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
Explanation:
The computation of the ending inventory using the each method is shown below:
a. FIFO
Since the 57 units is in physical inventory so 40 units should be taken at $357 i.e from latest purchase and the remaining 17 units is at $342
= 40 units × $357 + 17 units × $342
= $20,094
b. LIFO
Since the 57 units is in physical inventory so 20 units should be taken at $360 and the rest 37 units at $342
= 20 units × $360 + 37 units × $342
= $19,854
c. Weighted average cost method
= Weighted average cost per unit × ending inventory units
where,
Weighted average cost per unit is
= $110,400 ÷ 320 units
= $345
And, the ending inventory units is 57 units
So, the ending inventory is
= 57 units $345
= $19,665
The firm is not engaging in international trade is True.
(B) The firm is using a regional approach to international expansion.
<u>Explanation:</u>
When a company wants it's business to grow and expand in a new country it uses the regional approach. It is generally used when the company is quite established and it has a nice foothold in the country.
In the regional approach the business is first set up in the country and when it gains power it starts spreading across the borders to get a region as a whole.
