1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MaRussiya [10]
3 years ago
15

Erie company has 500 units of capacity for their traditional product, Emu, and buys one point of automation. If Erie company’s c

urrent labor cost per unit of Emu is $10, and Erie sells 1,000 units per year of Emu, what is the payback period for this investment?
Business
1 answer:
11111nata11111 [884]3 years ago
8 0

Answer: 2 years

Explanation:

The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.

In the above question, the payback period is solved as follows:

Labour cost decreases by 10% for each unit.

Therefore,

= $10 × 10%

= $10 × 0.1

= $1 per unit.

In order to recover $2000, the business needs to sell the following;

= 2000/1

= 2000units.

If Eric sells 1000 units per year of Emu, it will take:

2000/1000= 2years

In conclusion, the payback period of the investment is 2 years.

You might be interested in
On December 31, 2020, McDaniel Company had $1,200,000 of short-term debt in the form of notes payable due February 2, 2021. On J
o-na [289]

Answer and Explanation:

The preparation is presented below:

<u>                                                  McDaniel Company </u>

<u>                                                  Partial balance sheet</u>

Particulars                                      Amount

Current liabilities

Note payable                                 $250,000

Long term debt

Note payable refinance                $950,000

Total liabilities                                $1,200,000

We simply added the long term debt and the current liabilities so that the total liabilities could come

8 0
3 years ago
The average person changes career how many times in a lifetime?
IgorLugansk [536]

Answer:

<h2>Statistics Suggest You Will Change Careers More Frequently</h2><h3>The average person will change careers 5-7 times during their working life according to career change statistics. With an ever increasing number of career choices, 30% of the workforce will now change careers or jobs every 12 months.</h3>
7 0
3 years ago
Read 2 more answers
at the marriage of her daughter, lorna is given papers to sign, which the catering company says are the invoices for the food, s
vampirchik [111]

The wedding ceremony planner invoice is a consignment that details a service price and provides an amount of time in which price should be sent.

This invoice is given to consumers after formally asking for the planner's knowledge regarding wedding ceremony preparation.

<h3>What is consignment with example?</h3>

An consignment is an itemized commercial file that records the products or offerings delivered to the customer, the complete quantity due, and the favored payment method. The vendor can send both paper or electronic invoices to the customer.

<h3>Does invoice suggest paid?</h3>

An bill is a demand for price (delivered both electronically or physically) that is sent with the aid of the vendor after the sale of goods/services has been completed, however earlier than price has been made. In essence, invoices are used to make certain that your business receives paid.

Learn more about invoices for the wedding. here:

<h3>brainly.com/question/24086159</h3><h3>#SPJ4</h3>
7 0
1 year ago
When immigration adds to the size of the domestic labor pool, which is likely to occur? minimum wage increases. wages decrease p
Grace [21]

Answer:

wages decrease

Explanation:

Labor is a factor of production and has a price like all other inputs. In the economy, labor is a commodity whose price is determined by the forces of demand and supply.  When there is an oversupply of labor, its equilibrium price will decrease.

The equilibrium price of labor is the prevailing wage rate, where  demand matches supply. When immigration adds to the labor force, it means an additional supply of able and willing workers in the markets. There will be many sellers or workers offering to supply labor services to the existing job openings. As a result, the price of labor will reduce as buyers or employers can lower the wage rate and still get the labor services they require.

8 0
3 years ago
Read 2 more answers
Justin is a sales executive at a manufacturing company. One of his clients who purchases products from him at a higher price tha
Dafna11 [192]

Answer:

The correct answer is option D.

Explanation:

An ethical dilemma can be defined as a situation in the decision-making process in which whatever decision is chosen some ethical principle is being compromised.  

Out of two moral choices, neither one is unambiguously preferable or acceptable. The situation becomes complex as choosing one alternative will lead to transgression of another.

6 0
3 years ago
Other questions:
  • Primary data can usually be obtained more quickly and at a lower cost than secondary data.
    5·1 answer
  • All the following are benefits of having a budget except _____.
    14·1 answer
  • Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarah’s Cycles on February 1 for $550 (cost of goods sold of
    7·1 answer
  • A person deposits $100 at the beginning of each year for 20 years. Simple interest at an annual rate of i is credited to each de
    14·1 answer
  • In the BCG matrix, ________ are low-share businesses and products in a market that is not expected to grow. They may generate en
    14·1 answer
  • Thomas Company uses the weighted-average method in its process costing system. The first processing department, the Welding Depa
    13·1 answer
  • PLEASE HELP ME ILL MAKE YOU BRAINLIEST
    9·2 answers
  • Sản phẩm hữu hình và sản phẩm vô hình khác biệt như thế nào?
    6·1 answer
  • Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to re
    10·1 answer
  • What is the ground clearance of the Nissan GT-R?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!