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
Journal entries recorded at the end of each accounting period to prepare the revenue, expense, and withdrawals ac0ounts for the
makkiz [27]

Answer: Option B

       

Explanation: In simple words, closing entries refers to the journal entries which are made at the end of an accounting period for transferring the temporary account balances into permanent accounts.

These entries are made to close the four accounts for clear depiction of capital at the end of they year, these accounts are income, expenses, income summary and dividend account.

The objective behind making such entries is to clear the temporary accounts balance to zero for the next accounting period.

8 0
3 years ago
Suppose the production of solar powered lawn mowers is characterized by the production function Q = LE, where Q represents the n
RoseWind [281]

Answer:

110 labor and 1100 energy

Cost of 2,200 dollars

Explanation:

Q = L x E

Cost = 10 L + E

We use Excel solver tool to get this

    A            B               C      

1                Labor Energy  

2 Quantity     110          1100

3 Cost             10               1

4 output    121,000  (B2 * C2)

5 cost           2,200 (B2*B3 + C2*C3)

we want to minimize B5 (cost)

changing the quantities (b2:c2)

with the constrain that output b4= 121,000

7 0
3 years ago
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it
Natalka [10]

Answer:

$13,000

Explanation:

Calculation for what The ending balance of the Work in Process Inventory account for the Fabricating Department is:

Beginning Balance 10,000

Add Direct Materials 76,000

Add Direct Labor 24,000

Add Factory Overheads 12,000

(50% *24,000)

Less Work Transferred (109,000)

Ending Balance $13,000

Therefore The ending balance of the Work in Process Inventory account for the Fabricating Department is:$13,000

6 0
3 years ago
Mercy Hospital is considering a project that is expected to reduce the hospital's annual operating costs by $250,000 per year be
gizmo_the_mogwai [7]

Answer:

$650,000

Explanation:

The computation of the expected net cash flow for the year 1 is shown below:

= Annual operating cost reduced + expected revenue generated per year in the year 1

= $250,000 + $400,000

= $650,000

By adding the annual operating cost, and the expected revenue generated we get the project expected net cash flow for the year 1

5 0
3 years ago
john’s friend, michael, just got fired from his job as a server at a local restaurant. after michael is done telling his story a
puteri [66]

In a case whereby john’s friend, Michael, just got fired from his job as a server at a local restaurant and narrated the issue to John, and John says "so, your boss took the customer’s words over yours, then John means that his boss do not trust him.

<h3>What is the trust between the employee and employer?</h3>

The trust between the employee and employer can be seen as one that do make the relationship between the employer as well as the employee to be strong.

It should be noted that the Trust in the workplace  implies that there is a culture of honesty as well as psychological safety which exist between the employee as well as the employer, hence in the case whereby the employer is acting against the employee as a result of the comments from the customer without any investigation implies that there is no trust between them which is not adviceable.

Learn more about customer at:

brainly.com/question/1286522

#SPJ1

5 0
1 year ago
Other questions:
  • Vendors at Municipal Stadium sell their wares at prices that include the city, state, and transit district sales taxes; the tota
    7·1 answer
  • Herman, who is not a dependent, states he wishes to claim EITC this year for his 35-year-old dependent child. Both reside in the
    8·1 answer
  • John, a construction manager, has been having problems finding quality employees in some of the company's foreign offices. while
    12·1 answer
  • Henry runs moonlight café, a world renowned fast-food restaurant, in his locality. he started the restaurant after getting a lic
    14·1 answer
  • Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the nec
    9·1 answer
  • John is an expediter for a paper goods manufacturer. he has been asked to track how much time he spends traveling to and from ea
    15·1 answer
  • Argo is the world's leading brand of small vehicles that are designed to be driven on all types of terrain and in all types of w
    12·1 answer
  • Strategic Review Process Element
    7·1 answer
  • In one ancient civilization, hunters shared fresh meat with other individuals in a group without an explicit timeframe or agreem
    13·1 answer
  • State 3 typical land uses in rural-urban fringe​
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!