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 about leadership styles, Question: (a) Write short notes on any...

Question: (a) Write short notes on any five leadership theories and on any three main leadership styles. (b) Your friend has just been appointed team leader at his place o

Explain if microsoft don''t build a cloud computing business, If Microsoft ...

If Microsoft don't build a cloud computing business, what will happen to them in the next decade? Why did the company decided that it had little choice but invest in cloud?

Contrast the code of ethics of both starbucks and mcdonalds, Analyze, compa...

Analyze, compare and contrast the code of ethics of both Starbuck's and McDonald's.

Explain functions and objectives of trade unions, Explain functions and obj...

Explain functions and objectives of trade unions. Functions and Objectives of Trade Unions: The functions of trade unions are: (i) The provision of friendly services which

How enhance organizational behaviour, According to Morgan (2006), "All theo...

According to Morgan (2006), "All theories of organization and management are based on implicit images or metaphors that lead us to see, understand, and manage organizations in dist

Explain what is your understanding of the term brand equity, What is your u...

What is your understanding of the term: Brand Equity?

Explain improve motivation of the employees, You are a manager of a Consult...

You are a manager of a Consulting firm, with 25 employees under your supervision. Employee Motivation appears to be slipping as well as employee performance. Employees seem to have

Aspects of design: Product, Explain each of the following aspects of design...

Explain each of the following aspects of design Product Job and facilities in detail describing each ones effect on Productivity, as well as the combined effect

Explain the fit for gbi of this particular for-profit avenue, Discuss the f...

Discuss the fit for GBI of this particular for-profit avenue Eileen o'brien has chosen?

How several more hours of overtime would each worker, Games4U makes video g...

Games4U makes video games on CDs at its Old Town plant. The plant produces 800 games each day, and employs 100 workers that work 8 hours each day. They use the following resources

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