Income commissions consult with repayment paid for creating a sale. they may be generally a percentage of the sale this is then introduced on pinnacle of one’s base profits.
Sales commissions are a incredible tool because they serve to align the incentives of each the enterprise and the employee. both the salesclerk and the commercial enterprise gain from generating sales. With income commissions, salespeople can benefit extra manipulate over how a good deal they earn and their efforts are tied to compensation.
For the sake of this newsletter and the ASC 606 law, we will be centered at the accrual foundation method. The accrual basis acknowledges the revenue when it's far billed and earned, regardless of whilst the cash is paid or acquired.
So, if your salesperson makes a sale nowadays, however handiest gets their commission check at some point of next month’s pay day, you will be recognising the revenue at the time of the sale this month.
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Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
Answer:
The computations are as follows
Explanation:
a) Before tax income is
= After Tax Income ÷ (1 - Tax Rate)
= $58,500 ÷ (1 - 0.35)
= $90,000
b) Total Contribution Margin
Contribution Margin = Fixed Costs + Before Tax Income
= $190,000 + $90,000
= $280,000
c) Calculation of Total Sales
Variable Cost is 75% of Sales
SO, Contribution Margin 25% of Sales
Contribution Margin = $280,000
25% of Sales = $280,000
Sales = $280,000 ÷ 25%
= $1,120,000
d) Break Even Point in dollars
Break Even Point in dollar = Total Fixed Costs ÷ Contribution Margin percentage
= $190,000 ÷ 25%
= $760,000
We simply applied the above formula
The correct answer is the matching principle.
This principle stipulates that every expense that a company makes has to match with the revenues it brought to the company within the same accounting period when both of them happened. So, basically, a company has to have a list of expenses and profits they gained in the same period.
Answer:
<u>Client-based</u> structure.
Explanation:
A client-based organizational structure is characterized as one whose central objective is to design and customize customer service. It is a structure generally used by organizations whose products or services are unique to specific market segments, and should be well designed so that there is autonomy between divisions so that there is no overlap and redundancy of activities.
A clear example of companies using the client-based structure is those offering healthcare services, which need to have very specific customer segmentation for effective and personalized care.
