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Average Rate of Return-New Product Arrowhead Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications product. The

Average Rate of Return-New Product Arrowhead Inc. is considering an investment in new equipment that will be used to manufacture a mobile communications product. The product is expected to generate The equipment has a cost of $613,800, residual value of $46,200, and an 8-year life. The equipment only can be used to manufacture the product. The cost to manufa Cost per unit: Direct labor Direct materials Factory overhead (including depreciation) Total cost per unit Determine the average rate of return on the equipment. $34.00 131.00 22.60 $187.60

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