Answer:
the accounting rate of return is 18.75%
Explanation:
The computation of the accounting rate of return is as follows:
But before that following things need to be determined
Depreciation expense is
= ($540,000 - $195,000 )÷ (5 years)
= $69000
The Net income is
= $170,250 - $69,000
= $101,250
Now the accounting rate of return is
= Net income ÷ Initial investment
= $101,250 ÷ $540,000
= 18.75%
hence, the accounting rate of return is 18.75%
The amount of track improvement cost that should be allocated to the Western Division is $3,200,000.
<h3>What amount should be allocated to
Western Division?</h3>
The amount that should be allocated to Western Division is a function of the miles travelled on the Western division.
The amount to be allocated to Western Division : (miles travelled on Western division / total miles travelled) x cost of the revision
- miles travelled on Western division = 800,000 miles
- total miles travelled = 1,200,000 + 800,000 = 2,000,000 miles
The amount to be allocated to Western Division : (800,000 / 2,000,000) x 8,000,000 = $3,200,000
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Answer:
Personal finance skills help you to understand how much you earn, what are your monthly expenses, and help you budget within that income.
Explanation:
Answer:
Total estimated cost $148,680
Fixed cost $20,680
Explanation:
Using the high-low method to estimate the amount of fixed cost that is incurred each month
Units Cost
High 207 153,160
LOW 38 45,000
Difference 169 108,160
Variable cost per unit= 108,160/169
Variable cost per unit= 640
Fixed cost = 153,160-207*640
Fixed cost = 20,680
Total estimated cost= 200*640+20,680
Total estimated cost=128,000+20,680
Total estimated cost=148,680
Therefore Total estimated cost will be $148,680 and Fixed cost will be $20,680
The answer is 391 667
I think it is right so be sure to check just in case
good luck