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
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

You might be interested in
Which of the following are integral parts of the managerial process of crafting and executing strategy?
iVinArrow [24]

Answer:

The correct answer is a. Developing a strategic vision, setting objectives, and crafting a strategy .

Explanation:

Management has the responsibility of charting the strategic course, establishing a series of objectives that allow it to choose a strategy that allows achieving everything planned. Likewise, the board of directors is responsible for defining and executing such strategies.

The management process has the following stages:

1. Define strategic vision.

2. Set Goals.

3. Develop the strategy.

4. Apply and implement the strategy.

5. Evaluate performance and implement controls.

3 0
3 years ago
Which example best describes reducing risky behavior?
Vaselesa [24]

Answer:

deciding not to buy a car

8 0
3 years ago
____ are examples of public goods provided by the government. They are accessible to all (even those
lana [24]
The answer is A.- Roads, Mail delivery, and education
5 0
2 years ago
Read 2 more answers
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materi
UNO [17]

Answer:

Units transferred out = 760

Explanation:

If we assume that all units are completed in the order of arrival i.e (FIFO), then the units transferred out is the sum of the opening inventory and the units started and completed in the period. The units started and completed in the period is referred to fully-worked.

Fully worked is computed as the units started in the period less the closing inventory .

Fully- worked = 800 - 240 = 560

The units transferred out = opening inventory + Fully-worked

                                          = 200 + 560 = 760

Units transferred out = 760

Note we assumed that the units of the inventory( started last period i.e January) would be worked on first in the month of February  before any other units. So, it is assumed completed by the end of February

6 0
3 years ago
When a company sells property and then leases it back, any gain on the sale should usually bea. deferred and recognized as incom
Julli [10]

Answer: A. deferred and recognized as income over the term of the lease.

Explanation:

In a sale-leaseback transaction, that is when a property is sold by a company and leased back, the property seller is the lessee and the property purchase is the lessor. In this case, a sale-leaseback will allow a company to sell an asset so that the company can raise capital, after which the asset can then be leader back.

When a company sells property and then leases it back, any gain on the sale should usually be deferred and recognized as income over the term of the lease.

6 0
3 years ago
Other questions:
  • The original price is $28.00 the tax is 7.25% what is the total
    14·1 answer
  • An acceptance is valid if:
    15·1 answer
  • IE 9-3 ... AS/AD Model – Suppose this economy was momentarily at Full Employment, but has now experienced a continuation of the
    6·1 answer
  • Taylor Company purchased a piece of equipment for $2,000 several years ago. It would cost $4,000 to replace that piece of equipm
    15·1 answer
  • Which of the following will increase the supply of laptop computers? Choose one or more: A. The price of laptop computers rises.
    6·1 answer
  • The spot rate for the Argentine peso is $0.3600 per peso. Over the year, inflation in Argentina is 10 percent and U.S. inflation
    10·1 answer
  • Ok I need serious help!!!!!!
    14·1 answer
  • When Amway entered China, it opened up retail locations for the first time. Amway is a direct selling firm. This means that it s
    15·1 answer
  • Claudia and Giada own an online store that sells wall clocks. From an operations perspective, the clocks they build
    7·1 answer
  • a company budgets production of 15,000 solar panels in july. each unit requires 4 hours of direct labor at a rate of $20 per hou
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!