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

Describe interface of financial policy, Explain Interface of Financial Poli...

Explain Interface of Financial Policy and Strategic Management?

Theory of constraints -toc, Theory of constraints -TOC The theory of c...

Theory of constraints -TOC The theory of constraints was first proposed in 1986 by Dr Eliyahu M. Goldratt in his widely read book The Goal. The theory of constraints is the pr

Ethical organizations are founded through ethical leadership, Discuss how e...

Discuss how ethical organizations are created through ethical leadership and organizational structures and systems.

Define what behavioural predictions might you make, What behavioural predic...

What behavioural predictions might you make if you know that an employee had an external locus of control? If an employee had a high need for achievement? If an employee had a low

Explain quality characteristic under study takes, Suppose that the specific...

Suppose that the specifications for a part (in inches) are 6.00 ± 0.15, and that the taguchi loss function is estimated to be l(x) = 6,500(x-t)(squared). Determine the estimated lo

Describe the problems of homelessness, Explain the problems of homelessness...

Explain the problems of homelessness based upon the developmental, situational, and human needs perspectives, what make a person become homeless, when they are well educated and no

Explain potential unethical actions, Identify four potential unethical acti...

Identify four potential unethical actions or inactions related to capacity planning, and the ethical principle each violates

Explain theory of negligence or strict liability, Architect Bob Berryman pu...

Architect Bob Berryman purchased a late model car from Fred's Ford dealership. Three months after he purchased the car, he had to replace two of the tires because he ran over nails

Explain traditional and horizontal organization structure, Identify the mai...

Identify the main types of traditional and horizontal organization structure. Using an organization of your choice as an example how is the structure of the organization a reflecti

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