Please HELP.. Please show work to get credit. Overall net operating income would
ID: 2381801 • Letter: P
Question
Please HELP.. Please show work to get credit.
Explanation / Answer
What would be the effect on the company's overall net operating income if product R89H were dropped?
Answer: The Overall net operating income would decrease by $66,000.
Explanation: Decrease in operating income ($66,000) = $260,000 - ($117,000+$31,000+$46,000)
The payback period for the investment would be closest to:
Answer: 4 year.
Explanation:
Patback period = Initial investment/annual cash flow
= $200,000/$50,000
=4 years