Retain machine | Replace machine | Net income increase(decrease) | |
Operating costs | 124500 | 99000 | 25500 |
New machine cost | 0 | 25100 | -25100 |
Salvage value(old) | 0 | -10300 | 10300 |
Total | 124500 | 113800 | 10700 |
The current machine should be replaced | |||
Workings: | |||
Retain machine | Replace machine | ||
Operating costs | =24900*5 | =19800*5 |
OTCT yservans Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine $24,900 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life $15,200 $5,900 $24,900 5 years $19,900 5...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine $14,600 $6,400 $24,900 5 years $25,300 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life $19,500 5...
*Exercise 20-14 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $24,900 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $15,200 $5,900 $24,900 5 years...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faste model that would eliminate all of the overtime processing. Current Machine New Machine $25,100 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life $14,900 $5,700 $24,700 5 years $19,500 5...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,500 $25,100 Accumulated depreciation $5,900 _ Estimated annual operating costs $24,900 $19,800 Remaining useful life 5 years...
Exercise 20-14 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current New Machine Machine Original purchase cost $14,600 $25,300 Accumulated depreciation $6,400 Estimated annual operating costs $24,900 $19,500 5 years Remaining useful...
Exercise 20-14 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $25,100 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $14,900 $5,700 $24,700 5 years...
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $25,000 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $15,000 $6,000 $25,000 5 years $20,000 5...
Exercise 21-14 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. Current Machine New Machine Original purchase cost $15,200 $25,000 Accumulated depreciation $6,500 _ Estimated annual operating costs $24,600 $19,900 Remaining useful life...
Exercise 20-14 Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing. New Machine $25,300 Original purchase cost Accumulated depreciation Estimated annual operating costs Remaining useful life Current Machine $14,500 $5,500 $24,800 5 years...