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Gwar [14]
3 years ago
15

Bugle's Bagel Bakery is investigating the purchase of a new bagel making machine. This machine would provide an annual operating

cost savings of $3,650 for each of the next 4 years. In addition, this new machine would allow the production of one new type of bagel which would result in selling 1,500 dozen more bagels each year. The company earns a contribution margin of $0.90 on each dozen bagels sold. The purchase price of this machine is $13,450 and it will have a 4 year useful life. Bugle's discount rate is 14%. (Ignore income taxes.)
The total annual cash inflow from this machine for capital budgeting purposes is:
a. $4,750
b. $5,150
c. $5,000
d. $3,650
Business
1 answer:
bagirrra123 [75]3 years ago
3 0

Answer:

Total annual cash inflow= $5,000

Explanation:

The total annual cash inflow will be the sum of the savings in operating costs and the incremental contribution from the sale of the bagels.

Annual contribution from Bagel = 1,500×$0.90=1350

Operating cost savings = 3,650

Total annual cash inflow = 1,350 + 3,650 =5,000

Total annual cash inflow= $5,000

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Total caloric restriction over 6 moths:

10%*350 pounds = 35 pounds.

35 pounds * 3,500 calories per pound = 122,500 total calories.

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If weigh loss period is 27 weeks, divide by total number of weeks:

122,500 calories/ 27 weeks = 4537 calories per week

and by number of days (27 weeks= 189 days)

122,500/189 = 648 calories per day

5 0
3 years ago
Which of the following is an advantage of utilizing technology?
8090 [49]

Answer:

C. Productivity increases.

Explanation:

Technology is the application of skills, knowledge which could be scientifically in solving problems, it can be in production of good and services.

Technology brings about automation, it saves time and provide efficiency in operation.

It should be noted that Productivity increases is an advantage of utilizing technology all over the world.

7 0
3 years ago
Diversification tends to increase portfolio performance, because:____.
AfilCa [17]

Answer:

D. A diverse portfolio is more likely to have a stock inside of it that performs amazingly well.

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Diversification of portfolio means adding different stocks / shares in investment portfolio.

Option D is correct because when we have different kind of stock, there are chances that if one fails to perform, one can outperform and it is likely to have a stock which can perform amazingly well.

Now we will see that why all the options are incorrect one by one.

option A is not true because it is not necessary that diverse portfolio cannot fail altogether. So it cannot be guaranteed that it will have higher return for sure.

Option B is not true as diverse portfolio cannot have lower volatility if all perform like same.

Option C is also incorrect as correlation is not necessary in diverse portfolio.

5 0
3 years ago
Martha has calculated the value of several objects she
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Answers:

The most expensive item is the living room set

The least expensive item is the two end tables

The total value of the items = $3175

4 0
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The journal entry for the issuance of an interest-bearing note for the purpose of borrowing funds for the business is
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The journal entry for the issuance of an interest-bearing note for the purpose of borrowing funds for the business is Debit cash.

<h3>What is Debit Cash?</h3>
  • When a person uses debit cash, money is automatically taken out of their checking account.
  • These cards, which are sometimes known as "check cards" or "bank cards," can be used to make purchases of products or services, withdraw cash from an automated teller machine, or make additional purchases at merchants who will accept them.
  • You might not be able to make a very large purchase using debit cash because they typically have daily spending limits.
  • A personal identification number is typically not required to use a debit card (PIN).

Hence, Debit cash is the journal entry for issuing an interest-bearing note for the purpose of borrowing money for the company.

To learn more about Debit Cash refer to:

brainly.com/question/24077526

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3 0
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