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navik [9.2K]
2 years ago
6

Granfield Company has a piece of manufacturing equipment with a book value of $44,000 and a remaining useful life of four years.

At the end of the four years the equipment will have a zero salvage value. The market value of the equipment is currently $22,800. Granfield can purchase a new machine for $128,000 and receive $22,800 in return for trading in its old machine. The new machine will reduce variable manufacturing costs by $19,800 per year over the four-year life of the new machine. The total increase or decrease in net income by replacing the current machine with the new machine (ignoring the time value of money) is:
Business
1 answer:
Troyanec [42]2 years ago
6 0

Answer:

$26,000

Explanation:

The calculation of Net increase or decrease in income on replacement is shown below:-

Net savings in Variable cost for 4 years = Variable manufacturing costs × Life

= $19,800 × 4

= $79,200

Net Investment to be made in New machine = Initial investment of new machine - Traded in value of old machine

= $128,000 - $22,800

= $105,200

Net financial disadvantage of replacement = Net savings in Variable cost for 4 years - Net Investment to be made in New machine

= $79,200 - $105,200

= $26,000

So, for computing the net financial disadvantage of replacement we simply applied the above formula.

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Derst Inc. sells a particular textbook for $140. Variable expenses are $25 per book. At the current volume of 6,000 books sold p
mamaluj [8]

Answer:

Option (B) is correct.

Explanation:

Given that,

Selling price of a product = $140 per textbook

Variable expenses = $25 per book

Books sold per year = 6,000 books (It is the break even point)

The break even point indicates that there is no profit or loss incurred at the sales.

This means that the sales revenue is equal to the total cost incurred to produced these goods.

Sales per unit - Variable cost per unit - Fixed costs per unit = 0

$140 - $25 - Fixed costs = 0

$115 = Fixed costs per unit

Therefore, the total amount of fixed cost is calculated as follows:

= Fixed cost per unit × Number of books sold

= $115 × 6,000

= $690,000

4 0
2 years ago
In a business environment, persuasion is critical to success. Persuasion is necessary when you anticipate resistance or when you
wariber [46]

Answer:

The correct answers are:  

(C) Anticipate objections: A person who persuades correctly and with ethics can anticipate the objections or doubts that people who are subject to persuasion have in order to effectively answer any questions they may have and  be able to make the deal effective.

(D) It generates interest: It generates interest because at that time it usually creates a need for the person who does not have or who mainly does not know he does not have.  

(E) Ask for a particular and easy action to take: In general, persuasion, as it is a created need, is easier to create small and easy-to-execute actions so that persuasion work is effective because if the person who is doing the work does it with larger actions, it is likely that it will not capture the attention of the person with whom it is being done, emphasizing that these actions should always be done considering the ethical principles of a company and society.

6 0
2 years ago
Diego owns and operates a small business with only four full-time employees and less than $700,000 in annual sales. He currently
marusya05 [52]

Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.

6 0
2 years ago
When business improved, Tasha Lind determined that the company had a talent shortage. Which of the following methods should she
Len [333]

Answer:

c. Outsource to a third party

Explanation:

At that time when business improved, Tasha Lind saw that the company is suffering with shortage of talent. From the given following methods she should use <u>outsource to a third party</u> for managing the shortage of talent because as outsource to a third party generally means that the company will give the contract of their work to any third party they wish. As company is suffering with shortage of talent, so the company will have to give contract to any other third party because company will not make its loss.

7 0
1 year ago
Explain four benefits to the US food exporter of the data researched from secondary sources.
ELEN [110]

Answer:

- The data will be acquired faster

- The data will be acquired on a cheper price

- It offers different perspective

- Eliminate bias from self-made research

Explanation:

Secondary sources are a form of data that is created by people who are not directly involved in the event. They do not experience in the event nor involved in the initial experiment that contributed to the event.

The data will be acquired faster since the food exporter do not have to arrange the research themselves. This eliminate the need to purchase research equipment and hiring researcher workers, which will lead to lower cost.

Not only that, using secondary sources will allow them to analyze the data from a neutral position. They do not developed bias that might come from making a conclusion by their own. They could also easily gather similar data from different sources in order to measure the data's accuracy.

4 0
1 year ago
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