Assignment
I. Cost/Benefit Analysis
i. Carler Company wants to purchase a Punch Press costing $ 50,000. Based on the company analysis, the new machine will result in a savings of $ 9,000 per year for 5 years. Calculate the Return on Investment. Show your work.
II. Payback Period
i. Using the above information what is the payback period for the Punch Press. Show your work.
III. Operating Leverage
i. Define the term fixed costs and give an example
ii. Define the term variable costs and give an example
iii. Define the term contribution margin and the calculation formula
iv. What is the Breakeven Analysis formula?
Text Book: Financial Intelligence- A Manager's Guide to Knowing What the Numbers Really Mean by KAREN BERMAN, JOE KNIGHT and JOHN CASE.
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.