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3 years ago

A cement manufacturer has supplied the following data:

Business

1 answer:

atroni [7]3 years ago

5 0

Answer:

Unitary contribution margin= $2.2

Explanation:

Giving the following information:

Tons of cement produced and sold 240,000

Sales revenue $1,008,000

Variable manufacturing expense $439,000

Variable selling and administrative expense $41,000

First, we need to calculate the total contribution margin:

Total contribution margin= 1,008,000 - 439,000 - 41,000

Total contribution margin= $528,000

Now, the unitary contribution margin:

unitary contribution margin= 528,000/240,000

unitary contribution margin= $2.2

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It has been said that incentive plans work only for a relatively short time. Do you agree or disagree with this statement? Why o

VashaNatasha [74]

The correct answer is that it depends on the specifics of the incentive plan. A general incentive plan that is not linked directly to productivity will typically become old news to staff within a few years. What was once an incentive will become familiar and may be viewed as an entitlement as staff start looking for the eternal "what's next?". An incentive directly linked to some kind of productivity (e.g. hours worked) will have a far longer shelf life (though this will, of course, vary by employee). In this scenario the ongoing incentive remains year over year (e.g. the hours of overtime worked in the previous year will have no bearing on the current year so if you want a similar result you will need to maintain your effort whereas if you want a better result you will have to increase your effort). All incentive plans, however, are subject to the rules of diminishing marginal utility to the employees and will diminish over time as the employee either becomes comfortable at a certain productivity level or becomes disenchanted by other factors. In summation: an incentive plan, if designed properly, can work for a relatively long period of years though results may vary by employee as everyone is motivated by different things (though providing an alternative incentive to money may somewhat mitigate this additional potential problem).

8 0

3 years ago

PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value

solong [7]

Answer:

$150.15

$92.31

Explanation:

Target stock price in year 5 = Earnings per share in year 5 x benchmark PE ratio

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

$2.86 / 0.4 = $7.15

$7.15 x 21 = $150.15

b. the stock price today can be found by finding the present value of the dividends

Present value can be found using a financial calculator

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

Stock price in year 5 = $150.15

i = 12%

Stock price (present value) = $92.31

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

6 0

3 years ago

Lyndon, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in a certain area off the Maryland

Margarita [4]

Answer:

d) the supremacy clause

Explanation:

Lyndon a man from Maryland, receives a federal license to perform a commercial fishing boat in a particular region off the Maryland shore. Maryland's state legislature passes a law that bans all commercial fishing in that region. The state law most likely breaks the supremacy clause. In the supremacy clause, it authenticates that the federal laws made will be agreeable to it. Also, the agreements should be made under its authorization

7 0

3 years ago

With respect to market segmentation, the 80-20 principle has been applied to segmenting markets based on

never [62]

Answer:

This principle is based on the idea of Vilfredo Pareto, an Italian economist that stated 80% of the results are concentrated in 20% of the activities executed. In Business, this idea is extrapolated as 80% of results come from 20% of the clients.

Explanation:

8 0

3 years ago

When a licensee transfers from the employ of one broker to another, of the following who is responsible for surrendering the lic

liq [111]

Answer:

d. both a and b

Explanation:

Based on the information provided within the question it can be said that the licensee and the former employing broker. This is mainly due to the fact that both the licensee and the former employing broker both have the license and need to surrender it to the real estate commission in order for it to be issued to the new licensee and broker.

4 0

3 years ago