A _____ plan relies on a predetermined formula to distribute a share of the company's profits to eligible employees.
1 answer:
You might be interested in
Cost-volume-profit analysis can be extended to determine the effect on profit of other changes, such as changes in Income Tax rates.
<h3>What is Cost-volume-profit analysis?</h3>An approach to determining how changes in variable and fixed expenses impact a company's profit is through cost-volume-profit (CVP) analysis.
Companies can utilize CVP to determine how many units they must sell to attain a specific minimum profit margin or break even (pay all expenditures).
CVP analysis makes a number of presumptions, among them the constancy of the sales price, fixed costs, and variable costs per unit.
where:
FC=Fixed costs
CM=Contribution margin=Sales−Variable Costs
Simply add a goal profit per unit to the fixed-cost part of the calculation and use it to calculate a company's target sales volume.
To know more about CVP Analysis refer to: brainly.com/question/15001199
#SPJ4
Answer:
E) Only Machine B is acceptable
Explanation:
The computation is shown below;
<u>For Machine A </u>
<u>Year Cash Flow PV Factor PV of Cash Flow </u>
0 -$9,000 1 -$9,000
1 $5,000 0.8696 $4,348
2 $4,000 0.761 $3,044
3 $2,000 0.6575 $1,315
NPV -$293
<u>Machine B </u>
<u>Year Cash Flow PV Factor PV of Cash Flow </u>
0 -$9000 1 -$9,000
1 $1,000 0.8696 $869.6
2 $2,000 0.761 $1,522
3 $11,000 0.6575 $7,232.5
NPV $624.1
As we can see that from the above calculations that the npv for machine A is in negative so the same should not be accepted but for machine the npv is in positive so the same should be accepted
