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sladkih [1.3K]
2 years ago
12

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years.

At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is ______
Business
1 answer:
erastovalidia [21]2 years ago
7 0

Answer:

Effect on income= -$18,000

Explanation:

Giving the following information:

Granfield Company has a piece of manufacturing equipment with a book value of $36,000 and a remaining useful life of four years. At the end of the four years, the equipment will have a zero salvage value. The market value of the equipment is currently $21,200. Granfield can purchase a new machine for $112,000 and receive $21,200 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $18,200 per year over the four-year life of the new machine.

Year 0= -112,000 + 21,200= -90,800

Year 1 to 4= 18,200*4= 72,800

Effect on income= -90,800 + 72,800= -18,000

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Answer:

10,185 miles

Explanation:

The computation of the break even miles is shown below:

As we know that

Break even units is

= (Fixed cost) ÷ (Selling price per unit - variable cost per unit)

= ($2,200) ÷ (36 cents per mile - 14.4 cents per mie)

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We simply applied the above formula so that the break even point in units could come and the same is to be considered

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Answer:

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4 0
2 years ago
You have a credit card bill from ABC Credit for a total of $3,754. Please group the transactions within the appropriate T-Accoun
algol13

The T-Account can be made as follows with the credit of $3,754. The expenses are deducted from the balance as the total credit available.

<h3 /><h3>What is Expense?</h3>

Expenses are the costs that are paid by businesses, these costs are incurred for the operations of business. The expenses are paid from the cash/ bank balance available at the business.

It is recommended that the expenses are in a control and are lower than the revenue generated by the business.

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The account are made according to the nature of expenses, there are two expenses that are not to be classified as an expense instead they need to be treated as a capital expenditure that is to be posted in Asset account.

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Learn more about Credit card at brainly.com/question/27074608

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4 0
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Answer:

True

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An increase in the cost of production would cause some producers to stop production, supply would fall and the supply curve would shift to the left.

I hope my answer helps you

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3 years ago
If a consumer is waiting to buy a sweater he or she found at a department store until after the holiday season, which factor is
rjkz [21]
"Sweater" is the factor that is most likely influencing the decision to wait because it probably isn't cold enough for a sweater yet (I think?)
4 0
2 years ago
Read 2 more answers
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