Blossom Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes ■n extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management i Considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine
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- Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,000 $25,200 Accumulated depreciation $5,900 _ Estimated annual operating costs $25,000 $19,500 Remaining useful life 5 years 5 years If sold now, the current machine would have a salvage value of $8,100. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.Prepare an incremental analysis to determine whether the current machine should be replaced. RetainMachine ReplaceMachine Net IncomeIncrease(Decrease)…Johnson Enterprises uses a computer to handle its sales invoicesLately, business has been so good that it takes an extra 3 hours per night, plus every third Saturdayto keep up with the volume of sales invoicesManagement is considering updating its computer with a faster model that would eliminate all of the overtime processing . Current Machine New Machine Original purchase cost $14,900$ 25,200 Accumulated depreciation $6,600 Estimated annual operating costs $ 24,600 $19,600 Remaining useful life years 5 years sold now , the current machine would have a salvage value of $ 10,200 operated for the remainder of its useful life, the current machine would have zero salvage value . The new machine is expected to have zero salvage valueJohnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Original purchase cost. Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $15,100 $6,500 $24,600 5 years New Machine $25,400 $20,000 5 years If sold now, the current machine would have a salvage value of $13,400. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced. (In the first two columns, enter costs and expenses as positive amounts, and any amounts received as negative amounts. In the third column,…
- Current Attempt in Progress Kingbird Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra three hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Data for the two computers are as follows: Current Computer New Computer Original purchase cost $14,500 $25,400 Accumulated depreciation $6,300 $0 Estimated operating costs Useful life $23,700 $19,600 5 years 5 years If sold now, the current computer would have a salvage value of $10,500. If it is used for the remainder of its useful life, the current computer would have zero salvage value. The new computer is expected to have zero salvage value after five years. Determine whether the current computer should be replaced. (Ignore the time value of money.) Current computer should be The incremental analysis shows that net…Oberweis Dairy switched from delivery trucks with regular gasoline engines to ones with diesel engines. The diesel trucks cost $6,000 more than the ordinary gasoline trucks but costs $1,800 per year less to operate. Assume that Oberweis saves the operating costs at the end of each month. If Oberweis uses a discount rate of 1% per month, approximately how many months, at a minimum, must the diesel trucks remain in service for the switch to be sensible?Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be hosting a state-wide soccer event and is willing to pay Rajan’s Manufacturing $17 per shirt to make 200 custom vests for…
- Marigold Corp. produces flash drives for computers, which it sells for $20 each. Each flash drive costs $7 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $6000. How much does Marigold's operating income increase for each $2000 increase in revenue per month? O $20000. O $1300. O Not enough information to determine the answer. O $2000.Question1:- PC planet has just opened its doors. The new retail store sells refurbished computers at a significant from market prices. The variable cost PC for computers are planet $100 to purchase and require (10 hours of labor at $15 per hours) and wages for sales personnel $50 per computer. The newly refurbished computers are resold to customers for $500. Rent (fixed cost) on the retail cost the company $4000 per month. 1- How many computers does PC planet have to sell each month to break even? 2- If PC planet wants to earn $5000 per month after all expenses, how many computers does the company need to sell? 3- PC planet can purchåse already refurbished computers for $200. This would mean it need additional labor $50 per computer. What would PC plants new breakeven pointbe if it decided to purchase the computers already refurbished?Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special…
- A vegetable stand owner purchases onions at the rate of P350 per kg daily and sells it at the rate of P375 per kg. The unsold product at the end of the day can be disposed off the next day at the salvage value of P275 per kg. Past sales have ranged from 30 to 38 kg per day. What is store owner profit per kg of onion sold?Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 VestsSales revenue $20 $20 000Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000Contribution margin $ 7 $ 7 000Fixed costs (rent, salaries, etc.) 4 000Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be…Anderson Inc. uses packing machines to prepare their product for shipping. One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6,500 a year. Ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 11%? Multiple Choice $49,904 $51,036 $44,298 $43,298 $50,776