You have just been notified by...

You have just been notified by the Student Aid and Scholarships Office that you would receive a regents scholarship of $2000 for the coming academic year. Furthermore, your applica

Explain appellate jurisdication, Stan Garner resides in illinois and promot...

Stan Garner resides in illinois and promotes boxing matches for Supersports, INC. an Illinois corporation. Garner created the conect of "ages" promotion- a three fight series of bo

Define cross-cultural communication, When referring to Cross-Cultural Commu...

When referring to Cross-Cultural Communication, what would be the best approach to dealing with a multicultural environment.

Explain what are liquidity ratios, Now let's continue our discussion about ...

Now let's continue our discussion about the financial aspects of owning your own business that are part of, by considering the idea of "ratio analysis". In considering "financial r

Explain staff time is saved in the form of reduced staff, As throughput imp...

As throughput improves, staff time is saved in the form of reduced staff worked hours per unit of service

What is acquisition management, In your own words, what do you think acquis...

In your own words, what do you think acquisition management is and what are your impressions on how it is done in the DoD?

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