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kvv77 [185]
2 years ago
13

The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $18,000,

would be replaced by a new machine. The new machine would be purchased for $414,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $143,000 per year in cash operating costs. The simple rate of return on the investment is closest to (Ignore income taxes.): (Round your answer to 1 decimal place.)
Business
1 answer:
Ugo [173]2 years ago
8 0

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%

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EA11.
Vedmedyk [2.9K]

Answer:

$1,700

Explanation:

Given that,

Purchase of raw materials inventory  = $1,000

Assignment of raw materials inventory to Job 5  = $500

Payroll for 20 hours with $1,000 assigned to Job 5

Factory utility bills = $750

Overhead applied at the rate = $10 per hour

Cost assigned to Job 5 at the end of the week:

= Raw materials inventory to Job 5 + Labor cost + Manufacturing Overhead applied

= $500 + $1,000 + ($10 per hour × 20 hours)

= $500 + $1,000 + $200

= $1,700

3 0
2 years ago
The ​ S&P 500 index delivered a return of 10​%, 15​%, 15​%, and −25​% over four successive years. What is the arithmetic ave
natali 33 [55]

Answer:arithmetic average annual return per​ year= 3.75%

Explanation:

Year 1 = 10%

Year 2= 15%

Year 3 = 15%

Year 4 = -25%

total return = 15%

Arithmetic average annual return per year =(Return of year1 + return of year 2 + return of year 3+ return of year 4 )/4 =  15% /4 = 3.75%

5 0
2 years ago
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
likoan [24]

Answer:

$3,935

Explanation:

The computation of the catering supplies are shown below:

= Catering supplies + monthly cost for each job × number of jobs + monthly cost for per meal × number of meals

= $450 + $75 × 27 jobs + $10 × 146 meals

= $450 + $2,025 + $1,460

= $3,935

We simply added the catering supplies cost, meal cost, and the job cost so that the accurate value can come

All other information which is given is not relevant. Hence, ignored it

4 0
2 years ago
Forte Co., had 3,000 units of work in process on April 1 that were 60% complete. During April, 11,000 units were started and as
Semmy [17]

Answer:

b. 10,000.

Explanation:

The number of units completed in April is given by the number of units on April 1st (3,000) added to the number of units started during April (11,000) minus the number of units still in production on April 30th (4,000):

\begin{array}{ccc}Starting\ n^o\ of\ units&3,000\\Units\ started\ in\ April&11,000\\Units\ not\ completed\ in\ April&(4,000)\\Units\ completed\ in\ April&10,000\end{array}

10,000 units were completed during April.

4 0
2 years ago
Athena Jolene, a human resources executive at Thomas Griffith, wants to collect ideas from the company's employees for an upcomi
gregori [183]

Answer:

B) discussion forum

Explanation:

A discussion forum is an online tool where people can post messages and everyone with access to the forum can read what is been shared, give answers and post new content. Because of this, the forum will be the technique that will best help Athena receive suggestions from employees, while also allowing employees to share their ideas with one another. Instant messaging, texting and emailing won't allow the interaction between several people discussing ideas that the forum can provide.

6 0
2 years ago
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