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aleksley [76]
3 years ago
9

Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hou

rs per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.
Current Machine New Machine
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years

If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.

Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Business
1 answer:
Masteriza [31]3 years ago
8 0

Answer:

The incremental cost is ($10,360)

Explanation:

<u>Analysis of total cost over the 5 year period</u>

                                                      Retain Old Machine   Buy New Machine

<em>Variable / Incremental Operating</em>

<em>Costs</em>

Old Machine                                          124,750    

New Machine                                                                              97,800

<em>Old Machine Book Value</em>

Retain: Annual depreciation                    8,430                      

Buy : Lump sum written off                                                         8,430

Old Machine Disposal                                                                (8,490)

Purchase Cost of New Machine                                               25,080

Total Cost                                               133,180                       122,820

The use of new machine will result in lower cost for the next 5 years.The incremental cost is ($10,360)

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The process of dividing work activities into separate job tasks is known as division of labor.

The separation of tasks inside any economic system or organization is known as the division of labor, allowing members to specialize  

People, groups, and nations are given or learn to acquire specialized talents, and they either join forces or trade to benefit from the additional powers of others.

Equipment, natural resources, talents, and training are all examples of specialized capabilities, and it's frequently crucial to have a combination of these assets working together.

For instance, a person can specialize by getting the right equipment and learning how to use it, just as a company might specialize by getting specialized machinery and employing or training expert personnel.

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1 year ago
Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume. Th
Nataly_w [17]

Answer:

The total monthly fixed manufacturing cost is $328,000.

Explanation:

For 4000 units, The direct materials cost is $99.2 per unit, the direct labor cost is $45.5 per unit, the manufacturing overhead cost is $94.

For 5000 units, The direct materials cost is $99.2 per unit, the direct labor cost is $45.5 per unit, the manufacturing overhead cost is $77.6.

Total manufacturing overhead for 4,000 units

= 4,000\ \times\ 94

= $376,000

Total manufacturing overhead for 5,000 units

= 5,000\ \times\ 77.6

= $388,000

The variable cost per unit

= \frac{388,000\ -\ 376,000}{1,000}

= $12 per unit

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= Total cost - Total variable costs

= 388,000\ -\ (5,000\ \times\ 12)

= $328,000

5 0
3 years ago
What part of wildlife management involves trapping animals in areas where they are abundant and releasing them in areas of suita
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The part of wildlife management that overseas the trapping animals in areas where they are much and get them release to where they are not abundant is : D Hunting regulations

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3 0
2 years ago
The difference between job enrichment and job enlargement is thata.enriched jobs enable an employee to do a number of boring job
zhannawk [14.2K]
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7 0
2 years ago
Question 3: Economic value-added (EVA) Net operating profit before taxes is $1,800. Total assets (invested capital) are $8,500,
posledela

Answer:

- $454

Explanation:

Net Operating Profit after tax = Net operating profit before tax - tax rate

                                                  = $1,800 - 20%

                                                  = $360

Economic Value Added:

= Net Operating Profit after tax - (Capital Invested × Weighted average cost of capital )

= $360 - [($8,500 - $1,100) × 11%]

= $360 - ($7,400 × 11%)

= $360 - $814

= - $454

7 0
3 years ago
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