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 purpose of completing the applied project, Students will choose lea...

Students will choose leader/s for the purpose of completing the applied project, which will be completed in two separate components (Mid Term and Final)-see syllabus, each of which

Case Study, Combine your list with the lists of a few other class members a...

Combine your list with the lists of a few other class members and categorize the items under a series of major headings.

Centre of gravity method, Hi, I am looking to find any potential benefits o...

Hi, I am looking to find any potential benefits of the centre of gravity locational theory, in addition to this, would like to know of any potential drawbacks that the theory entai

Playground explained in this case study, What does the concept of interacti...

What does the concept of interactive design mean for a service such as the adventure playground described in this case study?

GAME THEORY, In a rectangular game, pay-off matrix of player A is as follow...

In a rectangular game, pay-off matrix of player A is as follows: Player B B1 B2 Player A A1 A2 i) Solve the game. ii) Write down the pay-off matrix of B and then, solve the g

Describe educational and training, How the organization might adopt a techn...

How the organization might adopt a technology trend to improve the quality of the health care delivered to organization members. The board wants to know what are the "Educational a

Explain organizational culture corporate responsibility, How do you think m...

How do you think management changed over the years in respect to the following? Organizational culture Corporate responsibility and ethics Culture and diversity conflicts

How is capacity management important in the organisation, How is capacity m...

How is capacity management important in the organisation? Capacity management: Capacity management is a procedure which seeks to make sure that the organisation can contr

List any three business areas in the umuc pizza shops, List three business ...

List three business areas and/or processes used in the UMUC Pizza shops that could be supported by an IT solution.

Evaluation techniques in plants, what are the rcording techniques used in p...

what are the rcording techniques used in plants as a part of their evaluation method,with the help of data generate the charts?

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