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just olya [345]
2 years ago
13

Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in t

he development of a new machine that costs $300,000. The old machine costs $100,000 per year to operate, but the new machine could be operated for only $36,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $80,000. The expected salvage value of both machines is zero.
Required:
Based on this information, recommend whether to replace the machine. Support your recommendation with appropriate computations.
Business
1 answer:
sesenic [268]2 years ago
0 0

Answer:

Yes, the machine should be replaced

Explanation:

The computation is shown below:

Particulars              old Machine            New machine

Purchase price                                       $300,000

Less:

Salvage value                                        -$80,000

Operating cost         $400,000              $144,000

                          ($100,000 × 4 )        ($36,000 × 4)

Total cost                 $400,000                $364,000

So, the financial advantage is

= $400,000 - $364,000

= $36,000

Since there is a financial advantage of $36,000 so the old machine should be replaced with the new machine

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Suppose that the United States currently imports 1.0 million pairs of shoes from China at $20 each. With a 50 percent tariff, th
hichkok12 [17]

Answer:

Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.

Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.

Explanation:

Looking at the difference between importation cost from both Mexico and China,

I.e Consumer Price of Mexican shoes - Consumer Price of Chinese Shoes = $30 - $25 = $5

Which means US consumers are paying $5 extra for Mexican import than Chinese import without tariff

For Chinese product

With the tariff, US consumers were paying ( 1 million * $10 ) = $10 million

Net consumer surplus is -$10 million USD.

For Mexican product

1.2 million * $5 = $6 million

Net Gain

$10 million - $6 million = $4 million.

The Net losses for US Sellers is $6 million

US government is losing all its tariff because of the free trade agreement resulting from Mexican import

1 million * $10 = 10 million

Trade situation is a win-win game for US consumers as well as US producers and for all the whole world.

Since China is producing cheaper shoes which means US consumers will be gain from Chinese import at a reduced cost and that will result in higher consumer surplus. But because of the tariff, US consumers are at a disadvantage. Due to free trade agreement between US and Mexico, Chinese producers lost as their is tariff in their product which make it to be uncompetitive.

6 0
1 year ago
The _____ design results from a strategy of related diversification.
yan [13]

Answer:

Divisional (M-form) design

Explanation:

Multi divisional organization Design results from a strategy of related diversification.

In such design the business is spread all around the country or region ,or multiple products or services.

The business owner spread the business all around the region where the employees work for the one goal and one product or multiple products assigned by the business owner. In such businesses the major decisions use to make in head office and then circulated to the bottom.

Advantage of such business design is that the line managers are responsible for any  excellence and poorness of the business. The higher management gives goals and vision to the line manager of specific firm working in the different regions. The line managers of the firm use to attend the meetings and propagate the message to employees and they motivate them to work for vision.

Disadvantage In such designs is that sometime the line managers use to make monopoly in the firm. They hire and fire the employee for their own satisfaction not for the betterment of the company. So in this  way the company suffers and can not achieve the goals set by the business owner.

The owner is not having one to one meeting with the employees so the professionals may not be retained by the company.

For example a school xyz is having the branches all around the region and the owner is only one. The owner has hired the managers to run the each branch of the school. It is best way to expand the business in different regions but at the same time the quality of the business would be compromised due to different line managers working for the project. Here in this case the more potential manger can achieve the goals but the normal one could not do so. So here the quality of the firm or company would be compromised.

6 0
1 year ago
Problem 5 Using the quarterly unit sales data for 2020 calculate the quarterly sales forecast using the seasonal index approach
shutvik [7]

Answer:

The quarterly sales forecast for 2021, using the seasonal index approach:

            Estimated 2021 Sales

Q1               52

Q2             191

Q3               17

Q4            140

Total        400

Explanation:

a) Data and Calculations:

Annual demand for 2020:

            2020 Sales          Estimated 2021 Sales

Q1               30                      52 (30/230 * 400)

Q2             110                      191 (110/230 * 400)

Q3              10                        17 (10/230 * 400)

Q4             80                      140 (80/230 * 400)

Total       230                     400

b) The seasonal index approach uses an average to compare an actual observation relative to an estimated observation based on the removal of annual seasonal variations.

5 0
1 year ago
There are fundamentally two possible changes in an economy that will each cause inflation unless other compensating changes also
sdas [7]

Answer:

If the statements above are true, then it is also true that in a pre-banking economy:

  • B) if other factors in the economy are unchanged, increasing the quantity of gold available will lead to inflation.

In a pre-banking economy, the quantity of gold equals the demand for gold. So if the quantity supplied of gold increases, we will increase the demand for gold. When the demand for money increases, both interest rates (not applicable here) and inflation rate increases.

8 0
2 years ago
Who would be best suited to analyze budgets, create reports, explain information to others, and handle internal company procedur
saw5 [17]
<span>The person who would be best suited to analyze budgets, create reports, explain information to others, and handle internal company procedures and finances is the </span><span>D Business Analyst. He or she is responsible for financial reports in order for the business to maintain its finances. </span>
8 0
2 years ago
Read 2 more answers
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