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jeyben [28]
3 years ago
7

Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com

pany to reduce the amount of part-time help needed, at a cost savings of $5,200 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 2,000 dozen more donuts each year. The company realizes a contribution margin of $2.40 per dozen donuts sold. The new machine would have a six-year useful life.
What would be the total annual cash inflows associated with the new machine for capital budgeting purposes?

a. Annual Savings in Part time Help:
b. Added Contribution Margin from expanded sales:
c. Annual cash inflows:
Business
1 answer:
Komok [63]3 years ago
5 0

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

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The relationship between the natural environment and business organizations can best be described as:_________
Marina86 [1]

The relationship between the natural environment and business organizations can best be described as <u>c. Interdependent.</u>

<h3>What is interdependence?</h3>

Interdependence describes a situation where two entities engage in exchanges for their continued sustenance.

Interdependence exists in many forms and between different organizations.

For instance, the natural environment of a business provides the resources that the organization requires for productivity and profitability.  

Similarly, the natural environment utilizes the products and services of business organizations for continued development.  Business organizations also protect the natural environment for their self-interest.

Thus, there is an interdependent relationship between the natural environment and the business organizations because one cannot exist sustainably without the other.

Learn more about the interdependence of the natural environment and business organization at brainly.com/question/23479668

#SPJ1

<h3>Question Completion with Answer Options:</h3>

a. A U-shape

b. Insignificant

c. Interdependent

d. Unconnected

6 0
2 years ago
Cash receipts should be deposited on the day of receipt or the following business day. What is the most appropriate audit proced
BartSMP [9]

Answer:

The correct answer to the following question is option C) compare the daily cash receipts totals with the bank deposits.

Explanation:

When cash receipts are received by a company, it is often deposited in bank on the bank the same day they are received or they should be deposited the following business day. If a auditor or a manger or owner wants to make sure that the cash is promptly deposited everyday, then one way in which he or she can make sure that this is happening promptly is by comparing the daily cash deposits with the bank deposits or bank statements, through this procedures a person comparing them would come to know of any discrepancy in cash deposit, if it exist.

4 0
3 years ago
Which investment is the riskiest, but has the potential to earn you the most money? savings account stocks treasury bonds munici
Rudik [331]
Sorry you never got an answer and are only getting one after 2 years :(
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7 0
3 years ago
Read 2 more answers
The following production data were taken from the records of the Finishing Department for July:Inventory in process, June 1, 30%
zepelin [54]

Answer:

Conversion Cost Equivalent units FIFO           39, 125

Explanation:

Beginning WIP           5,000 30% completed

transferred units       39,500

ending WIP                 4,500  25% completed

<u>The equivalent units will be:</u>

the transferred units

- complete portion for the beginning WIP

+ complete portion of the ending WIP

transferred out                      39,500

work in previous period

5,000 x 30% =                         (1,500)

worked but not complete

4,500 x 25% =                        <u>  1, 125 </u>  

Equivalent units FIFO           39, 125

5 0
3 years ago
The following information is available for the pension plan of Concord Company for the year 2020.
anzhelika [568]

Answer:

$93,900

Explanation:

Computation for pension expense for the year 2020.

PENSION EXPENSE

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Interest cost $45,200

($452,000 * 0.10)

Less Actual return ($13,800)

Amortization of PSC $7,800

Pension expense $93,900

Therefore the pension expense for the year 2020 is $93,900

4 0
3 years ago
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