The amount of the estimated average income for a proposed investment of $60,000 in a fixed asset

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13-5 Microgen Company static budget for 12,000 units of production includes $48,000 for direct materials, $36,000 for direct labor, utilities of $6,000, and supervisor salaries of $18,000. A flexible budget for 14,000 units of production would show:
a.direct materials of $56,000, direct labor of $42,000, utilities of $7,000, and supervisor salaries of $18,000.
b.direct materials of $50,000, direct labor of $37,500, utilities of $6,250, and supervisor salaries of $21,000.
c.total variable costs of $126,800.
d.the same cost structure in total.

14-5 Rooney Inc. had $375,000 in invested assets, sales of $735,000, operating income amounting to $105,000, and a minimum acceptable rate of return of 12% on its invested assets. The residual income for Rooney is:
a.$20,500.
b.$37,500.
c.$60,000.
d.$42,500.

Sets with similar terms

The amount of the estimated average income for a proposed investment of $90,000 in a fixed asset, giving effect to depreciation (straight-line method), with a useful life of 4 years, no residual value, and an expected total income yield of $25,300, is:

  • $6,325

How did they come up with $6,325 as the answer?

The amount of the estimated average income for a proposed investment of $60,000 in a fixed asset

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