Interglobal Paper Company has asked for your help in comparing its present computer system with a new
Question:
Interglobal Paper Company has asked for your help in comparing its present computer system with a new one its board of directors would like to see implemented. Proposed system and present system costs are as follows:
a. Using break-even analysis, determine the year in which Interglobal Paper will break even.
b. Graph the costs and show the break-evenpoint.
Transcribed Image Text:
ltem Proposed System Costs Present System Costs Year 1 Equipment Lease Salaries Overhead Development $20,000 30,000 4,000 30,000 $11,500 50,000 3.000 Year 2 Equipment Lease Salaries Overhead Development $20,000 33,000 4,400 12,000 $10,500 55,000 3,300 Year 3 Equipment Lease Salaries Overhead Development $20,000 36,000 4,900 $10.500 60.000 3.600 Year 4 Equipment Lease Salaries Overhead Development $20,000 39,000 5,500 $10,500 66,000 4,000
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Year Proposed System Costs Present System Costs Year 1 Equipment Lease 20000 11500 Salaries 30000 50...View the full answer
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Sandip Nandnawar
I am a B.E (Information technology) from GECA and also have an M.C.M from The University of RTMNU, MH.
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Related Book For
Systems analysis and design
ISBN: 978-0136089162
8th Edition
Authors: kenneth e. kendall, julie e. kendall
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