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slega [8]
3 years ago
11

A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50

0 and replace it with a new machine at a cost of $75,000. The new machine has a five-year life with no residual value. The new machine would reduce annual direct labor costs from $11,200 to $7,400. Prepare a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
Business
1 answer:
34kurt3 years ago
6 0

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

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Nookie1986 [14]

Learning is pervasive in our lives, but there are two different theories on how people learn the behavioral theories and the cognitive theories.

Option C is correct

Explanation:

The behavioral theory attempts to explain the actions of the person by examining the antecedents and implications of previous experience in the community and the existing relationships he or she had established.

A behavioral example is when teachers recompense their classes or certain students for good behavior at the end of the week with special benefits. Penalties are used to use the same principle. If the student is wrong, the professor may take some privileges away.

Cognitive theory is a theoretical approach that aims to clarify your actions by understanding the patterns of thinking.

For example, a psychiatrist uses cognitive science techniques as she shows you how to recognize and change ill-suited patterns of thought.

4 0
3 years ago
The economy can produce 15x and 15y, 10x and 20y, 5x and 25y, or 0x and 30y. it follows that opportunity cost of 1x is ___y.
AVprozaik [17]

The opportunity cost of 1x is 29y.

<h3>What is the opportunity cost?</h3>

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

It can be seen that the economy can produce a maximum of 30 units of either product x or y. If 1 of x is being produced, the opportunity cost is 29 (30 - 1)y.

To learn more about opportunity cost, please check: brainly.com/question/26315727

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5 0
1 year ago
A copyright must be registered for a person to have rights to his or her work.<br> True<br> Or False
ira [324]

Answer:false Explanation:

6 0
3 years ago
Read 2 more answers
Fixed vs Variable cost preference. Bates operates a kiosk at a local mall, selling duck calls for $30 each. The variable cost to
GuDViN [60]

Answer:

Option 2 should be selected

Explanation:

Using a rational approach which option most benefit and have a minimum cost. We will use the break-even level here to decide which option should be selected.

Option 1

Price per call = $30

Variable cost per call = $18

Contribution = Sales  - Variable cost = $30 - $18 = $12

Fixed Cost = $15,000

Break-even point = Fixed cost / Contribution per call = $15,000 / $12 = 1,250 calls

Option 2

Price per call = $30

Variable cost per call = $18 + ( $30 x 10% ) = $18 + $3 = $21

Contribution = Sales  - Variable cost = $30 - $21 = $9

Fixed Cost = $9,000

Break-even point = Fixed cost / Contribution per call = $9,000 / $9 = 1,000 calls

Difference  = 1,250 calls - 1,000 calls = 250 calls

Option 2  is better option because it take 250 less calls to reach at break-even in the month. It should be selected.

8 0
2 years ago
Short-term notes payable: Multiple Choice Cannot replace an account payable. Can be issued in return for money borrowed from a b
dybincka [34]

Answer:

Can be issued in return for money borrowed from a bank.

Explanation:

The short term note payable is a note payable that can be issued against the borrowed amount. Since it is short term so its duration is within one year and it is an amount of loan in which the person has to pay within the specified time period along with the interest charges. It is shown in the liabilities side of the balance sheet

Hence, the second option is correct

7 0
3 years ago
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