12-09Ex_5e_s

Survey of Accounting (Available Titles Cengagenow)

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Exercise 12-9 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 (*) wil appear in the row immediately to the right of an incorrect answer. a. Proposal to Replace Machine February 20, 2010 Annual costs and expenses - present machine Annual costs and expenses - new machine Annual differential decrease in costs and expenses Number of years applicable x Total differential decrease in costs and expenses Cost of new equipment Net differential increase in costs and expenses, 5-year total Annual differential increase in costs and expenses - new machine Calculations for annual differential decrease in costs and expenses: Decrease in direct labor costs Less: Increase in power and maintenance Increase in taxes, insurance, etc. Annual differential decrease in costs and expenses b. From a financial perspective, is it advisable to replace the machine? c.
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This note was uploaded on 11/04/2011 for the course ACC 121 taught by Professor Thomas during the Winter '08 term at Baker MI.

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12-09Ex_5e_s - Exercise 12-9 Name: Section: Score: 0%...

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