Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.

Current Machine New Machine
Original purchase cost $15,230 $25,080
Accumulated depreciation $ 6,800 _
Estimated annual operating costs $24,950 $19,560
Useful life 5 years 5 years

If sold now, the current machine would have a salvage value of $8,490. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years.

Prepare an incremental analysis. (Enter negative amounts using either a negative sign preceding the number e. g. -45 or parentheses e. g. (45).)

Retain
Machine Replace
Machine Net Income
Increase
(Decrease)
Operating costs $Johnson Enterprises uses a computer to handle its $Johnson Enterprises uses a computer to handle its $Johnson Enterprises uses a computer to handle its
New machine cost Johnson Enterprises uses a computer to handle its Johnson Enterprises uses a computer to handle its Johnson Enterprises uses a computer to handle its
Salvage value (old) Johnson Enterprises uses a computer to handle its Johnson Enterprises uses a computer to handle its Johnson Enterprises uses a computer to handle its
Total $Johnson Enterprises uses a computer to handle its $Johnson Enterprises uses a computer to handle its $Johnson Enterprises uses a computer to handle its

Should the current machine be replaced?

The current machine should be Johnson Enterprises uses a computer to handle its replacedretained.

By the the new machine would incur $6.620 more in costs.

The decision appropriate would be to stick to using the current machine

Explanation:

   Incremental analysis for new and old machines

                                                      Old Machine New Machine       Difference

Purchase cost                                       -                         $25,080       ($25,080)

Annual operating costs:

($24,950*5)($19,560*5)                   $124,750                $97,800          $26,950

Salvage value                                   ($8,490)                       -                  ($8490)

total costs                                          $116,260               $122,880         ($6,620)

By buying the new machine,Johnson Enterprises would incur $6,620 more in costs,which implies that sticking to the current machine is preferable from an incremental benefit analysis point of view.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.