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
Hart Company has the following activities in 2012. The company had total cash sales of $2,000. During the year they incurred and
Irina18 [472]

Answer:

$500

Explanation:

              2012 Income Statement

Revenue                                            $2,000

<u>Expenses</u>

Wages incurred and paid  $500

Salaries                               $400

Interest on bank loans       <u>$600</u>    <u>$1,500</u>

Net Income                                       <u>$500  </u>

So, the amount of $500 will be shown as Net Income on the 2012 Income Statement.

6 0
3 years ago
Is it possible for a country with a regressive tax system to have a tax-spending system that transfers resources from the rich t
lara31 [8.8K]

Answer:A

Explanation:

A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.

5 0
3 years ago
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based)
GalinKa [24]

Answer:

1) Part 1. Operating Income = Revenue - Operating cost

=201,000 - 56,000

=$145,000

Part 2.  Operating Income = Revenue - Operating cost

= 159,000 - 55,000

= $104,000

Part 3. Operating Income = Revenue - Operating cost

= 89,000 - 15,000

=$74,000

2. Part 1. Operating Income = Revenue - Operating cost

=201,000 - 45,600

=$155,400

Part 2. Operating Income = Revenue - Operating cost

=159,000 - 25,000

=$134,000

Part 3. Operating Income = Revenue - Operating cost

=89,000 - 55,400

=$33,600

7 0
3 years ago
Bonita industries sells two types of computer hard drives. the sales mix is 30% (q-drive) and 70% (q-drive plus). q-drive has va
podryga [215]
3300 units of q - drive.

To get the break even units of  q drive you need to get the weighted average contribution margin of the two products

To get it, simply multiply the sales mix ratio to its contribution margin per product and add the two to get the wacm.

Q-drive cm=$120-60=60*30%
Q-drive plus cm= $165-75*70%

the wacm=$81
then divide the fixed cost by the wacm

$891000 / $81=11000 units

then to get the break even units of q-drive simply multiply the sales mix ratio to the break even units

11000 units*30% =3300 units.
5 0
3 years ago
A financial services firm routinely processes a large volume of account change requests. A Lean Six Sigma team wants to understa
Harrizon [31]

Answer:

E) 1920

Explanation:

The computation of  the maximum items in process is shown below:

=  Number of maximum target cycle time ×  normal processing rate per minute × number of minutes in one hour

= 16 hours × 2 × 60 minutes

= 1,920

Simple we multiply the all items which are given in the question, so that the accurate value can come i.e maximum target cycle time, normal processing rate per minute and the number of minutes in one hour

3 0
3 years ago
Other questions:
  • The following information is provided by Doppler SystemsProject A Project B Project C Project DInitial investment $426,000 $214,
    6·1 answer
  • Who is the register general of c.a.c​
    9·1 answer
  • Question 2--/1 View Policies Current Attempt in Progress This information relates to Cullumber Co.. 1. On April 5, purchased mer
    6·1 answer
  • The efficiency wage​ ______. A. is paid by firms who​ can't directly monitor the work effort of their employees B. is equal to t
    9·1 answer
  • Isaac is looking for a physical access solution for his company. He needs the solution to use asymmetric cryptography or public-
    5·1 answer
  • Which of the following statements about cover letters is false?
    15·2 answers
  • An investment project provides cash inflows of $1,225 per year for eight years. a. What is the project payback period if the ini
    9·1 answer
  • Wall Street performs a sort of "financial alchemy" enabling the individual to benefit from institutions lending money to them, a
    7·1 answer
  • What is an organisation chart​
    9·1 answer
  • What part of the cover letter explains how the applicant’s qualifications meet the needs of the company?
    11·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!