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1. Bramble Corp. is evaluating its Piquette division, an investment center. The division has a $54000 controllable margin and $400000 of sales. How much will
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Bramble Corp. is evaluating its Piquette division, an investment center. The division has a $54000 controllable margin and $400000 of sales. How much will Bramble's average operating assets be when its return on investment is 10%? O $400000 0 $346000 0 $540000 0 $594000 Bramble's standard quantities for 1 unit of product include 2 pounds of materials and 2.5 labor hours. The standard rates are $6 per pound and $11 per hour. The standard overhead rate is $12 per direct labor hour. The total standard cost of Bramble's product is C) $57.50. $69.50. 0 $39.50. 0 $29.00. Wildhorse Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, and the net present value of the project was $(700). Annual cost savings were: $9000 for year 1; 7000 for year 2; and $5000 for year 3. The amount of the initial investment was Present PV of an Value Annuity of 1 at o ear 12% of 1 at 12A 1 0.893 0.893 2 0.797 1.690 3 0.712 2.402 O $17876. O $16476. O $17514. O $16114. A company projects an increase in net income of $30,000 each year for the next ve years if it invests $300,000 in new equipment. The equipment has a ve-year life and an estimated salvage value of $100,000. What is the annual rate of return on this investment? 0 20% O 25% O 10% O 15%Step by Step Solution
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