Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
The athlete with equal installments got the better deal.
Explanation:
Two athletes each sign 10-year contracts for $80 million.
In one case, we’re told that the $80 million will be paid in 10 equal installments.
In the other case, the $80 million will be paid in 10 installments, but the installments will increase by 5 percent per year.
The one with equal installments will get $8 million every year.
But the one with increasing installments will get smaller payments initially as his payments were to be increased by 5% each year.
Though the total value of both the annuities will remain the same.
Answer:
This can be due to the method of allocating cost.
Explanation:
In the given scenario a division in a decentralised company earned the largest amount of income from operations, yet it was the least profitable.
This can be as a result of the cost allocation method the company uses.
If the company uses a cost allocation method where cost from other division is paid for by the division with largest income. The result will be that the other divisions that generate less income will appear to be more profitable.
The remedy for this is to use activity based costing. Where cost is allocated based on the level of activity of a division.
That way divisions will only pay for cost associated with their activity
The answer is increas taxes think bout it' if u decrease it would make it worse
Answer:$103.73
Explanation: Sally has her annual health insurance premium to be $4,350 per annum.
Her company pays 38% of $4,350= $1,653
Sally pays =$4,350-$1,653 = $2,697
Sally pays in 26 instalments = $2,697/26= $103.73
A sum of $103.73 will be deducted from sally's paycheck monthly.
