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Aneli [31]
2 years ago
8

Baxter Bakers is trying to decide whether it should keep its existing bread-making machine or purchase a new one that has techno

logical advantages (which translate into cost savings) over the existing machine. Information on each machine follows: Old machine New machine Original cost $10,000 $25,000 Accumulated depreciation 6,000 0 Annual cash operating costs 9,500 5,000 Current salvage value of old machine 2,500 Salvage value in 10 years 650 1,200 Remaining life 12 yrs 12 yrs Refer to Baxter Bakers. The $10,000 cost of the original machine represents a(n)
Business
1 answer:
son4ous [18]2 years ago
4 0

Based on the type of cost that the original cost of the machine is, we can say that it represents a sunk cost.

<h3>What is a sunk cost?</h3>

This is a cost that a business has already incurred as regards a certain investment or asset. This cost cannot be recovered and so should not have any weight on future decisions made.

The original cost of the existing machine of $10,000, is a sunk cost because the company has already incurred it and cannot recover it.

Find out more on sunk costs at brainly.com/question/24976252.

You might be interested in
On March 13, a company writes off a customer's account of $3,500. On June 3, the customer unexpectedly pays the $3,500 balance.
Yuri [45]

Answer and Explanation:

The journal entries are shown below:

1. Allowance for doubtful Accounts Dr      $3,500

            To Accounts receivable         $3,500

(Being the allowance for doubtful account is recorded)

2. Accounts receivable Dr $3,500

           To Allowance for doubtful Accounts $3,500

(Being the written off amount is recorded)

3. Cash Dr $3,500

        To Account receivable $3,500

(Being the cash collection is recorded)

Only these 3 entries are required

5 0
4 years ago
When manufacturers try to understand what customers are looking for, they are thinking about the __________ component of the pro
kodGreya [7K]

Answer: Core customer value

Explanation:

Core customer value could be seen as focusing on customers who basically buy your product and what can be done to keep them or improve services for them. Most manufactures are on the lookout on what their customers really want and how they can give it to them in a great manner which would also be affordable. Customers are gold, hence, when not treated well they can be lost to another manufacturer considering the competition of the market. Core customer value focuses on what better can the manufacturer offer the customer.

8 0
3 years ago
Sally Smith, a supervisor at Kroger's, was recently evaluated by her subordinates. Their responses indicated that Sally uses The
Temka [501]

OPTIONS:

A) naturally like work.

B) will work toward goals they are committed to.

C) have little ambition.

D) have the potential to accomplish the organization's goals.

E) seek out and accept responsibility

Answer:

C) have little ambition.

Explanation:

The theory X consists of a set of assumptions that that a manager or leader has regarding their subordinates. This theory is one of the theories of management that was developed by a social Psychologist known as Douglas McGregor.

According to Theory X, as proposed by McGregor, it is assumed that people are naturally lazy, and unwilling to work. It also assumes that they have little ambition, and would try as much as possible to avoid work. This theory assumes also that motivation that is monetary is what majorly drives people to work.

<em>Sally, treating employees  as if they have little ambition indicates she uses Theory X assumptions when dealing with employees.</em>

<em></em>

7 0
3 years ago
What is the dirty price of a bond? the bond's price less an adjustment for changes in interest rates the bond's price based only
Sophie [7]

Answer:

The dirty price of a bond is referred to:

  • The actual price of the bond.
  • Also the cash flows in futureand its values.

Explanation:

Dirty price of bond: The dirty price of bond is referred to the actual and present value of the bond.

Also is referred to the present value of the bonds or the future cash flows.

In financial terms a dirty price of bond is said to be the bond's price which is including all the interests which has been added up since the most recent payment of the coupon.

Price quote of a bond: The price quote of a bond is referred to bond's clean price as it does not affects or reflects on all the interests which have been calculated for the bond since of its most recent coupon payment.

Bonds gets always quotes in terms of clean price but the financial investos always pay them in terms of Dirty price until the bond has to be purchased on the given date of coupon's payment.

7 0
3 years ago
Đặc điểm sản phẩm tác động tới việc lựa chọn phương thức thâm nhập thị trường thế giới của
xz_007 [3.2K]
Language please. : (
3 0
3 years ago
Read 2 more answers
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