Jaymes Corporation produces high-performance rotors. It expects to produce 57,000 rotors in the coming year. It has invested$11,780,000 to produce rotors. The company has a required return on investment of 15%. What is its ROI per unit?ROI per unit $

RETURN ON INVESTMENTReturn on investment is one of the profitability ratios which shows how much…

Answered: Jaymes Corporation produces…

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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Madetaylor Inc. manufactures financial calculators. The company is deciding whether to introduce a new calculator. This calculator will sell for $130. The company feels that sales will be 18,000, 22,000, 24,000, 22,000, and 18,000 units annually for the next five years. Variable costs will be 21% of sales, and fixed costs are $500,000 annually. The firm hired a marketing team to analyze the product's viability, and the marketing analysis cost $1,250,000. The company plans to manufacture and store the calculators in a vacant warehouse. Based on a recent appraisal, the warehouse and the property are worth $2.5 million after tax. If the company does not sell the property today, it will sell it five years from today at the currently appraised value. This project will require an injection of net working capital at the onset of the project, $250,000. The firm recovers the net working capital at the end of the project. The firm must purchase equipment for $5,000,000 to produce the…
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Jaymes Corporation produces high-performance rotors. It expects to produce 56,000 rotors in the coming year. It has invested $10,150,000 to produce rotors. The company has a required return on investment of 16%. What is its ROI per unit? ROI per unit $
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Jaymes Corporation produces high-performance rotors. It expects to produce 57,000 rotors in the coming year. It has invested $11,780,000 to produce rotors. The company has a required return on investment of 15%. What is its ROI per unit? Ter ROI per unit $