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Lunna [17]
3 years ago
9

4) The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of

$24,000, would be replaced by a new machine. The new machine would be purchased for $516,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $173,000 per year in cash operating costs. The simple rate of return on the investment is closest to:
Business
1 answer:
nexus9112 [7]3 years ago
7 0

Answer:

17.86%

Explanation:

Calculation to determine what The simple rate of return on the investment is closest to:

First step is to calculate the Depreciation

Depreciation = $516,000 ÷ 6years

Depreciation= $86,000

Second step is to calculate Incremental operating income

Incremental operating income = $173,000-$86,000

Incremental operating income=$88,000

Now let determine the simple rate of return on the investment

Using this formula

Simple rate of return = incremental operating income ÷ initial investment

Let plug in the formula

Simple rate of return = $87,000÷$516,000

Simple rate of return =17.86%

Therefore The simple rate of return on the investment is closest to:17.86%

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notsponge [240]

Answer and Explanation:

1. Interest Revenue $23,000  

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(Being closing of revenues accounts are closed)

2. Income Summary $453,000

  To Sales returns $20,000

      To Sales Discounts  $7,000

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     To Freight out $2,000

      To Advertise Exp $15,000

      To Interest Exp  $19,000

      To Salaries & Wages $55,000

      To Utility  $18,000

      To Depreciation $7,000

(Being closing of expenses accounts are closed)

3. Income Summary $80,000

      To Retained Earning $80,000

(Being profit is recorded)

4. Retained Earning $30,000

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8 0
3 years ago
Adam, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap g
xz_007 [3.2K]

Answer:

b. blue ocean strategy

Explanation:

Instead of competing against rival companies in the mass-produced games market (red ocean), Adam is carving out his own market by offering the consumer a higher end product that, although is still composed of games, consists a in whole new segment with much less competition, if any (blue ocean).

Therefore, the correct answer is b. blue ocean strategy

4 0
3 years ago
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The evaluation process of creative outputs is usually subjective; the advertising or brand manager relies on qualitative conside
timama [110]

Answer:

true

Explanation:

  • The process of evaluation of a creative product is usually subjective; The advertising or brand manager relies on qualitative considerations for evaluation.
  • Evaluation is the process of critically evaluating a program. It collects and analyzes information about the program's activities, characteristics and outcomes. Its purpose is to make decisions about the program, improve its effectiveness, and inform programming decisions

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3 years ago
Briefly discuss at least five benefits of taking a research methods course early in the graduate program.
Nat2105 [25]

Five benefits of taking a research methods course early in the graduate program are:

The investigation is an integral part of understanding the world's creations. The goal is to make comparative judgments about how things really are. It may be difficult at first, but you cannot ignore the need for research in any profession, even as a graduate student. Research Methods courses help students explore their career paths. This means that students gain insight into the realm they are venturing into.

By comparison, taking a research methods course at the beginning of a graduate program helps them build transferable skills and improve their resume.

Learn more about the graduate program at

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6 0
1 year ago
11. John rates Peter an average worker, “excellent” on all his performance evaluations. The rest of staff suspects that Peter ge
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Considering the situation described in the question, if the allegations were accurate, the rating error the staff identified is known as the "Similarity Bias" error.

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  • There are other types of rating bias that do not apply to this situation.

  • These include Halo bias and Leniency bias.

Hence in this case the correct answer is "Similarity Bias"

Learn more here: brainly.com/question/14467377

6 0
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