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olga2289 [7]
3 years ago
6

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c

ost of $112,500, and Rory can also receive $60,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $12,000 per year over its five-year useful life. Calculate the incremental income.
Business
1 answer:
Alborosie3 years ago
5 0

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

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D) All of the above

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In a job interview, the interviewer must try to determine if a candidate fits the job profile or not, and he/she really has a very limited amount of time. A very effective way of knowing someone is how that person reacts under pressure when faced with really tough and problematic situations. Being interviewed is already tough, and a really difficult question that doesn't necessarily have a right or wrong answer doesn't make it easier.

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Internal control over a company’s assets should include which of the following?
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3 years ago
Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its m
algol [13]

Answer:

option (b) $69,768

Explanation:

Data provided in question:

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now,

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