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

Dicuss business and conduct a feasibility analysis, Develop an idea for a n...

Develop an idea for a new business and conduct a feasibility analysis. Please be as creative as you like in the development of your idea (but as careful as you can be in your analy

What benefit would utilize the optimal order quantity yield, Garden Variety...

Garden Variety Flower Shop uses 750 clay pots a month. The pots are purchased at $2 each. Annual carrying cost per pot are estimated to be 30 percent of the cost and ordering costs

Explain managing human resources, 1. What challenges have managers at some ...

1. What challenges have managers at some technology companies faced in terms of managing human resources? 2. How do managers at some technology companies that invest resources in r

Question 2, Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to ...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding among

Explain the credibility of a source of information, What criteria do you re...

What criteria do you recommended to determine the credibility of a source of information? Develop a list of no less than 10 elements you would use to determine the credibility of f

Explain smells of alcohol, You have a new employee who is in his/her probat...

You have a new employee who is in his/her probationary period, the first 90 days of employment. The employee has missed several days of work and has been late at least two days thi

Explain marketing decisions without marketing research, Is it possible to m...

Is it possible to make sound marketing decisions without marketing research? What advantages does research offer to the decision maker over seat-of-the-pants decision making?

Objectives of motion study, Objectives of Motion  Study 1.   Combine  ...

Objectives of Motion  Study 1.   Combine  relative  activities. 2.   Increases the  efficiency of activities. 3.   Reduce physical fatigue. 4.   Eliminate as many unne

Explain what assignment minimizes the total traffic flow, Six processes are...

Six processes are to be laid out in six areas along a long corridor at Linda Babat Accounting Services. The distance between adjacent work centres is 40 feet. The number of trips b

Normal distribution of frequency in the histogram, Normal Distribution of F...

Normal Distribution of Frequency in the Histogram The frequency distribution in the histogram was obtained from 200 measurements segregated into seven classes, each class havi

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