Exercise 12-8 payback period and simple rate of return [lo12-1, lo12-6] [the following information applies to the questions displayed below.] nick’s novelties, inc., is considering the purchase of new electronic games to place in its amusement houses. the games would cost a total of $672,000, have a fifteen-year useful life, and have a total salvage value of $67,200. the company estimates that annual revenues and expenses associated with the games would be as follows: revenues $ 260,000 less operating expenses: commissions to amusement houses $ 90,000 insurance 36,000 depreciation 40,320 maintenance 50,000 216,320 net operating income $ 43,680 exercise 12-8 part 2 2a. compute the simple rate of return promised by the games. 2b. if the company requires a simple rate of return of at least 5%, will the games be purchased?

Identify the three components of a family's culture and provide one example from your own experience

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.

Bridge building company estimates that it will incur $1,200,000 in overhead costs for the year. additionally, the company estimates 50,000 direct labor hours will be spent building custom walking bridges for the year at a total direct labor cost of $600,000. what is the predetermined overhead rate for bridge building company if direct labor costs are to be used as an allocation base?