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Question
Watson Corporation is considering buying a machine for $25,000. Its estimated useful life is 5 years, with no salvage value. Watson anticipates annual net income after taxes of $1,500 from the new machine. What is the accounting rate of return assuming that Watson uses straight-line depreciation and that income is earned uniformly throughout each year?A.6.0%.
B.8.0%.
C.8.5%.
D.10.0%.
E.12.0%.
Answer
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Direct labor X X
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Variable manufacturing overhead
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Direct materials
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Match the following
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Q:
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Q:
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Given the Cool Pools Company data, what is net income using absorption costing?
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