Operating Capacity in hours per year = 2,000 hours Hourly rate for crane with operator = $203.00 Downtime = 10.0% Operating Expense = 53.0% Calculate each with the provided numbers above: Gross Potential Income Effective Gross Income Net Operating Income.

Managerial Accounting: The Cornerstone of Business Decision-Making
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter11: Performance Evaluation And Decentralization
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Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...
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Operating Capacity in hours per year = 2,000 hours

Hourly rate for crane with operator = $203.00

Downtime = 10.0%

Operating Expense = 53.0%

Calculate each with the provided numbers above:

  • Gross Potential Income
  • Effective Gross Income
  • Net Operating Income. 
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