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Zolol [24]
4 years ago
15

Jb lumber corporation is downsizing operations and has to decide which of its large saws should be sold. jb currently has four s

aws but only needs to keep three. all four saws have a remaining useful life of 3 years and a salvage value of zero at the end of those 3 years. also, all four saws have equal annual operating costs and output efficiency. information related to the four saws is provided below:

Business
1 answer:
OLEGan [10]4 years ago
6 0

Answer:

In order to maximize profits for the next three years, which machine would be most beneficial for JB to sell?

  • saw 3

Explanation:

We are told that all 4 saws have the same operation costs and output efficiency, and that they all will have $0 salvage value in three years. The only difference between them is the current book and salvage values:

                    book value               salvage value

saw 1              $50,000                 $35,000

saw 2             $25,000                 $25,000

saw 3             $48,000                 <u>$40,000</u>

saw 4             $22,000                 $20,000

Saw 3's salvage value is higher $40,000, and if the company sells it now it will only need to recognize an $8,000 gain. If they sell saw 1, the salvage value will be $35,000 and the recognized gain will be $15,000.

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-BARSIC- [3]
Recovery, Prosperity, Recession and Depression
8 0
3 years ago
Jack has $1,000 to invest. He has a choice between municipal bonds with an interest rate of 4% or corporate bonds with an intere
neonofarm [45]

Answer:

Ans. The after-tax rate of return on the municipal bonds is 3% and the after tax rate of return on the corporate bonds is 4.5%

Explanation:

Hi, the formula to find the after-tax rate of return of any taxable income is as follows.

r(AfterTax)=r(BeforeTax)*(1-Taxes)

Therefore, in the case of the municipal bond.

r(AfterTax)=0.04*(1-0.25)=0.03

So, the after-tax rate of return of the municipal bond is 3%.

And for the corporate bond is.

r(AfterTax)=0.06*(1-0.25)=0.045

And the after-tax rate of return of the corporate bond is 4.5%.

It means that taxes on municipal bonds are:

Taxes= Return(BeforeTax)-Return(AfterTax)

In the case of municipal taxes:

Taxes=0.04-0.03=0.01

1% taxes for municipal bonds

In the case of corporate taxes:

Taxes=0.06-0.045=0.015

1.5% taxes for corporate bonds

Best of luck.

7 0
4 years ago
What is the difference between the federal budget deficit and federal government​ debt?
Genrish500 [490]

Answer:

C) The federal budget deficit is the​ year-to-year short fall in tax revenues relative to government spending ​ (T < G​ + TR), financed through government bonds. The federal government debt is the accumulation of all past deficits.

Explanation:

Budget Deficit by definition is the shortfall in the budget as spending exceeds the budgeted tax revenues for the governments. They are indeed funded by government borrowing by issuing of bonds and borrowing money from the federal reserve.

The federal government debt or also called the national debt is the net accumulation of all the borrowed amount that is used by the government to deficit finance the budget in the current year and the previous years.

In return if a budget in a year turns surplus, that is the spending is less than revenue, it can help lower the national debt if the government policies allow.

Hope that helps.

4 0
3 years ago
Read 2 more answers
A company currently using an inspection process in its material receiving department is trying to install an overall cost reduct
Rudiy27

Answer:

a-1. If the inspector position is eliminated, the defects will not be detected. These cost the company $11 to replace.

Defects per hour = 50 * 0.01 = 0.5 units

Cost per hour = 0.5 * 11 = $5.50

a-2. Based on costs alone, the inspection position should be eliminated. This is because the cost of having the Inspection position is $10 but it would only cost the company $5.50 if the position was not there so the cost of the inspection position is more than the cost incurred if it wasn't there.

b. = Inspection fees/ Units inspected per hour

= 10/50

= $0.50 per unit

c. Cost without Inspection is $5.50. With Inspection is $10.

Hourly Loss = 5.50 - 10

= -$4.50

Per unit loss = -4.50/50

= -$0.09

3 0
3 years ago
Which of the following best describes the opportunity cost of attending a free concert at the local coffee shop?
Rudik [331]

Answer:

1. The chance to play the latest video game with your roommate while you were at the concert

Explanation:

Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.

The opportunity cost of attending the concert is the activity that could have been done if one didnt attend the concert which is playing video games.

I hope my answer helps you.

8 0
3 years ago
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