$$\text { Reference: } 10 - 10$$ Fast Food, Inc

question 70

Multiple Choice

$$\text { Reference: } 10 - 10$$ Fast Food, Inc. has purchased a new donut maker. It cost $16,000 and has an estimated life of 10 years with no salvage value. The following annual donut sales and expenses are projected: $$\begin{array} { | l | r | l | } \hline \text { Sales } & & \$ 22,000 \\\hline \text { Expenses: } & & \\\hline \text { Flour, etc., required in making donuts } & \$ 10,000 & \\\hline \text { Salaries } & 6,000 & \\\hline \text { Depreciation } & 1,600 & 17,600 \\\hline \text { Net income } & & \$ 4,400 \\\hline\end{array}$$
-The simple rate of return for the new machine is closest to:

• A)27.5%.
• B)20.0%.
• C)37.5%.
• D)80.0%.

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A media player, media library, Internet radio broadcaster, and mobile device management application developed by Apple Inc.

Fewer Downloads

A situation indicating a decrease in the number of times digital content is downloaded by users, possibly reflecting changes in preference or accessibility.

Inferior Good

A type of good for which demand decreases as the income of the consumers increases, opposed to a normal good where demand increases with rising income.

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Pre-made pizzas that are sold frozen to consumers, who then bake or heat them at home. They are a convenient, quick meal option that varies in quality and ingredients.