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A company is planning to purchase a machine that will cost $28,200, will have a six-year life, and will have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 95,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income Multiple Choice 50.00%. $ 50,200 4,700 35,000 (89,900) $ 5,100

A company is planning to purchase a machine that will cost $28,200, will have a six-year life, and will have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 95,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income Multiple Choice 50.00%. $ 50,200 4,700 35,000 (89,900) $ 5,100

FINANCIAL ACCOUNTING
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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A company is planning to purchase a machine that will cost $28,200, will have a six-year life, and will have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 95,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income Multiple Choice O 50.00%. $ 50,200 4,700 35,000 (89,900) $ 5,100
Transcribed Image Text:A company is planning to purchase a machine that will cost $28,200, will have a six-year life, and will have no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine? $ 95,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income Multiple Choice O 50.00%. $ 50,200 4,700 35,000 (89,900) $ 5,100
O 50.00% 33.33%. 12.66%. 4.70%. 36.17%. 9
Transcribed Image Text:O 50.00% 33.33%. 12.66%. 4.70%. 36.17%. 9
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