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
Security Services, Inc. and Redline Protectors were the two predominant providers of home alarm systems in the Dallas area. They had become the two big businesses after the smaller

Using the book Essentials of Sustem Analysis and Design Read the Hoosier Burger scenario on the text and address the following (you only need to complete parts a through c) in a

Find an example of a project in which one of these two types was used in a real federal contract. These two types refers to contrast fixed-price and cost-reimbursement contracts fo

You are asked to analyze the kanban system of LeWin, a French manufacturer of gaming devices. One of the workstations feeding the assembly line produces part M670N. The daily deman

A Trial Balance discloses how many types of errors? A Trial Balance discloses errors that are given below:   i)    An item posted double.   ii)   A mistake into posting.

What do your contingency plan in case your plan of action doesn't work?

Computer Aided Layout Planning This method has 3 steps. They are as follow: Preparation phase, Specification phase and Analysis In the preparation p

A company that makes kitchen faucets has found that demand for its model faucet is fairly constant at the rate of 100,000 units per year. Each model of faucet is made using the sam

Q. What are the inter-connect factors introduced by Cousins? Cousins introduced the following inter-connected factors to strategically affect supply chain management. The '

Example: Find the feasible solution of  followings  transportation  problem by VAM and optimize  it by  stepping  stone methods. Availability  of Warehouse