Answer:
See below
Explanation:
With regards to the above information, there would be no sales if Tam were to be dropped. Also, there would be no cost associated with it other than $145,000 fixed manufacturing overhead.
Again, since the net loss operating loss was $55,000, the $145,000 would increase that loss by $90,000.
Answer and Explanation:
The computation is shown below:
Return on investment = income ÷ investment
For Simone
= $54 ÷ $605
= 8.93%
For Riley
= $57 ÷ $650
= 8.77%
As it can be seen that simone contains the return on investment so the simone would be preferred
Also, the other factor that should be considered before doing any kind of investment i.e. risk
Answer:
Annual rate of return method
Explanation:
Annual rate of return method unlike some other capital budgeting techniques uses a data that is consistent with accrual concepts. the income it uses is the estimated annual net income of the entity.
Below is the formula used for Annual rate of return method:
Annual rate of return = Estimated Annual net income/Average Investment.
It ignore the cash inflow.
Answer:
The pension expense for the year is 198,400
Explanation:
According to the reports received by the company we have the following relevant data to calculate the pension expense for the year:
Service cost of $ 193,000
Interest cost of $ 31,000
Considering that the long-term expected rate of return on plan assets is 10%, then $ 256,000×10%= 25,600
Pension expense for the year= Service cost of $ 193,000 +Interest cost of $ 31,000-25,600= 198,400.
