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 work breakdown structure, Develop a Work Breakdown Structure (WBS) ...

Develop a Work Breakdown Structure (WBS) for a project in which you are going to build a bicycle and identify two major components with three levels of details for each component

Benchmarking, I need an assignment regarding benchmarking in Operations Str...

I need an assignment regarding benchmarking in Operations Strategy

Explain the roles of the defense contract management agency, What are the r...

What are the roles and responsibilities of the Defense Contract Management Agency

Explain which dimensions are presented in morgans model, Which three dimens...

Which three dimensions are presented in Morgan's model of IHRM? a) Types of employees, countries and industries b) Types of employees, countries and HR activities c) Types

What does mean owns real estate in fee simple absolute, If someone owns rea...

If someone owns real estate in fee simple absolute, what does that mean?

Explain network design is a key business decision, Network design is a key ...

Network design is a key business decision as well as a technological decision. Why? Provide an example of a company you believe has a good network design, providing supporting rati

Explain descriptive statistics, Descriptive Statistics: Ages Variable Me...

Descriptive Statistics: Ages Variable Mean StDev Minimum Q1 Median Q3 Maximum Ages 23.56 8.97 17.00 18.25 21.00 23.75 49.00 1) Describe the shape of the data 2) What pe

Compute the aggregate production rate, The BackPack Company produces a line...

The BackPack Company produces a line of backpacks. The manager, Jill Nicholas, has decided that the BackPack Company must have very good customer service. She has asked you to d

What deliver the message to management, Please give a detailed explanation ...

Please give a detailed explanation for the answer for the following scenario: As the manager of a plant, you have seen production increase by 20% over the past year, but you have a

Define why is it best not to enter a percentage completion, Answer the foll...

Answer the following questions: 1) Why is it best not to enter a percentage (%) completion? 2) According to your Project Summary, is this project on schedule? Will you be ove

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