Compa-ratio, short for comparitive ratio, is a formula used to determine competitiveness of an employees pay. A compa-ratio of 1.00 would mean the employee is making exactly the market average.
With a ratio of 1.9, this means the designers are making twice the industry average for their job. The biggest problem this could cause would be labor costs being to much. If the company is paying 2x the market rate for their designers, they aren't staying competitive.
Answer:
$606,375
Explanation:
The computation of the amount of cash payments to stockholders is shown below:
= Beginning dividend payable + cash dividend declared - ending dividend payable
= $167,625 + $585,000 - $146,250
= $606,375
We simply added the dividend declared amount and deducted the ending dividend payable to the beginning dividend payable so that the accurate amount can come.
Answer: Negligence of duties
Explanation:
As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.
Answer:
Accept Project A and reject Project B
Explanation:
See the images to get the answer.
Decision: Required rate of return = 16% = Cost of capital.
If Internal rate of return (IRR) > the cost of capital = Accept the project.
If Internal rate of return (IRR) < the cost of capital = Reject the project.
From the basis of the formula, we can accept the project A because the IRR of Project A (19%) is higher than the cost of capital (16%). On the other hand, we can reject the project B because the IRR of Project B (14%) is smaller than the cost of capital (14%).
Answer: The Southern Corporation manufactures a single product and has the following cost structure:
Explanation:
Fixed costs per year: Production$98,770 Selling and administrative$86,920 Last year, 5,810 units were produced and 5,610 units were sold. There was no beginning inventory. The carrying value on the balance sheet of the ending inventory of finished goods under variable costing would be:
