Answer:
Multiple choices are:
18.5%
16.7%
34.6%
15.9%
The correct option is the last one,15.9%
Explanation:
The simple rate of return is the annual incremental net savings divided by the initial investment.
The annual incremental net savings is the annual savings recorded from the new process minus annual depreciation charge.
annual savings is $143,000
depreciation charge=cost of new equipment-salvage value of old equipment/useful life of the new equipment
depreciation charge=($414,000-$18,000)/6=$66,000
simple rate of return=$66,000/$414,000=15.9%
Answer:
False
Explanation:
One of the four most fundamental factors that affect the cost of money as discussed in the text is the expected rate of inflation. It is false to say, if inflation is expected to be relatively high, then interest rates will tend to be relatively low, other things held constant.
Answer:
1)They would prefer to make shorts as contribution margin per unit is higher for shorts
Explanation:
Step 1. Given information.
- Sales price shirts is $24
- Variable costs shirts is $10
- Variable costs shorts $17
Step 2. Formulas needed to solve the exercise
Contribution margin = sales price - variable cost
Step 3. Calculation.
Contribution margin shirts = 24 - 10 = 14
Contribution margin shorts = 32 - 17 = 15
Step 4. Solution.
<h2>
Contribution margin shorts > Contribution margin shirts</h2>
