# The Dowling Company produces and sells 5,900 modular computer desks per year at a selling price...

###### Question:

The Dowling Company produces and sells 5,900 modular computer desks per year at a selling price of $480 each. Its current production​ equipment, purchased for$1,750,000 and with a​ five-year useful​ life, is only two years old. It has a terminal disposal value of​ $0 and is depreciated on a​ straight-line basis. The equipment has a current disposal price of$650,000. ​However, the emergence of a new molding technology has led Dowling to consider either upgrading or replacing the production equipment. The following table presents data for the two​ alternatives:

 Upgrade Replace One-time equipment costs $2,400,000$3,900,000 Variable manufacturing cost per desk $120$60 Remaining useful life of equipment (years) 3 3 Terminal disposal value of equipment $0 0 All equipment costs will continue to be depreciated on a​ straight-line basis. For​ simplicity, ignore income taxes and the time value of money. 1. Should DowlingDowling upgrade its production line or replace​ it? Show your calculations. ​(Only complete the necessary answer​ boxes.)  Over 3 years Difference Upgrade Replace in favour of Replace Cash operating costs Current disposal price One time capital costs, written off periodically as depreciation Total relevant costs ## Answers #### Similar Solved Questions 1 answer ##### Which expression can be substituted for x in the top equation of the system below to solve the system by substitution which expression can be substituted for x in the top equation of the system below to solve the system by substitution? 2x+10y=1 x-4y=-4... 1 answer ##### Player 2 9 1-9 Question 4: (15pt total] Consider the following game: X Y Player 1... Player 2 9 1-9 Question 4: (15pt total] Consider the following game: X Y Player 1 P A 1,3 2,4 1-PB 0,2 8,0 Suppose Player 1 plays A with probability p, and Player 2 plays X with probability q. Let E (-) and E2(-) be the expected payoff functions. 4)a) [8pt total] Calculate the following: 4)a)i) (2pt... 1 answer ##### Four Guys Company has in its inventory 5,000 paired at a cost of$45,000 and sold...
Four Guys Company has in its inventory 5,000 paired at a cost of $45,000 and sold for$78,000. What is the opportunity cost of selling the televisions in their present condition? O A $123,000 O B.$79,000 OC. $33,000 OD.$87,000...
##### Please help me with both questions. I don't have any more questions left and its really...
Please help me with both questions. I don't have any more questions left and its really urgent. Please! 5. + -/1 points SerCP9 5.P.053. 0/6 Submissions Used My Notes + Ask Your Teacher The electric motor of a model train accelerates the train from rest to 0.640 m/s in 31.0 ms. The total mass of ...
##### To what degree would Rent the Runway be a different company today if Hyman and Fleiss...
To what degree would Rent the Runway be a different company today if Hyman and Fleiss had not conducted a feasibility analysis? Do you think the business would be as successful as is currently the case? Run The Runway - Entrepreneur...
##### At a given instant the bottom A of the ladder has an acceleration a A =...
At a given instant the bottom A of the ladder has an acceleration a A = 3.8 ft/s and velocity va = 6.4 ft/s, both acting to the left. (Figure 1) Part A Determine the acceleration of the top of the ladder, B. Express your answer to three significant figures and include the appropriate units. UA ab = ...
##### 4. a nurse is planning to discharge a client who has diabetes and a new prescription...
4. a nurse is planning to discharge a client who has diabetes and a new prescription of the following actions should the nurse plan to complete first? wno nas diabetes and a new prescription for insulin which Provide the client with a contact number for a diabetes education specialist Make a copy of...
##### There is a lot of discrepancy when it comes to examining genitalia in the pediatric population....
There is a lot of discrepancy when it comes to examining genitalia in the pediatric population. What have you witnessed in your clinical setting regarding both male and females? For example, do they document the Tanner stages? What is recommended, and how do you think you will practice? At what age ...