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zepelin [54]
3 years ago
14

The current controllable margin for Henry Division is $48000. Its current operating assets are $300000. The division is consider

ing purchasing equipment for $90000 that will increase annual controllable margin by an estimated $5000. If the equipment is purchased, what will happen to the return on investment for Henry Division?
Business
1 answer:
Delvig [45]3 years ago
3 0

Answer:

8.36% Increase

Explanation:

Calculation to determine what will happen to the return on investment for Henry Division

First step is to determine the return on investment using this formula

Return on investment = (Controllable margin ÷ Operating assets) × 100

Let plug in the formula

Return on investment= ($48,000 ÷ $300,000) × 100

Return on investment= 16%

Second step is to determine the new controllable margin

New controllable margin= $90,000 + $5,000

New controllable margin= $95,000

Third step is to calculate the new operating assets

New operating assets= $300,000 + $90,000

New operating assets= $390,000

Fourth step is to calculate new return on investment

New return on investment = ($95,000 ÷ $390,000) × 100

New return on investment =24.36%

Now let determine what will happen to the return on investment for Henry Division

Return on investment = 16% - 24.36%

Return on investment= 8.36% Increase

Therefore what will happen to the return on investment for Henry Division will be 8.36% Increase.

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Stels [109]

Answer:

$.75 million

Explanation:

Calculation for what is the cost of the merger

Cost of merger= $350,000 ×$45 - ($15 million)

Cost of merger= $15.75 - $15 million

Cost of merger= $.75 million

Therefore the cost of the merger will be $.75 million

8 0
3 years ago
Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the peri
pishuonlain [190]

If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.

<h3>What is weighted-average costing?</h3>
  • To apply the weighted average methodology, divide the cost of the commodities on the market by the number of units still on the shelf.
  • This calculation results in the weighted average cost per unit, which can subsequently be used to allocate a cost to both ending inventory and the cost of goods sold.
  • When you wish to give some numbers in a dataset more weight than others, you should use a weighted average.
  • This is beneficial in situations where a single event might have several positive or bad outcomes, but the scale of the positive or negative outcomes varies.

Weighted average cost per unit formula = divide the total purchase price by the number of units available for sale

∴ $3,650 + $5,000 / 250 = $34.60

Therefore, if there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.

Know more about weighted-average costing here:

brainly.com/question/8287701

#SPJ4

Complete question:

Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the period, $5,000 of materials and $9,250 in conversion costs were added. If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is ______. Multiple choice question.

(A) $71.60

(B) $20.00

(C) $57.00

(D) $34.60

7 0
2 years ago
What is the total account dept as of the statement date called?
madreJ [45]

The total account Dept as of the statement date is known as the balance.

3 0
4 years ago
Trez Company began operations this year. During this first year, the company produced 100,000 units and sold 80,000 units. The a
hjlf

Answer:

<u>Income statement for the company under variable costing</u>

Sales (80,000 units x $45)                                                             $3,600,000

Less Cost of Sales

Beginning inventory                                                          $0

Cost of goods manufactured (100,000 units x $19) $1,900,000

Cost of good available for sale                                 $1,900,000

Less Ending inventory (20,000 x $19)                      ($380,000) ($1,520,000)

Contribution                                                                                    $2,080,000

Less Period Costs

Fixed Manufacturing  Overhead                                                     ($600,000)

Selling and administrative expenses - Fixed                                 ($400,000)

Selling and administrative expenses - Variable                             ($180,000)

Net Income / (loss)                                                                            $900,000

Explanation:

Under Variable Costing.

1.Product cost = Variable Manufacturing Costs Only

Therefore, Product cost = $4 + $11 + $ 4

                                        = $19

2.Period Cost = Fixed Manufacturing Overheads + Non - Manufacturing Costs

5 0
3 years ago
Select the correct answer. Alex manages a team of a hundred employees located at different offices in different locations. He di
Archy [21]

Answer:

B) Email would be the preferred mode

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To communicate each of his employees effectively, Alex must use Email mode of communication. Because Electronic mail can access by every employee and everyone can find each other response. Email can be effective in many ways, such that, it can be stored in the server to analyze the history of work process and how the employee responded in past.

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4 years ago
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