Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please provide a detailed calculation procedure. Thank you. Quote Limited has been asked to provide a quotation for a job that will last 6 months

image text in transcribed

Please provide a detailed calculation procedure. Thank you.

Quote Limited has been asked to provide a quotation for a job that will last 6 months using 3 permanent employees on a full-time basis. Each employee earns an annual salary of 23,000. Two of these employees are about to be made redundant and the redundancy pay for each in 7,500. The projected net profit on this job, after charging all expenses, including depreciation is 127,500. The depreciation charge on equipment is 11,000. That equipment will remain with the company whether the contract is awarded or not. What is the incremental cash flow relating to this job? A) 138,500 B) 222,500+ C) 253,500 D) 207,500 E) None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Colin Drury

8th edition

978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887

More Books

Students also viewed these Accounting questions

Question

Explain how to reward individual and team performance.

Answered: 1 week ago