Answer:
- a. Paying higher wages can reduce a firm's training costs.
- b. Higher wages attract a more competent pool of workers.
- d. Paying higher wages helps workers to be healthier in some developing countries.
Explanation:
Paying higher than average wages will help a company retain staff who would appreciate being paid so much. There will therefore be less workers leaving the company which means that there would be no need to train new staff.
Higher wages also attracts more competent workers because competitive wages attract better talent who would want to work for a company that adequately compensates them for their higher skillset.
Developing countries tend to have low minimum or rather low equilibrium wage rates in order to get companies to employ more people. This usually does not reflect the economic situation in he country so paying above this rate will ensure that the employees are better taken care of which would leave them healthier.
Answer:
yes
Explanation:
yes cause everyone uses the journal
McDonald's in a <u>form utility </u>category and Costco in the <u>place utility </u>category.
Form utility refers the the increased utility of the product or service itself (fast convenient burgers and fries at McDonald's)
Place utility is making products and services available in a convenient place (you can buy food, tires, a TV, your medicine, and a couch all at Costco).
Answer: The difference in the two future values is $2703.79.
We arrive at the answer at follows:
We need to find the future value of these investments.
<h3><u>
A. First investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 12%
No. of years (n) 7
No. of compounding periods per year (m) 12 (monthly)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3>B<u>
. Second investment Plan</u></h3>
We have
Principal $25,000
Interest rate per year (i) 13%
No. of years (n) 7 No. of compounding periods per year (m) 2 (semi-annual)
We can compute the Future Value (FV) of this investment with the following formula:
Substituting the relevant values in the formula above we get,
<h3><u>C. Difference between the two Future values</u></h3>
Answer:
Residual income = $666,270
Explanation:
The residual income is the amount left after the opportunity cost of capital deducted from the net operating income
Operating income=Contribution margin -Fixed cost
Operating income= 1,050,000 - 325,500= $724,500
Residual income = Net income - (cost of capital × capital invested)
=$724,500 - (18% × 323,500)= 666270
Residual income = $666,270