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4 years ago

Why do some workers lose their job when the minimum wage isâ€‹ increased?

Business

2 answers:

PolarNik [594]4 years ago

6 0

Answer:

The company can't afford to pay their employees. If you have 100$ you can have ten people working for 10$ an hour and pay everyone for one hour. You can't have 10 people getting paid 20$ because the company would lose money. So if they are paid 20$ per hour, the company can only afford to hire 5 employees.

Explanation:

Julli [10]4 years ago

4 0

You might be interested in

Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue

disa [49]

Suppose the price of barley increases by 16.53%. If breweries buy 3.28% less barley after the price increase, the total revenue for barley producers will increase because the price effect is greater than the quantity effect.

Explanation:

Every company must sooner or later come to the point that an rise in the price is right.

Inflation has two primary causes: demand tug and expense drive.

Both have a general raise in costs in an economy. However, they work otherwise. Conditions of market pull arise as customer demand raises costs.

Consumers are now increasing the demand on the good for some quantity, and suppliers would need to offer a better price in order to deliver the good.

8 0

4 years ago

A company’s assets consist of $254,478 of cash, $579,445 of accounts receivable, $487,009 of inventory, and $2,478,554 of plant

Anna [14]

Answer:

The company's Return on Equity is 18.49% therefore is above the industry average of 15.79%

Explanation:

DU PONT ANALYSIS

ROE = PROFIT MARGIN X ASSET TURNOVER X EQUITY MULTIPLIER

Industry average ROE

0.0683 x 1.25 x 1.85 = 0,15794375 = 15.79%

Company Dupont:

Profit margin:

income 272,289

sales 4,765,889

profit margin: 0,05713288

Assets Turnover:

Sales 4,765,889

Total assets:

Cash 254,478

A/R 487,009

PEE 2,478,554

total 3,220,041

Turnover: 1.48

Equity Multiplier:

Assets 3,220,041

Liabilities:

A/P 332,887

Accrued 139,877

long-term 1,275,000

total 1,747,764

Equity: 3,220,041 - 1,747,764 = 1,472,277

Equity multiplier: 3,220,041 / 1,472,277 = 2.187116

Company's Dupont Calculation:

ROE = PROFIT MARGIN X ASSET TURNOVER X EQUITY MULTIPLIER

0,05713288 x 1.48 x 2.187116 = 0,184935229 = 18.49%

3 0

3 years ago

(This problem combines material in Chapters 2 and 3.) You purchase a stock for $50 and sell the stock for $70 after three years.

tensa zangetsu [6.8K]

Answer:

11.87% (12% to the nearest whole percentage)

Explanation:

From the perspective of time value of money,we understand that the value of stock after 3 years is the future value while the initial amount at which it was bought is the present value, on that premise,we can determine the annual rate of return using the formula below which shows the relates future and present values together:

FV=PV*(1+r)^n

FV=future value=$70

PV=present value=$50

r=annual rate of return which is unknown

n=investment timing horizon=3

70=50*(1+r)^3

70/50=(1+r)^3

divide indices on both sides by 3

(70/50)^(1/3)=1+r

r=(70/50)^(1/3)-1

r=11.87%

5 0

3 years ago

Company A pays its managers a fixed salary. Company B ties compensation to the performance of the stock. Which company’s compens

11111nata11111 [884]

Answer:

Company B

Explanation:

The reason is that the interest of shareholders is to maximize its investment worth and the manager desires to have better salary which is cost to the shareholders. This means that the shareholder's interest are in conflict with that of management which is also known as agency problems. The alignment of interests of both shareholders and the manager is when the payments made to managers in compensation for their salaries are in shares not in cash form. The manager would now work hard to generate more profits than before, this will increase the value of shares in stock exchange which every shareholder desires. So Company B has mitigated conflicts of interest between managers and shareholders by offering managers shares in compensation for their services offered.

5 0

4 years ago

When a company wants to determine how its operating, investing, and financial activities affect cash during an accounting period

Akimi4 [234]

Answer:

Statement of Cash flows

Explanation:

The statement of cash flows shows the activities responsible for the change in the amount of cash held by an organization between the beginning and end of a period.

It is usually prepared using the direct and indirect methods.

The activities of the organization are usually recognized in 3 parts namely; Operating activities, investing activities and financing activities.

The operating activities include elements such as net profit, non cash items, change in current assets and liabilities.

The investing activities include cash flows from the disposal and purchase of assets etc

The financing activities includes cash flows from the disposal and sale of shares etc.

Hence when a company wants to determine how its operating, investing, and financial activities affect cash during an accounting period, it will have a prepared statement of cash flows.

3 0

3 years ago