Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $90,000 with a $8,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $15,980 per year. In addition, the equipment will have operating and energy costs of $4,350 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %

Average Rate of Return-Cost Savings Maui Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $90,000 with a $8,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $15,980 per year. In addition, the equipment will have operating and energy costs of $4,350 per year. Determine the average rate of return on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent. %

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter13: Systems Development And Program Change Activities

Section: Chapter Questions

Problem 7P: SYSTEMS SELECTION Your company. Kitchen Works, is employing the SDLC for its new information system....

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A https://mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt33019128&cmid%3D204453&page%3D1 E BusinessCouse A Return to course * My Sub M6: MBC Exercises Ch. 6 Navigation Finish attempt Question 2 Not complete Mark 0.00 out of 1.00 P Flag question Margin of Safety Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $7,500. a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal? SO x in dollars b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal? x units Check You have correctly selected 0. Incorrect Marks for this submission: 0.00/1.00. O Previous B Save Answers
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