PEV Nov 2009
Terdoo
Registered Posts: 144 Dedicated contributor 🦉
Task 2.2 b
(v) how do they get return on capital investment 34.09%
Thanks in advance
(v) how do they get return on capital investment 34.09%
Thanks in advance
0
Comments
-
The formula is profit divided by capital times 100.
The profit given for the machines is 460,000.
The capsules are sold for 0.30 each. All costs deducted leaves a profit of 0.01 per capsule. They expect to sell 10,400,000. The profit is then 1,040,000.
Total profit is 460,000 + 1,040,000 is 1,500,000.
The capital investment is 2,400,000 for the machine and 2,000,000 for the capsules.
Total capital is 2,400,000 + 2,000,000 is 4,400,000.
1,500,000 divided by 4,400,000 times 100 is 34.10%
Does this help?0 -
Re Pev Nov 2009
Thanks for the quick reply, I was struggling with that the whole day.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership