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
navik [9.2K]
4 years ago
6

Granfield Company has a piece of manufacturing equipment with a book value of $44,000 and a remaining useful life of four years.

At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,800. Granfield can purchase a new machine for $128,000 and receive $22,800 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,800 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Business
1 answer:
Troyanec [42]4 years ago
6 0

Answer:

$26,000

Explanation:

The calculation of Net increase or decrease in income on replacement is shown below:-

Net savings in Variable cost for 4 years = Variable manufacturing costs × Life

= $19,800 × 4

= $79,200

Net Investment to be made in New machine = Initial investment of new machine - Traded in value of old machine

= $128,000 - $22,800

= $105,200

Net financial disadvantage of replacement = Net savings in Variable cost for 4 years - Net Investment to be made in New machine

= $79,200 - $105,200

= $26,000

So, for computing the net financial disadvantage of replacement we simply applied the above formula.

You might be interested in
Psychologists are now often included on interdisciplinary healthcare teams to
Aliun [14]
<span>Bring in the psychological aspects of healing and good health behavior for patients.</span>
5 0
4 years ago
Andrew wants to purchase a new computer and go to the caribbean for spring break. the computer is priced at 1299, and the vacati
Mamont248 [21]

Andrew writes a check for $1,299 which is the  medium of exchange.

What is the way of transaction ?

  • A sale is a completed agreement between a buyer and a dealer to change goods, services, or fiscal means in return for plutocrats.
  • The term is also generally used in commercial accounts. As a business secretary, this plain description can get tricky.
  • A sale may be recorded by a company before or later depending on whether it uses an addendum account or cash account.

Here,

Andrew can easily determine that the price of the computer is more than the price of the vacation = Unit of Account

Andrew has $1,574 in his checking account

= Store of value

Andrew writes a check for $1,299

= Medium of exchange

Learn more about Way of transaction here:

https://brainly.in/question/2253597

#SPJ4

3 0
1 year ago
According to the law of supply, assuming other factors are held constant a. as the price of milk increases, the quantity of milk
My name is Ann [436]

Answer:

C. as the supply for milk increases, the price of milk will also increase

8 0
3 years ago
Sharon had some insider information about a corporate takeover. she unintentionally informed a friend, who immediately bought th
yawa3891 [41]

This is an example of insider trading, which is using private company data or information to make improper gains.

7 0
3 years ago
The employees of Carlofen, a cell phone manufacturer, raised a concern to their management about their poor pay and excess workl
a_sh-v [17]

Answer: Organization decline

Explanation: The organization inability to address the complain of its staff welfare and not being considerate with work load led to the resignation of her staff, this is known as organization decline. This affects the performance of the company especially when the company are not able to employ capable hands immediately after the resignation of it's employees for the main time, also the employees which are employed won't settle immediately for the job as it would take them time to understand their roles properly, all this factors would lead to organization decline.

5 0
3 years ago
Read 2 more answers
Other questions:
  • “jeremy, can you possibly give me a ride to the airport this sunday,” your friend ben asks. not thinking that this is a big deal
    5·1 answer
  • A bond will sell at a premium when its coupon interest rate: is lower than the market interest rate on similar bonds. equals the
    9·1 answer
  • Explain how lowell took advantage of division of labor.
    15·1 answer
  • Consider two countries' situations: Country A can produce either six automobile ror twelve movies with the same amount of resour
    11·1 answer
  • g Dave's Duds reported cost of goods sold of $2,000,000 this year. The inventory account increased by $200,000 during the year t
    8·1 answer
  • Full employment means that there is no​ unemployment, so the unemployment rate would be zero. The​ "normal" underlying level of
    10·1 answer
  • Brite-Way Lighting is based in California and sells products within the United States as well as to ten foreign countries. Brite
    14·1 answer
  • Sales discounts: A)Refer to merchandise that customers return to the seller after the sale. B)Refer to reductions in the selling
    11·1 answer
  • If a fiscal policy change is going to exert a stabilizing impact on the economy, it must?
    14·1 answer
  • In most companies, portfolio management is typically done at the sbu or ___________ level of the firm.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!