1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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)

You might be interested in
Khrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning
zloy xaker [14]

Answer: A.) $32.64 per machine hour

Explanation:

Given the following :

Estimated machine hours = 41,000 machine hours

Estimated variable manufacturing overhead = $4.16 per machine hour

Estimated total fixed manufacturing overhead = $1,167,680

Total Estimated manufacturing overhead :

(Estimated total variable manufacturing overhead + Estimated total fixed manufacturing overhead)

Estimated total variable manufacturing overhead:

$4.16 × estimated hours

= $4.16 × 41,000

= $170560

Total Estimated manufacturing overhead :

$170560 + $1,167,680 = $1338240

Hence,

Predetermined overhead rate :

Total Estimated manufacturing overhead / estimated hours

= $1338240 / 41000

=$32.64

4 0
3 years ago
When asking questions during criticism, it is best to be _______. A. Understated b. Defensive c. Open minded d. Annoyed.
4vir4ik [10]

Criticism is the construction or the indication of the displeasure of a reasonable and thorough analysis established on the perceived shortcomings or mistakes.

Open-mindedness is the correct blank for the statement.

<h3>What are the factors of the Criticism?</h3>

  • During a reproval or denunciation of any topic or person, one should be open-minded to take the discussion seriously but in a positive manner.

  • If the person asking the questions during the criticism is understated that is denying the clear emphasis and tries to always defend the allegations and facts results in negative criticism.

  • An annoyed interviewer who does not positively take the criticism and always gets agitated cannot be a healthy way to discuss the topic for.

Therefore, option c. is correct.

Learn more about criticism here:

brainly.com/question/21364615

5 0
2 years ago
Read 2 more answers
Suppose that consumer spending initially rises by $5 billion for every 1 percent rise in household wealth and that investment sp
enyata [817]

Answer:

left by 30 billons

then right by 40 billons

Explanation:

the aggregate demand curve will move to the left as the consumption of the economy will fall as the household are less wealthy than before.

Then, as the interest rate fall the aggregate demand curve will move to the right as the investing increase as now more projects are profitable.

<em>Calculations:</em>

<em />

5 billon for every point of wealth:

6 points x 5 billon = 30 billons

20 billion of inventing per 1% of interest rate decrease

2 points x 20 billions = 40 billons

7 0
3 years ago
besides raising revenue, what is another important use of excise taxes? a. increasing traffic fines b. eliminating corruption in
stepladder [879]

Answer:

D.

discouraging the use of products like alcohol and tobacco

Explanation:

Excise taxes can be regarded as taxes that are been paid after purchasing a particular goods such as gasoline, it is also extended on activities like usage of high ways.. It should be noted that besides raising revenue, discouraging the use of products like alcohol and tobacco is another important use of excise taxes.

5 0
3 years ago
Read 2 more answers
Which of the following is an example of a scarce factor of production?
Ilya [14]

Established knowledge

8 0
3 years ago
Other questions:
  • Hazelwood Company had beginning inventory of $54,000. During the period the company purchased $109,800 of merchandise. At the en
    8·1 answer
  • In Wisconsin, the way the state has balanced its budget led to large protests. Certain interest groups claimed that they have bo
    10·1 answer
  • Copy equipment was acquired at the beginning of the year at a cost of $25,500 that has an estimated residual value of $2,300 and
    14·1 answer
  • stock has a required rate of return of 10.25%, and it sells for $57.50 per share. The dividend is expected to grow at a constant
    14·2 answers
  • Whats the difference between financial planning and financial goals
    12·1 answer
  • Which of the following results in positive benefits to individuals, the group, or the organization? a. Functional conflict b. Em
    10·2 answers
  • The intention of a price floor is to help producers by setting a higher than equilibrium price. What is one unintended consequen
    13·1 answer
  • Hi i was wonder if i could find a best friend in here
    9·2 answers
  • If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output, what will the av
    5·1 answer
  • Reason for a bimodel distribution
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!