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Minchanka [31]
2 years ago
10

Locke Inc has a machine that installs tires. The machine is now in need of repair. The machine originally cost $10,000 and the r

epair will cost $1,000, but the machine will then last two years. The labor cost of operating the machine is $0.50 per tire. Instead of repairing the old machine, Locke could buy a new machine at a cost of $5,000 that would also last 2 years; the labor cost would then be reduced to $0.25 per tire.
Required:
Should Williams repair or replace the machine if it is installing 10,000 tires in the next two years?
Business
1 answer:
Phoenix [80]2 years ago
5 0

Answer: William should replace the machine with a new one because over that 2 year span he will be losing less money, if he were to repair he would lose more money.

Explanation:

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A company supplies printing machines to newspaper agencies across the world. Though the product supplied to different countries
KIM [24]

Answer:

Adaptation of industrial products is the correct answer.

Explanation:

5 0
3 years ago
Use the following information to answer the next three questions.
nalin [4]

Answer:

The  alignment of numbers in the first part of the question is off. However, you solve this question as shown below. The correct answer is C. $1,124.

Explanation:

This is a one-time cashflow type of question where the principal amount is invested once and no other addition is made to the account. You use the future value formula to solve the result of the compounding effect at year 3.

FV formula;

FV = PV(1+r)^n

PV = 800

discount rate; r = 12% or 0.12

total duration of investment; n = 3

therefore; FV = 800(1+0.12)^3

FV = 800 * 1.404928

FV = 1123.94

To the nearest whole dollar, the amount will grow to $1,124

6 0
3 years ago
Refer to Exhibit 7.3, which shows the U-shaped cost curves for a producer. A is the marginal cost curve, B is the average variab
Alisiya [41]

Answer:

U shaped Curves are all of the three : A marginal cost curve , B average variable cost curve , C average (total) cost curve

Vertical Distance between B) Average Variable Cost Curve , C) Average Total Cost Curve is Average Fixed Cost

Explanation:

Marginal Cost [MC] is addition to total cost, when an additional unit of output is produced. It is the rate of change in Total Cost. As total cost increases at decreasing rate first, then at increasing rate ; MC curve falls first & then rises & hence is U shape

Average Cost [AC] is average total cost per unit of output. It is also U shape as it falls first & then rises, due to total cost first increasing at decreasing rate & then increasing at increasing rate.

Total Cost [TC] changes only due to change in total variable cost [TVC] , as total fixed cost is constant. So, TVC changes in same pattern as TC, first at decreasing rate & then at increasing rate. This makes Average Variable cost [AVC] rise first, fall then i.e U shape

Total Cost is the total production expenditure on all (fixed & variable) factors of production.

TC = TFC (total fixed cost) + TVC

AC = AFC (average fixed cost) + AVC

AC - AVC = AFC. Difference between AC & AVC is AFC. This distance keeps on falling with increase in output but never becomes zero (the curves keep on coming closer but never intersect). Such because TFC is constant, AFC = TFC / Q keeps on falling with increase in output

6 0
3 years ago
QS 15-4 Raw materials journal entries LO P1 During the current month, a company that uses job order costing purchases $90,000 in
Temka [501]

Answer:

The journal entries are shown below:

Explanation:

The journal entries are as follows

Raw materials inventory $90,000  

      To  Cash  $90,000

(Being the raw material is purchase for cash is recorded)

Factory overhead $17,000  

         Raw materials inventory  $17,000

(Being the factory supplies is recorded)

Work in process inventory $66,100  

         Raw materials inventory $66,100

(Being the work in process is recorded)

Only these three entries are to be recorded)

8 0
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Shtirlitz [24]

Answer: Keynesian economic theory

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8 0
3 years ago
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