INTRODUCTION TO MANAGEMENT ACCOUNTING 16E Problem 11-46 Name Section A D E B C 5 Data Input Section: Snuffy's Drive-In 28,000 SO 7 Cost of system 8 Salvage value 9 Useful life in years) 10 Increase in annual sales 11 Contribution margin ratio 12 Contribution margin 13 Required rate of retum 14 Annual depreciation for part 3 15 Annual net income for part 3 16 Output Section 17 Part 1 18 Payback period in years 19 Answers will vary $ 14,000 2596 Formula 1 1096 Formula 2 Formula 3 Formula 4 21 Part 2 22 Present value of future contribution margin 23 Cost of system 24 Net present value 25 The system should not be acquired Formula 5 Fonnula 6 VALUE 25 27 Part 3 28 Accounting rate of return on initial investment Fomula End of