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

Important of production planning, Important of Production Planning The i...

Important of Production Planning The importance of production planning maybe judged form the following facts. 1. Production Planning Sets Objectives: Production planning se

What is cutting stock problem, Consider the cutting stock problem that aris...

Consider the cutting stock problem that arises when a company manufactures sheets of standard width 100 and has commitments to supply 40 sections of width 40, 60 sections of width

Describe international compensation, Existing salary for managers is 45,000...

Existing salary for managers is 45,000 euros (58,567 us dollars) plus bonuses. Average salary for managers in range is 60,000 euros (78,090), no bonuses. Recommendations must inclu

Explain city water supply system, The network in figure below shows the pip...

The network in figure below shows the pipeline transportation system for treated water from the treatment plant (node 1) to a city water supply system (node 14). The arc capacities

Define spread spectrum signalling over narrowband signalling, Which of the ...

Which of the following is an advantage of using spread spectrum signalling over narrowband signalling? a. Spread spectrum is easier to install b. Spread spectrum is more secu

Explain when a female supervisor demands sexual favours, When a female supe...

When a female supervisor demands sexual favours from a male employee so that he can keep his job or get a raise, it is called this- a. same sex harassment b. quid pro quo har

Explain what amount of safety stock is appropriate, Given this information:...

Given this information: Lead-time demand = 630 pounds Standard deviation of lead time demand = 40 pounds (Assume normality.) Acceptable stockout risk during lead time = 4

Calculate electrical, Test results from an electronic circuit board indicat...

Test results from an electronic circuit board indicate that 50% of board failures are caused by assembly defects, 30% are due to electrical components, and 20% are due to mechanica

Explain forecasting methodologies, Question : What are the common chara...

Question : What are the common characteristics amongst the several forecasting methodologies / techniques? The different techniques make a common assumption that what happen

Explain unethical for advertisers to pitch products, Do you feel it's uneth...

Do you feel it's unethical for advertisers to pitch products to patients and students in this fashion? why?

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