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
Alisiya [41]
3 years ago
6

Lakeland Company is considering the purchase of equipment for $150,000. The equipment will expand the Company's production and i

ncrease revenue by $40,000 per year. Annual cash operating expenses will increase by $10,000. The equipment's useful life is 10 years with no salvage value. Lakeland uses straight-line depreciation. The income tax rate is 35%. What is the average rate of return on the investment?
a. Increase in revenue?
b. Increase in expenses?
c. Pretax income from investment?
d. Income tax expense?
e. Net income from investment?
Business
1 answer:
bearhunter [10]3 years ago
3 0

Answer:

13%

Explanation:

The computation of the average rate of return on the investment is shown below:

= Annual net income ÷ average investment

The annual net income is shown below:

Increase in revenue $40,000

Less: Increase in expenses ($25,000)

Pretax income from investment $15,000

Less: Income tax expense $5,250      ($15,000 × 35%)

Net income from investment $9,750

The computation is shown below:

For increase in expense

= Annual cash operating expenses + Depreciation expense based on straight line method

= $10,000 + ($150,000 - $0 ÷ $10,000)

= $10,000 + $15,000

= $25,000

And, the average investment would be

= (Initial investment + salvage value) ÷ 2

= ($150,000 + $0) ÷ 2

= $150,000 ÷ 2

= $75,000

Now put these values to the above formula  

So, the rate would equal to

= $9,750 ÷ $75,000

= 13%

You might be interested in
Gabriel applies for a home loan and, mark signs the agreement promising to pay off the debt in case gabriel fails to do so. in t
Gemiola [76]
The answer is letter a, cosigner. Mark is a cosigner is someone who is in charged of the other person's debt when that person he's in signed with wasn't able to meet the requirements or fail to pay or comply. That is why Mark is considered to be a cosigner of Gabriel if Gabriel fails to comply to pay the loan and Mark is in charged to settle it if Gabriel fails to do so.
6 0
3 years ago
When a company chooses to market a product in certain parts of the country but not in others because consumer preferences of one
dexar [7]

When a company chooses to market a product in certain parts of the country but not in others because consumer preferences of one region differ from another region, it is known as geographic segmentation.

<h3>What are consumer preferences?</h3>

The products or commodities, which are demanded by consumers in a specific quantity at a given price due to the utility it brings to an individual consumer, is known as a consumer preference.

Hence, option A holds true regarding consumer preference.

Learn more about consumer preferences here:

brainly.com/question/3129917

#SPJ1

6 0
1 year ago
The relationship between an employer and an employee can be thought of in terms of a(n) __________, a description of what an emp
myrzilka [38]

The answer is psychological contract.

A broken psychological contract may occur when an employee believes that working extra would be naturally rewarded. This, however, may not be business policy. If the person is salaried, they may not be compensated for the extra hours worked.

Daily acts and remarks made in the workplace, as well as how they are interpreted by all parties involved, have an impact on the contract.

`

In other words, it is a promise developed via regular workplace encounters in which the organization learns what is expected of each employee.

Psychological contracts evolve and adapt to the organizational working culture over time. However, they are generally difficult to change and can differ across individual party members and whole organizations.

To know more about employer and employee relationship click here:

brainly.com/question/13400621

#SPJ4

8 0
2 years ago
Type the correct answer in the box. Spell all words correctly.
lawyer [7]

Answer:

PRODUCT LAYOUT

Explanation:

big

7 0
2 years ago
Francine is interested in starting a new financial services company where she will manage the investments of others. she wants t
amm1812
<span>Francine would be considered an entrepreneur because she is someone who initiates and assumes the financial risk of a new business enterprise.
</span>An entrepreneur is defined as someone who owns and operates a business or businesses and takes on a greater than normal financial risk to do that. An entrepreneur starts their own business and puts everything they have into making it successful, no matter the risk, they tend to take it to become successful.<span>
</span>
4 0
3 years ago
Other questions:
  • Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During 20X4, Planet purchased 57,000
    14·1 answer
  • On September 12, Vander Company sold merchandise in the amount of $2,200 to Jepson Company, with credit terms of 2/10, n/30. The
    5·1 answer
  • You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know
    13·1 answer
  • A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50
    12·1 answer
  • The FabulousHI Company expects a constant growth in earnings and dividends of 2.5%/year into the foreseeable future. It is expec
    9·1 answer
  • Caroline, the store manager at a jewelry store, conducts statewide market research and collects data on customer preferences tow
    12·1 answer
  • Which of the following statements is true of standardized promotions?
    9·1 answer
  • Suppose an economy is initially operating at long-run equilibrium when there is an increase in consumer optimism about the econo
    10·1 answer
  • In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first pac
    14·1 answer
  • At 90 days past due what happens to all cardholder accounts associated with a managing account?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!