Answer:
It is a good investment, the company should purchase the machine and sale the old one.
Explanation:
![\right[\begin{array}{cccc}-&old&new&differential\\purchase&0&-112,500&-112,500\\proceed \:from \:sale&0&60,000&60,000\\cost \:savings&0&13,000&13,000\\total \:cost \:saving&0&65,000&65,000\\Net&0&78,000&12,500\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cright%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26old%26new%26differential%5C%5Cpurchase%260%26-112%2C500%26-112%2C500%5C%5Cproceed%20%5C%3Afrom%20%5C%3Asale%260%2660%2C000%2660%2C000%5C%5Ccost%20%5C%3Asavings%260%2613%2C000%2613%2C000%5C%5Ctotal%20%5C%3Acost%20%5C%3Asaving%260%2665%2C000%2665%2C000%5C%5CNet%260%2678%2C000%2612%2C500%5C%5C%5Cend%7Barray%7D%5Cright%5D)
<u>We post the purchase cost and the proceeds from the machine sale, </u>
<u>The book value of the machine is irrelevant, </u>we are looking to save cash. The old machine value is a sunk cost. It is a cost already incurred. We don't use it in the calculations.
<u>Then we calculate the saving for five years. </u>
Last, we add the differential analysis column.
Because is gives a positive amount, purchase the new machien would be a good idea.
The answer is a statement of future intent. It is a statement
of an intention has to do something in the future is not an offer. Agreements
to agree arise when two parties are conversing an event involving future
transactions which are still in progress. A statement of future intent is not a
legally binding contract. It only designates an agreement by the two parties
involved in the negotiation to attempt to form a future agreement. An agreement
to agree is not binding if the matter under discussion is still in argument.
Answer:
A. Cash 960
Service Revenue 960
Explanation:
In the given transaction, the trade discount is not shown in the recording of the journal entry but the effect is to be seen in the journal entry.
Since the cash is paid for providing the service and give the patient a 20% discount.
So, the discount amount would be equal to
= Service cost × discount rate
= $1,200 × 20%
= $240
And, the journal entry would be shown below:
Cash A/c Dr $960
To Service Revenue $960
(Being service is provided for cash and discount is given)
Answer: a. 15
Explanation:
Given;
Labour hours available to each nations.
England = 40 labour hours.
Spain = 40 labour hours.
Solution:
Total production of bread in 40 labour hours for each nation from the table is 15.
England = 10
Spain = 5
Since both nations decided to focus on their strength where they pose comparative advantage, the production of cheese would increase by 15. As this is the amount of bread produced in that time frame of 40 labour hours.
Answer & Explanation:
Fish is a common resource not a public good because it is subject to rivalry in consumption.Tragedy of commons results when property right aren't assigned for the common resource.
