Answer: 2.36
Explanation: Hours per machine * # of machines
325 * 3 = 975
Units produced/ Machine Hour
2,300/975 = 2.36
I think I must first get the marginal cost of the product before i bought if it is worth it to its value, Then i would compute for the marginal benefit to know what would i gain in this product. Lastly I would compare both the marginal cost and marginal percentage if the cost is lower than the benefit then the product is worth it to buy.
Answer:
$3,850
Explanation:
The computation of the machine's second-year depreciation under the straight-line method is shown below:
= (Cost of the machine - salvage value) ÷ (estimated useful life)
= ($43,500 - $5,000) ÷ (10 years)
= ($38,500) ÷ (10 years)
= $3,850
In this method, the depreciation is the same for all the remaining useful life. Therefore, for the second year also, the depreciation expense is the same i.e $3,850
<span>Net Income After Tax = Net Income Before Tax - Tax
Net Income Before Tax = 170,000-75,500-10,200+(16,500*0.0725)=85,496.25
Tax = 0.35*Net Income Before Tax=0.35*85,496.25= 29,923.69
Net Income After Tax = 85,496.25- 29,923.69 = 55,572.56</span>
