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E11-33 (similar to) Question Help The TechAide Company produces and sells 6.200 modular computer desks per year ata selling price of $400 each. Its current

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E11-33 (similar to) Question Help The TechAide Company produces and sells 6.200 modular computer desks per year ata selling price of $400 each. Its current production equipment, purchased for $1.200.000 and win a 5years Mo, is only 2 years old. It has a terminal disposal value of $0 and is deprecated on a straight line basis. The equipment has a current disposal price of $100.000 However, the emergence of a new molding technology has led Techlide to consider the upgrading or replacing the production equipment. The following table presents data for the two atomotive * Requirements Data Table 1. Should Tech Aide upgrade its production line or replace it? Show your calculations 2. Now suppose the one-me oquipment 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 rather than upgrade the old equipment? 3. Assume that the capital expenditures to replace and operade the production equipment areas given in the original exercise, but that the production and sales quantity is not known. For what production and sales quantity would TechAlde (a) upgrade the equipment or replace the equipment? 4. Assume that all data are as given in the original exercise Dan Doriais Toch ide's manager and his bonus is based on operating income. Because he is kely to relocate after about a year his current bonus is his primary concom Which alternative would Doris choose? Explain + Upgrade Replace 2 One-time equipment costs 3 3 200 000 4500,000 Variable manufacturing cost per desk 5 150/5 110 4. Remaining useful life of equipment in years 3 5 Terminal disposal value of equipment 5 05 All equipment costs will continue to be deprecated on a straight-in bass. For simplioty ignore income taxes and the time value of money

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