The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze themto determine which one has the best average rate of return.Machine AMachine B$45,730.58$60,103.80326,647.00 200,346.00Ca, Machines B and C have the same preferred average rate of returnb. Machine CC. Machine 11d. Machine AEstimated average incomeAverage investmentMachine C$74,639.55497,597.00

The average rate of return calculations are turn on the total estimated average income then the…

Answered: The production department is proposing…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C $83,087.40 $73,001.40 322,364.00 276,958.00 486,676.00 Estimated average income $45,130.96 Average investment Oa. Machine B Ob. Machine C Oc. Machine A Od. Machines B and C have the same preferred average rate of return.
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Line Item Description Machine A Machine B Machine C Estimated average income $47,060.44 $72,961.50 $73,785.60 Average investment 336,146.00 243,205.00 491,904.00 a. Machine C b. Machine A c. Machines B and C have the same preferred average rate of return. d. Machine B
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C Estimated average income $48,288.80 $77,802.90 $72,428.85 Average investment 344,920.00 259,343.00 482,859.00 a. Machine B b. Machine C C. Machine A d. Machines B and C have the same preferred average rate of return.
The production department is proposing the purchase of an automatic insertion machine. It has identified three machines and has asked the accountant to analyze them to determine which one has the best average rate of return. Machine A Machine B Machine C Estimated average income $43,866.76 $73,406.10 $62,231.25 Average investment 313,334.00 244,687.00 414,875.00
Method of Least Squares, Developing and Using the Cost Formula The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received: Intercept 175,600 Slope 455 The cost driver used was number of parts inspected. Required: 1. What is the cost formula? Total cost of receiving = $ + ( $ × ) 2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month. Independent variable Dependent variable Variable rate per professional hour per part inspected Fixed cost per month 3. Using the cost formula, predict the cost of receiving for a month in which 7,200 parts are inspected. Total cost of receiving = $
Method of Least Squares, Developing and Using the Cost Formula The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received: Intercept 147,400 Slope 210 The cost driver used was number of parts inspected. Required: 1. What is the cost formula? Total cost of receiving = $ + ( $ × ) 2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month. Independent variable Dependent variable Variable rate per professional hour per part inspected Fixed cost per month 3. Using the cost formula, predict the cost of receiving for a month in which 6,800 parts are inspected. Total cost of receiving = $ Identifying the Parts of the Cost Formula;…
Almed Products has determined that the number of machine hours worked (MH) drives the amount of manufacturing overhead incurred (MOH). On the basis of this relationship, a staff analyst has constructed the following regression equation: MOH = 240,000 + 8MH Which of the choices correctly depicts the nature of Almed’s variables? Dependent Independent A. MOH MOH B. MOH MH C. MH MOH D. MH MH E. 8 240,000 Multiple Choice Choice A Choice B Choice C Choice D Choice E
Example1: A company is comparing between two equipment for quality inspection as per data in below table: DATA MACHINE 1 MACHINE 2 INITIAL COST 12,000 8,000 1,000 (YEARS 1-5) 3,000 (YEARS 6-14) ANNUAL NET 3,000 INCOME MAXIMUM LIFE 14 The company used rate of return 15% to take the decision by: 1. Payback period analysis. 2. NPV analysis.
The following computer printout was generated, using regression, for use in estimating maintenance costs. Intercept 8300 X Variable 1 37 Multiple R 0.9500 R Square 0.9025 Activity variable machine hours An estimate of maintenance costs at an activity level of 100 machine hours would be:
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
Patagania Company reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with complete set solution pls
SanaMolp management reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with solution pls

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