J&H Company Has a Router Platform with a Book Value

question 77

Multiple Choice

J&H Company has a router platform with a book value of $65,000 and a three-year remaining life.A new router platform is available at a cost of $125,000,and J&H can also receive $16,000 for trading in the old router platform.The new router platform will reduce variable manufacturing costs by $31,000 per year over its three-year life.Should the router platform be replaced?

• A)Yes,as will increase income by $31,000 in total.
• B)Yes,as it is always important to have the current technology.
• C)No,it will decrease income by $16,000 in total.
• D)Yes,as the company will increase income by $16,000 total.
• E)J&H will be not be better or worse off by replacing the router platform.

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Definitions:

12-19 Years

Typically refers to the adolescent developmental stage, characterized by physical, psychological, and emotional changes.

Secondary Sexual Characteristics

Physical features that distinguish the sexes of a species but are not directly involved in reproduction, such as breast development in females and beard growth in males.

Approach Of Puberty

The period in which children's bodies begin to develop and change as they enter sexual maturity.

Secondary Sexual Characteristics

Physical characteristics that emerge during puberty and differentiate the genders but are not directly involved in reproduction.