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Some help here: The purchase of a new machine will result in operating savings of $2000 per year.If the machine cost $15,000, what is the

Some help here:

The purchase of a new machine will result in operating savings of $2000 per year.If the machine cost $15,000, what is the payback period?

Same machine:

Annual operating savings $2000

Cost $15,000, depreciated over 10 years.

What is the simple (annual or accounting) rate of return?

Calculate the minimum acceptable transfer price!

Division A capacity is 100,000 units.

External demand is 100,000 units at a selling price of $30.

Variable cost per unit is $16.

Fixed cost per unit is $9.

Division B requests 10,000 units from Division A (currently purchasing externally for $29).

$3 of VC can be avoided on the internal transfer.

a cash collections budget!

April sales $300,000

May sales $500,000

June sales $200,000

20% collected in month of sale

80% collected in month following sale

Calculate May and June cash collections.

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