Answer:
$87 million
Explanation:
The projected benefit obligation (PBO) is a measurement of the present amount of money needed by a company to cover future pension liabilities. PBO uses how long the employee will work and any increased future obligations to the employee's pension.
Given that:
PBO at the beginning of the year = $80 million
Service cost for the year = $10 million
Interest = Discount rate × PBO at beginning of the year = 5% × $80 million = 0.05 × $80 million = $4 million
Actuarial (gain) Loss = Amount paid - Expected money = $5 million - $4 million = $1 million
Benefits paid paid by trustees = $6 million
The total pension expense for the year = PBO at year beginning + Service cost + interest - Actuarial (gain) Loss - benefits = $80 million + $10 million + $4 million - $1 million - $6 million = $87 million
Saves more than it spends.
Answer:
Degree of Operating Leverage = 1.24
Explanation:
given data
Selling price = $35.50 per bear
Total fixed cost = 1,450.00 per month
Variable cost = 16.50 per bear
sells = 390 bears
solution
we get here Degree of Operating Leverage that is express as
Degree of Operating Leverage = Contribution Margin ÷ Operating Income .................1
and
Contribution Margin = Sales - Variable cost .................2
Contribution Margin = (390 bears × $35.50) - (390 bears × $16.50)
Contribution Margin = $7410
and
Operating Income = Sales - Variable cost - Fixed Costs ................3
Operating Income = (390 bears × $35.50) - (390 bears × $16.50) - $1450
Operating Income = $5960
so put value in equation 1
Degree of Operating Leverage = 
Degree of Operating Leverage = 1.24
Answer:
A product's life cycle is generally divided into four stages:
- Introduction: requires a very large marketing effort (a lot of money invested), sales are generally low but the goal is to establish the product in the customers' minds.
- Growth: Sales start to pick up as customers accept the new product or service, and new competitors might appear. Companies have to try to differentiate their product from the competition.
- Maturity: sales reach their highest peak. Many companies extend the growth stage by making small changes and different versions of the product or service. Competition is generally very intense at this stage and since the market growth stalls, each company tries to win the market share of other companies.
- Decline: sales start to decline since the product or service might become obsolete. Competition starts to shrink since companies start to exit the market. Companies might extend the decline stage by adding new uses for their products or cutting prices.
<span><span>He already plans to spend $50 to buy towels and since both sets of towels cost less than $50 he decided to go with the better quality yet more expensive set of towels.</span>
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