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Eduardwww [97]
3 years ago
7

Darcy 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, Darcy Roofing spent $60,000 refurbishing the lift. It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. 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 $20,000 per year. Darcy 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 $25,000 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:
Verdich [7]3 years ago
3 0

Answer:

Effect on income= $15,000 favorable

Explanation:

Giving the following information:

It has just determined that another $40,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $170,000. 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 $20,000 per year. Darcy 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 $25,000 if the new lift is purchased.

Year 0= -170,000 + 25,000 + 40,000= -105,000

Year 1 trough 6= 20,000*6= 120,000

Effect on income= $15,000 favorable

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Which of the following would make it easier to maintain an effective collusive agreement in a cartel?
GalinKa [24]

Answer:

A decrease in the elasticity of demand for the cartel's product.

Explanation:

The cartel is under the control of companies operating in the same area. This is undesirable. It is concluded between businesses and these contracts prevent competition. Such arrangements are also prevented by governments, which aims to promote competition among governments across the country. This type of arrangement creates unity and demonstrates business behavior in activities that prevent other competitors from entering the sector.

Adverse effects on consumers include:

1) Higher prices - cartel members can raise prices, which reduces the demand elasticity of any member.

2)  Lack of Transparency - Members may agree to hide prices or hide information such as hidden charges in credit card transactions.

3) Limited production - Members may agree to limit market production, such as OPEC and oil quotas.

4) Build Market - Cartel members can collectively divide a market into regions or regions and not compete in each other's territory.

4 0
3 years ago
A ____________ is generally priced at a flat rate and allows software to be used on all computers at a specific location.
Elena-2011 [213]

The answer to this question is a site license. A site license is a type of software license where in the user is allowed to install a software to a several number of computers and use the software in a particular / specific site through a network. The software licensing is another term used for site license.

3 0
3 years ago
ang Co. manufacturers its products in a continuous process involving two departments, Machining and Assembly. Journalize the ent
Ksenya-84 [330]

Answer:

a.

Raw Materials $180,000 (debit)

Accounts Payable $180,000 (credit)

b.

Work In Process Machining : Direct Materials $73,000 (debit)

Work In Process  Machining : Indirect Materials $9,000 (debit)

Work In Process  Assembly : Indirect Materials $4,900 (debit)

Raw Materials $86,900 (credit)

c.

Work In Process  Machining : Direct Labor $23,000 (debit)

Work In Process  Assembly : Direct Labor $47,000 (debit)

Salaries Payable $70,000 (credit)

d.

Work In Process  Machining : Depreciation $4,500 (debit)

Work In Process  Assembly : Depreciation  $7,800 (debit)

Accumulated Depreciation $12,300 (credit)

e.

Work In Process  Machining : Overheads $9,700 (debit)

Work In Process  Assembly : Overheads  $11,300 (debit)

Overheads $21,000 (credit)

f.

Work In Process Assembly Department $14,900 (debit)

Finished Goods Inventory $83,400 (debit)

Work In Process Machining Department $98,300 (credit)

g.

Accounts Receivables $100,000 (debit)

Cost of Goods Sold $68,000 (debit)

Sales Revenue $100,000 (credit)

Finished Goods Inventory $68,000 (credit)

Explanation:

Manufacturing Costs are accumulated in the Work In Process Account.

Finished Goods are Transferred from Work In Process Account to Finished Goods Inventory by Debiting Finished Goods Inventory Account and Crediting Work In Process Account.

4 0
3 years ago
If you set a price of $17 per book for the trades among your friends:
kaheart [24]

If you had set the price of $17 per book among your friends in a trade, the likely result would be that there will be a presence of surplus books in which if the required is met, left overs will likely be produced because of supply over the demand. 

6 0
3 years ago
g a machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. the amount that should be
krek1111 [17]

In a condition wherein a machine costing $148,000 and accumulates depreciation of $103,000 is sold for $59,000 cash, then the amount that should be reported as a source of cash under the cash flows from investing activities will be $59,000. Therefore, the option C holds true.

Cash flows from investing activities include the amount(s) spent by an organization over investing in different classes of assets with a view to pursue monetary returns. They include the amounts that are received or sent as cash at the time of purchase or sales of an asset of an organization.

Learn more about cash flows here:

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Complete question

g a machine with a cost of $148,000 and accumulated depreciation of $103,000 is sold for $59,000 cash. the amount that should be reported as a source of cash under cash flows from investing activities is:

a. Zero.

b. This is a financing activity.

c. $59,000.

d. $14,000.

e. This is an operating activity.

f. $45,000.

5 0
11 months ago
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