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please its urgent help B Westwood Furniture Company is considering the purchase of two different machines, as described below Machine A A compacting machine has

please its urgent help
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B Westwood Furniture Company is considering the purchase of two different machines, as described below Machine A A compacting machine has just come onto the market that would permit Westwood Furniture Company to compress Sawdust into various shelving products. At present the sawdust is disposed of as a waste product. The following information is available on the machine 2014 a The machine would cost $370,800 and would have a 10% salvage value at the end of its 13 year useful life. The company uses straight line depreciation and considers salvage value in computing depreciation deductions b. The shelving products manufactured from use of the machine would generate revenues of $270,000 per year. Variable manufacturing costs would be 20% of sales c. Fixed expenses associated with the new shelving products would be as follows (per years, advertising $80,600 salaties. $60.000, utilities 52,800, insurance $600 Machine B A second machine has come onto the market that wou'd alow Westwood Furniture Company to automate a sanding process that is now done targely by hand. The following information is available: a The new sanding machine would cost $195,000 and would have no salvage value at the end of ts 13 year useful life. The company would use straight line depreciation on the new machine b. Several old pieces of sanding equipment that are fully depreciated would be disposes of at a scrap value of $5,000 The new sanding machine would provide substantial annual savings in cash operating costs. It would require an operator at an annual salary of 530100 and $2.700 in annual maintenance costs. The current and operated canding procere coste the company $82,000 per year in total Westwood Furniture Company requires a simple rate of retum of 15% on all equipment purchases. Also, the company will not purchase equipment unless the equipment has a payback penod of four years or less Required: 1. For machine A 13 Westwood Furniture Company requires a simple rate of return of 15% on all equipment purchases. Also, the company will not purchase equipment unless the equipment has a payback period of four years or less Required: 1. For machine A a. Prepare an income statement showing the expected net income each year from the new shelving products. Use the contribution format (Round your answers to the nearest whole dollar amount.) 0 19:44 Book WESTWOOD FURNITURE COMPANY Income Statement Deduct. Fixed expenses Total fixed expenses b. Compute the simple rate of return (Round intermediate calculations to the nearest whole dollar amount and finel answer to 1 decimal place (ie., 0.123 should be considered as 12.3%) 13 Simple rate of totum 2 01:23:16 Book c. Compute the payback period (Round intermediate calculations to the nearest whole dollar amount) Payback period years 2 For machine .. Compute the simple rate of return Simple rate of return ols b. Compute the payback period

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