Same in total as the number of units produced changes

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Reference no: EM131264225

1. Which of the following costs is an example of a cost that remains the same in total as the number of units produced changes?

1. direct materials

2. salary of a factory supervisor

3. direct labor

4. units-of-production depreciation on factory equipment.

2. (Ignore income taxes in this problem) The management of Favreau Corporation is considering the purchase of a machine that would cost $310,464 and would have a useful life of 5 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $84,000 per year. The internal rate of return on the investment in the new machine is closest to:

12%

14%

11%

13%

Reference no: EM131264225

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