Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000.The equipment has an estimated useful life of eight years.Estimated annual sales and operating expenses related to the pasta equipment follow: $\begin{array}{lrr}
\text { Annual sales } &\$88,00\
\text {Labor costs } &(72,000)\
\text { Depreciation of equipment } &\underline{(6,000)}\
\text { Operating income} &\$10,000\
\text { Income taxes } &\underline{(4,000)}\
\text { Net income } &\underline{\$6,000}\
\end{array}$

The estimated accounting rate of return is:

Question

Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000.The equipment has an estimated useful life of eight years.Estimated annual sales and operating expenses related to the pasta equipment follow: $\begin{array}{lrr}
  \text { Annual sales } &\$88,00\
 \text {Labor costs  } &(72,000)\
 \text { Depreciation of equipment } &\underline{(6,000)}\
 \text {  Operating income} &\$10,000\
 \text { Income taxes } &\underline{(4,000)}\
 \text { Net income } &\underline{\$6,000}\
\end{array}$
  
The estimated accounting rate of return is:

Quizplus · Accepted Answer

The Answer of Boccardi Inc., has invested in new pasta manufacturing equipment at a cost of $48,000.The equipment has an estimated useful life of eight years.Estimated annual sales and operating expenses related to the pasta equipment follow: $\begin{array}{lrr}
  \text { Annual sales } &\$88,00\
 \text {Labor costs  } &(72,000)\
 \text { Depreciation of equipment } &\underline{(6,000)}\
 \text {  Operating income} &\$10,000\
 \text { Income taxes } &\underline{(4,000)}\
 \text { Net income } &\underline{\$6,000}\
\end{array}$
  
The estimated accounting rate of return is:

Boccardi Inc The Estimated Accounting Rate of Return Is: A)12

Boccardi Inc The Estimated Accounting Rate of Return Is:
A)12