The Kendo Co. uses machinery in its manufacturing processes. You have been asked to calculate the costs to the firm of the use of various machines during the next month:

Machine A

(j) Net book value: now £100, after one month: £70;

(ii) Resale value: now £ nil, after one month: £ nil;

(iii) Subcontracting the use of the machine to another firm would yield a contribution of£25;

(iv) Use for a special order yielding a contribution of £22.

Machine B

(i) Net book value: now £500; after one month: £200;

(ii) Resale value: now and in one month's time: £50 less dismantling costs of £200.

(iii) Modify machine during month for £ 120 and save replacing by another machine which would cost £200.

Machine C (i) Completely depreciated three years ago;
(ii) Resale value now and in one month: £ nil;
(iii) Dismantle for spares with a selling price of £50, or replacement cost of £250.
This is possible only this month;
(iv) Cost of hiring a similar machine: £200 per month.