Which requires at 10000 license fee to use their design


The company you work for has a high speed 5-axis milling machine which was purchased 5 years ago for $200,000 and has a 10 year life. This machine is currently idle and can be used to make a product designed by a research institute which requires at $10,000 license fee to use their design. Tooling costs $5000. Materials and consumables (cutting fluids, milling cutters, power, etc) are budgeted at $40 per product. Your company applies an overhead rate of 25% on all direct costs to cover indirect costs.
Using MACRS, what is the book value of the 5-axis milling machine?

Request for Solution File

Ask an Expert for Answer!!
Econometrics: Which requires at 10000 license fee to use their design
Reference No:- TGS0578333

Expected delivery within 24 Hours