Question

What are the incremental revenues, expenses, and net income for each year for Model A and Model B? Te=15%. Time period is across 10 years...

Oxford Manufacturing company needs to invest in a new air compressor. They have narrowed the choice to two alternatives, A an(4) What are the incremental revenues, expenses, and net income for each year for Model A? Year Incremental Revenues Incremen

please answer #4 and #5

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Incremental Alet. Pozcomes Incremental Porcremental Revenue Expenses / Kannual of my cost + Depreciation) $ 18700 - $5.600 +life Deprecation for coolel. A Cost - Salvage Value - $ 95.000 = $ savo Depreciation for Model 6 = $ 35poo - $5,000 = $6200 ي

Add a comment
Know the answer?
Add Answer to:
What are the incremental revenues, expenses, and net income for each year for Model A and...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • please do #2 and #6 Te=15% Use this scenario for problems 2-6 Oxford Manufacturing company needs to invest in a new a...

    please do #2 and #6 Te=15% Use this scenario for problems 2-6 Oxford Manufacturing company needs to invest in a new air compressor. They have narrowed the choice to two alternatives, A and B. the following financial data has been collected: Model A Model B Investment Cost $25,000 $35.000 Annual Incremental Revenues $18,700 $16,500 Annual O&M Costs $5,600 $3.500 Salvage Value $4,000 Service Life 10 years 10 years Depreciation S-vear 5-year Method MACRS MACRS Assume the After Tax is MARR-10%...

  • 1-4 Calculate Net Income for each of the situations below. a. Revenues = $1,350,000; Expenses =...

    1-4 Calculate Net Income for each of the situations below. a. Revenues = $1,350,000; Expenses = $950,000. b. Revenues = $1,350,000; Expenses = $950,000; Gains $10,000 c Revenues = $1,350,000; Expenses = $950,000; Gains = $10,000; Losses = $5,000. d. Revenues $1,350,000; Expenses = $950,000; Losses = $35,000. e. Revenues = $1,350,000; Expenses = $1,450,000; Gains $10,000 f. Revenues = $1,350,000; Expenses = $1,450,000; Losses = - $10,000. 1-5. Explain the concept of equity.

  • 1-4 Calculate Net Income for each of the situations below. a. Revenues = $1,350,000; Expenses =...

    1-4 Calculate Net Income for each of the situations below. a. Revenues = $1,350,000; Expenses = $950,000. b. Revenues = $1,350,000; Expenses = $950,000; Gains = $10,000 c Revenues = $1,350,000; Expenses = $950,000; Gains $10,000; Losses = $5,000. d. Revenues = $1,350,000; Expenses = $950,000; Losses = $35,000 e. Revenues = $1,350,000; Expenses = $1,450,000; Gains = $10,000 f. Revenues $1,350,000; Expenses = $1,450,000; Losses = $10,000.

  • Revenues $300,000 Less operating expenses: Rent $169,000 Insurance 15,000 Depreciation 46,000 Maintenance 20,000 250,000 Net operating income $   50,00...

    Revenues $300,000 Less operating expenses: Rent $169,000 Insurance 15,000 Depreciation 46,000 Maintenance 20,000 250,000 Net operating income $   50,000 1. A company has estimated the annual revenues and expenses for a project it is considering (listed above) that will cost a total of $500,000, have a ten-year useful life, and has a salvage value of $40,000. The company requires a payback period of 5 years or less. Using the information above, what is the expected annual cash flow for this...

  • An asset with a 5‐year MACRS* life will be purchased for $10,500. It will produce net annual benefits (i.e., revenues) o...

    An asset with a 5‐year MACRS* life will be purchased for $10,500. It will produce net annual benefits (i.e., revenues) of $2000/year for 6 years, after which time it will have a net salvage value of zero and will be retired. The company’s total tax rate is 34% and they use an ieff (MARR) of 11%. Use these to construct a table in Excel showing the annual discounted after tax cash flows (CF). Please calculate discrete and cumulative CF for...

  • Calculate 5 year net sales, operating expenses, operating income, and net income and interpret th...

    calculate 5 year net sales, operating expenses, operating income, and net income and interpret the resulting data and explain the significance of the trend Jiranna Healthcare Income Statement December 31, 2013 (in thousands) 2010 2011 2012 2013 12,050 Gross patient services revenues (non-GAAP) Less deductions from revenues (non-GAAP) Net patient service revenues Other operating revenues 8,870 9,490 10,400 11,200 890) 1,000) (1.500 9,400 679 10,079 600 8,090 519 8,609 8,600 633 9,233 9,700 10,450 980 11,430 Total operating revenues 10,417...

  • Please help in this question all parts Chapter 8 Incremental Analysis (50 Points Problem 3 An oilcompany plans to purchase a large piee of vacant land for $77,500. There are four possible improv...

    Please help in this question all parts Chapter 8 Incremental Analysis (50 Points Problem 3 An oilcompany plans to purchase a large piee of vacant land for $77,500. There are four possible improvements over and above the cost of the land: Cost of s 75,000 Cost of $ 230,000 Cost of S 35,000 Cost of $ 135,000 Conventional service station Automatic car wash with pumps Discount self-service only Service station with quick car wash A. B. C. D. In cach...

  • PEPPER COMPANY Income Statement For Year Ended December 31, 2015 Operating expenses Income (loss) before tax...

    PEPPER COMPANY Income Statement For Year Ended December 31, 2015 Operating expenses Income (loss) before tax 1-b. Prepare the current assets section of the balance sheet for each company. GARCON COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets PEPPER COMPANY Partial Balance Sheet As of December 31, 2015 Inventories Total current assets Hints References eBook & Resources Using the following data, Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental...

  • The income statement for the year 2020 of Bugati Co. contains the following information: Revenues $73,000...

    The income statement for the year 2020 of Bugati Co. contains the following information: Revenues $73,000 Expenses: Salaries and Wages $43,000 Expense Rent Expense 12,000 Advertising Expense 11,000 Supplies Expense 6,000 Utilities Expense 3,500 Insurance Expense 4,000 Total expenses 79,500 Net income (loss) $(6,500) The entry to close Income Summary to Owner's Capital includes a) credits to Expenses totalling $79,500. b) a credit to Owner's Capital for $6,500. c) a credit to Income Summary for $6,500. d) a debit to...

  • Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wi...

    Income Statement, Depreciation table (20 points) Equipment with a first cost of $120.000 is depreciated by MACRS wil period. The estimated expenses are $17,500 each year, annual revenues effective tax rate is 40%. preciated by MACRS with a 5-year recovery year; annual revenues are $90,000. The (a) (10 points) Construct a table showing yearly depreciation rate, dep book value to fully depreciate the machine. any depreciation rate, depreciation amount, and 10 points) Construct a complete income statement (using the format...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT