Incremental Income From Replacing Machine | |
Cost of new machine | -116,000 |
Reduction in variable manufacturing costs | 80,000 |
Cash received from trade in of old machine | 63,000 |
Incremental income ( incremental cost) | $27,000 |
Should the machine be replaced? | Yes |
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Rory Company has a machine with a book value of $93.000 and a remaining five-year useful...
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