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Vilka [71]
3 years ago
15

Planet Design​ Services, Inc., is considering replacing a machine. The following data are​ available: Old Machine Replacement Ma

chine Original cost $ 630 comma 000 $ 490 comma 000 Useful life in years 8 4 Current age in years 4 0 Book value $ 350 comma 000 long dash Disposal value now $ 162 comma 000 long dash Disposal value in 4 years ​$0 ​$0 Annual cash operating costs $ 108 comma 000 $ 66 comma 000 For the decision to keep the old​ machine, the relevant costs of keeping the old machine is​ ________.
A. $ 432 comma 000.
B. $ 640 comma 000.
C. $ 108 comma 000.
D. $ 594 comma 000.
Business
1 answer:
mel-nik [20]3 years ago
6 0

Answer:

A. $ 432 comma 000.

Explanation:

The computation of the relevant cost of keeping the old machine is​ shown below:

= Annual cash operating costs × Current age in years

= $108,000 × 4 years

= $432,000

To find out the relevant cost for the old machine, we multiply the annual cash operating cost with its current age so that the accurate cost can come

All other information which is given in the question is not relevant. Hence, ignored it

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1. After multiple rounds of layoffs, a plastics processing plant goes into bankruptcy because it has failed to keep up with technological developments in the field. It is called dissolution.

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Explanation:

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8 0
3 years ago
If a new home can be constructed for $150,000, what is the opportunity cost of federal defense spending, measured in terms of pr
FrozenT [24]

Answer:

4 million  houses

Explanation:

Opportunity cost is the forfeited benefit as a result of choosing one option over others.  Its value equals the cost of the next best alternative.

The cost of constructing a new home is $150,000.  If the Federal Defence has a budget of $600 billion, the opportunity cost of spending that amount will be the equivalent number of units that can be built by the amount.

To calculate the number of units= $600 billion divided by $150,000

= $600,000,000,000/ $150,000

=4,000,000

=4 million units

6 0
4 years ago
On december 1, 2016, escobar consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note pay
loris [4]
The journal entry to record the payment of the note and entire interest on april 1, 2017 is as follows; Debit Notes Payable $4,000, Debit Interest Expense 120, Debit Interest Payable 40, <span>Credit Cash $4,160.

April 1,2017
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       Interest expense    $120
       Interest payable       $40
                       Cash                  $4,160</span>
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3 years ago
Imagine you have $30 to spend. You are thinking of buying new soccer shoes because yours
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Answer:

video game

Explanation:

because I don't go outside, I'm a gamer

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3 years ago
True or false: If Dogs R Us overstates ending inventory on the balance sheet, then total equity on the balance sheet will be ove
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Answer:

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