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AirPac Packaging Systems Are Used to Create Airtight Packages for Meat

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Essay

AirPac packaging systems are used to create airtight packages for meat and cheese products. The AirPac system is more expensive to use but guarantee to cut packaging reject costs in half. The cost for the AirPac system is $15,300. The purchasing company experienced a net savings of $5,100 during its first year of usage. Calculate the return on investment (ROI).

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Definitions:

Liquidation

The process of closing a business by selling its assets to pay off its liabilities, with any remaining proceeds distributed to shareholders or owners.

Income Statement

A financial statement that shows a company's revenues, expenses, and net income over a specific period of time.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and shareholders’ equity at a specific point in time, providing insights into its financial condition.

Salary Allowance

An amount of money given to employees in addition to their regular salary, often to cover specific expenses.

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