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 4,500 units at $246 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Line Item Description Amount Cost per unit: Direct labor $41.00 Direct materials 161.00 Factory overhead (including depreciation) 28.00 Total cost per unit $230.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.fill in the blank 1 of 1 %
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 4,500 units at $246 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Line Item Description Amount Cost per unit: Direct labor $41.00 Direct materials 161.00 Factory overhead (including depreciation) 28.00 Total cost per unit $230.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.fill in the blank 1 of 1 %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 3CMA: Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each...
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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 4,500 units at $246 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:
| Line Item Description | Amount |
|---|---|
| Cost per unit: | |
| Direct labor | $41.00 |
| Direct materials | 161.00 |
| Factory |
28.00 |
| Total cost per unit | $230.00 |
Determine the average
fill in the blank 1 of 1 %
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