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Aliun [14]
2 years ago
11

Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann

ual increase in net income after tax of $100,000. The equipment will have an initial cost of $400,000 and have a 7-year life. If the salvage value of the equipment is estimated to be $75,000, what is the accounting rate of return?
Business
1 answer:
Bas_tet [7]2 years ago
7 0

Answer:

25%

Explanation:

Accounting rate of return =( Net income from investment ÷ Cost of investment ) × 100

Net income from investment = $100,000

Cost of investment = $400,000

Required rate of return = ($100,000 / $400,000 ) × 100

= 0.25 × 100

= 25%

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Answer:

<u><em>Direct marketing.</em></u>

Explanation:

Direct marketing works as a set of strategies whose objective is to promote the promotion of a company's products and services through direct contact with its potential audience.

It is a user-friendly strategy that translates into positive results for maintaining business / consumer interactions, creating brand satisfaction and value. Some examples of direct marketing are: telemarketing, telesales, direct mail, email marketing and others.

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3 years ago
Sunny corporation reported the following results for december: Description AmountNumber of units sold 800 unitsSelling price per
Llana [10]

Answer:

The gross margin for December is: 0.5%.

The Gross margin of an organisation or business measure the extent by which its income exceeds the costs it incurs in producing its goods and or services.  

The gross margin is measured in percentages. The higher the percentage of this margin, the higher the effectiveness of the company's management in deriving value from every dollar invested.

Explanation:

To arrive at Gross Margin, one is required to subtract the total cost of goods sold from total revenue for the period and dividing that number by revenue. That is:

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This is given as the total amount of goods sold which is:

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Step II - Calculate Cost of Goods Sold

Cost of goods sold per unit is given as

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Total Cost of Goods sold therefore is

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Step III - Calculate Gross Margin

= \frac{400,000-200,000}{400,000}

= \frac{200,000}{400,000}

= \frac{1}{2} or 0.5%

Cheers!

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