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
Scrat [10]
3 years ago
8

Kahn Company paid $240,000 to purchase a machine on January 1, Year 1. During Year 3, a technological breakthrough resulted in t

he development of a new machine that costs $300,000. The old machine costs $100,000 per year to operate, but the new machine could be operated for only $36,000 per year. The new machine, which will be available for delivery on January 1, year 3, has an expected useful life of four years. The old machine is more durable and is expected to have a remaining useful life of four years. The current market value of the old machine is $80,000. The expected salvage value of both machines is zero.
Required
Calculate the total avoidable costs in keeping the old machine and buying a new machine. Should the machine be replaced?
Business
1 answer:
Serga [27]3 years ago
4 0

Answer:

Yes, the machine should be replaced

Explanation:

The calculation is given below:

<u> Particulars              old Machine            New machine </u>

Purchase price                                       $300,000

Less:

Salvage value                                        -$80,000

Operating cost         $400,000              $144,000

                          ($100,000 × 4 )        ($36,000 × 4)

Total cost                 $400,000                $364,000

Hence, the financial advantage is

= $400,000 - $364,000

= $36,000

As there is a financial advantage of $36,000 therefore the old machine would be replaced with the new machine

You might be interested in
Sony has sold the same number of television sets each month for almost a year. However, in one month that number suddenly double
Inessa05 [86]

Answer:

C. Reduced prices of Sony televisions resulted in an increase in the quantity demanded.

Explanation:

Sony is a well known brand . What could explain a sudden double increase in sales while other brands' didn't is most likely a reduction in in prices of Sony products. It is a well known brand and they sell quality products which customers trust. Having a discounted price means they are offering a sale which customers would want to take advantage of.

3 0
3 years ago
A wage paid based on the ability to sell a product or service is
Delicious77 [7]
A wage paid based on the ability to sell a product or service is called commission. This is usually given to sales person in particular because they are the one who are facing the clients and trying to persuade them purchase their products of services.
7 0
3 years ago
Which one of the following statements concerning venture capital financing is incorrect? Multiple Choice Venture capitalists des
ziro4ka [17]

Answer:

The incorrect statement about Venture capitalists is:

Venture capitalists usually assume active roles in the management of the financed firm.

Explanation:

Venture capitalists are high net worth individuals with managerial competence or experience seeking for new businesses to invest in. In exchange, they ask for an equity stake in the company they finance.

Venture capital financing is the type of funds that are given to invested into viable businesses in their budding stage by investors that see long term growth potential in them. it is a form of private equity.

Venture Capitalist never assume active roles in the management of the financed firm. however, if they have the technical know how, they may pitch in passively from time to time to advice.

3 0
3 years ago
Michael, a systems analyst, is preparing a closed wiki site for Northstate Bank. He has written permission from eight other comp
AysviL [449]

Answer:

The correct answer is Formal Benchmarking.

Explanation:

The English term "benchmark" comes from the words "bench" (bench, table) and "mark" (brand, sign). In the original meaning of English, the word compound could however be translated as a measure of quality. In other words, benchmarking is a way to determine how well a company performs, compared to others.

In order to be more competitive at present, it is necessary to use benchmarking since it provides strategies that allow identifying the best keys to the company's success, so that by implementing them the organization can be a leading and competitive company in a changing market and global in which business organizations currently have to see each other.

The majority of authors relate benchmarking with competitiveness and business improvement, being "the company" its natural scope. However, the potential benefits of its use make it considered in other areas, such as "public organizations", and at other levels, "sectoral" and "environment" (regional, national and international). This complicates the definition of the concept, since it is a tool that has multiple application possibilities, pursues different objectives in each case, and uses its own methodology in each area.

3 0
3 years ago
Consider a portfolio comprised of four risky securities. Assume the economy has three states with varying probabilities of occur
olga nikolaevna [1]

Answer:

B. The portfolio expected rate of return must be the same for each economic state.

Explanation:

Variance formula = sum of (probability x (r - mean)^2)

r= expected return

if the expected return would be same for each economic state then the mean would equal to expected return which ultimately will give variance zero ( as r-mean would be 0).

Hence the correct option is B. The portfolio expected rate of return must be the same for each economic state.

8 0
3 years ago
Other questions:
  • Smith operates a roof repair business. This year Smith's business generated cash receipts of $32,000 and Smith made the followin
    11·1 answer
  • Robin Company has the following balances for the current month: Direct materials used $ 24,000 Direct labor $ 36,800 Sales salar
    10·1 answer
  • Residence halls are typically found at all of the following schools except
    9·1 answer
  • Under variable costing, which of the following costs would be included in finished goods inventory? a.salary of vice president o
    13·1 answer
  • Ness, a broker, advises Ollie to invest in Penny Stock Inc. When the share price of Penny’s stock drops, Ollie accuses Ness of f
    10·1 answer
  • Greening refers to: a. Answer the need for more carbon dioxide in our air. b. firms acquiring more green backs (U.S. dollars) fr
    15·1 answer
  • Paul, age 37, participates in a Section 401(k) plan which allows employees to contribute up to 15 percent of their salary. His a
    11·1 answer
  • Safefen, a safety assurance and standards association in the country of Eilenst, made it mandatory for all the toy manufacturers
    15·1 answer
  • What effect will firms entering have on the market​ price? When firms enter ​, A. the marginal cost of production will decrease
    13·1 answer
  • Suppose that the bakers of bread face an increase in the price of flour (an input). in the market for bread, this will cause the
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!