To determine the tax amount you multiply the gross pay and the tax percentage. In this case, you would multiply $35,600 by .16 which equals $5,696 for the federal tax year. Remember: to convert a percentage to a decimal number, move the decimal place 2 places to the left.
Answer:
$89,418
Explanation:
It is important to realize that Ms. White has been honoring her mortgage payments for the 18 months that she owned the house.
So we can determine the amount of outstanding debt by constructing an amortization table.
Here, i will use a Financial Calculator to prepare the amortization table.
PV = $90,000
N = 20
I = 12
FV = 0
P/YR = 1
PMT = $11,172.93 (CALCULATED)
Period Principle Interest Payment Balance
Beginning $90,000
Year 1 End $373 $ 10,800 $11,173 $89,627
Year 2 End $417 $ 10,755 $11,173 $89,209
But for the Year 2 she only owned the house for 6 month (to 18 months).
Thus amount outstanding after 18 months is $89,418 ($89,627 - $209)
Answer:
a) Valuation of Ending Inventory
The total cost of consignment = $28980
Cost of Freezers= 60 freezers *$470= $28200
Shipment Costs $ 780
Per unit Cost of Consignment= $28980 / 60= $ 483
The inventory value of the units unsold in the hands of the consignee
= (60 units - 30 units )* 483= $ 14490
b) Profit for the Consignor
Sales 30 units at $800 $24000
<u>CGS 30 units at 483 14490
</u>
<u>Gross Profit 9510
</u>
Less
Advertising $200
Total installation costs $350
<u>Commision 6% of 24000= $ 1440 1990
</u>
<u>Net Profit $7520
</u>
<u />
<u>c) Remittance was made of $7520
</u>
Answer:
Agency conflicts between managers and shareholders
1. A New Beginning (ANB)
A. Yes; Alexander is misappropriating some of Akiko's wealth by unilaterally purchasing a nonbusiness asset using ANB's funds.
2. The Green Zone Inc. (TGZ):
B. No; although an agency relationship exists between TGZ's management-including Tae as TGZ's chairman and CEO and the firm's shareholders-there is no agency conflict, because no expropriation or wasting of the shareholders' wealth has occurred.
3. In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the__LONG-TERM____value of the company's common stock price.
4. In addition to well-designed executive compensation packages, two other motivational forces can align the interests of managers with those of their shareholders.
a. Reward the manager with a combination of salary and stock options
b. Let the manager to understand that a takeover can happen if she does not perform well.
5. In the late 1980s and early 1990s, Congress passed legislation making it more difficult for outside investors to stage hostile takeovers. This legislation likely__increases____conflicts between managers and stockholders.
Explanation:
Agency conflicts of interest exist in any relationship where one party is expected to act in another's best interests. Agency problems or conflicts of interest usually exist between a company's management and the company's stockholders. But, it can equally exist in a relationship where one party acts against the interest of the other.
Answer:
D. Switching cost strategy
Explanation:
The software manufacturer has incorporated the use of switching cost strategy by making it difficult for customers to substitute their software product for another.
Switching costs: it is also known as switching barrier. This is a the cost incurred by the customer as a result of changing brands, product, services or suppliers.
The higher the cost of switching; the lesser a customer would be willing to switch between brands, the lower the switching cost; the higher the customer would be willing to switch between brands.
Switching cost includes:
• Psychological cost: This is the cost of a customer deciding whether the new product or services would be better than the old product
• Effort-based cost: This refers to the effort a customer will put in while switching brands such as the paperwork involved.
• Time cost: The amount of time used while a customer is switching product
Strategies used by firms to discourage its customers from switching
1. Charging a high cancellation fee for service cancellations.
2. Adopting a lengthy cancellation process for service cancellations.
3. Requiring significant paperwork for service cancellations.
