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
Ivenika [448]
3 years ago
12

Elmdale Company has a machine that affixes labels to bottles. The machine has a book value of $80,000 and a remaining useful lif

e of 3 years and no salvage value. A new, more efficient machine is available at a cost of $300,000 that will have a 5-year useful life with no salvage value. The new machine will lower annual variable production costs from $520,000 to $410,000. Prepare an analysis showing whether the old machine should be retained or replaced.
Business
1 answer:
AveGali [126]3 years ago
3 0

Answer and Explanation:

The preparation of the analysis  showing whether the old machine should be retained or replaced is presented below:

Particulars           Retained equipment       Replace equipment     Change in the net income

Variable cost        $1,560,000                 $1,230,000                $330,000

                  ($520,000 × 3 years)       ($410,000 × 3 years)

Cost of the new

machine                                                         $300,000                        -$300,000

Net change                                                                                               $30,000

As we can see the amount comes in positive which reflects that the machine should be replaced

You might be interested in
If Antonio's boss is interested in a graphical presentation of the relationship between the price and quantity of televisions de
kogti [31]

Answer and Explanation:

a) a demand curve  

7 0
3 years ago
Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike
ANEK [815]

Quick ratio is 1.47.

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.

Gross Profit 72000 67000

Operating expenses and interest expense 56000 53000,

Pretax Income 2200014000

Income Tax 3000 4000

Net Income 14000 10000

Balance sheet Year? Year

cash 4000 7000

Accounts Receive ab 114000 18000

Taventory 40000 34000,

Property & Equipment 45000 36000

Total Assets 302000 97000

Current Liabilities ‘i6000 4.7000

Long term Liabilities 5000 45000

Common stock 30000 30000

Retained Earnings 1120005000

Total Liabilities & Stock holders equity 10300037000,

L. Current Ratio = Current Assets / Current Liabilities

Year? Year

Current Ratio 36347

2.Quick Ratio

‘Current Assets - Inventory / Current Liabilities

Year? Year

Quick Ratio is 1.47

2.Profit Margin = Net profit /Sales

Year? Year

Profit Margin 737% 5.99%

Learn more about quick Ratio here

brainly.com/question/25894261

#SPJ4

4 0
2 years ago
A firm incurs $35,000,000 of actual OH costs. It has a PDOH rate of $450 per machine hour and 100,000 machine hours were actuall
ella [17]

Answer:

c.  Debit: Overhead Control $10,000,000  

Credit: Cost of Goods Sold $10,000,000

Explanation:

The journal entry to close the overhead account is presented below:

Overhead Control A/c Dr $10,000,000

       To Cost of Goods Sold A/c  $10,000,000

(Being the overhead account is closed)

The computation is shown below:

= Applied overhead - actual overhead

where,

Applied overhead equal to

= $450 × 100,000 machine hours

= $45,000,000

And, the actual overhead is $35,000,000

So, the amount would be

= $45,000,000 - $35,000,000

= $10,000,000

Since the applied overhead is greater than the actual overhead, so we debited the overhead control account and credited the cost of goods sold account

5 0
3 years ago
Four Seasons Hotels sell private residences in several of their properties and send direct mail to prospective residents asking
SVEN [57.7K]

Answer:

lead generation.

Explanation:

Lead generation -

It refers to the process of generating the interest of consumers regarding any goods and services , is referred to as lead generation .

The method is useful in the field of marketing , as it increases the possibility of the consumers buying the product and hence , increases the sale , which in turn is profitable to the company .

The method of lead generation is the part of advertizing or publicizing the goods and services .

Hence , from the given scenario of the question ,

The correct answer is lead generation .

7 0
3 years ago
If john can produce 10 chairs or 20 lamps during a week while mary can produce 12 chairs or 22 lamps in the same​ time, who has
Norma-Jean [14]

Mary has the competitive advantage for chairs and lamps.

Absolute comparative advantage is the ability to produce something more efficiently than someone else..

5 0
3 years ago
Other questions:
  • Why is accounting a service industry?
    13·2 answers
  • What is a trap instruction? explain its use in operating systems?
    12·1 answer
  • 2–2 What role do financial markets play in our economy?
    7·1 answer
  • What is used to create an application that is helpful in designing business process models and also helpful in simulating, optim
    15·1 answer
  • Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $4.4 million. The machinery can be sold to the Romul
    5·1 answer
  • Knowledge about how the world works that is used to produce goods and services is: Please choose the correct answer from the fol
    13·1 answer
  • Collection of projects, reports, exams, awards and other evidence of past experience and accomplishments which may serve as a su
    14·1 answer
  • Cala Manufacturing purchases land for $489,000 as part of its plans to build a new plant. The company pays $35,300 to tear down
    10·1 answer
  • Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have
    6·1 answer
  • Kotter studied a number of successful general managers over a five-year period and found that they spend most of their time by t
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!