12-02Pr_5e

12-02Pr_5e - 2. Should the proposal to replace the machine...

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Problem 12-2 Name: Section: Score: 0% Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. A red asterisk (*) will appear in the row immediately to the right of an incorrect answer. 1. Proposal to Replace Machine May 22, 2010 Annual manufacturing costs associated with present machine Annual manufacturing costs associated with proposed new machine Annual reduction in manufacturing costs Number of years applicable x Cost reduction attributable to difference in manufacturing costs Proceeds from sale of present machine Cost of new machine Differential income anticipated from replacement, 6-year total
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Unformatted text preview: 2. Should the proposal to replace the machine be accepted? I What is the amount of fixed supervisory costs incurred in the production process? What else could be done with the $40,500 that will be spent on the proposal? Is quality improved by using the new machinery? Will the change enhance our ability to adapt to future changes in products, materials, etc.? Instructions Indicate which of the following questions are important in determining whether the proposal should accepted and the old machine replaced. Important? d be...
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12-02Pr_5e - 2. Should the proposal to replace the machine...

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