Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10 parts The TechAide Company produces and sells 5,000 modular computer desks per year at a selling price of $600 each its current production equipment,
10 parts
The TechAide Company produces and sells 5,000 modular computer desks per year at a selling price of $600 each its current production equipment, purchased for $1 950,000 and with a 5 year useful fo is only 2 years old it has a terminal disposal value of 50 and is depreciated on a straght line basis The equipment has a current disposal price of $750,000 However the emergence of a new molding technology has led TechAide to consider ether upgrading or replacing the production equipment. The following table presents data for the two alternatives Click to view the data for the two alternatives Read the requirements Requirement 1. Should TechAide upgrade its production line or replace it? Show your calculations Determine the total relevant costs over 3 years (If an input field is not used in the table loave the input field ompty do not enter a zero Use parentheses on minus sign for numbers to be subtracted) Over 3 years Upgrade Replace Difference Total rolevant costs = Homework: Ch... Question 18, E11-33 (si... Part 1 of 10 HW Score: 56.8%, 11.36 of 20 points O Points: 0 of 1 S TechAide Company produces and sells 6,000 modular computer desks por year at a selling price of $600 each its current production equipment, purch 50,000 and with a 5-year useful life, is only 2 years old it has a terminal disposal value of 50 and is depreciated on a straight-line basis. The equipment bnt disposal price of $750,000 However, the emergence of a new molding technology has led Techade to consider either upgrading or replacing the pr pment The following table presents data for the two alternatives (Click to view the data for the two alternatives) Data Table iments uirement 1. Should TechA Use parentheses or prmine the total relevant cos for numbers to be subtract Data table A B C BUEU 1 Upgrade Replace 2 One-time equipment costs $ 3,000,000 $4,600,000 3 Variable manufacturing cost per desk $ 140 S 70 4 Remaining useful life of equipment (in years) 3 3 5 Terminal disposal value of equipment S os 0 All equipment costs will continue to be depreciated on a straight line basis For simplicity, ignoro income taxes and the time value of money bal relevant costs Print Done Hein me solve this Etext pades Get more help Clear all Check a ide Company produces and sells 6.000 modular computer desks per year at a selling price of $600 each its current production equipment, purchased for and with a 5-year useful life is only 2 years old. It has a terminal disposal value of SO and is depreciated on a straight-line basis The equipment has a posal price of $750,000. However, the emergence of a new molding technology has led TechAide to consider either upgrading or replacing the production The following table presents data for the two alternatives to view the data for the two alternatives) a equirements Requirements ent 1. Shou the total rel mbers to be Requirements - X entheses or a minus 1. Should TechAide upgrade its production line or replace it? Show your calculations 2. Now suppose the one time equipment cost to replace the production equipment is somewhat negotiable. All other data are as given previously What is the maximum one-time equipment cost that TechAide would be willing to pay to replace tather than upgrade the old equipment? 3. Assume that the capital expenditures to replace and upgrade the production equipment are as given in the original exercise, but that the production and sales quantity is not known For what production and sales quantity would TechAide (a) upgrade the equipment or (b) replace the equipment? 4. Assume that all data are as given in the original exercise Dan Doria is TechAide's manager, and his bonus is based on operating income Because he is likely to relocate after about a year, his current bonus is his primary concern Which alternative would Dona choose? Explain ant costs Print Done ne solve this Etext pages Get more help Clear all Check answer The TechAide Company produces and sells 5,000 modular computer desks per year at a selling price of $600 each its current production equipment, purchased for $1 950,000 and with a 5 year useful fo is only 2 years old it has a terminal disposal value of 50 and is depreciated on a straght line basis The equipment has a current disposal price of $750,000 However the emergence of a new molding technology has led TechAide to consider ether upgrading or replacing the production equipment. The following table presents data for the two alternatives Click to view the data for the two alternatives Read the requirements Requirement 1. Should TechAide upgrade its production line or replace it? Show your calculations Determine the total relevant costs over 3 years (If an input field is not used in the table loave the input field ompty do not enter a zero Use parentheses on minus sign for numbers to be subtracted) Over 3 years Upgrade Replace Difference Total rolevant costs = Homework: Ch... Question 18, E11-33 (si... Part 1 of 10 HW Score: 56.8%, 11.36 of 20 points O Points: 0 of 1 S TechAide Company produces and sells 6,000 modular computer desks por year at a selling price of $600 each its current production equipment, purch 50,000 and with a 5-year useful life, is only 2 years old it has a terminal disposal value of 50 and is depreciated on a straight-line basis. The equipment bnt disposal price of $750,000 However, the emergence of a new molding technology has led Techade to consider either upgrading or replacing the pr pment The following table presents data for the two alternatives (Click to view the data for the two alternatives) Data Table iments uirement 1. Should TechA Use parentheses or prmine the total relevant cos for numbers to be subtract Data table A B C BUEU 1 Upgrade Replace 2 One-time equipment costs $ 3,000,000 $4,600,000 3 Variable manufacturing cost per desk $ 140 S 70 4 Remaining useful life of equipment (in years) 3 3 5 Terminal disposal value of equipment S os 0 All equipment costs will continue to be depreciated on a straight line basis For simplicity, ignoro income taxes and the time value of money bal relevant costs Print Done Hein me solve this Etext pades Get more help Clear all Check a ide Company produces and sells 6.000 modular computer desks per year at a selling price of $600 each its current production equipment, purchased for and with a 5-year useful life is only 2 years old. It has a terminal disposal value of SO and is depreciated on a straight-line basis The equipment has a posal price of $750,000. However, the emergence of a new molding technology has led TechAide to consider either upgrading or replacing the production The following table presents data for the two alternatives to view the data for the two alternatives) a equirements Requirements ent 1. Shou the total rel mbers to be Requirements - X entheses or a minus 1. Should TechAide upgrade its production line or replace it? Show your calculations 2. Now suppose the one time equipment cost to replace the production equipment is somewhat negotiable. All other data are as given previously What is the maximum one-time equipment cost that TechAide would be willing to pay to replace tather than upgrade the old equipment? 3. Assume that the capital expenditures to replace and upgrade the production equipment are as given in the original exercise, but that the production and sales quantity is not known For what production and sales quantity would TechAide (a) upgrade the equipment or (b) replace the equipment? 4. Assume that all data are as given in the original exercise Dan Doria is TechAide's manager, and his bonus is based on operating income Because he is likely to relocate after about a year, his current bonus is his primary concern Which alternative would Dona choose? Explain ant costs Print Done ne solve this Etext pages Get more help Clear all Check Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started