Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $308,000 annually. The
Crimpson Company has invested $2,100,000 in a plant to make commercial juicer machines. The target operating income desired from the plant is $308,000 annually. The company plans annual sales of 7,200 juicer machines at a selling price of $300 each. What is the target rate of return on investment for Crimpson Company? A. 16.6% B. 12.7% C. 14.7% D. 14.3% Real Wood Structures Company has invested $800,000 in a plant to build small tool sheds. The target operating income desired from the plant is $200,000 annually. The company plans annual sales of 1,200 sheds at a selling price of $900 each. What is the target rate of return on investment for Real Wood Structures Company? A. 75% B. 28% O C. 18.5% D. 25% Jamal, Kareem, Rashid and Associates are in the process of evaluating its new client services for the business consulting division. Estate Planning, a new service, incurred $100,000 in development costs and employee training. The direct costs of providing this service, which is all labor, averages $30 per hour. Other costs for this service are estimated at $460,000 per year. The current program for estate planning is expected to last for two years. At that time, a new law will be in place that will require new operating guidelines for the tax consulting Customer service expenses average $95 per client, with each job lasting an average of 350 hours. The current staff expects to bill 38,500 hours for each of the two years the program is in effect. Billing averages $47 per hour. . What are estimated life-cycle revenues? O A. $1,809,500 B. $168, 100 C. $84,050 OD. $3,619,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started