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2 years ago

What are the advantages and disadvantages of paying the new manager primarily cash pay?

1 answer:

7 0

The advantages of primarily cash pay are the following:
1. It motivates the owner to expand the business.
2. The desirable increase in the level of services.

The disadvantages are the following:
1. There was a little incentive to the owner.
2. There was potential to lose sight to the customers.

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Maiko lost her job and she was forced to sell a rental property because she did not have other funds (liquid, emergency, etc)

alexgriva [62]

Answer: The importance of liquidity

Explanation:

The financial principle at play is the importance of liquidity. Liquidity is the ease with which asset can be converted to cash. Maiko's asset has helped her to solve her financial issues she is experiencing after her job loss, therefore this shows the importance of liquidity.

3 0

3 years ago

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 110,000 wheels annuall

Anna [14]

Answer:

Indifferent Purchase price per wheel = $123,200/110,000 = $1.12

Explanation:

Provided that:

Number of wheels produced: 110,000

Cost for these wheels in case of manufacturing

Direct Material = $22,000

Direct Labor = $33,000

Variable Manufacturing Overhead = $16,500

Fixed Manufacturing Overhead = $59,000

Total Cost = $130,500

Rate of outside supplier = $0.80

Then total cost in case of purchase = Purchase cost + Unavoidable fixed cost - Rent Revenue

= $0.80 $\times$ 110,000 + ($59,000 - $14,000) - $37,700

= $88,000 + $45,000 - $37,700

= $95,300

since net effect of buying the wheels is a gain of $130,500 - $95,300 = $35,200

Thus the wheels shall be bought and not manufactured.

The price at which the buying and manufacturing option will be indifferent shall be:

Purchase Price + Unavoidable Fixed Cost - Rent Revenue = Manufacturing cost

Purchase Price + $45,000 - $37,700 = $130,500

Purchase Price = $123,200

Purchase price per wheel = $123,200/110,000 = $1.12

7 0

2 years ago

The SRT partnership agreement specifies that partnership net income be allocated as follows:

Assoli18 [71]

Answer: Option (C) is correct.

Explanation:

Given that,

Partner S:

Salary allowance = $20,000

Interest on average capital balance = 10% of 60,000

= $6,000

Average capital balances for the current year = $60,000

Remainder = 30% of 50,000

= $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $20,000 + $6,000 + $15,000

= $41,000

Partner R:

Salary allowance = $25,000

Interest on average capital balance = 10% of 50,000

= $5,000

Average capital balances for the current year = $50,000

Remainder = 30% of 50,000

= $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $25,000 + $5,000 + $15,000

= $45,000

Partner T:

Salary allowance = $15,000

Interest on average capital balance = 10% of 40,000

= $4,000

Average capital balances for the current year = $40,000

Current year net income = $125,000

Remainder = 40% of 50,000

= $20,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

= $15,000 + $4,000 + $20,000

= $39,000

Workings:

Salary allowed = $20,000 + $25,000 + $15,000

= $60,000

Interest on average capital balance = $6,000 + $5,000 + $4,000

= $15,000

Total = Salary allowed + Interest on average capital balance

= $60,000 + $15,000

= $75,000

Remainder = Current year net income - Total

= $125,000 - $75,000

= $50,000

3 0

3 years ago

A variable annuity is a(n)

Volgvan

Answer:

The correct answer is B. non-exempt security under the Securities Act of 1933 because the purchaser bears the investment risk

Explanation:

With a variable annuity, the annuity funds are invested in securities such as bond funds or equity funds. In these cases, the performance of the funds will define the performance of the annuity money and how much the annuity owner will receive from it. In this case, in the variable annuities there is a certain investment risk that everyone must determine when investing their money. In summary, the amount of risk that everyone is in a position to adopt will determine the amount of acceptable risk and therefore what type of funds will be selected for the investment.

It is possible to consider using a variable annuity for those who:

They feel comfortable with stock market fluctuations and are willing to accept them in exchange for a greater return to inflation for a longer period of time.
They are young people who seek to plan for retirement by taking advantage of the long-term stock market.

7 0

2 years ago

Please please.pleas help me

Scilla [17]

Answer: in pic
explanation: found here https://environmental-conscience.com/being-a-consultant-pros-cons/

8 0

2 years ago