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mariarad [96]
3 years ago
10

Kendra’s Quilts makes custom baby quilts embroidered with the baby’s name and date of birth. The company is considering the purc

hase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500. Factory rent is $12,000 per year. Should the company purchase the machine?
Business
1 answer:
maxonik [38]3 years ago
8 0

Answer:

They should purchase the machine.

Explanation:

Giving the following information:

The company is considering the purchase of a new embroidery machine that costs $75,000. The increased efficiency of the new machine would allow the company to increase revenue by 50%, from $250,000 to $375,000 annually. Direct labor costs would increase by $15,000, and fixed costs (not including depreciation on the machine) would increase by $12,500.

Effect on income= 125,000 - 75,000 - 15,000 - 12,500= $22,500

They should purchase the machine.

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Appleville is a village that specializes in all forms of apple products. Suppose that each winter, when no apples are being prod
antiseptic1488 [7]

Answer:

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Explanation:

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5 0
3 years ago
Read 2 more answers
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4 0
2 years ago
Three major segments of the transportation industry are motor carriers, such as YRC Worldwide; railroads, such as Union Pacific;
Usimov [2.4K]

Answer:

The assets turnover for the three companies are as follows:

YRC Worldwide Union      1.54  

Pacific C.H.                       0.40  

Robinson Worldwide Inc     4.84  

Asset turnover implies how much sales generated by an organization from $1 of asset deployed to the business.

Judging from the above,Robinson Worldwide Inc  was the most effective in using its assets to generate sales.It generated $4.84 in sales for every $1 of asset used.

Explanation:

        YRC Worldwide Union Pacific C.H.  Robinson Worldwide Inc

Asset turnover=net sales/average total assets    

Sales                      4,334,640.00   16,965,000.00   9,274,305.00  

Average Total Assets 2,812,504.00   42,636,000.00   1,914,974.00  

Asset turnover=net sales/average total assets

                                         1.54                             0.40                  4.84

                                                       

8 0
3 years ago
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