The production manager in Coronado's business unit pitched an idea to her, suggesting their unit would...
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The production manager in Coronado's business unit pitched an idea to her, suggesting their unit would generate $51,000 of new sales this year by purchasing a new piece of equipment with a 5-year useful life. Expenses to support these additional sales would total 45% of new sales (before depreciation). If this asset will cost $25,000 (and has no salvage value), should Coronado move forward with this investment if she is evaluated based on her division's ROI (which is typically 12%) ? (Round answer to 1 decimal place, e.g. 15.2%.) ROI Coronado % move forward with this investment. The production manager in Coronado's business unit pitched an idea to her, suggesting their unit would generate $51,000 of new sales this year by purchasing a new piece of equipment with a 5-year useful life. Expenses to support these additional sales would total 45% of new sales (before depreciation). If this asset will cost $25,000 (and has no salvage value), should Coronado move forward with this investment if she is evaluated based on her division's ROI (which is typically 12%) ? (Round answer to 1 decimal place, e.g. 15.2%.) ROI Coronado % move forward with this investment.
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Related Book For
Management Accounting
ISBN: 9780730369387
4th Edition
Authors: Leslie G. Eldenburg, Albie Brooks, Judy Oliver, Gillian Vesty, Rodney Dormer, Vijaya Murthy, Nick Pawsey
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