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vladimir1956 [14]
3 years ago
7

The current controllable margin for Henry Division is $93,000. Its current operating assets are $300,000. The division is consid

ering purchasing equipment for $90,000 that will increase annual controllable margin by an estimated $15,000. If the equipment is purchased, what will happen to the return on investment for Henry Division?
Business
1 answer:
Inessa [10]3 years ago
7 0

Answer:

Return on investment is decreased by 3.30%

Explanation:

The computation of the return on investment is shown below:

=  (Controllable margin ÷ operating assets) × 100

= ($93,000 ÷ $300,000) × 100

= 31%

Now the new controllable margin equals to

= $93,000 + $15,000

= $108,000

And, the new operating assets would be

= $300,000 + $90,000

= $390,000

So, the new return on investment equals to

= ($108,000 ÷ $390,000) × 100

= 27.70%

The return on investment is decreased by

= 31% - 27.70%

= 3.30%

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Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling on
ziro4ka [17]

Answer:

Increase by $31,500

Explanation:

Calculation to determine the operating income

First step is to calculate the Total relevant cost

DIFFERENTIAL ANALYSIS

MAKE BUY

Variable cost $144,900 $0

(2,100*$69)

Fixed cost $46,200 $0

(2,100*55*40%)

Purchase cost $0 (2100*76) = $159,600

Total relevant cost $191,100 $159,600

Now let determine the Increase or decrease of the company's operating income

Increase by =($191,100- $159,600)

Increase by = $31,500

Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500

4 0
3 years ago
Lenora and Uma own a dog-grooming business in upstate New York, called Pawkeepsie Groomers. The dog-grooming service market is p
lara [203]

<u>Solution and Explanation:</u>

The Short run supply curve: In a perfectly competitive market, the supply curve is apportion of its rising part of the marginal cost curve. It lies above the minimum of the avergae varibale cost curve. Here, the average variable cost is $14. So, in this case, the short run supply curve would be the portion of the marginal cost curve lies above $14. thus, it should lie above $14.

Thus, the correct option from the given options is A.

5 0
3 years ago
if a customer makes a partial payment of $100 on a service for which you have already billed him, you would record this transact
Anna35 [415]

You would record this transaction into the accounting equation by: increasing cash and decreasing accounts receivable

<h3>What is accounting?</h3>

Accounting refers to the process of keeping track of a company's financial transactions. Summarizing, analyzing, and reporting these transactions to oversight organizations, regulatory bodies, and tax collection organizations are all parts of the accounting process.

The financial statements that are used in accounting provide a succinct overview of all financial transactions that took place during a given accounting period, including information on a company's operations, financial situation, and cash flows.

One of the essential duties in practically any firm is accounting. In a small business, it might be handled by a bookkeeper or an accountant; in larger corporations, it might be handled by vast financial departments with dozens of staff members.

Management may greatly benefit from the data produced by different streams of accounting, including cost accounting and managerial accounting, in order to make wise company decisions.

Learn more about accounting

brainly.com/question/21889940

#SPJ4

4 0
2 years ago
Wilton, Inc. had net sales in 2017 of $1,400,000. At December 31, 2017, before adjusting entries, the balances in selected accou
Sergeeva-Olga [200]

Answer:

See explanation section.

Explanation:

December 31, 2017

Bad debt expense                        Debit      = $17,600

Allowance for Doubtful Account Credit     =  $17,600

To record the bad debt expense

Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.

5 0
3 years ago
The economic activities that typically produce an intangible product are referred to as A. phantoms. B. goods. C. products. D. s
slava [35]

Answer:

D. services.

Explanation:

Examples of services are financial service, delivery services.

The economic activities that typically produce an tangible product are referred to as goods.

I hope my answer helps you

3 0
4 years ago
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