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 the training and explain the method that was used, Traditional lear...

Traditional learning methods include lectures, hands-on, on-the-job training, self-directed learning, apprenticeship, case studies, business games, role plays, behaviour modelling,

Explain change forces are adapting and sustaining, Which of the following b...

Which of the following best shows forces for change vs. forces for stability? Change forces are: adapting, sustaining, and predicting; whereas stability forces are: bureaucracy, tr

International, what factors have contributed to the importance of internati...

what factors have contributed to the importance of international markets on operations management

Compare as well contrast copyrights, Compare and contrast patents, copyrigh...

Compare and contrast patents, copyrights, and trademarks. Evaluate how these provisions can improve the financial position of a small business.

Explain reputation and credibility pressures, When JetBlue left their custo...

When JetBlue left their customers sitting on the tarmac for hours on Valentine's Day, and their CEO was ultimately terminated as a result, the company was responding to (pick the b

Explain how would they be measured, Based on the description of Coyote Comm...

Based on the description of Coyote Community College and its environment, what specific types of measures should they include in each of their perspectives of the balanced scorecar

Explain which characteristic of a project manager is more im, Discuss which...

Discuss which characteristic of a project manager is more important to high performance teams%u2014use of power or motivation?

How to use the financial ratios presented, Which of the three warehouse clu...

Which of the three warehouse club rivals has been the strongest financial performer in recent years? Support your answer with calculations based on the data in case Exhibits 2,6, a

Explain business resilience case example cvp france, Which behaviours, thin...

Which behaviours, thinking approaches, emotional stances, decisions, and business management actions can be found in the two readings that pertain to adaptability, resilience, 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