-UU Question Help dy Plan ultimedia Library The Techleach Company produces and selis 6,500 modular computer desks per year ata selling peke of $500 each is current production equipment purchased for $1,650,000 and with a 5-year useful life is only 2 years old. It has a forminal disposal value of 50 and is deprecated on a straight-line basis. The equipment has current disposal price of $650.000. However, the emergence of a new melding technology has led TechTeach to consider the upgrading or replacing the production equipment. The following table presents data for the two alternatives 33 (Click to view the data for the two alternatives) Read the timents Thapter Resources Communication Tools Accessible Resources Requirement 1. Should TechTeach upgrade its production line or replace it? Show your calculations Determine the total relevant costs over 3 years (if an imput Seld is not used in the table bave the input field empty do not enter a zero Use parentheses ar ais sign for numbers to be subtraded) Over 3 years Upgrade Replace Difference Choose from any storente a umber in the input fields and then clickCheck Answer Clear Check Answer 9 parts remaining Lopar UTCANEVE # 7:26 PM 2021 ST Type bere to search hp 96 ( $ 4 3 5 & 7 > O CP ? 8 6 9 > 7 O Y R E W T U Y PS 2-33 (similar to) Question Help - TechTeach Company produces and sells 6.500 modular commuter desks cerata saling odio. of S600.sach Its curent caduction equipment, purchased for 650,000 and with a 5-ye The equipment has a Tent disposal price of $ 60 Requirements Irreplacing the production ipment. The following ta Click to view the data ead the requipants 1. Should TechTeach upgrade its production line or replace it? Show your calculations 2. Now suppose the one-time equipment cost to replace the production equipment is somewhat equirement 1. Should To negotiable. All other data are as given previously What is the maximum one time equipment cost that TechTeach would be willing to pay to replace rather than upgrade the old equipment? etermine the total relevant 3. Assume that the capital expenditures to replace and upgrade the production equipment are as parentheses or a minus an for numbers to be subtl given in the original exercise, but that the production and sales quantity is not known. For what production and sales quantity would Tech Teach (a) upgrade the equipment or (b) replace the equipment? 4. Assume that all data are as given in the original exercise Dan Doria is Tech Teach's manager, and his bonus is based on operating income Because he is likely to relocate after about a year his current bonus is his primary concem. Which alternative would Doria choose? Explain. 0 hoose from any list or en Print Done E12-33 (similar to) Question Help The TechTeach Company produces and sells 6.500 modular computer desks per year at a selling price of $500 each. Its current production equipment, purcha $1,650,000 and with a 5-year useful ne basis. The equipment ha current disposal price of $650,000 Data Table X grading or replacing the pro equipment. The following table prese Click to view the data for the twed Read the requirements B 1 Requirement 1. Should Tech Teach Upgrade Replace Determine the total relevant costs ov 2 One-time equipment costs S 2.900,000 $4,800.000 rero. Use parentheses or a mi sign for numbers to be subtracted) 3 Variable manufacturing cost per desk $ 170 $ 80 4 Remaining useful life of equipment in years) 3 3 S 5 Terminal disposal value of equipment 0$ UP 0 Al equipment costs will continue to be depreciated on a straight-line basis. For simplicity ignore income taxes and the time value of money Print Done Choose from any list or enter any n 9 parts Clear All remaining Check