Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. micro tek inc. is considering an investment in new

Micro Tek Inc. is considering an investment in new equipment that will be used to...

90.2K

Verified Solution

Question

Accounting

Micro Tek 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 6,500 units at $298 per unit. The equipment has a cost of $725,400, residual value of $54,600, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows:

Cost per unit:
Direct labor $50.00
Direct materials 193.00
Factory overhead (including depreciation) 33.40
Total cost per unit $276.40

Determine the average rate of return on the equipment. If required, round to the nearest whole percent. fill in the blank 1 %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

9-3:Potter Replica produces a specialty statue for sale tocollectors. In 2017, Potter’s expected and...

Accounting
Q

Which biomolecules are relevant to function and structure? Use those biomolecules to explain the difference in...

Biology
Q

Q. what is the difference between Black-litterman and Stutzer’s 2004 optimisation approach ?

Physics
Q

Although diverse alveolates are believed to be monophyletic and includes dinoflagellates ciliates and apicomplexans Alveolates...

Biology
Q

Listen Number of families of marine animals 900 600 300 Cambrian explosion 600 PALEOZOIC ERA...

Biology
Q

Asample of Nickel oxide contains 64 5 nickel Calculate the mass of nickel present in...

Basic Math
Q

7 Sarah is a hairdresser At her salon she charges 15 per woman and I...

Algebra
Q

A bank loaned out 14 000 part of it at the rate of 9 per...

Algebra
Q

A metropolitan airport authority has the power to A.Sue people B. Apply for Federal Loans...

Accounting
Q

Alpine Luggage has a capacity to produce 440,000 suitcases per year The company is currently...

Accounting
Q

I'm having trouble figuring out the correct amount for the bank error. ...

Accounting
Q

Waterway Engine Incorporated produces engines for the watercraft industry. An outside manufacturer has offered to...

Accounting