User Account

All Pages

Prepare a contribution format income statement

Assignment Help Financial Accounting
Reference no: EM13325447

Lugano's Pizza Parlor

Lugano's Pizza Parlor is considering the purchase of a large oven and related equipment for mixing and baking "crazy bread."

The oven and equipment would cost $170,000 delivered and installed. It would be usable for about 10 years, after which it would have a 10% scrap value. The following additional information is available:

Required:

Prepare a contribution format income statement showing the net operating income each year from production and sale of the crazy bread.

Compute the simple rate of return for the new oven and equipment.

If Mr. Lugano accepts any project with a simple rate of return greater than 10%, will he acquire the oven?

Compute the payback period on the oven and equipment

If Mr. Lugano accepts any investment with a payback period of less than seven years, will he acquire the oven?

Reference no: EM13325447

Questions Cloud

Explain the gas-phase decomposition of dinitrogen pentaoxide : The reaction and rate law for the gas-phase decomposition of dinitrogen pentaoxide are 2 N2O5(g) ---> 4 NO2(g) + O2(g), rate = k[N2O5]. Which of the following can be considered a valid mechanism(s) for the reaction
Explain oxidation number of cr changes during the reaction : The oxidation number of Cr changes during the reaction from ____ to ___. Because of this change, chromium is reduced/oxidized (circle one). The oxidation number of the alcoholic carbon changes from ___ to ___. Because of this change, the carbon is..
Who bears the cost of import barriers protecting a job where : Who bears the cost of import barriers protecting a job where the industry employing labor has lost its comparative advantage? Consider the use of tariffs on steel imports into the U.S. during the recent Bush Administration.
Explain what is the major difference : Compare the IR spectra of cinnamyl alcohol and cinnamaldehyde. What is the major difference
Prepare a contribution format income statement : Prepare a contribution format income statement showing the net operating income each year from production and sale of the crazy bread and compute the simple rate of return for the new oven and equipment. (Round your answer to 1 decimal place.
Find the real value of your $40,000 salary for each of the : Suppose you'll have an annual nominal income of $40,000 for each of the next 3 years, and the inflation rate is 4% per year.
Analayse tesco supermarket sbu : Analayse tesco supermarket SBU
Evaluate software solutions to security problems : Security is a major concern for many mission-critical applications.  The focus of the assignment is specifically on protocols that contain known vulnerabilities.
National bureau of economic research identify the turning : Why doesn’t the National Bureau of Economic Research identify the turning points in economic activity until months after they occur?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain why the issuing corporation charged it bond investor

Explain why the issuing corporation charged its bond investors for interest accrued in April 2011, prior to the issuance date ( see part b above).

  Create two additional techniques that these organizations

Create two additional techniques that these organizations can use to encourage contributions from consumers. Provide support for your response.

  What was the amount of the translation adjustment

Darron Co. was formed on January 1, 2009 as a wholly owned foreign subsidiary of a U.S. corporation. Darron’s functional currency was the stickle €. The following transactions events occurred during 2007: What was the amount of the translation ad..

  Evaluate the product factory overhead costs

Evaluate the product factory overhead costs, using (a) the direct labor hours plant-wide factory overhead rate and (b) the machine hour plant-wide factory overhead rate.

  What they are saying their product is capable of doing

In a few short sentences please provide me with your thoughts on the following paragraph. Advertisers use case studies to add credibility to what they're saying their product is capable of doing.

  Calculate the net present value of the proposed change

Calculate the net present value of the proposed change, that is, the net benefit or net loss in present vaklue terms of the proposed changeover.

  Determine the expected return on barbaras investment

Determine the expected return on Barbaras investment

  Make a segmented income statement

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show dollar amounts.

  Purposes of equity accounting for an investment

For the purposes of equity accounting for an investment in an associate, it is presumed that the investor has significant influence over the other entity where the investor holds

  Purpose income statements for each year using costing

Purpose income statements for each year using absorption costing.

  What expenses are allowed on rental property

What expenses are allowed on rental property and how to allocate those expenses - Use the tax research methodology to research the regulations regarding rental income and expenses.

  Who has incurred subsequent reasonable expenses

Tickets to a football game with hospital administrators to celebrate successful negotiation of a surgical contract earlier in the day.

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