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

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

Explain what do your contingency plan, What do your contingency plan in cas...

What do your contingency plan in case your plan of action doesn't work?

Comparison between method and work measurement, Comparison between method a...

Comparison between method and work measurement: Method  study  is the  principle   technique  for reducing  the work  involved  primarily by eliminating unnecessary  movement

Explain a project work breakdown structure, Which of the following items be...

Which of the following items best describe a project Work Breakdown Structure (WBS)? A. An organizational chart depicting who will perform project work. B. A schedule depicting w

Policies that contribute and relate main business objectives, How can a fir...

How can a firm's security policies contribute and relate to the six main business objectives? Give examples.

Briefly explain two arguments raised in the text, Briefly state two argumen...

Briefly state two arguments raised in the text for and against tort reform

Define organizational behaviours in certain situations, A number of persona...

A number of personality dimensions are identified (Big Five, attitudes, locus of control, etc.). What are the strengths and weaknesses of some of the personality dimensions in vari

Explain business-level strategy, "Business-Level Strategy" Please respond t...

"Business-Level Strategy" Please respond to the following: • From the first e-Activity, assess your satisfaction with the company you researched and make recommendations about h

Explain what is the consumer research, What is the consumer research behind...

What is the consumer research behind the growth of Toyota and the brand strategy they have in place? Discuss the brand strength behind Toyota. It is recommended to include the cons

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