1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zaharov [31]
2 years ago
8

Lone Wolf Technologies Inc. assembles circuit boards by using a manually operated machine to insert electronic components. The o

riginal cost of the machine is $60,400, the accumulated depreciation is $24,200, its remaining useful life is five years, and its residual value is zero. A proposal was made to replace the present manufacturing procedure with a fully automatic machine that will cost $113,800. The automatic machine has an estimated useful life of five years and no significant residual value. For use in evaluating the proposal, the accountant accumulated the following annual data on current and proposed operations: Current Operations Proposed OperationsSales $191,500 $191,500 Direct materials $65,200 $65,200 Direct labor 45,300 15,100 Power and maintenance 4,200 7,200 Taxes, insurance, etc. 1,500 5,000 Selling and administrative expenses 45,300 45,300 Total expenses $161,500 $137,800Required:Prepare a differential analysis report for the proposal to replace the machine. Include in the analysis both the net differential change in costs anticipated over the five years and the net annual differential change in costs anticipated.
Business
1 answer:
tigry1 [53]2 years ago
6 0

Answer:

Differential analysis for 1 year

                                        Keep old              Change              Differential

                                        machine               machine             amount

sales revenue                  191,000                191,000               0

depreciation expense     -4,840                  -22,760               -17,920

per year

direct materials                -65,200               -65,200               0

direct labor                       -45,300               -15,100                 30,200

power and                        -4,200                 -7,200                  -3,000

maintenance

taxes and                          -1,500                 -5,000                  -3,500

insurance

S&A expenses                  -45,300              -45,300                0

total                                   24,660               30,440                  5,780

If the new machine is purchased, profits will increase by $5,780 every year.

Differential analysis for 5 years

                                        Keep old              Change              Differential

                                        machine               machine             amount

sales revenue                  955,000              955,000             0

depreciation expense     -24,200               -113,800              -89,600

per year

direct materials                -326,000             -326,000            0

direct labor                       -226,500            -75,500               151,000

power and                        -21,000               -36,000               -15,000

maintenance

taxes and                          -7,500                -25,000               -17,500

insurance

S&A expenses                  -226,500           -226,500              0

total                                   123,300             152,200                28,900

If the new machine is purchased, profits will increase by $28,900 for the 5 year period.

You might be interested in
Based on the graph, how many people are willing to work when the government of a country raises the minimum wage from $17 to $25
alukav5142 [94]
Answer
E.28
So yeah hope I’m not too late
3 0
3 years ago
Gonzales Company currently uses maximum trade credit by not taking discounts on its The standard industry credit terms offered b
ira [324]

Answer:

d.$38,448

Explanation:

The computation of the expected change in net income is shown below:

The net purchase for one day = $11,760

For 20 days excluding discount period i.e 10 days , it would be

= $11,760 × 20 days

= $235,200

The interest would be

= $235,200 × 10%

= $23,520

Now the gross purchase  is

= (Net purchase × total number of days in a year) ÷ (1 - discount rate)

= ($11,760 × 365 days) ÷ (1 - 0.02)

= $4,292,400 ÷ 0.98

= $4,380,000

The discount is

= $4,380,000 × 0.02

= $87,600

After tax rate, the change in net income would be

= ($87,600 - $23,520) × (1 - tax rate)

= $64,080 × 0.60

= $38,448

8 0
3 years ago
"In the DuPont system of​ analysis, the return on equity is equal to"​ ________. A. ​(net profit​ margin) times ​(total asset​ t
GalinKa [24]

Answer:

C. ​(return on total​ assets) times ​(financial leverage​ multiplier)

Explanation:

The formula of return on equity using the DuPont system is presented below:

ROE = Profit margin × Total assets turnover × Equity multiplier  

where,

Profit margin × Total asset turnover = Return on asset

The equity multiplier is

= Total assets ÷ shareholder equity

The total asset turnover equal to

= Sales ÷ Total assets

And, The profit margin equal to

= (Operating income ÷ sales) × 100

6 0
2 years ago
Effective problem statements in a business report tend to explain Multiple choice question. what other firms are doing about the
Alika [10]

The effective problem statement explains the specific context of the problem and the best way to resolve the problem.

The effective problem statement is a section in a business report that spot a problem & addresses the problem and explains clearly why it is important to address such problem.

Therefore, the Option B and D is correct because the effective problem statement explains the specific context of the problem and the best way to resolve the problem.

Learn more about this here

<em>brainly.com/question/4566678</em>

5 0
2 years ago
Bartell contracts with LaRonda to remodel and retile a bathroom. LaRonda finishes the job and gives Bartell a bill for $14,000 f
Olegator [25]

Answer:

d. a mechanic's lien.

Explanation:

Based on the information provided within the question it can be said that in this case LaRonda may seek a mechanic's lien. This term is a security interest that provides benefit to those that have undergone labor or purchased materials in order to renovate or improve upon the property. Which is what LaRonda did, and can therefore seek a mechanic's lien in order to get paid.

8 0
3 years ago
Other questions:
  • A _____ economy is based on personal choice.
    11·1 answer
  • Rachel's Designs has 1,800 shares of 5%, $50 par value cumulative preferred stock issued at the beginning of 2019. All remaining
    7·1 answer
  • A church put advertisements in its weekly bulletins to encourage its members to participate in the services by telling a brief,
    6·1 answer
  • Rantly Corp. is eliminating its desktop computer repair center in Minnesota. Meanwhile, the demand for mobile device repair—a se
    13·1 answer
  • What is an economic factor on a business
    7·1 answer
  • Company X has a good whistle-blowing program in place. Sara used the whistle-blowing system to alert the management about a frau
    8·1 answer
  • An investor is considering buying a restaurant that has been in operation for a number of years. The restaurant has a highly reg
    6·1 answer
  • Garcia Co. issued bonds with detachable common stock warrants. Only the warrants had a known market value. Cash proceeds exceed
    12·1 answer
  • Tharaldson Corporation makes a product with the following standard costs:
    10·1 answer
  • Cho biết hàm cầu đối với một loại hàng hóa nhất định là ( USD / đơn vị sản phẩm ) P = -0,21. Q ^ ( 2 ) -0,84.Q+ 50 Thặng dư của
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!