Oahu 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 4,500 units at $246 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Line Item Description Amount Cost per unit: Direct labor $41.00 Direct materials 161.00 Factory overhead (including depreciation) 28.00 Total cost per unit $230.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.fill in the blank 1 of 1 %

Oahu 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 4,500 units at $246 per unit. The equipment has a cost of $418,500, residual value of $31,500, and an 8-year life. The equipment can only be used to manufacture the phone. The cost to manufacture the phone follows: Line Item Description Amount Cost per unit: Direct labor $41.00 Direct materials 161.00 Factory overhead (including depreciation) 28.00 Total cost per unit $230.00 Determine the average rate of return on the equipment. If required, round to the nearest whole percent.fill in the blank 1 of 1 %

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 31P: Jonfran Company manufactures three different models of paper shredders including the waste...

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Line Item Description	Amount
Cost per unit:
Direct labor	$41.00
Direct materials	161.00
Factory overhead (including depreciation)	28.00
Total cost per unit	$230.00

Similar questions

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