Omega Company is considering purchasing equipment for $200,0…

Omega Company is considering purchasing equipment for $200,000. The equipment will have a useful life of 8 years with no salvage value. Annual incremental revenues will be $120,000, and annual incremental expenses (including depreciation) will be $90,000. What is the simple rate of return for this investment?

Delta Manufacturing’s sales budget shows expected sales of 8…

Delta Manufacturing’s sales budget shows expected sales of 8,000 units for Quarter 2. The company wants ending finished goods inventory to be 20% of next quarter’s sales. Beginning finished goods inventory is 1,400 units. Quarter 3 expected sales are 10,000 units. How many units should be produced in Quarter 2?