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butalik [34]
3 years ago
12

A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50

0 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400.
Prepare a differential analysis whether to continue with the old machine or place the old machine.
Business
1 answer:
tatuchka [14]3 years ago
6 0

Answer:

The company should continue with the old machine, because the company will lost $5,500 in 5 years with new machine.

Explanation:

Labor saving by using new machine in 5 years = 5* ($11,200 - $7,400) = $19,000

The cost for new machine = $75,000 for newly purchase  – sell old one for $50,500 = $24,500

So the total lost for new machine = cost of $24,500 – labor saving of $19,000 = $5,500

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Greg purchased stock in Bear Stearns and Co. at a price of $88 per share one year ago. The
VashaNatasha [74]

Answer:

A) -87.50%

Explanation:

The computation of the return on the investment is shown below:

= (Acquired price by JB Morgon - purchase price per share) ÷ (purchase price per share)

= ($11 per share - $88 per share) ÷ (88 per share)

= - ($77 per share) ÷ (88 per share)

= -87.50%

We simply take the difference of the price and then divide it with the purchase price per share so that the correct percentage can come.

7 0
3 years ago
To maximize profit, the perfectly competitive firm charges a price equal to __________ while the monopolist charges a price ____
belka [17]

To maximize profit, the perfectly competitive firm charges a price equal to the marginal cost while the monopolist charges a price greater than the marginal cost.

The monopolist will select the profit-maximizing level of output where MR = MC, and then charge the price for that quantity of output as determined by the market demand curve. If that price is above average cost, the monopolist earns positive profits.

In a monopolistically competitive market, the rule for maximizing profit is to set MR = MC and the price is higher than marginal revenue, not equal to it because the demand curve is downward sloping.

Learn more about monopolists at

brainly.com/question/13113415

#SPJ4

5 0
1 year ago
Candy and Sarah own and operate a small restaurant. On a weekly basis, they go to their local Sam's Wholesale Club to purchase t
Natalka [10]

Answer:

The correct answer is Cash and Carry.

Explanation:

Cash and carry ("Buy (take) and take (it)") is considered a commercial formula similar to an economato, evolved from traditional wholesale, with the particularity of addressing only and exclusively professionals (independent retailers and hoteliers) and operate on a free service basis. The retailer travels to the location of the wholesaler, chooses the items he needs, pays them and transports them, in front of the conventional procedure of placing the order to the wholesaler, so that he can transport it and serve it in the establishment of the retailer.

The concept of "Cash and Carry, wholesale self-service", is a commercial formula adapted to the needs of certain retailers, restaurants, cafes, hotels and other service providers, such as some institutions (HoReCa Sector, Hotels-Restaurants-Caterers). It is basically designed for professionals in the HoReCa sector, but it also accepts clients that are large consumers, such as institutions or educational centers.

In summary:

It is a wholesaler; that is, it never sells to an end consumer. To access a Cash and carry establishment, you must have a card or identification that proves the status of a retailer.

It has a commercial policy based on price and continuous offers.

Know your customers, their consumption and needs well.

4 0
3 years ago
Outline the initiatives that Woolworths have chosen, use to lessen their impact on environment.
Kryger [21]
They have decided to sell reusable plastic bags as a replacement to the non reusable plastic bags which were polluting the environment.
7 0
2 years ago
Economic Efficiency is the production of that combination of goods that consumers’ desire the most (maximum _________) given a f
Semmy [17]

Answer:

utility

Explanation:

Economic efficiency is when the consumer can get the combination of goods, and do not have to trade off any product to get higher utility. For example, given the fixed amount of money, there are 2 desired products, apple and banana. If the customer buy apples with her all money, she will get utility of, for example, 3 utils. But since she love both fruits, have 2 type of fruit will make she will be happier, she will give up some apples to buy bananas, resulting in higher utility. This process continue util she get the highest utility.

4 0
3 years ago
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