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Calculate the Accounting Rate of Return if the initial investment = $37,000 and the salvage value is $3,000 and the average amount invested in it
Calculate the Accounting Rate of Return if the initial investment = $37,000 and the salvage value is $3,000 and the average amount invested in it is $26,000 + Slo-Mo Industries, incurs the following costs for the skillets it produces. Per Unit $56.50 Total $2,825,000 20.16 Sales 50,000 units Variable Costs: Direct Materials Direct Labor Variable OH Contribution Margin 16.98 5.00 1,008,000 849,000 250,000 Fixed Costs: Fixed OH Income .25 12,500 Speedo Corp wants to order 25,000 skillets from Slo-Mo Industries as a special one-time order for $42.50 per skillet. (Slo-Mo Industries does have the extra capacity to produce the additional 25,000 skillets). Should Slo-Mo Industries accept the order? What would be the minimum price for the skillets it should accept
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