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 functionalities of pharmacy information systems, Pharmacy Systems" ...

Pharmacy Systems" Please respond to the following: •Analyze the various functionalities of pharmacy information systems that can aid in the reduction of medication errors and make

Explain the directions given in the your turn scenario, Follow the directio...

Follow the directions given in the "your turn" scenario.

Explain control process flow diagram, A typical change request from will in...

A typical change request from will include which of the following content item? a. a description of the change a long with the impact of marking the change. b. a status accounting

Explain the term objective or necessity in management, Explain the term obj...

Explain the term objective or necessity. Objective or Necessity: The objective or the need of permitting workers to participate in management can be: (i) To attain industr

Explain why is forecasting important for an organization, Why is forecastin...

Why is forecasting important for an organization? Which company do you believe to be successful at forecasting and why?

Explain what are supply-chain management strategies used, What are at least...

What are at least four supply-chain management strategies used in Regal Marine? Present and explain them.

Lean Synchronisation, Examples of organisations that practice Lean synchron...

Examples of organisations that practice Lean synchronisations

Explain technical or intellectual intelligence, It has been suggested that ...

It has been suggested that emotional intelligence is more important to good leadership than technical or intellectual intelligence. Do you agree or disagree with this suggestion? W

Various levels of customer service in your organization, Has the philosophy...

Has the philosophy that there are different levels of customers had any material effect on the value of your organization's customer service? • Identify and explain the differen

Explain embedding knowledge, "Embedding Knowledge" Please respond to the fo...

"Embedding Knowledge" Please respond to the following: •Determine the most appropriate way that "sense making" can be applied to health care organizations. Provide specific example

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