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lesya [120]
3 years ago
7

A company is considering two projects.

Business
1 answer:
zlopas [31]3 years ago
6 0

Answer:

Option (B) is correct.

Explanation:

Given that,

Project 1:

Initial investment = $120,000

Cash inflow Year 1, Year 2, Year 3, Year 4, Year 5 = $40,000

Hence,

Annual cash flow = $40,000

Payback period:

= Initial investment ÷ annual cash inflow

= $120,000 ÷ $40,000

= 3 years

Therefore, the payback period for Project I is 3 years.

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The company expects an annual need for 5,000 switches. If the company makes the product, it will have to utilize factory space c
WITCHER [35]

Based on the cost to produce each unit of the switches and the annual demand, the total costs will be $25,900 more than the cost of purchasing the switches.

<h3>What is the cost of producing the switches?</h3>

This can be found as:

= Variable cost + set up costs + supervisor's salary + opportunity cost of lost rent

= ( (6 + 5 + 4) x 5,000 units) + 45,500 + 41,000 + (3,700 x 12 months)

= $205,900

If they bought the switches at $36, they would cost:

= 36 x 5,000

= $180,000

Its cheaper to buy by:

= 205,900 - 180,000

= $25,900

Find out more on total costs computation at brainly.com/question/5168855.

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7 0
2 years ago
If a person moves to a state where housing, goods, and services are more expensive, their _____ has increased.A.occupationB.econ
vaieri [72.5K]
I'm pretty sure it's c. cost of living.
6 0
2 years ago
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory accou
Sergio039 [100]

Answer and Explanation:

1. The computation of the predetermined overhead rate is shown below:

= Overhead applied ÷ direct material cost

= $846,000 ÷ $1,800,000

= 47%

2. The direct labor and overhead cost assigned to the job is shown below:

Total cost $89,000

Less: direct material cost $32,000

Less: overhead cost  $15,040 ($32,000 × 0.47)

Direct labor cost $41,960

7 0
3 years ago
According to smith, what does capitalism allow individuals to do that no other economic system allows
tiny-mole [99]
Smith states that capitalism allows individuals to prosper,<span> capitalism allows for such things as division of labor and the specialization that comes with it, this increases the productive efficiency of a nation which in turn increases its wealth and standing in the rest of the world.

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5 0
3 years ago
Marks Consulting purchased equipment costing $45,000 on January 1, Year 1. The equipment is estimated to have a salvage value of
Tasya [4]

Answer:

B) Debit to accumulated depreciation for $22,500.

Explanation:

As for the information provided,

Depreciation under straight line method for each year = ($45,000 - $5,000)/8 = $5,000 for each year.

Depreciation for 4 years = $5,000 \times 4 = $20,000

Depreciation in 5th year for 6 months = $5,000/2 = $2,500

Total depreciation till 1 July Year 5 = $20,000 + $2,500 = $22,500

Carrying value of equipment in books as on date of sale = $45,000 - $22,500 = $22,500

Sale price = $20,000

Profit or loss on sale of equipment = $20,000 - $22,500 = - $2,500

So therefore, there is loss of $2,500

Thus, option c and option d are invalid.

Further cash received on sale is debited and not credited thus, option a is also invalid.

As the total accumulated depreciation = $22,500

The correct entry will include debit to accumulated depreciation of $22,500.

Thus, option b is correct.

6 0
3 years ago
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