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muminat
3 years ago
7

Goldin Corporation currently pays its salesperson a flat salary of $5,000 per month and is considering paying him $20 per unit i

nstead. Sales are currently 200 units per month. Goldin believes the compensation change will increase unit sales by 80%. The current contribution margin is $80 per unit. If the change is implemented, net operating income will:
a. decrease by $1,000b. decrease by $7,000c. increase by $7,000d. increase by $1,000
Business
1 answer:
Neporo4naja [7]3 years ago
4 0

Answer:

C. Increase by $7,000

Explanation:

Current net operating income

($80 x 200) - $5,000

$16,000-$5,000

= $11,000

With the change the net operating income will be:

($80 - $20) x 200 x 150%

($60)×200×1.5

($60)×300

= $18,000

$18,000-$11,000

=$7,000 Increase

Therefore If the change is implemented, net operating income will: be an increase of $7,000 per month because the current net operating income was $11,000 and with the change the net operating income was increased to $18,000 which is why the income will increase by $7,000.

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When Larry purchased a Jet Ski personal watercraft for $4,999, he was also given free financing and three hours of free lessons
stellarik [79]

Answer:

Value added

Explanation:

Value-added - it is the total difference that comes out between the product value in the market and the cost of producing that product. cost of a product is based on the survey which gives the idea that how much cost may be assigned to the product.

The value of this difference help to determine the profit on products.

Higher the value of add, higher will be the charges of product and higher will be the revenue collected.

4 0
3 years ago
The YTM on a 2 year zero coupon bond is 5% and the YTM on a 1 year zero coupon bond is 3%. What does the no-arbitrage condition
tresset_1 [31]

Answer:

<em>$111.11 or 111.11% of face value</em>

Explanation:

Assuming the face value of $100 for all bonds (without loss of generality)

If the two year coupon bond is repackaged as a one year zero coupon bond paying $12 after one year and another two year bond paying $112 after 2 years, the price of the two zero coupon bonds are given as

Price of one year Zero coupon bond = 12/1.05 = $11.43 (one year ZCB has YTM of 5%)

Price of two year Zero coupon bond = 112/1.06^2 = $99.68 (two year ZCB has YTM of 6%)

So, one can sell the repackaged bonds at a price = $11.43+ $99.68 = $111.11 or 111.11% of face value

7 0
3 years ago
Hi-Tek is a young start-up company that is currently retaining all of its earnings. The company plans to pay a $2 per share divi
ziro4ka [17]

Answer:

Option (a) is correct.

Explanation:

Given that,

Dividend pay in year 7, D7 = $2 per share

Growth rate of dividend, g = 2.2 percent per year

Required return, ke = 16 percent

Present value of the future dividend at year 6:

= D7 ÷ (ke - g)

= $2 ÷ (0.16 - 0.022)

= $14.49

Therefore, the present value of dividend now is as follows;

= Present value of the future dividend at year 6 × (1 + ke)^{-6}

= $14.49 × (1 + 0.16)^{-6}

= $5.95

5 0
3 years ago
Help Asap! Answer All 4 Questions Please
aleksandrvk [35]

Answer:

i cant see that

Explanation:

8 0
3 years ago
Beth quit her job as a computer programmer for a large corporation to begin her own computer repair business in her garage. To d
Serhud [2]

Answer:   An entrepreneur , a labor

                             

Explanation:  An entrepreneur is an entity that introduces a new company that carries almost all of the risks and benefits. The entrepreneur is generally seen as a visionary, a creator of new ideas, products, services and/or techniques.

Labor is the level of physical, emotional, and social effort which is used in an economy to generate wealth. It provides the necessary resources, equipment, and infrastructure to convert raw resources into final services and products.

Hence we can conclude that Beth is entrepreneur and will is labor.

5 0
3 years ago
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