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Marina CMI [18]
4 years ago
10

(Ignore income taxes in this problem.) The management of Stanforth Corporation is investigating automating a process. Old equipm

ent, with a current salvage value of $15,000, would be replaced by a new machine. The new machine would be purchased for $408,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $141,000 per year in cash operating costs. The simple rate of return on the investment is closest to:
Business
1 answer:
solniwko [45]4 years ago
3 0

The simple rate of return on the investment is closest to: <u>34.5%</u>

<u>Explanation</u>:

<em><u>Given</u></em>:

Current salvage value = $15,000

Cost of new machine = $408,000

Cash operating cost = $141,000

Simple Return on Investment is Calculated as follows:-

Simple rate of return on the investment = Net Operating Cost Saved/ Initial Investment X 100

So Simple Return = 141000/408000 X 100

= 34.5%

The simple rate of return on the investment is closest to: 34.5%

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Davison Toaster Corp. sells its products for $250 per unit. It has the following costs:
dolphi86 [110]

Answer:

Break-even point in units= 1,860

Explanation:

Giving the following information:

Selling price= $250 per uni

Fixed costs= 109,900 + 290,000= $399,900

Unitary variable cost= 29 + 6= $35

<u>To calculate the break-even point in units, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 399,900 / (250 - 35)

Break-even point in units= 1,860

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3 years ago
Timothy is a passionate speaker and has a political science degree. He is a natural leader and enjoys a challenge. Suzette also
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3 years ago
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Answer Choices:

A. is staffed by accountants, economists,  tax lawyers

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Answer:

A.

7 0
3 years ago
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Deet, an unmarried taxpayer, qualified to itemize deductions. Deet's adjusted gross income was $40,000 and he made a $1,500 subs
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Answer:

$11,000

Explanation:

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4 0
3 years ago
Which section of a business plan gives details about a business’s core products and services?
yuradex [85]

Answer:

the executive summary. (more info below)

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A strong executive summary is a convincing one. It shows the mission statement of the organization, along with a brief summary of its goods and services. It may also be a smart opportunity to clarify briefly why you are beginning your company and to give specifics about your background in the field that you are joining.These four key sections are what the 4 major sections of a business plan, the executive summary, marketing plan, key management bios, and financial plan.

hope this helped!

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3 years ago
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