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ellowstone Consulting is considering replacing its phone system. The existing system cost $100.000 many years ago and has a book value of $15.000 Annual accounting

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ellowstone Consulting is considering replacing its phone system. The existing system cost $100.000 many years ago and has a book value of $15.000 Annual accounting depreciation is 55,000. The system is expected to last 3 more years and have no value at that point. Yellowstone believes that a new system would increase their contribution margin by $14,000 per year for the next three years. Yellowstone can lease a new system for 516,000 per year, if they lease the new system, they will sell the old machine now for $12,000. Regardless of the choice of phone system each system will have annual maintenance costs of $2.500. is the annual depreciation on the old machine relevant for making the decision to keep the old phone system or lease a new system Yellowstone Consulting is considering replacing its phone system. The existing system cost $100.000 many years ago and has a book value of 515,000. Anrual accounting depreciation is $5.000. The system is expected to last 3 more years and have no value at that point. Yellowstone believes that a new system would increase their contribution margin by $14,000 per year for the next three years. Yellowstone can lease a new system for $16,000 per year. If they lease the new system, they will sell the old machine now for $12.000. Regardless of the choice of phone system, each system will have annual maintenance costs of 52,500. Are the annual maintenance cost of the phone systems relevant for making the decision to keep the old phone system or lease a new system? res No Y lowstone Consulting is considering replacing its phone system. The existing system cost $100,000 many years ago and has a book value of $15,000. Annual accounting depreciation is 55,000. The system is expected to last 3 more years and have no value at that point. ellowstone believes that a new system would increase their contribution margin by $14.000 per year for the next three years. Yellowstone can leas w system for 516,000 per year, if they lease the new system, they will sell the old machine now for $12,000. Regardless of the choice of phone ystem, each system will have annual maintenance costs of $2.500. Are the lease payments for the new machine relevant for making the decision to keep the old phone system or lease a new system? ellowstone Consulting is considering replacing its phone system. The existing system cost 5100,000 many years ago and has a book value of $15.000 nnual accounting depreciation is 55,000. The system is expected to last 3 more years and have no value at that point. Yellowstone believes that a new system would increase their contribution margin by $14,000 per year for the next three years. Yellowstone can lease a new system for 516,000 per year. If they lease the new system, they will sell the old machine now for 512.000. Regardless of the choice of phone system, each system will have annual maintenance costs of $2.500 is the incremental contribution margin that comes with leasing the new machine relevant for making the decision to keep the old phone systemor lease a new system? fellowstone Consulting is considering replacing its phone system. The existing system cost $100.000 many years ago and has a book value of 515,000. Annual accounting depreciation is 55.000. The system is expected to last 3 more years and have no value at that point Yellowstone believes that a new system would increase their contribution margin by $14.000 per year for the next three years. Yellowstone can lease a new system for 516,000 per year. If they lease the new system, they will sell the old machine now for $12,000. Regardless of the choice of phone system, each system will have annual maintenance costs of $2.500. Are the expected sales proceeds (512.000) for the old machine relevant for making the decision to keep the old phone system or lease a new system

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