Calculate the profitability of the following proposal using Average rate return (ARR) method Proposal I Automatic machine Cost OMR 320000 Estimated life4.5 years Estimated sales P.A 220000 Cost : Material OMR 60000 Labour OMR 22000 Variable overheads OMR14000 a. 16.53% b. 3.19% c. 4.62% d. All the options are wrong

Q: costs. Assume that the company wishes to increase the number of units produced and sold to 102…

A: The correct answer is option D. $55

Q: The following price and cost data are given for Company E: Selling price per unit P25.00, Variable…

A: Formula: Break even point = Fixed cost / ( Selling price per unit - variable cost per unit )

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: Contribution margin income statement is a statement which shows variable costs and fixed costs of…

Q: If selling price  $300 per unit                   Variable cost $250 per unit…

A: Formula: Contribution margin = Sales - variable cost

Q: YEAR CONVEYOR FORKLIFT (S150,000) (S60,000) (33,000) (48,000) 2 (33,000) (48,000) 3 (33,000)…

A: a. Calculation of IRR of each alternative is not possible to calculate because the cash inflow is…

Q: E4 Location Breakeven Analysis (also known as cost-volume analysis) is a technique used to make an…

A: Particulars A B C a. Expected Volume in Units (per year) 2500 2500 2500     Rs Rs Rs b.…

Q: Solve the problem. Given the revenue and cost functions R-34x-0.3x and C- 14, where x is the daily…

A: Please find the answer to the above question below:

Q: Bloom Company predicts it will incur fixed costs of $255,000 and earn income of $427,500 in the next…

A: Total dollar sales = Fixed costs plus pretax income / Contribution margin ratio Variable costs =…

Q: Exercise 2-9

A: Product costs are the costs that are incurred by the company to manufacture a product that will be…

Q: CVP analysis, margin of safety. Suppose Morrison Corp.’s breakeven point is revenues of $1,100,000.…

A: 1.Compute the contribution margin percentage.Contribution margin percentage = Fixed costs / Break…

Q: Basic CVP Analysis – Using Goal Seek Determine the breakeven point for the Drill/Driver product…

A: As per our protocol we provide solution to the one question or to the first three sub-parts and you…

Q: Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price TL 30…

A: Contribution margin is the sales revenues over and above its variable costs. Contribution margin…

Q: Three mutually exclusive design alternatives are being considered. The estimated sales and cost data…

A: AW or Annual Worth of project shows equivalent annual benefits that will be generated from project…

Q: When the price =20000- 50(Demand), fixed cost3D$500 per month and variable cost =$1000 per unit, the…

A: This is a simple case of revenue maximisation thoery of economics. Which says that the revenue is…

Q: Production Facilities cost is 465000 OMR. Total Variable cost is 6500O OMR. Calculate Total Fixed…

A: Production cost Production cost refers to the total cost of producing a product that includes…

Q: Calculate the profitability of the following proposal using Average rate of return (ARR) method…

A: Average rate of return can be calculated by net profit divided by initial investment.

Q: Problem Solving.Determine for what is asked. Show your solution legibly. Improper solution will not…

A: Sales- Variable Cost = Contribution Net Profits = Total Contribution - Fixed Costs Breakeven Point =…

Q: you have the following cost equation Y = 3000 + 10 X %3D units produced 1500 units. The total fixed…

A: The total cost is the sum total of total fixed cost and total variable cost. The cost equation is:…

Q: A company is uncertain how many units of a new product can be so each year. To determine its…

A: Rate of return is computed by dividing the net profit by the investment.

Q: Consider the following cost and pricing data of ABC Corp. on its Product X: Price: P120.00.per unit…

A: Break even units of sale is computed by dividing fixed cost by contribution per unit.

Q: Sales Volume Variable cost Fixed cost Inspect time / unit Product X $50,000 1000 $22,057 $10,207…

A: 1.

Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…

A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…

Q: Sales are 440000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost a.…

A: Sales = 440000 OMR Variable cost = 110000 OMR Profit = 10000 OMR

Q: A company has a choice between two machines with identical production capacity but different costs.…

A: Incremental IRR is the incremental rate of return a project generates. It is used to compare two…

Q: Tatcher Ltd has the following information Fixed costs per annum 60000 Unit selling price 20 Unit…

A: Breakeven point is the point where the entity earns no profit and no loss. It is a stage where costs…

Q: Reid Company is considering the production of a new product. The expected variable cost is $24 per…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: A manager has the option of purchasing 1, 2, or 3 machines. The computed VC is…

A: Solution:- a) Determination of the BEP of each range using the formula as follows under:- Formula…

Q: Sohar Aluminium company produce a breakeven units of 35000 and a breakeven sales revenue of…

A: Formula: Margin of safety = Expected sales revenue - Break even sales revenue Deduction of break…

Q: Vaughn Manufacturing has the following costs when producing 100000 units: Variable costs $600000…

A: Manufacturing costs are the cost paid during the manufacturing of a good.Direct material, direct…

Q: A)

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Currently, the unit selling price of a product is $340, the unit variable cost is $280, and the…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: Calculate the profitability of the following proposal using Average rate of return (ARR) method…

A: average rate of return = average annual profit / initial investment

Q: KI Your answer is incorrect. Try again. Sheridan Company has sales of $2200000, variable costs of…

A: The degree of operating leverage is a financial ratio that measures the amount of change that takes…

Q: Dhofar Company has the following information: Total Fixed cost OMR 20000 Selling price per unit OMR…

A: The question is multiple choice question  Required  Choose the Correct Option

Q: Production Facilities cost is 465000 OMR. Total Variable cost is 65000 OMR. Calculate Total Fixed…

A: The fixed costs are the costs that remains constant for every level of production.

Q: wing financial information is available in Table Q2. Current output at 30,000 hampers per year,…

A: 1)Fixed Cost are total overheads that are constant and do not change with change in activity level.…

Q: Salalah Company has the following information: Total Sales (Amount) = OMR 80000 %3D Selling Price…

A:

Q: Define and compute the EOQ, and Total variable cost for the given information- Annual demand 5000…

A: Formula for economic order quantity: EOQ, is a formula used by companies to determine the best order…

Q: Sales are 140000 OMR, variable cost = 110000 OMR calculate contribution Select one: O a. 70000 OMR O…

A: The contribution margin is calculated as difference between sales revenue and variable costs.

Q: ssume that a company has the following data for one of its manufacturing cells: Theoretical velocity…

A: We need to use the following equations  Actual conversion cost per unit =actual cycle time*standard…

Q: If selling price  $40 per unit                   Variable cost $25 per unit…

A: Break even point = fixed cost / contribution per unit Sales = fixed + desired profit / contribution…

Q: Total Fixed cost is 60000 OMR Total Variable cost is 100000 OMR Calculate Total Cost Select one: O…

A:

Q: Consider the following table which summarizes data of two alternatives. First cost Annual return…

A: Rate of Return Method: it is the method of capital budgeting in which a rate is determined to find…

Q: The selling price of a component is 1.45 Riyal with a material cost of 0.8 Riyal. The cost of the…

A: The question is based on the concept of business accounting.

Q: selling price  $300 per unit                   Variable cost $250 per unit                   Fixed…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: The following table shows the cost data is for Dhofar Company. Variable cost per unit: OMR 8.5…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: Mars Company has the following information: Total Fixed cost OMR 25000 Selling price per unit OMR 40…

A: Margin of Safety is the difference between the current sales and the breakeven sales.

Q: a) CVP analysis help managers to take better decision. Justify with real life scenario.…

A: CM Ratio: It means the Cost-Margin ratio. It shows the difference between sales and the variable…