Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. please help! management of plascencia corpor

please help! Management of Plascencia Corporation is considering whether...

60.1K

Verified Solution

Question

Accounting

please help!
image
image
Management of Plascencia Corporation is considering whether to purchase a new model 370 machine costing $512.000 or a new model 220 machine costing $408,000 to replace a mochlne that was purchased 12 years ago for $45$,000. The oid machine was used to make product 1434. until it broke down last week Unfortunately, the old machine cannot be repaired. Manageinent has decided to biry the new model 220 machine. It has fess capacity than the new model 370 machine, but its capacity is sufficient to continue making ptoduct 143L. Management also considered, but rejected, the alternatve of simply diopplng product 143L If that were done, instead of imvesting $408,000 in the new machire, the money could be invested in a project that would return a totat of $57,000. In making the dechion to buy the model 220 machine rather than the model 370 machine, the differential cost was: Mulnple Choice $57000 $47000 $104000 $30,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students