What the accounting rate of return of the equipment is

Assignment Help Managerial Accounting
Reference no: EM132758049

Problem 1: Abba, Inc is considering the purchase of some new equipment that costs $171,600. The new equipment is expected to increase revenues by $115,800 annually. Cash expenses are expected to be $58,800 and depreciation expense is $17,600. The accounting rate of return of the equipment is

Reference no: EM132758049

Questions Cloud

What is the projects internal rate of return irr : A project that costs $2,900 to install will provide annual cash flows of $790 for each of the next 6 years. Calculate the NPV if the opportunity cost of capital
Compute the price-earnings ratio and dividend yield : Compute the price-earnings ratio and dividend yield for the three companies. Round ratios and percentages to one decimal place as appropriate
Is this evidence against market efficiency : The closing price of the company at the end of the day is up 5% from yesterday. Is this evidence against market efficiency? Explain.
Culture is powerful component of organization success : Culture is a powerful component of an organization's success. Culture differs across organizations.
What the accounting rate of return of the equipment is : Cash expenses are expected to be $58,800 and depreciation expense is $17,600. The accounting rate of return of the equipment is
What is fixed overhead that was applied to carla actual : Carla Company's standard fixed overhead rate is based on budgeted fixed, What is the fixed overhead that was applied to Carla's actual production units?
What is the difference between basic eps and diluted eps : What is the difference between basic EPS and diluted EPS? How does the denominator in the EPS equation (shares outstanding) differ from basic to dilutive?
Which decision-making techniques and con-cepts : Which decision-making techniques and con-cepts described in this chapter are most appro-priate to the BLM's situation?
What tina direct labor spending variance is : What Tina's direct labor spending variance is? Actual number of pans produced and sold 2,263. Standard hours required per pan 1.9

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Determine what is company new break-even point in units

Super Sales Company is able to reduce its variable expenses by $6 per unit. What is the company's new break-even point in units and in sales dollars?

  Determine the casing and curing departments equivalent

Determine the Casing and Curing Department's equivalent units of production for mixing, materials, and conversion for the month of September.

  Calculate zap return on sales

Calculate Zap's Return on Sales, Investment Turnover and Return on Investment. Zap is a retailer that specialises in electrical goods.

  What cost information would be relevant to a decision

What cost information would be relevant to a decision to drop the product that would not be relevant to a decision to increase a production run by 100 units?

  Could this be influencing jerry position

In your discussion, consider the fact that the bonus compensation of the marketing VP is based on sales volume. Could this be influencing Jerry's position?

  List the relevant costs of internally providing the service

Matrix human resources company, List the relevant costs of internally providing the service and externally purchasing them from the other organization.

  What is the current ratio and working capital

A company had liabilities of $69,300 at April 30. The current ratio at that date was 1.7. Assume that management paid $12,7000 of accounts payable on April 29. What is the current ratio and working capital at April 30 as if the April 29 payment was n..

  Interpreting regression results matching time periods

interpreting regression results matching time periods brickman apparel produces equipment for the extreme-sports

  What challenges face in global marketing in years to come

What challenges face in global marketing in years to come? Explain the impact and provide at least one strategy to address and tackle each challenge identified.

  What the optimal stocking level for the bakery is

Demand is estimated to be normally? distributed, with a mean of 30 and a standard deviation of 5. What is the optimal stocking? level?

  Find how to allocate the limited funds to the projects

Discuss the key financial factors, other than the NPV decision, that should be considered before investing in a project located in a foreign country

  What was the amount of actual sales

Lankau Company was 25%, fixed costs were $2,325,000, and variable costs were 60% of sales, what was the amount of actual sales (dollars)?

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