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Andrew [12]
2 years ago
5

ABC Company is considering investing in new production equipment at a cost of $60,000 with a 10-year useful life and no salvage

value. The following are estimated for Year 1 of the project:
Sales = $100,000 Production costs = $82,600 Depreciation expense = $6,000

Calculate the following for ABC Company for Year 1:
a. Operating income =
b. Average investment =
c. Accounting rate of return =
Business
1 answer:
ikadub [295]2 years ago
7 0

Answer:

a. Operating Income = Sales - Production Cost - Depreciation Expense

Operating Income = $100,000 - $82,600 - $6,000

Operating Income = $11,400

b. Average Investment = (Initial Equipment Cost + Residual Value) / 2

Average Investment = ($60,000 + $0) / 2

Average Investment = $60,000 / 2

Average Investment = $30,000

c. Accounting Rate of Return = (Operating Income / Average Investment) * 100

Accounting Rate of Return = ($11,400 / $30,000) * 100

Accounting Rate of Return = 0.38 * 100

Accounting Rate of Return = 38%

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Vikki [24]

Answer:

8,400 units

Explanation:

Abnormal spoilage is amount of units which are wasted or destroyed during production. Units that do not meet the standard can also be a part of abnormal spoilage. To calculate abnormal spoilage we will use formula below;

Abnormal Spoilage units = (Work in process beginning inventory + Units completed and transferred out) - (Units in work in process + Ending inventory units)

Abnormal Spoilage Units = (23,000 + 76,500) - (72,100 + 19,000) = 8,400 units.

4 0
3 years ago
the interest rate that determines the amount of cash interest paid each interest date is referred to as the
viktelen [127]

Answer:

Stated interest rate

Explanation:

The stated interest rate is the rate of interest in which the value of the cash interest that has to paid on each date of interest

The value of the cash interest paid could be determined by applying the following formula

= Face value of the securities × Stated interest rate

Therefore as per the given situation, the stated interest rate is the answer and the same is to be considered

5 0
2 years ago
A software company is weighing whether to release a new version of its software. The company can go ahead and release the versio
pentagon [3]

This is an example of vaporware where the company is planning to launch the software and will correct errors along with upgrades.

<h3>What is software?</h3>

A sequence of instructions, data, or programs used to control computers and perform certain activities is known as software. Applications, scripts, and programs that operate on a device are referred to as software.

Vaporware refers to products that are announced but never produced or officially cancelled. It is publicized months or years before it is supposed to be deployed with little information about its development available.

This strategy is useful as it stops customers to avoid switching to competitors' brands and products. These will help to create a buzz in teh market and helps in the retention of the customer.

Learn more about vaporware, here:

brainly.com/question/13078205

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8 0
1 year ago
Swee Yin's fashion-apparel department store runs a popular biannual sale on men's hats, with large discounts and surprise bonus
aniked [119]

Answer:

D) By creating a new ad group for the sale.

A) By setting campaign start/end dates.

Explanation:

Swee Yin must first create a new ad group in order for their campaign and products to show up on search results whenever google user search any related item or topic. Since this campaign only last a limited time, Swee Yin must set when the campaign starts and when it should end. They could post there campaign ads in both google search network and google display.

4 0
3 years ago
You have just inherited $560,000. You plan to save this money and continue to live off the money that you are earning in your cu
suter [353]

Answer:

10.64 years

Explanation:

To find the number of years , use this formula :

FV / PV = (1 + r) ^n

FV = Future value  = $1 million

P = Present value  = $560,000.

R = interest rate  = 5.6%

N = number of years  

$1,000,000 / $560,000 = (1.056)^n

1.785714  = (1.056)^n

Find the In of both sides

n = 10.64 years

6 0
3 years ago
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