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rusak2 [61]
3 years ago
5

Starling Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The

old machine can be sold for $1,500. A new high-speed machine can be purchased at a cost of $25,000. It will have a useful life of five years and no residual value. It is estimated that the annual variable manufacturing costs will be reduced from $26,000 to $23,500 if the new machine is purchased. The five-year differential effect on profit from replacing the machine is a(n)
Business
1 answer:
Lostsunrise [7]3 years ago
4 0

Answer: increase of $11,000

Explanation:

Based on the information that have been provided in the question, the five-year differential effect on profit from replacing the machine will be:

= $25000 - [5 × ($26,000 - $23,500)] - $1500

= $25,000 - (5 × $2500) - $1500

= $25,000 - $12,500 - $1,500

= $25,000 - $14,000

= $11,000

Therefore, there will be an increase of $11,000.

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What could go wrong?
SpyIntel [72]

Answer:

brand risk, demand risk, price risk, product development

Explanation:

marketing risk is a potential for losses and failures in marketing.

brand risk : this is the risk that the product would lose it value due to competition and failures in declining brand awareness. it is likely to to affect a new product if prevailing measures are not taken to curb such risk.

demand risk: this is the risk that the demand for the product being advertised will fall or fail to materialized. this is likely to occur when there is a shift in customer needs or choice.

price risk: this is related to a risk that the price tag on the product campaign may vary higher than competitor price.

product development: this risk is related to launching and developing a new product. there is likely hood that new product has a higher percentage of not succeeding in the market.

4 0
3 years ago
Outline one advantage and one disadvantage of investing in training....
nexus9112 [7]

One advantage of training is that it can enhance employees' skillset within the organisation overall. A disadvantage is that training can be costly especially if employees leave taking their skills elsewhere.

7 0
3 years ago
You are analyzing a company that has cash of $8,800, accounts receivable of $15,800, fixed assets of $87,600, accounts payable o
nikdorinn [45]

Answer:

quick ratio =  0.61  

Explanation:

given data

cash = $8,800

accounts receivable = $15,800

fixed assets = $87,600

accounts payable = $40,300

inventory = $46,900

solution

we get here quick ratio that is express as

quick ratio = (Cash + Accounts receivable) ÷ (Accounts Payable)   .................1

put here value and we get

quick ratio = \frac{8800+15800}{40300}  

quick ratio =  0.61  

so correct option is c. 61

7 0
3 years ago
ABC Manufacturing uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and
Rashid [163]

Answer:

6 (rounded up to the nearest whole number)

Explanation:

Number of kaban= Daily demand*lead time in days * ( 1 + safety stock)/quantity in a container

= 800*0.34* (1+9/100)/50

272 * 1.09/50

272* 0.0218

=5.9296

=6 ( nearest whole number)

4 0
3 years ago
Give three reasons why food is processed.​
lubasha [3.4K]

To make it edible and digestible

To kill all germs in the food

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2 years ago
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