User Account

All Pages

Find what is simple rate of return on new bottling machine

Assignment Help Managerial Accounting
Reference no: EM132591103

The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $50,000. The machine would replace an old piece of equipment that costs $13,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $21,000. The new machine would have a useful life of 10 years with no salvage value.

Required:

Question 1. What is the annual depreciation expense associated with the new bottling machine?

Question 2. What is the annual incremental net operating income provided by the new bottling machine?

Question 3. What is the amount of the initial investment associated with this project that should be used for calculating the simple rate of return?

Question 4. What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)

Reference no: EM132591103

Questions Cloud

How much will Oriole average operating assets : The division has a $45900 controllable margin and $295000 of sales. How much will Oriole's average operating assets be when its return on investment is 6%
Produce a precipitate : Use a solubility table to predict which of the following combinations of compounds would produce a precipitate. State what the precipitate will be if there will
Would the company purchase the new games : Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
Write reactions to show the dissociation into ions : Write reactions to show the dissociation into ions for the following substances when they dissolve in water.
Find what is simple rate of return on new bottling machine : Find What is the simple rate of return on the new bottling machine? (Round your answer to 1 decimal place i.e. 0.123 should be considered as 12.3%.)
What is amount and character that taxpayer must recognize : On July 1, 20x2, taxpayer purchases 100 shares of BIG Corp for $12/share to cover the original short sale. What amount and character that taxpayer recognize
What mass of sodium nitrite : What mass of sodium nitrite, NaNO2, should be added to it to make a buffer with a pH of 2.96? Ka (HNO2) = 4.0 × 10-4.
How much is the selling price per unit : At the break-even point of 2,000 units, variable costs are $55,000,and fixed costs are $32,000. How much is the selling price per unit?
Prepare the necessary December adjusting journal entry : Prepare the necessary December 31, 2014, adjusting journal entry to record depreciation assuming Delta uses: (a) The straight-line method of depreciation

Reviews

Write a Review

Managerial Accounting Questions & Answers

  How the output of horizontal analysis and vertical analysis

Explain how the output of horizontal analysis and vertical analysis can be compared to industry averages and/or competitive companies.

  How skill set for modern day management accountant

Comparing Employee requirement to management accounting roll to the literature suggestion? how Skill set for modern day management accountant?

  Create a basic spreadsheet for your assumptions

Create a Basic spreadsheet for your assumptions and raw data which will be used in the other budget spreadsheets - Your grade is based upon the accuracy

  What is the materials inventory

Boone Company has the following balances as of December 31, 2009. Material Inventory $15,000 Work in process inventory $36,200 Finished goods inventory $50,100.

  Professionalism and ethics in accounting

Professionalism and ethics in accounting and the history of accounting

  What costs would be relevant to pricing decision for renting

The New England Patriots,What costs would be relevant to the pricing decision for renting the planes when not in use by the team?

  Create a schedule of cost of goods manufactured for the year

Create a schedule of cost of goods manufactured for the year, Assume all raw materials are used in production as direct materials.

  Compute a predetermined overhead rate for the plant

Compute a predetermined overhead rate for the plant as a whole based on machine hours. Round your answer to two decimal places.

  Compute the discounted payback period for a project

Compute the discounted payback period for a project with the following cash flows received uniformly within each year and with a required return of 8%

  Determine the dollar amount of the total depreciation

Determine the dollar amount of the total depreciation that will be contained in Cost of Goods Sold. (Round dollar values & enter as whole dollars only.)

  Difference between resource spending and resource usage

Explain the difference between resource spending and resource usage. What is the relationship between flexible resources and cost behavior?

  Compute the full product cost per unit

Compute the full product cost per unit, including upstream, manufacturing, and downstream activities. Also compute the relative proportion of each main cost

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd