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mash [69]
3 years ago
5

iSooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years

the spotter truck will have a zero salvage value. The market value of the spotter truck is currently $32,000. iSooky can purchase a new spotter truck for $120,000 and receive $31,000 in return for trading in its old spotter truck. The new spotter truck will reduce variable manufacturing costs by $25,000 per year over the five-year life of the new spotter truck. The total increase or decrease in income by replacing the current spotter truck with the new truck (ignoring the time value of money) is:
Business
1 answer:
IrinaK [193]3 years ago
8 0

Answer: $36,000 increase.

Explanation:

Cost of keeping Current Truck.

The cost of keeping the current truck will be the Opportunity Cost of not purchasing the New truck.

The New truck is capable of reducing Manufacturing costs by $25,000 a year for 5 years so,

Cost of Keeping Current Truck = 25,000 * 5

= $125,000

Cost of buying new truck

It is given that if the company trades in the old truck they get a $31,000 reduction.

The Cost Price of the new truck is therefore,

= 120,000 - 31,000

= $89,000

The difference between the costs will be,

= 125,000 - 89,000

= $36,000

If buying a new truck will reduce expenses by $36,000 then that means it will increase income by $36,000.

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Polar Containers makes​ high-end coolers for camping. The total task time needed to make a cooler is 310 ​seconds, with the long
Degger [83]

Answer:

TAKT time: 840 seconds

maximum output:  315 coolers.

Explanation:

The takt time refers to matching the production pace with the demand

\frac{availalbe-working-time}{customer \: or \: firm \: demand}

To produce 30 coolers per 7-hours day we need an outpot of:

7 hours x 60 minutes x 60 seconds = 25,200

output of 30 coolers

takt: 25,200 / 30 = 840 seconds

producing a cooler every 840 seconds is the takt time.

Maximum output:

If the company does several cooler in parallel it will have a bottle neck in the longest individual task so, this time determinates the maximum output.

25,200 second of working time available

80 second longest task to complete a cooler:

25,200 / 80 = 315 coolers.

7 0
3 years ago
Wise Company estimates the following unit sales. 1st quarter - 20,000 units 2nd quarter - 26,000 units 3rd quarter - 30,000 unit
KonstantinChe [14]

Answer:

Since 20% of the goods of the next quarter need to be produced beforehand in the second quarters start there will already be a starting inventory of (0.2*26,000)=5,200

This means that in the second quarter to meet the the sales (26,000-5,200)=20,800 need to be produced

Also 20% of next quarters unit sales also needs to be produced in the second quarter so (0.2*30,000)=6000

Budgeted production in the 2nd quarter= 20,800+6,000=34,000

Explanation:

3 0
3 years ago
Of these types of businesses, which one requires the most drive and motivation?
kondaur [170]
B, because it is a new business so it's going to have to work harder then any other business in order to gets it's name out there.
6 0
3 years ago
Santa Claus is trying to forecast demand for coal this Christmas. For the past 300 years, the numberof naughty children (who wil
Darina [25.2K]

Answer:

The correct answer is B. Trend analysis.

Explanation:

The trend analysis is the method of analysis that consists in observing the behavior of the different items of the Balance Sheet and the Income Statement, to detect some significant changes that may have their origin in administrative errors.

This method allows us to know the direction and speed of the changes that have occurred in the financial situation of the company over time, so it is considered as a method of horizontal analysis.

It helps us to detect failures; but it is only an exploratory method, so it is always necessary to investigate further to find the causes of the failures. It is necessary to determine the changes suffered in the balances of the financial statement items that we are interested in analyzing. The trend analysis allows us to know the financial development of a company.

3 0
3 years ago
Saturn Corporation issued $300,000 par value 10-year bonds at 107 on January 1, 20X3, which Star Corporation purchased. Pluto Co
taurus [48]

Answer:

a. $8,000 gain

Explanation:

The face value of the bonds purchased by Pluto Corporation are $120,000. The bonds are purchased at discount of $1,980.  The bonds have carrying value of $126,019 at the time of purchase. The net gain or loss is calculated by the difference between two values.

$120,000 - $126,019 - $6,019

The discount amount of the bond was $1,980.

Total gain on the bonds approximately ($6,019 + $1,980) = $8,000

8 0
2 years ago
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