<span>A product used in this way is known as a Benchmark Item.
Benchmark item refers to the type of product that is used as a standard when we want to compare it another similar product.
By seeing the price of Burger in this particular situation, Jason could predict the price of other product that being sold in that place.</span>
Answer:
37% compounded annually
Explanation:
To find the answer we need to follow this formula:
Where:
- P = Present value of the stock
- I = Initial value of the stock
- r = Interest rate
- n = number of compounding periods
Now we plug the amounts into the formula:
900,000 = 150,000 (1 + r)^13
900,000 / 150,000 = (1 + r)^13
60 = (1 + r)^13
Ln60 = 13 Ln(1 + r)
4.09 / 13 = Ln(1 +r)
0.31 = Ln(1 + r)
e0.31 = Ln(1 + r)
1.37 = 1 + r
1.37 - 1 = r
0.7 = r
Thus, the annual interest rate is 37%
Answer:
The answer is: Continue to make — $60,000 advantage.
Explanation:
We have to compare the current total costs with the total costs of buying the parts from a supplier.
Current costs
- total variable manufacturing $240,000
- Supervisor's salary $60,000
- Depreciation $20,000
- <u>Allocated fixed overhead $140,000</u>
- Total current cost: $460,000
Costs of buying the parts
- total purchase price $360,000
- Allocated fixed overhead $140,000
- <u>Depreciation $20,000</u>
- total costs for buying the parts $520,000
Since buying the parts from a supplier is $60,000 more expensive than continue manufacturing ($520,000 - $460,000), Andrews Co. should continue as it is.
Answer: $7,450
Explanation:
Employees are not charged Federal and State unemployment taxes so Salaries payable should be;
= Gross pay - Federal Income tax withheld - Social security tax - Medicare
= 10,000 - 1,800 - (10,000 * 6%) - (10,000 * 1.5%)
= 10,000 - 1,800 - 600 - 150
= $7,450
Answer:
focus on just his quarterly goals
Explanation:
A farm equipment company, Agrarian Tractors, issues quarterly bonuses to its sales agents. This quarter Clay sold more tractors than anyone else in the company and exceeded his sales goals for the fifth consecutive quarter.
However, as the bonuses were issued, Clay received the same bonus as all the other Agrarian Tractors sales agents.
Based on the equity theory, Clay will probably focus on just his quarterly goals.
This is because he sees that his outstanding output wasn't rewarded so he would focus on just meeting his quarterly goals, rather than exceeding it.
