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Masja [62]
3 years ago
9

A company owns a 5-year old turret lathe that has a book value of $20,000. The present market value of the lathe is $16,000. A n

ew turret lathe can be purchased for $45,000. Using a before tax analysis and an outsider’s point of view, what is the fi rst cost of keeping the old lathe?
Business
1 answer:
Bas_tet [7]3 years ago
8 0

Answer: $16,000

Explanation:

The Outsider's Point of View is also known as The OPPORTUNITY COST APPROACH.

This as you may know, refers to the cost associated with choosing an alternative over others.

In this scenario, the company owns the 5 year old turret lathe so the Opportunity Cost must be the cost of still owning it.

Since this is the case then the first cost of owning the Lathe is simply the Market Value of the Lathe at the moment.

This is $16,000.

$16,000 therefore is the First Cost of keeping the Old Lathe

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The United States economy is considered by the Institute for Management Development to be the most competitive economy because:_
ziro4ka [17]

Answer:

a. of widespread entrepreneurship.

Explanation:

According to the Institute for Management Development, a business education school that is situated in Lausanne, Switzerland. In its annual rankings on the performance of 63 economies across the globe. In 2018 rated the United States of America as the topmost economy in competitiveness. Based on various data gathered and surveyed, the education school cited "widespread entrepreneurship" as the major reason behind it.

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3 years ago
What is 1 question to ask a janitor? (This not for an interview)
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5 0
3 years ago
Which one of the following parties can sell shares of ABC stock in the primary market?-ABC company-Any corporation, other than t
horsena [70]

Answer:

ABC company

Explanation:

Basically there are two markets i.e primary market and the secondary market.  

The primary market is the market in which the initial public offer is taking place that means the new security is first offered to the public by the company whereas, in the secondary market, the broker or investor is involved while offering the securities.  

In the given situation, the ABC company itself is involved while selling the shares of ABC stock in the primary market

4 0
3 years ago
Gilberto Company currently manufactures 84,000 units per year of one of its crucial parts. Variable costs are $2.90 per unit, fi
RoseWind [281]

Answer:

Cost to make $337,600

Cost to make $344,400

The company should make the product

Explanation:

Calculation to determine the total incremental cost of making 84,000 and buying 84,000 units

COST TO MAKE

Relevant per unit Relevant fixed cost Total relevant cost

Variable cost per unit $2.90 - $243,600(84000*$2.90)

Fixed manufacturing costs - $94,000 $94,000

Cost to make $337,600

($243,600+$94,000)

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Relevant per unit Relevant fixed cost Total relevant cost

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Cost to make $344,400

Based on the above calculation the cost of buying is higher than the cost of making therefore the company should MAKE the product.

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