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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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goblinko [34]

Answer:  30 units per hour

Explanation:

Given that,

Total number of product = 6,000 units

Yield = $5.00 per unit

Resources contributed to this output = 200 hours of labor at​ $15.00 per​ hour

Materials =​ $750

Overhead =​ $250

Labor productivity​ = \frac{Total\ number\ of\ product}{Resources\ contributed}

                              = \frac{6,000}{200}

                              = 30 units per hour

3 0
3 years ago
Carla Vista Company purchases Sandhill Company for $2470000 cash on January 1, 2021. The book value of Sandhill Company’s net as
Nady [450]

Answer: $214000

Explanation:

The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:

Book value of net assets = $1923000

Add: Excess fair value of tangible asset = $190500

Add: Excess fair value of intangible assets = $142500

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= $2470000 - $2256000

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3 0
3 years ago
During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amo
sergey [27]

Answer:

$400,000

Explanation:

Data provided in the question:  

Development cost incurred = $2,000,000  

Amount incurred after the technological feasibility was achieved = $400,000

Now,  

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3 0
3 years ago
Barton Industries has operating income for the year of $3,700,000 and a 25% tax rate. Its total invested capital is $18,000,000
rusak2 [61]

Answer:

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Net Operating Profit After Taxes  - Invested Capital x Weighted Average Cost of Capital = Economic Value added

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3,700,000 x ( 1- 0.25 ) = 2,775,000 Operating Income after taxes

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4 0
3 years ago
When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follo
Sladkaya [172]

Answer:

(B)  expropriation.

Explanation:

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It is the seizure of private property by an open organization for a reason regarded to be in the open intrigue

6 0
3 years ago
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