Question
Read the requirement carefully and answer only if you think you can efficiently do the task (I am short on time)-COST/MANAGERIAL ACCOUNTING I have to
Read the requirement carefully and answer only if you think you can efficiently do the task (I am short on time)-COST/MANAGERIAL ACCOUNTING
I have to give a presentation on the topic incremental analysis type 4 'Repair, retain or replace equipment'. Just to refresh your memory, here is a short summary of the topic: ''The method is used when business needs to decide whether to continue with its current machinery, repair it or replace it with a new machine. Using relevant cost, you have to give an incremental analysis on which option will be a more profitable decision for the company (Net Income).''
My professor asked me not to use our course book to solve the numerical for the presentation (the course book we currently study is managerial accounting - tools for business decision making by Weygandt, Kimmel and Keiso) , he asked to find questions from different books, materials or the internet.
I am having trouble finding related numerical problems from resources outside my book.
Please can you find and upload 5-6 questions relating to my topic 'retain, replace or repair equipment/plant - incremental analysis'. And remember it should not be from my course book so please check refrences. Below are is an example (from my course book) on what the question should be like, what should the requirements cover and its solution:
E7-13 On January 2, 2013, Benson Hospital purchased a $100,000 special radiology scan- ner from Picard Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $105,000. Approximately one year later, the hospital is approached by Dyno Technology salesper- son, Meg Ryan, who indicated that purchasing the scanner in 2013 from Picard Inc. was a mistake. She points out that Dyno has a scanner that will save Benson Hospital $30,000 a year in operating expenses over its 3-year useful life. She notes that the new scanner will cost $110,000 and has the same capabilities as the scanner purchased last year. The hos- pital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Ryan agrees to buy the old scanner from Benson Hospital for $40,000. Instructions (a) If Benson Hospital sells its old scanner on January 2, 2014, compute the gain or loss on the sale. (b) Using incremental analysis, determine if Benson Hospital should purchase the new scanner on January 2, 2014. (c) Explain why Benson Hospital might be reluctant to purchase the new scanner, regard- less of the results indicated by the incremental analysis in (b).
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