Crane Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on large homes and commercial properties. Last year, Crane Roofing spent $73,200 refurbishing the lift. It has just determined that another $39,000 of repair work is required. Alternatively, it has found a newer used lift that is for sale for $166,500. The company estimates that both lifts would have useful lives of 6 years. The new lift is more efficient and thus would reduce operating expenses by about $24,400 per year. Crane Roofing could also rent out the new lift for about $10,000 per year. The old lift is not suitable for rental. The old lift could currently be sold for $24,500 if the new lift is purchased.
Prepare an incremental analysis for the life of the machines showing whether the company should replace the equipment.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Crane Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot extension lift for work on large homes ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
To avoid the difficulties involved in starting a business from scratch, Sana decides to obtain the rights to operate an outlet of a popular spa and salon chain. This business arrangement requires Sana to pay an annual fee to the owner of the chain.
Answers (2)
A company declared a cash dividend of $8,560 on december 5, 2015. the company made a cash dividend payment on january 8, 2016. what is the cumulative effect of the declaration and payment of the cash dividend on the company's financial statements?
Answers (1)
Operations management deals with the set of activities that create value in the form of goods and services by transforming inputs into outputs. A) TrueB) False
Answers (1)
Choose all that apply. Carla has been working at her job for about six months. It will soon be time to complete her first tax return. What should Carla do? Obtain the tax brochure from the IRS and read it.
Answers (1)
Because of the significant snow fall in the plains this year, the supply of fertilizer to Washington State's apple farmers substantially decreased. As a result, the price of fertilizer has increased in Washington State.
Answers (1)
New Questions in Business
Identify the internal control principle that is applicable to each procedure. The following reconciling items are applicable to the bank reconciliation for Ellington Company: (1) outstanding checks, (2) bank debit memorandum for service charge, (3)
Answers (1)
Valera Corporation makes a product with the following standards for labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Standard Cost Per Unit Direct labor 0.4 hours $ 21.00 per hour $ 8.40 Variable overhead 0.4 hours $ 6.
Answers (1)
Which of the following are tasks associated with business administration positions? a. answering phones b. designing goods for production c. delivering goods to markets d. maintaining records e. repairing computers
Answers (1)
Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The equipment had a cost of $120,000 and accumulated depreciation of $66,000 with a remaining life of 9 years.
Answers (1)
Which statement is incorrect? a. Dividends represent a distribution by a corporation to its stockholders. b. Dividends are shown on the income statement. c. Dividends reduce stockholders' equity, thus the Dividends account increases on the left side.
Answers (1)