Turner Printing is looking to invest in a printer, which costs $60,000. Turner expects a 15% rate of return on this printer investment. The company expects incremental revenues of $30,000 and incremental expenses of $15,000. There is no salvage value for the printer. What is the accounting rate of return (ARR) for this printer? Round to 2 decimal places.

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.