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
umka21 [38]
3 years ago
14

LC Corp. has an old machine with operating costs of $164,200 per year and a net book value of $23,000. LC is looking at two repl

acement options. Option A costs $210,000 and has $118,000 per year of operating costs. Option B costs $216,000 and has $114,400 of annual operating costs. All machines have a six year life and a $0 salvage value. The old machine could be sold for $19,200 today. Which of the following lists LC’s options from least costly to most costly?A : Retaining the old machine is least costly, followed by option B, then option A.B :Option B is least costly, followed by option A, then retaining the old machine.C :Retaining the old machine is least costly, followed by option A, then option B.D :Option A is the least costly, followed by option B, then retaining the old machine.
Business
1 answer:
Aleksandr [31]3 years ago
7 0

Answer:

B :Option B is least costly, followed by option A, then retaining the old machine

Explanation:

The computation for each machine is shown below:

Old machine:

= Per year operating cost × number of years - salvage value

= $164,200 × 6 years - $19,200

= $985,200 - $19,200

= $966,000

Option A:

= Purchase Cost + Per year operating cost × number of years

= $210,000 + $118,000 × 6 years

= $210,000 + $708,000

= $918,000

Option B:

= Purchase Cost + Per year operating cost × number of years

= $216,000 + $114,400 × 6 years

= $216,000 + $686,400

= $902,400

By comparing the three machines, we get to know that the option B is least cost out of the available options

You might be interested in
Newhard Company assigns overhead cost to jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes
erik [133]

Answer:

A) manufacturing costs= $37,000

B) Unitary cost= $37

Explanation:

Giving the following information:

Newhard Company assigns overhead costs to jobs based on 125% of direct labor cost.

The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost.

A total of 1,000 units were produced in Job 313.

A) manufacturing costs= direct materials + direct labor + manufacturing overhead

manufacturing costs= 10000 + 12000 + (12000*1.25)= $37,000

B) Unitary cost= 37000/1000= $37

5 0
3 years ago
On StatSim, how does a firm get their market share to increase?
monitta

Answer:

I need some points please

6 0
3 years ago
Throughout human history we know that Group of answer choices all countries will eventually return to very low levels of real GD
kkurt [141]

Answer:

not until the early 19th century were a few countries able to establish sustained long-run economic growth.

Explanation:

Industrial revolution (industrialization) can be defined as a period of significant change in economic and social manufacturing process characterized by the use of handicrafts and agrarian methods to the use of power-driven equipments and machines. Basically, the industrial revolution began in Great Britain (England) between 1760 to 1840 and eventually spread across other countries of the world.

Prior to industrialization, humans and animals were largely used as a means to generate power, execute tasks or do certain things during the production and distribution process.

However, in the advent of industrialization and technological advancement, machines were invented to replace human and animal power.

Some examples of such inanimate sources are Steam plants, Nuclear plants, Wind etc.

In human history, we know that not until the early 19th century were a few countries able to establish sustained long-run economic growth.

3 0
2 years ago
On January 1, Year 2 Boothe Company paid $12,000 cash to extend the useful life of a machine. Which general journal entries woul
Akimi4 [234]

Answer:

January 1, 2016:

Dr Accumulated Depreciation account 12,000

Cr Cash account 12,000

Explanation:

The accumulated depreciation account is a contra asset account used to record all the incurred depreciation expense since the asset (or assets) was being used or put into service.

Since the repairs extended the life cycle of the asset, then its accumulated depreciation decreases.

5 0
3 years ago
What is the beta of a 3-stock portfolio including 25% of stock A with a beta of 0.90, 40% of stock B with a beta of 1.05, and 35
natka813 [3]

Answer:

1.25

Explanation:

Calculation for What is the beta of a 3-stock portfolio

Portfolio beta = (.25 *0.9) + (.4 *1.05) + (.35 *1.73)

Portfolio beta = .225 + .42 + .606

Portfolio beta = 1.25

Therefore the beta of a 3-stock portfolio will be 1.25

5 0
3 years ago
Other questions:
  • Distributor packages and sells two types of products, A and B. The respective sales prices for the products are $10 and $5. The
    11·1 answer
  • A Cajun trinity, used in many Louisiana Creole and Cajun dishes such as gumbo, contains A. onion, celery, and parsnip. B. onion,
    6·1 answer
  • They have fixed costs of £200 per month Each item's raw materials cost £50 The items sell for £150 each
    5·1 answer
  • Adidas has identified two different customer groups for its shoes with Boost technology: an older group concerned with performan
    7·1 answer
  • With respect to organizational changes, a health care organization that discovered weaknesses in the organization’s ability to c
    6·1 answer
  • What factors warrant special attention in appraising a firm’s inventory, equipment and accounts receivable?
    11·1 answer
  • Fixed expenses are $499,000 per month. The company is currently selling 5,000 units per month. The marketing manager would like
    11·1 answer
  • Buying insurance and investing in the future requires spending less in the present. Why is this a hard choice for many people? W
    10·2 answers
  • Zara collects massive amounts of data on its SKUs, orders, sales patterns, store inventories, and other variables. This informat
    11·1 answer
  • Suppose 2 athletes sign 10-year contracts for $80 million. In one case, we're told that the $80 million will be paid in 10 equal
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!