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 what price would you try to negotiate, You have just received 10 un...

You have just received 10 units of a special sub assembly from an electronics manufacturer at a price of $250 per unit. A new order has also just come in for your computer's produc

Discuss the fundamental role of managers and leaders, In organizations ther...

In organizations there are supervisors, managers and leaders. What makes them different? Define each role and discuss the fundamental differences of each. Give position specific ex

Explain the current break-even point in dollars is, The local convenience s...

The local convenience store makes bread. Currently, their oven can produce 50 pieces of bread per hour. It has a fixed cost of $2,000, and a variable cost of $0.25 per bread. The o

Sample range chart - control charts for variables, Sample Range Chart - Con...

Sample Range Chart - Control Charts for Variables Whilst the sample mean chart provides control over the process setting, it provides no protection from change (increase) in t

Explain operations research and management science, In the Howard Raffia ar...

In the Howard Raffia article on Decision Analysis, there is an excellent perspective on one man's intellectual journey through the use of quantitative and qualitative analysis to a

Explain what is an ethics audit, • What is an ethics audit and why is it i...

• What is an ethics audit and why is it important to an organization? Explain the benefits and challenges of conducting one. • Why is it important to link the ethics audit bac

Explain what is the coefficient of determination, A large school district i...

A large school district is revaluating its teachers' salaries. They have decided to use regression analysis to predict mean teacher salaries at each elementary school. The research

Define how customers were affected the bp oil spill disaster, How customers...

How customers were affected the BP oil spill disaster in the gulf

Business management, Six Operators are to be assigned to five jobs with the...

Six Operators are to be assigned to five jobs with the cost of assignment in Rs. given 10 marks in the matrix below. Determine the optimal assignment. Which operator will have no a

Explain changing nature of work and the workplace, Effective human resource...

Effective human resources professionals have a solid understanding of the changing nature of work and the workplace. Compare and contrast the evolution of work and the workplace ov

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