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sergeinik [125]
2 years ago
13

A firm is choosing between two machines. Machine X has a first cost of $5,000 and a useful life of 5 years. Machine Y has a firs

t cost of $8,000; useful life of 12 years; salvage value of $2,000; maintenance cost of $150. Assume the minimum attractive return is 8%, which machine would you choose
Business
1 answer:
koban [17]2 years ago
7 0

Answer:

Machine Y

Explanation:

Machine X

EUAC = 5,000(A/P, 8%, 5)

EUAC = 5,000 (0.2505)

EUAC = $1252.50

Machine Y

EUAC = 8,000(A/P, 8%, 12) - 2,000(A/F, 8%, 12) + Maintenance cost

EUAC = 8,000(0.13269) - 2,000(0.0526) + 150

EUAC = $1061.52 - $105.20 + $150

EUAC = $1106.32

Conclusion: Machine Y will be chosen because it has the lesser Equivalent Uniform Annual Cost than Machine X

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Pavlova-9 [17]
I think it'd be E. I hope that helps!

3 0
3 years ago
Calculate the cost of goods sold using the following information: Direct materials $ 298,500 Direct labor 132,000 Factory overhe
Virty [35]

Answer:

COGS= $680500

Explanation:

The cost of goods sold refers to the direct costs attributable to the production of the goods sold in a company. This amount includes the cost of the materials used in creating the goods along with the direct labor costs used to produce the goods. It excludes indirect expenses, such as distribution costs and sales force costs.

COGS=Beginning Inventory+Production during period−Ending Inventory

We need to calculate the production during the period.

Cost of manufactured period= Beginning work in progress inventory+ direct materials + direct labor + factory overhead - ending work in progress

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5 0
3 years ago
Read 2 more answers
Jay received the following fair market value amounts during the current year: Interest on Montgomery County bonds (used to build
UNO [17]

Answer:

$300

Explanation:

Given that :

Jay received the following fair market value amounts during the current year:

Interest on Montgomery County bonds

(used to build a bridge)                                                $100

Interest on U.S. Treasury notes                                   $200

Gain on sale of Montgomery County bonds               $300

Common stock dividend in IBM Corporation

- common stock (no cash option)                                   $400

From the above amounts that Jay received during the current year;

The following are free from an obligation and liability imposed as a result of tax.

1. Interest on Montgomery County bonds (used to build a bridge)

2. Interest on U.S. Treasury notes

3. Common stock dividend in IBM Corporation  common stock (no cash option)

So; we can say they are not taxable

BUT only Gain on sale of Montgomery County bonds which is $300 only taxable

Thus, The amount of taxable income  Jay should  report from the above  amounts is $300

6 0
3 years ago
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Vesna [10]

Answer: A company that is looking at customer trends, its competitors, and the economy to see if there are any threats or opportuntities on the horizon, and also examines its production policies and sales histories to determine its strengths and weaknesses, is conducting a <u>SWOT analysis.</u>

Explanation:

SWOT is basically the acronym for; Strengths, Weaknesses, Opportunities, and Threats. It is a very effective tool used in the business industry to form strategies. You summarized the data from internal factors to discover your strengths and weaknesses. You use the external factors to identify the threats and opportunities.

.

8 0
3 years ago
When new zealand allows free trade of lemons, the price of a ton of lemons in new zealand will be $800. at this price, tons of l
bonufazy [111]

Free trade policy does not restrict imports or exports and is applied to international trading of items. New Zealand will likely try and export a lot of lemons due to the free trade market policy. The price of the items is expensive but because they are able to export many, they will do well with exporting them.

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