How much can the annual cost savings fall

Assignment Help Managerial Accounting
Reference no: EM132967952

Problem 1: Alberta Ltd. is considering the purchase of new machinery which costs? $147,800. The machine is expected to save? $42,300 in operating costs annually for the next 7 years. By how much can the annual cost savings fall? (to the nearest hundred? dollars) and still provide a? 16% return? Ignore income taxes.

A. ?$42,300
B. ?$5,700
C. ?$0
D. ?$36,600
E. ?$21,200

 

Reference no: EM132967952

Questions Cloud

Is there any possiblity of different result : On text book Ghyller, there is explanation about The King II report.
What is the direct materials price variance : Direct Materials (15 yards of ribbon @ $1.30 per yard) $19.50 and Direct Labor (1.5 hours @ $10/hour) 15.00. What is the Direct Materials Price Variance
What a return on assets would be : If a company has a profit margin of 22.5% and turns its assets into sales 2.5 times per year, a return on assets would be % (round answer to 2 decimal places)
Compute basic and diluted eps for the consolidated entity : Short Retail's 8 percent preferred stock is convertible into 14,000 shares of common stock, Compute basic and diluted EPS for the consolidated entity
How much can the annual cost savings fall : The machine is expected to save? $42,300 in operating costs annually for the next 7 years. By how much can the annual cost savings fall
What the maximum amount of student loan interest : What the maximum amount of student loan interest that phoebe and brad can deduct on their return is? Phoebe paid $3425 interest on a qualified student
What expense method must be applied : When three vehicles are used for a single business what expense method must be applied? different methods of claiming vehicle expenses can be used
Which of the employees may not use : Which of the following employees may not use form 2106? employees with business related travel expense./ qualify performing artist
What is the net charge against income : The prepaid advertising and promotion costs totaled P600,000 on December 31, 2019. The income tax rate is 30%. What is the net charge against income

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Journalize all entries - eghan corporation

Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Eghan Corporation uses straight-line depreciation.

  What is benefits provided by capital investment projects

Which is not one of the more common strategic benefits provided by capital investment projects? Being able to deliver a product that competitors cannot

  Make revised budget that will produce the most profit

Make revised budget that will produce the most profit from the available materials. Direct material costs $2 per litre. Direct labor is paid at $10 per hour.

  Write a memorandum to the organizations managers

Draw conclusions regarding the nature of the problem and possible solutions, and develop recommendations for the managers in question and write a memorandum to the organization's managers that summarizes your analysis, findings and recommendations.

  List two internal and two external environmental factors

List two (2) internal and two (2) external environmental factors and give examples on what are factors in your control and factors outside your control.

  How many units does company a need to produce

How many units does Company A need to produce in? November?

  Determine axle must sell how many units per year

Suppose the manager of Axle desires a return on investment of 22%. In order to achieve this goal, Axle must sell how many units per year?

  How are the products produced in order to determine

How are the products produced in order to determine their profitability and marketability (quality) within their market. How does management determine

  Compute the break-even sales under the proposed program

Compute the break-even sales (units) under the proposed program for the following year. Enter the final answers rounded to the nearest whole number.

  Determine for alpha company dollar amount of cafeteria costs

Determine for Alpha Company the dollar amount of its Cafeteria costs that are to be absorbed by the Printing and the Binding Department

  Compute the contribution margin per unit

Question - A company's product sells at $12.14 per unit and has a $5.21 per unit variable cost. Compute the contribution margin per unit

  Important forecast of master budget

A master budget is the compilation of forecasts for coming year or operating cycle made of many departments or function in an organization. What is the most significant forecast made in the master budget? Mention the reasons for your answer.

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!

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