Answer:
2 years
Explanation:
Payback can be calculated by identifying net savings of employing this new system.
Net savings = Savings from reduced labor costs - Annual license and maintenance fee
Net Savings = (35,000 * 3) - 25,000 = $80,000 saving / year
Initial outlay = $160,000
Payback = initial outlay / savings per year = 160000 / 80000 = 2 years
So it takes 2 years to recover the initial outlay.
Hope that helps.
Yvonne and Rodney should determine which "has the comparative advantage in dish washing."
Comparative advantage is a economic term that alludes to an economy's capacity to create products and enterprises at a lower opportunity cost than exchange accomplices. A comparative advantage enables an organization to offer products and ventures at a lower cost than its rivals and acknowledge more grounded deals edges.
A standout amongst the most critical ideas in economic theory, similar preferred standpoint spreads out the case that all performing artists, consistently, can commonly profit by collaboration and deliberate exchange. It is likewise a basic rule in the theory of international trade.
Answer:
$36.8 million
Explanation:
The computation of the free cash flow is shown below:
= EBIT × (1 -Tax Rate) + Depreciation & Amortization - Change in Net Working Capital - net capital Expenditure.
= $56 million × ( 1 - 0.30) + $5.6 million - $2.7 million - $5.3 million
= $39.20 million + $5.6 million - $2.7 million - $5.3 million
= $36.8 million
All other information which is given is not relevant. Hence, ignored it
Answer:
The statement which is not true about life insurance companies is:
B. They invest heavily in short-term highly marketable securities.
Explanation:
- The option A is true about the life insurance companies as they sell contracts that offer financial protection against premature death and against living too long as this the main purpose of a life insurance policy.
- These companies don't invest heavily in short-term highly marketable securities so the option B is not true about these companies.
- The option C is true about the insurance companies as they have prediction about their inflows and outflows.
- The option D is also correct as their liabilities are long-term in nature as the insurance policy is a long term policy.
Answer:
The entry to record the transfer of materials from the storeroom is
Debit Work in process $ 36,000
Debit Factory overhead control $ 6,000
Credit Material Account $ 42,000
The material is accounted in material stock account when purchase. Latter if material is used directly it is taken in work in process account. Indirect material is accounted in FOH account.
