Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help! Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512.000 or a new model 220 machine costing

please help!
image text in transcribed
image text in transcribed
Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512.000 or a new model 220 machine costing $408,000 to replace a mochlne that was purchased 12 years ago for $45$,000. The oid machine was used to make product 1434. until it broke down last week Unfortunately, the old machine cannot be repaired. Manageinent has decided to biry the new model 220 machine. It has fess capacity than the new model 370 machine, but its capacity is sufficient to continue making ptoduct 143L. Management also considered, but rejected, the alternatve of simply diopplng product 143L If that were done, instead of imvesting $408,000 in the new machire, the money could be invested in a project that would return a totat of $57,000. In making the dechion to buy the model 220 machine rather than the model 370 machine, the differential cost was: Mulnple Choice $57000 $47000 $104000 $30,000

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

Auditing With The Computer

Authors: Wayne S. Boutell

1st Edition

0520363329, 978-0520363328

Students also viewed these Accounting questions

Question

7. What are the main provisions of the FMLA?

Answered: 1 week ago

Question

2. Do small companies need to develop a pay plan? Why or why not?

Answered: 1 week ago