A project will increase revenue from $3.6 million to $4.4 million. Wages are 30% of revenue. Maintenance on the machine will be $47,000 more than it is on the machine that will be replaced. What are the incremental expenses (i.e. change in combined wages and maintenance costs) that will result from accepting this project? (Hint: This is tricky. Read the question carefully to be sure you understand exactly what this question is asking for.) Question 5Answer a. $0.800 million b. $0.287 million c. $0.193 million d. $0.560 million
A project will increase revenue from $3.6 million to $4.4 million. Wages are 30% of revenue. Maintenance on the machine will be $47,000 more than it is on the machine that will be replaced. What are the incremental expenses (i.e. change in combined wages and maintenance costs) that will result from accepting this project? (Hint: This is tricky. Read the question carefully to be sure you understand exactly what this question is asking for.) Question 5Answer a. $0.800 million b. $0.287 million c. $0.193 million d. $0.560 million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
A project will increase revenue from $3.6 million to $4.4 million. Wages are 30% of revenue. Maintenance on the machine will be $47,000 more than it is on the machine that will be replaced.
What are the incremental expenses (i.e. change in combined wages and maintenance costs) that will result from accepting this project?
(Hint: This is tricky. Read the question carefully to be sure you understand exactly what this question is asking for.)
Question 5Answer
a.
$0.800 million
b.
$0.287 million
c.
$0.193 million
d.
$0.560 million
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