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Can someone help with this problem Ex 10-9 please Total e Publication De tive needs, if the should lay on tside (Alternative 2). The department
Can someone help with this problem Ex 10-9 please
Total e Publication De tive needs, if the should lay on tside (Alternative 2). The department expects to lay out 24,000 pages for the current year. The Public partment office space and equipment would be used for future administrative nee department's function were purchased from the outside. A. Prepare a differential analysis dated February 22 to determine whether TAG-D shoul pages internally (Alternative 1) or purchase layout services from the outside (Alterna B. On the basis of your analysis in part (A), should the page layout work be purch from an outside company? Explain. C. - What additional considerations might factor into the decision making? EX 10-9 Machine replacement decision Obj. 1 A company is considering replacing an old piece of machinery, which cost $600,000 and he $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual variable production costs associated with the old machine are estimated to be $61,000 per year for eight years. The an nual variable production costs for the new machine are estimated to be $19,000 per year for eight years. A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. B. What is the sunk cost in this situation? EX 10-10 Differential analysis for machine replacement Obj. 1 Kim Kwon Digital Components Company assembles circuit boards by using a manually opera machine to insert electronic components. The original cost of the machine is $00,00 accumulated depreciation is $24,000, its remaining useful life is five years, and 1 value is negligible. On May 4 of the current year, a proposal was made to replace the manufacturing procedure with a fully automatic machine that has a purchase price of The automatic machine has an estimated useful life of five vears and no significant years, and its residual replace the present e price of $180,000 EXCEL TEMPLATE ificant residual Obj. 1 EX 10-9 Machine replacement decision A company is considering replacing an old piece of machinery, which cost $600,000 and had $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual variable production costs associated with the old machine are estimated to be $61,000 per year for eight years. The an nual variable production costs for the new machine are estimated to be $19,000 per year for eight years. A. Prepare a differential analysis dated September 13 to determine whether to continue with (Alternative 1) or replace (Alternative 2) the old machine. B. What is the sunk cost in this situation Step by Step Solution
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