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olga2289 [7]
3 years ago
6

Rory Company has a machine with a book value of $75,000 and a remaining five-year useful life. A new machine is available at a c

ost of $112,500, and Rory can also receive $60,000 for trading in its old machine. The new machine will reduce variable manufacturing costs by $12,000 per year over its five-year useful life. Calculate the incremental income.
Business
1 answer:
Alborosie3 years ago
5 0

Answer: $7,500

Explanation:

In calculating the Incremental income we will add the amount of variable Manufacturing costs Rory Company will save as well as the income they will get from selling the old machine and then subtract the cost price of the new machine.

Starting off we will calculate the amount of savings they will make by using the new machine,

= $12,000 x 5 years

= $60,000

Calculating the Incremental income therefore we have,

= 60,000 + 60,000(from selling old machine) - 112,500 (cost of new machine)

= $7,500

The incremental income of buying the new machine is $7,500.

If you need any clarification do comment.

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Debt-to-equity ratio is:
Ahat [919]

Answer: calculated by dividing total liabilities by net worth.

Explanation:

The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.

It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.

8 0
3 years ago
An overgrown lawn is manicured by mowing it with a lawn mower is an example of
Marta_Voda [28]

An overgrown lawn is manicured by mowing it with a lawn mower is an example of physical change. Physical change is a change that affects the physical form of the substance or environment but not its chemical composition. In this example, the lawn is manicured by mowing it, so the physical form would be changed. But, the chemical composition of the lawn was maintained and was not change. So,<span> this is clearly a physical change.</span> 

<span> </span>

4 0
4 years ago
Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season.
ladessa [460]

Answer:

Interest expense --------$1,500

Interest payable-------------- $1,500

Explanation:

Given the following ;

Amount of note signed = $75,000

Annual interest rate = 12% = 0.12

Date signed = November 1

Calculate interest expense to be made in the adjusting entry by December 31 :

NOTE: No entries have been made previously for the interest expense

Monthly Interest = (Amount × rate) ÷ 12

Monthly interest = ($75,000 × 0.12) ÷ 12

Monthly interest = $9000 ÷ 12 = $750

November 1 to December 31 = 2 months

$750 × 2 = $1500

Interest expense = $1,500

3 0
3 years ago
If you were the CEO of a company that was looking to implement strategies to fill a perceived strategic-planning gap, you would
Natasha2012 [34]

Answer: Market penetration

Explanation:

 The market penetration strategy is one of the type of alternative growth strategy in which it mainly focus on gaining the high marketing share by selling the products and various types of services in the market.

The main advantage of this strategy is that the products are quickly adopted in the market and we also gain some effective incentives.

The market penetration strategy focuses on the organization growth and selling the products to the existing customers.

Therefore, Market penetration strategy is the correct answer.

8 0
3 years ago
Refer to the following selected financial information from Dodge Company. Compute the company's acid-test ratio. Cash $ 42,250 S
Vikki [24]

Answer:

company's acid-test ratio is 1.63. Option e

Explanation:

Acid test ratio is similar to current ratio. However, current assets difficult to liquidate such as inventory are usually not included in the total current asset computation

Given,

Cash = $ 42,250

Short-term investments = 60,000

Accounts receivable, net = 79,500

Merchandise inventory = 115,000

Prepaid expenses = 9,700

Accounts payable = 111,400

Acid test = (42250 + 60000 + 79500 + 9700)/111400

               = 181750/111400

               = 1.63

Option e.

8 0
3 years ago
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