*Loss on old equipment equal to its $3.5 million cost less $1,460,000 depreciation = $2,040,000
c.
** $1,750,000 = [($5,750,000 - $500,000) / 3 years]
A) 3,915,000/ (3,5000,000+ 3,500,000- 1,460,000- 1,200,000)= 0.9020737327
C) revenue 15,800,000* 10%= 1,580,000+ 15,800,000= 17,380,000
fixed 7,300,000* 5%= 365,000- 7,300,000= 6,935,000
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products....
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.5 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $3 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows: $ 15,000,000 1,975.000 7.100.000 Sales revenue Operating costs Variable Fixed (all cash) Depreciation New equipment Other Division operating profit...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $3 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $3 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows. Sales revenue$15,500,000Operating costsVariable2,050,000Fixed (all cash)7,500,000DepreciationNew equipment1,480,000Other1,200,000Division operating profit$3,270,000 A sales representative from LSI Machine Company approached Oscar in October. LSI has...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.05 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.12 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows: Sales revenue $ 16,060,000 Operating costs Variable 2,100,000 Fixed (all cash) 7,660,000 Depreciation New equipment 1,560,000 Other 1,330,000 Division...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.09 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.03 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows. Sales revenue $ 16,040,000 Operating costs Variable 2,000,000 Fixed (all cash) 7,560,000 Depreciation New equipment 1,580,000 Other 1,330,000 Division...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of blotech products. Forbes Division, which has $4 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5 million in automated equipment for test machine assembly. The division's expected income statement at the beginning of the year was as follows. Sales revenue $16,000,000 Operating costs Variable 2,000,000 Fixed (all cash) 7,500,000 Depreciation New equipment 1,500,000 Other 1,250,000 Division operating...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows. Sales revenue $ 16,000,000 Operating costs Variable 2,000,000 Fixed (all cash) 7,500,000 Depreciation New equipment 1,500,000 Other 1,250,000 Division...
Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.11 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.05 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows. Sales revenue$16,080,000Operating costsVariable2,190,000Fixed (all cash)7,540,000DepreciationNew equipment1,590,000Other1,300,000Division operating profit$3,460,000 A sales representative from LSI Machine Company approached Oscar in October. LSI has...
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