Please don't provide answer in image format thank you Average rate of return-new productOahu Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 5,400units at $186 per unit. The equipment has a cost of $552,400, residual value of $41,600, and an 8-year life. The equipment can only be used to manufacture the phone. Thecost to manufacture the phone follows:Cost per unit:Direct laborDirect materialsFactory overhead (including depreciation)Total cost per unitDetermine the average rate of return on the equipment. If required, round to the nearest whole percent.Feedback$30.00117,0019.75$166.75Check My WorkDivide the estimated average annual income by the average investment. Sales price x units sold, less unit cost x units sold, equals average annual income.

· Ratio analysis used to identify the business performance of the company.· It is used to measure…

ate of return-new product Oahu Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales units at $186 per unit. The equipment has a cost of $552,400, residual value of $41,600, and an 8-year life. The equipment can only be used to manufacture the pho cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit $30.00 117.00 19.75 $166.75 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %

ate of return-new product Oahu Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales units at $186 per unit. The equipment has a cost of $552,400, residual value of $41,600, and an 8-year life. The equipment can only be used to manufacture the pho cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit $30.00 117.00 19.75 $166.75 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3E: Average rate of returnnew product Hana Inc. is considering an investment in new equipment that will...

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Show Me How Print Item Average rate of return-new product Oahu Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 40,000 units at $80 per unit. The equipment has a cost of $7,400,000, residual value of $600,000, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit Determine the average rate of return on the equipment. % $5 35 10 $50
Average rate of return-new product Hana Inc.is considering an invetment in new equipment that will be used to manufacture a smart-phone.The phone is expected to generate additional annual sales of 10,000 units at $300 per unit. The equipment has a cost of $ 4,500,000,residual value of $500,000,and a 10-year life.The equipment can only be used to manufacture the phone.The cost to manufacture the phone follows: Determine the average rate of return on the equipment.
Average rate of return-new product Oahu Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 7,200 units at $254 per unit. The equipment has a cost of $803,500, residual value of $60,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit $43.00 168.00 28.60 $239.60 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %
Average Rate of Return-New Product Hana Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 4,300 units at $319 per unit. The equipment has a cost of $399,900, residual value of $30,100, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $54.00 Direct materials 209.00 Factory overhead (including depreciation) 35.50 Total cost per unit $298.50 Determine the average rate of return on the equipment. If required, round to the nearest whole percent. %. please answer do not image.