Emerson Company

Emerson Company - EMERSONCOMPANY .IntheEmersonplant,...

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EMERSON COMPANY The Emerson Company specialized in the manufacture of pipe couplings for use in industrial and  residential construction.  In the Emerson plant, two-inch and six-inch diameter sewer and housing  connection couplings were machined on two converted metal lathes.  These lathes had been purchased  in used condition seven years previously , and the remaining net book value of each is $6,000  (35% of  the initial cost).  The lathes were being depreciated on the straight-line method.  Larger sewer  couplings, of 8-inch to 14-inch diameters, were machined in a small boring mill, which was fully  depreciated.  All three  pieces of equipment (the two converted lathes and the boring mill) were badly  worn, and considerable difficulty had been encountered in machining couplings to meet production  specifications.  In the opinion of the industrial engineering supervisor, it was necessary either to  overhaul or replace the machines (i.e., continued operation without an overhaul is not an option).  All   three machines were considered to have zero salvage value.
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This note was uploaded on 01/06/2012 for the course BUS M 201-1 taught by Professor Jennlarson during the Fall '11 term at BYU.

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Emerson Company - EMERSONCOMPANY .IntheEmersonplant,...

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