Business, 05.05.2020 08:26 sibbietiggy9372
Alactic Inc. is considering an investment in new equipment that will be used to manufacture a smartphone. The phone is expected to generate additional annual sales of 3,600 units at $226 per unit. The equipment has a cost of $301,300, residual value of $22,700, and an eight-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Cost per unit: Direct labor $38.00 Direct materials 147.00 Factory overhead (including depreciation) 24.35 Total cost per unit $209.35 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.
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Alactic Inc. is considering an investment in new equipment that will be used to manufacture a smartp...
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