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marta [7]
3 years ago
5

Many corporations allow CEOs to use their​ firm's corporate jet for personal travel. The Internal Revenue Service​ (IRS) require

s that the firm report personal use of its corporate jet as taxable executive​ income, and the Securities and Exchange Commission​ (SEC) requires that publicly traded corporations report the value of this benefit to shareholders. A firm may use any of three valuation techniques. The IRS values a​ CEO's personal flight at or below the price of a​ first-class ticket. The SEC values the flight at the​ "incremental" cost of the​ flight: the additional costs to the corporation of the flight. The third alternative is the market value of chartering an aircraft. Of the three​ methods, the​ first-class ticket is least expensive and the chartered flight is most expensive. What factors​ (such as​ fuel) determine the marginal explicit cost to a corporation of an​ executive's personal​ flight? Explicit costs to a corporation of an​ executive's personal flight include.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

The explicit cost of flight includes cost of fuel, maintenance cost, payment to pilot.

Explanation:

The explicit costs are the direct costs incurred during the process of production or business. Here, the payments made to the pilot will be a variable cost, the cost of fuel, etc will be explicit cost.  

The marginal explicit cost is the increase in the explicit cost with an additional output. The incremental cost of flight correctly determines the marginal explicit cost.  

Opportunity cost is the cost of sacrificing the alternative. Here, the marginal opportunity cost will be the revenue that the firm would have earned by renting the flight to other firms or individuals.

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Soloha48 [4]

Answer:

B) $12,825

Explanation:

In order to calculate the worst case scenario of sales first we need to calculate the worst case for sales of units.

The Company estimates that 5,000 units will be sold with a 10 percent plus-or-minus range. So, let calculate the worst case for the sale of units, in this case being 90% of the 5,000 unit estimate. Calculate 90% of 5,000, and this gives us 4,500 units as the worst case scenario.

To calculate the the worst case scenario for price, lets use the $3.00 per unit estimated by the Company, and apply the same concept, however, taking into account that sales price has a 5 percent plus-or minus range. So we caclulate %95 of $3.00, and this gives us $2.85 as our worst case scenario for price.

Now, we take our worst case scenario for amount of units and price:

4,500 units x $2.85 = $12,825

$12,825 is the total dollar amount for the worst case scenario of this product.

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3 years ago
Choose the answer.
Brrunno [24]

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the answer is reaserching

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Without creating a separate business organization, Roy starts up Sole Savers, a new, pre-owned auto sales enterprise. Roy is
s2008m [1.1K]

Roy is a sole trader if he is not setting up a company instead starts a business.

<h3>What is a Business?</h3>

A business is the process of selling goods or services and earning revenue and profits through it, the business generates revenue which is deducted by the expenses incurred by the business. The business ensures the strategy to have a balance between these expenses and revenue so that there is some residue profit.

The sole trader is the business where the owner of the business is highly involved in day to day running of the business taking all the strategic decisions and responsible for all the debts of the business.

On the other hand a limited liability company is a business in which the owner of the company can be involved in day to day running of the operations but is not liable personally for the debts.

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Economies based on the exploration of raw materials were established in Sub-Saharan Africa.

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