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xz_007 [3.2K]
3 years ago
12

The management at Dime Corporation is investigating purchasing equipment that would increase sales revenues by $527,000 per year

and cash operating expenses by $339,800 per year. The equipment would cost $425,000 and have a 10 year life with no salvage value. Dime Corporation uses straight-line depreciation for all fixed assets. The simple rate of return on the investment is closest to (ignore income taxes): A. 44.05% B. 54.05% C. 27.46% D. 34.05%
Business
1 answer:
Contact [7]3 years ago
5 0

Answer:

option (D) : 34.05%

Explanation:

As per the data given in the question,

Computation of Simple rate of return :

Investment = $425,000

Depreciation = (Initial cost - salvage value) ÷ useful life

= ($425,000 - 0) ÷ 10

= $42,500

Net profit = Sales revenue - cash operating expense - Depreciation

= $527,000-$339,800-$42,500

= $144,700

Simple rate of return = Net Profit ÷ Investment

= $144,700 ÷ $425,000

= 34.05%

Hence, option (D) is correct answer

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Suppose that a monopoly computer chip maker increases production from 10 microchips to 11 microchips. If the market price declin
Sergeu [11.5K]

Answer:

$19

Explanation:

Marginal revenue is the change in revenue when production increases by one unit

Marginal revenue = change in total revenue / change in quantity produced

total revenue 1 = $30 x 10 = $300

Total revenue 2 = $29 x 11 = $319

change in total revenue = $319 - $3000 = $19

Change in quantity produced = 11 - 10 = 1

Marginal revenue = $19 / 1 = 19

5 0
2 years ago
Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started
MAVERICK [17]

Answer:

$500 gain and $185 tax

Explanation:

Sale of share = No. of  NQOs × No. of shares  × Selling price per share

                      = 10 × 10 × $20

                      = $2,000

Basis = No. of  NQOs × No. of shares  × share price @$15

         = 10 × 10 × $15

         = $1,500

Gain realised = Sale of share - Basis

                      = $2,000 - $1,500

                      = $500

The tax is calculated as follows:

= Gain realised × marginal tax rate

= $500 × 37%

= $185

4 0
3 years ago
• Boston • New York • Philadelphia • Charleston The cities above were all important cities in Colonial America and in the early
Lorico [155]
Boston, New York, Philadelphia, and Charleston were all important cities in colonial America and in the early years of U.S. History because trade was a major part of the economies of these cities because they were all ports that could ship goods on the Atlantic Ocean. 

5 0
3 years ago
Venture Philanthropy Partners focuses on helping youth and children from low-income families in the Washington, D.C., area. What
andriy [413]

The work of Venture Philanthropy Partners in focusing on low-income families would make it a<u> Community Fund </u>

A Community Fund:

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  • Is usually targeted at the less well off in society

<u>Venture Philanthropy Partners</u> is targeting youth and children that come from lower income families which means that they are targeting the needs of the less well off.

We can therefore conclude that this is a community fund.

<em>Find out more at brainly.com/question/18776651. </em>

4 0
2 years ago
Read the thesis statement from a historical essay. Determine which type of claim the author is making (claim of fact, definition
mafiozo [28]

Answer:

im not 100% but think this is right

Explanation:

the author is making a claim of fact, because he is claiming that  provides no economic benefits.  im not sure about the second part

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2 years ago
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