What is the approximate rate of return

Assignment Help Accounting Basics
Reference no: EM133053917

Question - X Company currently buys 8,000 units of a part each year from a supplier for $8.00 per part, but it is considering making the part instead. It paid a consulting firm $13,000 to do the make/buy analysis. The consulting firm determined that X Company would have to buy equipment costing $150,000 to make the part. The equipment would last for six years, at which time it would have zero disposal value. The consulting company also estimated that it would cost X Company $32,530 a year to produce the 8,000 units. What is the approximate rate of return if X Company makes the part Instead of buying it from the supplier?

Reference no: EM133053917

Questions Cloud

What is Jerry gain or loss on the sale of his interest : At the time of the sale, Jerry's basis in JJM is $32,000. JJM does not have any debt or hot assets. What is Jerry's gain or loss on the sale of his interest
Prepare a schedule summarizing the lease payments : The Present Value (PV) of lease payments has been calculated to be $85,457. Prepare a schedule summarizing the lease payments
Rebuttal or mitigation of charges : Summarize the charges and rebuttal or mitigation of charges used by the health care organization you researched.
What is the independent variable in Olson cost formula : Total annual electricity cost = $149,000 + $2.75x, where x = labor hours. Last year, Olson incurred 212,000 labor hours. What is the independent variable
What is the approximate rate of return : X Company currently buys 8,000 units of a part each year from a supplier for $8.00 per part, What is the approximate rate of return
Development and learning and for parenting support : Write a brief report referring to relevant literature and explaining how the resources will be used in your role as an advocate for child wellbeing
What is the amount of the annual lease payment : The implicit rate on the lease is 10% which is known to the lessee. The lessee's incremental borrowing rate what is the amount of the annual lease payment
Prepare the adjusting journal entry required at December : Assume that the effects of discounting are not material (i.e. you do not have to discount the cash flows). Prepare adjusting journal entry required at December
Role as an advocate for child wellbeing : How the resources will be used in your role as an advocate for child wellbeing, development and learning and for parenting support and family wellbeing

Reviews

Write a Review

Accounting Basics Questions & Answers

  Compare the budgeted measures with the actual results

Compare the budgeted measures with the actual results. Decide which results should be brought to the attention of each manager.

  Assume that logan company uses a periodic inventory system

assume that logan company uses a periodic inventory system and has these account balances purchases 404000 purchase

  Write the journal entry for the year-end adjustment

Emma's Clothes, Inc has accounts receivable of $210,000. In the current economy, she has noticed an increase in uncollectible accounts.

  Compute what is the present value of the receipts

You receive $1,500 at the end of every year for four years. What is the present value of these receipts if you earn six percent compounded annually?

  What is the after-tax semiannual interest dollar amount

Interest. A company issues a $300,000, 10 percent, 20-year bond. The tax rate is 40 percent. What is the after-tax semiannual interest dollar amount?

  Te fats domino company uses a two-column general journal

the fats domino company uses a two-column general journal a cash recipts journal a cash payments journal a sales

  What amount should pb report on statement of financial

On January 1, 20X6, PB Inc, What amount should PB report on its statement of financial position (SFP) as at December 31, 20X6, for PPE?

  Calculate the actual return on plan assets

Payne estimates that the average remaining service life is 15 years. Calculate the actual return on plan assets in 2018. Calculate the interest cost for 2018

  Determine the loss on impairment

On December 31, 2017, Cheyenne Company signed a $1,054,800 note to Ayayai Bank. Determine the loss on impairment that Ayayai Bank should recognize

  What amount should reliable report as a current liability

What amount should Reliable report as a current liability for Unearned Insurance Premiums at December 31

  Income statement through gross profit

Prepare an Income Statement through gross profit for the year endedDecember 31, 2007.

  What is target cost

Furthermore, management believes that the profit margin should be 25 percent of sales revenue. What is target 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!

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