Mike made $10,000 investment in an endorser whereby he manufactures products that are easily sold at $50 per unit. Per computation, the payback period is 2 years. If the total cost incurred by the company during a year is $21,000 a) What is the no. of products that the company was able to sell during the year? b) If his target is to attain a 15% Rate of Return, do you think he has achieved his goal? Why?
Mike made $10,000 investment in an endorser whereby he manufactures products that are easily sold at $50 per unit. Per computation, the payback period is 2 years. If the total cost incurred by the company during a year is $21,000 a) What is the no. of products that the company was able to sell during the year? b) If his target is to attain a 15% Rate of Return, do you think he has achieved his goal? Why?
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 9E: Each of the following scenarios is independent. All cash flows are after-tax cash flows. Required:...
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Mike made $10,000 investment in an endorser whereby he manufactures products that are easily sold at $50 per unit. Per computation, the payback period is 2 years. If the total cost incurred by the company during a year is $21,000
a) What is the no. of products that the company was able to sell during the year?
b) If his target is to attain a 15%
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