Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Problem - B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $264,000 with a 12-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 105,600 units of the equipment's product each year. The expected annual income related to this equipment follows.
Sales
$165,000
Costs Materials, labor, and overhead (except depreciation on new equipment)
88,000
Depreciation on new equipment
22,000
Selling and administrative expenses
16,500
Total costs and expenses
126,500
Pretax income
38,500
Income taxes (50%)
19,250
Net income
$19,250
Required -
1. Compute the payback period.
2. Compute the accounting rate of return for this equipment.
What is the minimum salvage value the would make the investment attractive assuming a discount rate of 12% (20 year, 12% present value factor would be 0.104)
If East Meets West Ltd. desires to minimize its total income taxes, calculate the amount of tax liability in each country in Canadian dollars
Direct materials used 75,000 Manufacturing overhead is allocated at 60% of direct labour cost. What was the amount of direct labour costs?
At what price per pound would it be advantageous for Wool Inc. to sell blue wool at the split-off point rather than process it further?
Discuss how useful was the cost information to the internal users in the organisation? Discuss with examples from your costing article.
When management is using performance report to evaluate the performance of a business unit manager,which of the following cost should be considered?
Explain the difference and if there seems to have been a move in recent years toward convergence of the two systems. Find out more differences that exist
What are the 5 external factors concern management accounting? and how effect management accounting provide the suitable example
Calculate NOPAT, invested capital, and ROI for Laundry Mate Products, and comment on the company's profitability.
Compute the amount of ending inventory using (1) FIFO, (2) LIFO, and (3) weighted average.
Determine the appropriate allocation of service department costs to the teaching departments, taking into account the reciprocal nature of service provision between departments.
The stock's market value is $25 on March 1st (just prior to the dividend) and $35 on March 31st. Par Value is .01 and there are 1,000 shares outstanding. Record the dividend declaration in a journal entry.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd