Answer:
The correct answer is letter "E": Sunk costs that have been expensed for tax purposes.
Explanation:
Capital budgeting is a planning process used by companies to evaluate which large projects they will invest in and how to finance them. It is sometimes called "<em>Investment Appraisal</em>". The type of projects experts analyze in capital budgeting include such major investments as building a new plant, buying new machinery, developing a new product, or buying another company, that is why option "<em>E</em>" is meaningless for this type of purpose.
Answer:
21.26%
Explanation:
Overall rate of return = Total amount of dollar returns / Total investment
Overall rate of return = [($18,000 * 26%) + ($22,000 * 15%) + ($70,000 * 22%)] / $110,000
Overall rate of return = ($4680 + $3300 + $15400) / $110,000
Overall rate of return = $23,380 / $110,000
Overall rate of return = 0.21255
Overall rate of return = 21.26%
Answer:
2,900 units; $7,830,000
Explanation:
Given that,
Total sales = 4,900
Break-even sales = 2,000
Selling price of each package = $2,700
The margin of safety is defined as the amount of the total sales that are above the break even point.
Margin of safety in units:
= Total sales – Break-even sales
= 4,900 – 2,000
= 2,900 units
Margin of safety in dollars:
= Margin of safety in units × Selling price of each package
= 2,900 units × $2,700
= $7,830,000
Answer:
Q A. A few people.
Q B. Yes
Q C. Both.
Q D. Yes.
Explanation:
this really depends on your thinking. you can't write other people’s opinions as your answer. you yourself knows how to answer these questions truthfully. this is my opinion based on the question. thank you.
