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Svet_ta [14]
4 years ago
15

Magnolia Manufacturing makes wing components for large aircraft. Kevin Choi is the production manager, responsible for manufactu

ring, and Michelle Michaels is the marketing manager. Both managers are paid a flat salary and are eligible for a bonus. The bonus is equal to 1 percent of their base salary for every 10 percent profit that exceeds a target. The maximum bonus is 6 percent of salary. Kevin’s base salary is $380,000 and Michelle’s is $440,000. The target profit for this year is $5 million. Kevin has read about a new manufacturing technique that would increase annual profit by 20 percent. He is unsure whether to employ the new technique this year, wait, or not employ it at all. Using the new technique will not affect the target. Required: a. Suppose that profit without using the technique this year will be $5 million. By how much will Kevin’s and Michelle’s bonus change if Kevin decides to employ the new technique? b. Suppose that profit without using the technique this year will be $7.5 million. By how much will Kevin’s and Michelle’s bonus change if Kevin decides to employ the new technique?

Business
1 answer:
kakasveta [241]4 years ago
4 0

Answer:

Explanation:

the picture attached below shows the full explanation for the problem. I hope it helps

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_____ use another manufacturer's already established channel and are used most often when the creation of marketing channel rela
katrin2010 [14]
"Strategic channel alliance" <span>use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.

Hope this helps !

Photon</span>
8 0
4 years ago
Patty Corporation holds 75 percent of Slider Corporation's voting common stock, acquired at book value. The fair value of the no
Marina86 [1]

Answer:

1) d. $175,000

2) b. $156,250

Explanation:

1. The computation of net income for 20X9 under the treasury stock method is shown below:-

Net income for 20X9 under the treasury stock method = Janet Operating income + Slider operating income

= $100,000 + $75,000

= $175,000

2. The computation of income assigned to the controlling interest for 20X9 is shown below:-

income assigned to the controlling interest for 20X9 = Janet Operating income + (Slider operating income × Remaining percentage)

= $100,000 + ($75,000 × 75%)

= $100,000 + $56,250

= $156,250

Therefore we have applied the above formulas.

5 0
3 years ago
Under market organization, individuals can communicate their preferences to other decision makers directly, through communicatio
frez [133]

Answer:

2. False

Explanation:

Market organization refers to the ways goods and services are bought and sold in the market.

Under market organization, individuals can communicate their buying decisions and their preferences and tastes directly to their peers and known ones which eventually affects the latter's decision making. This is a direct way of communication.

Similarly, another form of communication would be indirect wherein an individual conveys his/her choice of with whom they want to transact with rather than their preferences. Here the communication is indirect and this is a realistic possibility.

Hence the given statement is false.

3 0
4 years ago
You want to have $66,000 in your savings account 9 years from now, and you're prepared to make equal annual deposits into the ac
mixer [17]

Answer:

the amount that need to be deposited each year is $7,166.28

Explanation:

The computation of the amount that should be deposited each year is shown below:

Given that

FV is $66,000

NPER is 9

RATE is 6.9% ÷ 12 = 0.575%

PV is 0

The formula is shown below:

= PMT(RATE,NPER,PV,-FV,TYPE)

AFter applying the above formula, the amount that need to be deposited each year is $7,166.28

5 0
3 years ago
A bank run involves:
Aleonysh [2.5K]

Answer:

The correct answer is letter "B": large numbers of depositors withdrawing their deposits within a short period of time.

Explanation:

A bank run is a situation in which account holders massively withdraw their funds under the fear the financial institution will lose its liquidity. The situation gets to a point in which the bank is at risk of sensing all its reserves and fail to provide all its clients the money they deposited.

In the U.S. financial institutions with deposits between $16 and $122.3 million must have a minimum reserve of 3%. When the deposits exceed $122.3 million the minimum reserve increases to 10%. The rest of the money is reinvested by banks.

5 0
3 years ago
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