1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
e-lub [12.9K]
3 years ago
13

Under what type of compensation plan is the agent responsible for the costs of advertising and promotion?

Business
1 answer:
Oksana_A [137]3 years ago
5 0

Answer:

100% plan

Explanation:

The 100% plan is when the agent doesn't have a base salary and the job pay depends completely on the comission for selling products. This compensation plan provides a big earning potential and the agent is an independent contractor and would have to cover costs of advertising and promotions. Because of that, the answer is that the type of compensation plan in which the agent is responsible for the costs of advertising and promotion is the 100% plan because the agent is not considered an employee and only receives the comission and has to cover the costs associated with advertising and promotion.

You might be interested in
Jerry Rice and Grain Stores has $4,430,000 in yearly sales. The firm earns 2 percent on each dollar of sales and turns over its
olganol [36]

Answer:

a. 5.37%

b. 5.08%

Explanation:

Firstly, we need to calculate net profit before return on stockholder's equity

Sales. $4,430,000

Net income % on sales 2%

Net income. $88,600

We will also calculate total stockholder's equity

Sales. $4,430,000

Asset turnover ratio. 4.5

Total assets. $984,444

Less: current liab. ($167,000)

Less: long term liab. ($342,000)

Total stockholder's. $475,444

equity

a. Return on stockholder's equity

= Total stockholder's equity ÷ Net income

= $475,444 ÷ $88,600

= 5.37%

b. New return on stockholder's equity

Total assets $984,444

× Asset turnover ratio. 4.75

New total sales. $4,676,109

Net income % sales. 2%

Net income $93,522

Recall that total stockholder's equity = $475,444

Net income = $93,522

Therefore, New return on stockholder's

equity = Total stockholder's equity / Net income

= $475,444 ÷ $93,522

= 5.08%

3 0
3 years ago
Paula's Perfumes has a target profit of $4,000 per month. Perfume sells for $15.00 per bottle and variable costs are $13.50 per
aivan3 [116]

Answer:

4,800 bottles

Explanation:

The formula to compute the number of bottles sold is shown below:

= (Fixed cost + target profit) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $15 - $13.50

= $1.50

So, the number of bottles sold equal to

= ($3,200 + $4,000) ÷ ($1.50)

= 4,800 bottles

6 0
3 years ago
The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea
Rzqust [24]

Answer:

Profit maximising price = 48

Explanation:

Total Cost : C (x) = 8x + 3

Demand Curve : p (x) = 88 − 2x

Total Revenue = p (x). x  =  x (88 - 2x) = 88x - 2x^2

Profit maximisation is where Marginal Cost (MC) = Marginal Revenue (MR)

MC = d TC / d Q  =   d (8x + 3) / d x = 8

MR = d TR / d Q = d (88x - 2x^2) / d x = 88 - 4x

Equating MR & MC ,

88 - 4x = 8  , 88 - 8 = 4x

x = 80 / 4 , x = 20

Putting value in demand curve,

p = 88 - 2x = 88 - 2 (20) = 88 - 40

p = 48

3 0
3 years ago
Which of the following would cause prices to drop? A. Increased production by business B. Increased taxes on business C. Higher
Ugo [173]
It would actually be an increased production by the business.

Haha, I had to think for a tiny bit and re-check my answer to make sure it was right before giving it. Would hate to see you get it wrong. 
8 0
3 years ago
Read 2 more answers
There exists a(n)
FrozenT [24]

Answer:

Direct, upward sloping

Explanation:

Supply refers to the quantities of goods or services that firms are willing to sell to the markets are a specific price. As per the law of supply, an increase in prices leads to an increase in the quantity supplied. Therefore, the relationship between the price and quantity supplied is direct. Firms prefer to supply more products to the markets at higher prices because they will make more profits.

The supply curve is a graphical presentation of the relationship between price and quantity supplied.  The supply curve is upward sloping. It originates from the bottom left corner, showing how quantities vary along the curve at different prices. Quantity supplied increases as the price rise.

7 0
3 years ago
Other questions:
  • If the price elasticity of demand for U.S. automobiles is higher in Europe than it is in the United States, and transport costs
    6·1 answer
  • A city ordinance allows only two hot-dog stands to operate in the city's downtown area. If someone who would like to add another
    12·1 answer
  • The simplest and most effective way to lay out your business structure is to include
    12·1 answer
  • What is the accounting problem that the linbarger company faces?
    12·2 answers
  • Amy, Allyson, and Kelly work in different teams at Oaktown Powersports. Amy's team ensures that all the raw materials, machinery
    13·1 answer
  • Maximal oxygen uptake ________ throughout adulthood, a trend that is related to the __________ in maximum heart rate and in musc
    10·1 answer
  • Contribution margin is:
    15·1 answer
  • Gilmore, Inc., had equity of $145,000 at the beginning of the year. At the end of the year, the company had total assets of $210
    11·1 answer
  • Autonomous consumption is defined as: Group of answer choices the level of consumption that depends only on the exchange rate. t
    7·1 answer
  • Journalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accou
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!