answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
madam [21]
2 years ago
7

Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $465,000 or a new model

220 machine costing $411,000 to replace a machine that was purchased 7 years ago for $431,000. The old machine was used to make product I43L until it broke down last week. Unfortunately, the old machine cannot be repaired. Management has decided to buy the new model 220 machine. It has less capacity than the new model 370 machine, but its capacity is sufficient to continue making product I43L. Management also considered, but rejected, the alternative of simply dropping product I43L. If that were done, instead of investing $411,000 in the new machine, the money could be invested in a project that would return a total of $439,000. In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was
Business
1 answer:
Bond [772]2 years ago
5 0

Answer:

Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.

Explanation:

Sunk cost is the cost that has actually been incurred and can not be avoided in any manner, currently while making both the decisions whether to buy model 220 machine or 370 machine we incurred the cost of dropping the old machinery of value of $431,000.

Therefore the book value of old machinery costing $431,000 is the sunk cost incurred in making the decision of buying new model.

In case any amount is recovered from sale of such amount then such amount recovered shall be deducted from the Written down value (WDV) of the old machinery and that will be our sunk cost.

Sunk cost = WDV of old machinery costing $431,000 - Any amount recovered.

You might be interested in
Match the following theories to their best descriptive statements: A. Cost benefit analysis for finding the best possible result
mariarad [96]

Answer:

A-1 B-3 C-4 D-2

Explanation:

The description given in option A fits utilitarianism which is an ethical term describing a decision where the best outcome for the largest possible number of people is considered the solution.

The description given in option B fits social contract which desribes accepting the authority of the state and deciding on basic principles so that the society can exist.

The description given in option C fits virtue ethics which is a field of ethics that discusses virtues such as honesty.

The description given in option D fits deontology which is an ethical theory that suggests that each action should be examined if it is good or bad by following certain rules.

I hope this answer helps.

7 0
2 years ago
Your entertainment price index (EPI) was computed based on three goods: movie tickets, popcorn, and limeade. If you change the q
DaniilM [7]

Answer:

Your entertainment price index (EPI), might fall or rise, contingent on both the quantity of the goods that you bought and the prices of these goods.

Explanation:

Price index is used extensively to estimate changes in prices overtime and are also used to measure differences in costs among different areas of countries.

4 0
1 year ago
Read 2 more answers
In 2017 Wilkinson Company had net credit sales of $2250000. On January 1, 2017, Allowance for Doubtful Accounts had a credit bal
mamaluj [8]

Answer:

$114,000

Explanation:

Given that,

Net credit sales = $2,250,000

Opening allowance for Doubtful Accounts = $36,000

Uncollectible accounts receivable written off = $90,000

Firstly, we need to find the excess amount to be adjusted to allowance for Doubtful Accounts. It is calculated as follows:

= Uncollectible accounts receivable written off  - Opening allowance for Doubtful Accounts

= $90,000 - $36,000

= $54,000

Allowance amount:

= 10% of the balance in receivables

= 0.1 × $600,000

= $60,000

Therefore, the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 is determined by summing up the excess amount and  allowance amount.

= Excess amount to be adjusted to allowance for Doubtful Accounts + Allowance amount

= $54,000 + $60,000

= $114,000

4 0
2 years ago
Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the ________ phase of the st
Rainbow [258]

Answer:

Implementation Phase

Explanation:

After Planning, it is imporrant to carry out clarified Implementation to successfully carry out what need to be done and when. This is important to ensure your plan is achieved without fault. Sweatshop labour which is a situation where workers are employed at low wages and mostlyunder unhealthy conditions to produce products usually occurs during the implementation phase.

7 0
2 years ago
Read 2 more answers
When Jacob Riley began working at his local bakery, he found out there was a union representing the bakery workers, but that man
Stells [14]

Answer:

The answer is National Labor Relations Act (Wagner Act)

Explanation:

The national labor Act of 1935 provides workers with the right to organize and  join labor union. The Act also provides workers with a framework for collective bargaining.  The Wagner Act prohibits the interference or coercion of workers to exercise their rights of organizing or joining labor unions alongside bargaining collectively for their working conditions or wages.

Moreover,  the Act prohibits the employer from the refusal to bargain with employees' representatives.

8 0
1 year ago
Other questions:
  • The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things
    6·1 answer
  • A simple index of three stocks have opening values on day 1 and day 8 as shown in the table below. What is the rate of change of
    15·2 answers
  • A stadium has two sponsorship deals. Deal A has revenue of $100,000 and expenses of $10,000. Deal B has revenue of $50,000 and e
    7·2 answers
  • Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning
    7·1 answer
  • Consider airfares on flights between New York and Minneapolis. When the airfare is $250, the quantity demanded of tickets is 2,0
    10·1 answer
  • Kushman Combines Inc. has $20,000 of ending finished goods inventory as of December 31, 2017. If beginning finished goods invent
    11·1 answer
  • Singapore has granted a(n) _____ on the importation of beer and stout made in the Philippines. This means that beer and stout ma
    13·1 answer
  • Microsoft and a smaller rival often have to select from one of two competing technologies, A and B. The rival always prefers to
    5·1 answer
  • Chip Wilson, Lululemon's founder, envisioned creating high-quality sportswear, found low-cost producers, realized sales that exc
    11·1 answer
  • A company has the following ratios:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!