Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Villani Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Old
Villani Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: Price Accumulated Depreciation Old Machine $300,000 New Machine $600,000 90,000 0 Remaining useful life 10 years 0 Useful ite 0 10 years Annual operating costs $240,000 $180,600 If the old machine is replaced, it can be sold for $24,000. The net advantage (disadvantage) of replacing the old machine is Select one OA. $16,000) OB. $18,000 OC. $160,000) OD. $24,000 Withers Toy Company is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $24 and NF Toy would sell it for $52. The cost to assemble the product is estimated at $17 per unit and the company believes the market would support a price of $68 on the assembled unit. What decision should NF Toy make? Select one: OA. Process further, the company will be better off by $23 per unit. OB. Sell before assembly, the company will be better off by $1 per unit. OC. Sell before assembly, the company will be better off by $16 per unit. OD. Process further, the company will be better off by $11 per unit. The point in the production process when joint products are readily identifiable is the Select one: OA split off point. OB break even point. OC. separation point OD common point A segment has the following data: Sales Variable expenses Flied expenses $700,000 300,000 550,000 What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments? Select one OA. $400,000 increase OB $400,000 decrease OC. $5,000 decrease OD. Cannot be determined from the data provided.
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