Calculate the profitability of the following proposal using Return on investment method Proposal I Automatic machine Cost 320000 Estimated life 6.5 years Estimated sales p.a 160000 Cost : Material 60000 Labor 22000 Variable overheads 14000 O a. 16.53% O b. 3.42% O c. 4.62% d. All the options are wrong
Calculate the profitability of the following proposal using Return on investment method Proposal I Automatic machine Cost 320000 Estimated life 6.5 years Estimated sales p.a 160000 Cost : Material 60000 Labor 22000 Variable overheads 14000 O a. 16.53% O b. 3.42% O c. 4.62% d. All the options are wrong
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 12E: Refer to Exercise 19.11. 1. Compute the payback period for each project. Assume that the manager of...
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![Calculate the profitability of the following proposal using Return on investment method
Proposal I
Automatic machine
Cost
320000
Estimated life
6.5 years
Estimated sales p.a
160000
Cost : Material
60000
Labor
22000
Variable overheads
14000
O a. 16.53%
O b. 3.42%
O c. 4.62%
O d. All the options are wrong](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fba0a1dc0-734d-4b5e-80b7-5d0ac0995907%2F0faf47db-0de9-4382-a443-f6025e08f2ef%2Fktmgy7q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Calculate the profitability of the following proposal using Return on investment method
Proposal I
Automatic machine
Cost
320000
Estimated life
6.5 years
Estimated sales p.a
160000
Cost : Material
60000
Labor
22000
Variable overheads
14000
O a. 16.53%
O b. 3.42%
O c. 4.62%
O d. All the options are wrong
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