Calculate the two missing amounts, Operation Management

Assignment Help:

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?


Related Discussions:- Calculate the two missing amounts

Define conflict between earning profit and being responsible, There is some...

There is sometimes a perceived conflict between earning profit and being responsible. What should CanGo do about adding violent games to their product mix? What impact might this h

Define what is the probability that you will make money, The owner of Firew...

The owner of Firewood-2-Go is considering buying a hydraulic wood splitter which sells for $60000. He figures it will cost an additional $80 per cord to purchase and split wood wit

Process capability index - measure of inherent capability, Process Capabili...

Process Capability Index - Measure of the Inherent Capability This index provides a measure of the inherent capability of a process by simply relating the 6σ spread of the pro

What is grapevine, What is Grapevine? Ans: Grapevine is an informal ...

What is Grapevine? Ans: Grapevine is an informal communication system.

Global operations management, what are the key issues to be considered when...

what are the key issues to be considered when managing global management operations

Describe why it is both a business pressure, Explain why IT is both a busin...

Explain why IT is both a business pressure and an enabler of response activities that counter business pressures?

Explain in a state where contributory negligence applies, In a state where ...

In a state where contributory negligence applies, a motorist that is about 10% responsible for a collision with another motorist, who sues the other motorist for negligence, will l

Organizational goals, outline major benefits of organizational goals and d...

outline major benefits of organizational goals and describe the situation in which have observe the benefiys

Sunshine Enterprises Case Study , What is the average value of a loyal cust...

What is the average value of a loyal customer (VLC) at Abby's restaurants (see Chapter 3)? What is the best way to increase revenue given your VLC analysis

Briefly define the situational influences on organizational, Briefly explai...

Briefly explain the situational influences on organizational design

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd