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Dvinal [7]
3 years ago
11

Crane Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on lar

ge homes and commercial properties. Last year, Crane Roofing spent $73,200 refurbishing the lift. It has just determined that another $39,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $166,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $24,400 per year. Crane Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $24,500 if the new lift is purchased.
Prepare an incremental analysis for the life of the machines showing whether the company should replace the equipment.
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Answer:

The company should replace the equipment.

Explanation:

The cost analysis is calculated as follows;

                         Retain                Replace                 Net Income

                                     Equipment        Equipment         Increase (Decrease)

Operating expenses     $146,400                0                      $146,400

($24,400*6)  

Repair costs            $39,000                 0                    $39,000

Rental revenue                      0                 -$60000              $60,000

($10,000*6)  

New machine cost              0                $166,500            -$166,500

Sale of old machine   0               -$24,500              $24,500

Total cost                  $185,400   $82,000               $103,400

From the calculation above, the equipment should be replaced as it incur a lesser cost compare to when it is retained.

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david wants to know if his company's resources are being used in the best, most productive manner in order to achieve company go
abruzzese [7]

David wants to know if his company’s resources are being used in the best, most productive manner in order to achieve company goals. David wants to know his organization’s efficiency.

<h3>What is the significance of the organization’s efficiency?</h3>

Organizational efficiency of an organization mainly examines and determines how to increase the productivity of an organization by using a specific amount of resources.

Organization’s efficiency plays a very significant role in the smooth and effective operations of the firm as it helps the organization achieving the objectives.

Basically, the efficiency of an organization completely depends on its employees, resources, goals and objectives.

Learn more about organization’s efficiency here:-

brainly.com/question/13021831

#SPJ4

7 0
1 year ago
Economic growth is _____.
erica [24]

economic growth can result from a(n) _____ in government expenditures and a(n) _____ in net exports.

5 0
3 years ago
Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized as a sole proprietorship and own
yanalaym [24]

Answer:

a) Increase asset (Cash): Increase equity (Service Revenue) - GUIDE

b) Decrease equity (Salaries): Decrease asset (Cash)

c) Increase asset (Cash): Increase equity (Capital)

d) Increase asset (Receivable Accounts): Increase equity (Service Revenue)

e) Decrease equity (Utility): Increased liabilities (Others payable accounts)

f) Decrease equity (Capital): Decrease assets (Cash)

Explanation:

Accounting Equation Formula :

Assets = Liabilities + Equity

According to the formula transactions must be recorded  as follows:

<em>DEBIT:</em> Asset increases, Liabilities decreases, and Equity decrease.

<em>CREDIT:</em> Asset decreases, Liabilities increases, and Equity increase.

3 0
3 years ago
Which of the following is best classified as an ethnocentric policy of strategic approaches to international staffing? a. Host-c
madam [21]

Answer:

b. Managers from headquarters staff key positions.

Explanation:

In an international organisation when only managers from the headquarters are allowed to staff key positions, it is an indication of ethnocentric policy on staffing.

This usually occurs when the management of the organisation feels more comfortable working with a particular ethnic group they share the same culture with, and so understand easily. This is a way to avoid culture shock.

6 0
3 years ago
Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting str
Dennis_Churaev [7]

Answer:

Concentrated.

Explanation:

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and concentrated targeting strategies. In micromarketing, we target each and every single customer individually which is also known as customization. In differentiated marketing, we try to differentiate our offerings and target particular market segment with it, whereas in undifferentiated which is also known as mass marketing, we target the whole market with one single offer. In concentrated marketing, we try to capture and target one small segment (niche) which has been ignored and overlooked by the competitors. The main aim here to sell profitably by meeting the needs of that small segment fully.

4 0
3 years ago
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