chapter - Chapter 1 Egan Electronics - Solution 1) Does a...

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Chapter 1 Egan Electronics - Solution 1) Does a cost-benefit analysis justify purchasing the machinery? Explain why, showing supporting calculations. The total benefits are as follows: Salary costs saved. ............................................................ $170,000 Profit from additional sales. ............................................... 10,500 Total benefits. ..................................................................... $180,500 The total costs are as follows: Purchase of machinery. ..................................................... $156,000 Installation and training. ..................................................... 12,000 Additional utility costs. ........................................................ 14,500 Total costs. ......................................................................... $182,500 Total expected value of benefits of purchasing the machinery . ............. $180,500 Total costs of purchasing machinery. ....................................................... 182,500
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This note was uploaded on 10/08/2011 for the course ACCT 101 taught by Professor Kang during the Spring '08 term at S.F. State.

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chapter - Chapter 1 Egan Electronics - Solution 1) Does a...

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