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
tankabanditka [31]
3 years ago
13

Hill Enterprises wants to replace two old assembly machines with one new, more efficient assembly machine. The old machines are

valued at $57,000 each. The new machine will cost $100,000. If Hill’s controllable margin is $158,000 and their operating assets were valued at $600,000 before they bought the new machine, what will their new ROI be?
Business
1 answer:
Murrr4er [49]3 years ago
5 0

Answer:

Return on investment after the purchase of the new machine: 24.57%

Explanation:

Old machines: 57,000

New machine: 100,000

controllable margin (operating income): 100,000

operating assets:         600,000

less old machines         (57,000)

add new machines   <u>    100,000   </u>

assets after purchase: 643,000

ROI: operating income/ assets

                  158,000    / 643,000 = 0,2457231726283 = 24.57%

You might be interested in
The units of an item available for sale during the year were as follows: Jan. 1 Inventory 40 units at $165 $6,600 Aug. 13 Purcha
Volgvan

Answer:

a. FIFO - Inventory Used: $39900  Remaining Inventory: $14700

b. LIFO - Inventory Used: $41700 Remaining Inventory: $12900

c. Weighted Average Cost - Inventory Used: $40950 Remaining Inventory: $13650

Explanation:

Jan 01. Beginning inventory = 40 x $165 = $6600

Aug 13. Purchases 200 x $180 = $36000

Nov 30. Purchases 60 x $200 = $12000

Ending inventory = 75 units

Inventory Used = 300 – 75 = 225

(a) First-In-First-Out (FIFO)

This is the method where the inventory first received is the one that is used first. Common method when the inventory is perishable and would be wasted if left too long.

Inventory Used:

40 x $165 = $6600

185 x $180 = $33300

Total = $39900

Remaining Inventory:

15 x $180 = $2700

60 x $200 = $12000

Total = $14700

(b) Last-In-First-Out

Method whereby the inventory received latest is used first. Common in goods that are bulky. the inventory on top (latest purchased) is used first.

Inventory Used:

60 x $200 = $12000

165 x $180 = $29700

Total = $41700

Remaining Inventory:

40 x $165 = $6600

35 x $180 = $6300

Total = $12900

(c) Weighted Average Cost

This is whereby you divide the cost of goods sold by the number of units available for sale.

54,600 / 300 = $182

Inventory Used: 225 x $182 = $40950

Remaining inventory = 75 x $182 = $13650

3 0
3 years ago
explain how Adam Smith describes the market economy and role of consumers , producers , workers, savers ( investors) , and borro
astraxan [27]

Answer:

As described below.

Explanation:

  • As explained by Adam smith a market economy in his wealth of nations. Which is an interplay of the supply and demand, where the role of the customer's producers and the worker's investors and the borrows all follow the economic system and the market as an invisible hand, that comes from the producers and he consumers interact indirectly and directly
  • As the consumer and producers engage in commercial production thus the idea of a free-market took place. The government interferes with the services where unwanted shortages and the surplus tends to occur.
  • The free markets to regulate themselves by means of competition, among the workers and the borrowers.
8 0
3 years ago
, suppose the book value of the debt issue is $70 million. In addition, the company has a second debt issue on the market, a zer
vlada-n [284]

Answer: See explanation

Explanation:

a. The company's total book value of debt will be:

= Value of debt + Value of zero coupon bonds

= $70 million + $100 million

= $170 million

b. The market value will be:

= Quoted price × Par value

= ($70 × 1.08) + ($100 × 0.61)

= $75.6 + $61

= $136.6 million

c. The aftertax cost of debt will be:

= (1 - Tax rate) × Pre tax cost of debt

= (1 - 35%) × 5.7%

= 65% × 5.7%

= 3.7%

5 0
3 years ago
Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? E
hjlf

Answer:

Net profit is more important.

Explanation:

Gross profit is the difference between revenue and costs of goods sold, which means you can have a positive gross profit but still because of other costs not be profitable. Whereas Net profit is the bottom line or profit after all the costs have been deducted from revenue. Net profit is more important because it takes into account all the costs and how much money the company is left with after all its expenditures where as gross profit only measures the difference between cost of goods sold and revenue. A company may have high gross profit because of low cost of goods sold but its interest payments maybe too high because of which it might not be making any net profit, so we cannot conclude much about success and profitability by only looking at gross profit.

5 0
3 years ago
___ media refers to music and movies that are delivered on demand from an online source. streaming real-time social iot
anzhelika [568]
I tnink social media
3 0
1 year ago
Other questions:
  • g Our company purchases $4,000 worth of merchandise inventory on credit with the terms 2/10, n/30. Transportation costs were an
    12·1 answer
  • you have 20 cookies with the ratio is 2 chocolate chip for every 3 sugar. how many cans will be in each group?
    7·1 answer
  • Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item. 1
    10·1 answer
  • ]To estimate the percentage of defects in a recent manufacturing​ batch, a quality control manager at Daimler minus Chrysler sel
    5·1 answer
  • sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sal
    6·1 answer
  • Use the following information . On January 1, 2018, Dennis Company purchased land for an office site by paying $540,000 cash. De
    11·1 answer
  • If a company's current ratio increases from 1.2 to 1.4 from one year to the next, and its quick ratio decreases from 0.2 to 0.15
    5·1 answer
  • What is the business?
    7·1 answer
  • What are the legal requirements to be fulfilled in order to start this business?
    6·1 answer
  • in a computational problem for finding the highest salary of an employee in a company, what is the input?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!