Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

J&H Company has a router platform with a book value of $67,000 and a 3-year remaining life. A new router platform is available at a

image text in transcribed
image text in transcribed
image text in transcribed
J&H Company has a router platform with a book value of $67,000 and a 3-year remaining life. A new router platform is available at a cost of $127,000, and J&H can also receive $16,200 for trading in the old router platform. The new router platform will reduce variable manufacturing costs by $31200 per year over its three-year life. Should the router platform be replaced? Multiple Choice Yes, as it is always important to have current technology O No, it will decrease income by $17,200 in total O Yes, as will increase income by $31.200 in total, O Yes, as the company will increase income by $17,200 total O J&H will be not be better or worse off by replacing the router platform. A company is planning to purchase a machine that will cost $25,200 with a six-year life and no salvage value. The company uses straight-line depreciation. The company expects to sell the machine's output of 3.000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 110,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (308) Net income $51,700 4,200 50,000 $ (105, 900) 4.100 1.230) 2,870 $ Multiple Choice O 1202 O 6000 Multiple Choice 4.20%. 50.00%. o o o o of 33.33%. 2278%. 22.78%. .39%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditory Interfaces

Authors: Stefania Serafin, Bill Buxton, Bill Gaver, Sara Bly

1st Edition

1032196459, 978-1032196459

More Books

Students also viewed these Accounting questions