1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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%

You might be interested in
Formal tax definition<br>​
const2013 [10]

Answer:

Formal tax legislation is the process by which a proposed tax rule or tax change may become law in the United States. Formal tax legislation follows specific steps as defined by the U.S. Constitution.

Explanation:

4 0
2 years ago
Read 2 more answers
Cho's Performance Pizza is a small restaurant in Miami that sells gluten-free pizzas. Cho's very tiny kitchen has barely enough
Brut [27]

Answer: Variable ... Fixed

Explanation:

In the short run, Variable Inputs or costs are known as those which can be changed and their quantities can be varied. In this scenario, the employees that Cho's uses can be varied and so are the Variable Inputs.

Similarly, those costs that cann ot be changed or varied in the short run are rightly known as Fixed Inputs. Cho's Kitchen cannot take more than 3 ovens and also she has already signed a lease for them. These costs cannot be changed and so make the oven a Fixed Input.

It is worthy of note that in the long term, all Costs are considered Variable.

7 0
3 years ago
"Many forms of online communication, such as e-mails, tweets, and the content of Web pages, requires short-form, concise writing
STatiana [176]

Explanation:

The advertising strategy before the internet was carried out on platforms such as radio, television and newspapers, which were the media that people most had access to. Currently, the internet is the main platform for advertising and interaction between companies and consumers. This is due to the ease and speed with which the flow of the internet happens, the messages are seen almost instantly and available in the palm of the hand, available from a smarthphone.

However, despite the ease of implementing marketing through social media, it is necessary for companies to adopt an advertising engagement strategy, the narrative must be summarized and contain essential traits that convey who the company is and what it wants to pass on to consumers , generating value and direct communication, making the message different and striking in a medium where there is different information every second.

4 0
3 years ago
The process of providing focus for employees and motivating them to achieve organizational gool's. Select one a. Effective b. Di
mina [271]

Answer:

directing

Explanation:

with directing you instruct your employees on what to do thus providing focus

5 0
3 years ago
Net income for the year was $29,500. Accounts receivable increased $2,500, and accounts payable increased $5,400. There were no
mylen [45]

Answer:

True

Explanation:

The net cash flow for the year can be calculated using the following equation:

net cash flow = net income + accounts payable - accounts receivable

net cash flow = $29,500 + $5,400 - $2,500 = $32,400

We have to subtract accounts payable since they were included in the net income but the cash has not been received yet.  

4 0
3 years ago
Other questions:
  • Julia, an economics professor, is giving a presentation on her research. what presentation delivery method should julia use if s
    7·2 answers
  • Haruo conducts some preliminary audience analysis and finds that seniors at retirement communities know very little about the In
    15·1 answer
  • Select the correct items that match the description. Distributions of cash from a corporation to its stockholders. select an app
    11·1 answer
  • Who receives the good or service from first come, first served. for econmics
    6·1 answer
  • An online savings account _____. offers lower interest rates because it costs more money to maintain the online site offers high
    5·2 answers
  • In what IT pathway would you most likely need to be familiar with the system development life cycle?
    10·2 answers
  • Suppose that the equilibrium price and quantity for 1 bedroom apartments in Orange County is $2,000 and 250,000 respectively. Wh
    9·1 answer
  • Cynthia Co. exchanged Building 24 which has an appraised value of $4,800,000, a cost of $7,600,000, and accumulated depreciation
    6·1 answer
  • After Josh bought his first pair of Nike basketball shoes he was pleased that he did. He likes how the shoes provide support and
    8·1 answer
  • The emirates group has a workforce comprised of individuals with 160 different nationalities. Suppose that one individual is con
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!