First step is to compute for the interest that is gained from the described investment.
I = P x i x n
where P is the principal amount, i is the interest rate, and n is the number of years.
I = ($1200) x 0.04 x 8 = $384
Then, we add the interest gained to the original amount.
F = P + I = ($1200) + ($384) = $1584
Thus, the amount after 8 years is $1584.
Answer: A
Explanation:
The one that is clearly out of place would be A
Answer:
Accounting rate of return is 10%
Explanation:
Given data
new machine = $48,000
sales = $16,000
time = 10 year
depreciation = $4,000 / year
factory overhead = $8,000 + depreciation $4,000
net income = $2400
tax rate = 40%
to find out
accounting rate of return for the machine
solution
we know that
Accounting rate of return = after tax net income / average investment
so here we know net income after tax = $2400
so we find investment first
Average investment = (Initial investment) / 2
Average investment = 48000 / 2 = $24000
so
Accounting rate of return = after tax net income / average investment
Accounting rate of return = 2400 / 24000 = 0.1 = 10%
Accounting rate of return is 10%
Answer:
The cost of the batch amounts to $350
Explanation:
Cost of the batch is the expense or cost which is incurred in order to make the product or good in order to earn profit.
The cost of the batch is computed as:
Cost of batch = Direct material + Direct Labor
where
Direct material is $200
Direct Labor is computed as:
Direct labor = Hours × Rate per hour
= 10 × $15
= $150
Putting the values above:
Cost of batch = $200 + $150
Cost of batch = $350
