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

What are the pros and cons of flexible schedules for staff, What are the pr...

What are the pros and cons of flexible schedules from an employee's perspective?

Explain important skills required to increase productivity, Important skill...

Important skills required to increase productivity, how a person will manage this in time. Please response fast. Tomorrow is my interview

Explain what internet business model would be appropriate, Please give me t...

Please give me the references as well or I won't' complete the rating. Thank you. E-commerce is the trend that most companies are going toward now a days. You are to select one

Explain which goal is likely to lead to the best performance, if the averag...

if the average worker can produce 15 widget an a hour/which goal is likely to lead to the best performance/1.10/2 15/3.

Function of dispatching, Function of Dispatching Under dispatching the ...

Function of Dispatching Under dispatching the following functions are included: 1. Assignment of work to individual machines or work places and men, 2. Movement of materi

Explain exempt and non-exempt employees, Differentiate between (1) exempt a...

Differentiate between (1) exempt and non-exempt employees and (2) line and staff employees.

Explain partial health care benefits would be a good idea, Do you think tha...

Do you think that offering part-time employees partial health care benefits would be a good idea?

Explain united states and the european union, Code of Conduct in the Europe...

Code of Conduct in the European Union and Statement of Ethics discuss and compare the two codes from these marketing association. Discuss the similarities and differences between t

Explain correct name for the flower the michaelmass daisy, What is the corr...

What is the correct name for the flower the Michaelmass Daisy?

What are the factors to effect capacity levels, What are the factors to eff...

What are the factors to effect capacity levels? Factors effecting capacity levels are as follows: • Resources accessible for example, labour and skills, machine time and

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