Essay heading: 5 Responsibility Centers and Financial Control

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Business

 

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April 23, 2002

 

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Show calculations to support your answer. Annual Inflow $660k - Annual Outflow -$160k Profit per year $500k (over 20 yrs) - 40% income tax -$200k Profit after tax $300k
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Facts: Cost of one lift $2 million Prep & install $1.3 million Running the new lift $500 a day for 200 days Cash expenses per skier $5 Lift tickets $55 a day The lift will allow 300 additional skiers on the slopes, but there are only 40 days a year when the extra capacity will be needed. The new lift has an economic life of 20 years...
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