Calculate the two missing amounts, Operation Management

A company is considering whether to replace a machine. The old machine costs $90,000 and is being depreciated at 10% per annum using the straight line method. It is written down value is no $36,000 and it has a trade in value of $20,000. The new machine would cost $220,000 after it has a trade-in but would double production, all of which could be sold.

The new machine would also be depreciated using the straight line method over ten years. Currently the contribution margin per month is $8000.

a.  What information is relevant to the replacement of the machine?

b.  Do you consider that the machine should be replaced?

Posted Date: 2/25/2013 2:37:09 AM | Location : United States







Related Discussions:- Calculate the two missing amounts, Assignment Help, Ask Question on Calculate the two missing amounts, Get Answer, Expert's Help, Calculate the two missing amounts Discussions

Write discussion on Calculate the two missing amounts
Your posts are moderated
Related Questions
In a transportation problem, shipments from a dummy origin A Should be given a small cost to maximize their use B Should be given a large cost to prevent their use C Ar

What are the pros and cons of bureaucratic controls such as rules, procedures, and supervision? Should all organizations use bureaucratic controls? Why or Why Not?

Discuss the importance of the calculation and interpretation of ratios, to complete an effective financial ratio analysis?

Minnie Lee is an engineer with a multi-national aerospace company that produces fuel-line components for all types of air and space craft. Minnie discovered a potential defect in a

Most day-to-day interaction between labour and management involves the: Answer (1) national union. (2) International union. (3) Industrial union. (4) Local union.

U.S. v. Farraj contended that he transmitted information, not goods. Do you think that position is correct? Q2) Phillips v. Budget Rent-a-Car Answer the question "Is Budget Rent-a-

You punch multiple parts from a sheet of Aluminium. The sheet is a 1728 square-inches rectangle and you get 18 parts that are 70 square-inches each. The machine is old so you inclu

What type of culture is desired by Mr. Good¬ night to meet his goals? Discuss.

A freshman college student, who owns a car, plans to buy a motorcycle. The student expects to save an increasing amount of money on travel every year he is in college, as he will m

Customisation - Customers Needs For a Product The ability of the operations system to tailor its outputs to meet special requirements of customers. Vision Express has taken a