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Business, 07.08.2019 04:10 beck1013

Q24.27: king karaoke makes karaoke machines for personal and commercial use. the production manager wants to replace an old assembly machine with a newer model. he believes the new model will allow them to reduce fixed and variable costs by 8%. the new machine has a value of $130,000 and the old machine is valued at $35,000. current sales are $600,000 with a contribution margin of 59% and fixed costs of $98,000. average operating assets before purchase of the new machine are $4,000,000. should the company upgrade their assembly machine? why or why not?

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