Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me find the variable manufacturing costs for part A & B ive tried everything. please provide the work for it as well Lopez
please help me find the variable manufacturing costs for part A & B ive tried everything. please provide the work for it as well
Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000 Variable manufacturing costs are $48,000 per year for this old machine Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years Machine A Machine B Purchase price $ 125,000 $ 139,000 Variable manufacturing costs per year 19,000 14,000 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Rega Reg B Reg C and D Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be Indicated with a minus sign) Income Increase Machine A: Keep or Replace Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine S 0$ 57.000 Costs Purchase of new machine 125 000 Variable manufacturing costs S 48.000 19.000 Income (loss) $ 48.000 $201.000 s 249,000 Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57000. Variable manufacturing costs are $48.000 per year for this old machine Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years Machine A Machine B Purchase price $ 125,000 $ 139,000 Variable manufacturing costs per year 19.000 14,800 (a) Compute the income increase or decrease from replacing the old machine with Machine A (b) Compute the income increase or decrease from replacing the old machine with Machine B (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Reg B ReqC and D Compute the income increase or decrease from replacing the old machine with Machine B. (Amounts to be deducted should be indicated with a minus sign.) Machine B: Keep or Replace Income Increase Analysis Keep Replace (Decrease) from Replacing Revenues Sale of existing machine $ os 57,000 Costs Purchase of new machine 139.000 Variable manufacturing costs $ 48000 14.000 Income (loss) $ 48.000 $ 210,000 s 258 000 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started