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Gre4nikov [31]
3 years ago
15

Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a

remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.
Machine A Machine B
Purchase price$ 118,000$ 131,000
Variable manufacturing costs per year21,000 14,000
(a) Compute the income increase or decrease from replacing the old machine with Machine A.
(b) Compute the income increase or decrease from replacing the old machine with Machine B.
(c) Should Lopez keep or replace its old machine
Business
1 answer:
White raven [17]3 years ago
4 0

a) The income increase from replacing the old machine with Machine A is $21,800 ($56,400 - $44,600 + $10,000).

b) The income increase from <em>replacing the old machine</em> with Machine B is $26,200 ($56,400 - $40,200 + $10,000).

c) The Lopez Company <em>should replace its old machine</em>, preferably with Machine B.

Data and Calculations:

Current selling price =$57,000

Gain from the sale of old machine = $10,000 ($57,000 - $47,000)

                                                  Old Machine    Machine A     Machine B

Book value                                     $47,000

Purchase price                                                    $118,000        $131,000

Variable manufacturing costs        47,000           21,000            14,000

Estimated remaining useful life    5 years           5 years          5 years

Fixed costs per year                      $9,400        $23,600        $26,200

Total costs (variable + fixed)       $56,400        $44,600        $40,200

Comparative income increase       $0                $11,800         $16,200

Total income increase                    $0               $21,800        $26,200 ($16,200 + $10,000)

Thus, it is economically better for Lopez to sell its old machine, replacing it with Machine B, which reduces the total costs per year.

Learn more: brainly.com/question/15172069

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The company can choose to buy a back-up machine for Step C for an additional $20,000. The back up would also have a reliability
Goshia [24]

The complete question is:

A certain company produces 10,000 tables per year in a three-step process. The three steps in the process employ machines with the reliabilities listed here:

Step A - 0.987 Step B – 0.979 Step C – 0.915

Answer:

New reliability= 0.9593 ~ 0.959

Explanation:

Reliability is used in manufacturing process to ensure that a process produces the same level of output consistently. A process is reliable if it achieves the same results everytime.

Reliability can be applied to individuals, data, processes, and products.

In this instance we are to calculate the new reliability of the backup system.

Reliability of step C is 0.915

New reliability= 1 - (1- 0.915)^2

New reliability= 0.992775

Multiply this value by the reliability in step A and B to get system reliability

System reliability= 0.992775 * 0.987 * 0.979

System reliability= 0.9593

7 0
2 years ago
g "With respect to the types of information systems used in organizations, financial, operations, and human resource management
34kurt

Answer:

enterprise resource planning.

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For example ERP can be set up in a company to define various functions of human resources, accounting, amd operations.

The software used for each division will be tailored to their needs. Operations will be more towards everyday processes of production and customer service, while for human resources it will support more of data analysis for effective people management and performance related activities.

6 0
3 years ago
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lorasvet [3.4K]

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

The Downsloping Demand Curve is explained by each of them. Because marginal utility decreases as more of a thing are consumed, a consumer's demand curve for that product slopes downward.

Income Effect: The change in demand for a good or service brought on by a shift in a consumer's purchasing power as a result of a change in real income is known as the income effect.

Substitution Effect: The substitution impact is the decline in sales of a product brought on by customers switching to less expensive substitutes when the price of the product increases.

Diminishing Marginal Utility: The phenomenon known as diminishing marginal utility describes how each extra unit of gain results in an ever-smaller rise in subjective value.

The income effect, the substitution effect, and diminishing marginal utility together explain the Downsloping Demand Curve.

To learn more about the above topics, visit the following link:

brainly.com/question/14397364

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3 0
2 years ago
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vovikov84 [41]

Answer:

interest rate that the answer

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Which amendment protects against double jeopardy?a. The First Amendmentb. The Second Amendmentc. The Third Amendmentd. The Fourt
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Answer:

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