100000 X 19% = 19000
100000 X 7% = 7000
<em>Total deduction: $26,000</em>
$74,000 per year he will get after deduction
Answer:
Variable factory overhead = 3.00
Fixed factory overhead = 1.80
Explanation:
See the table in the attached image
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.
I believe it’s A I hope this helps!
