Although Costco pays its employees substantially more than its closest competitor, Sam’s Club, it has similar financial returns on its labor costs due to lower turnover and higher levels of productivity
Option A
<u>Explanation:
</u>
While Costco costs its workers slightly more than its closest competitor, Sam's Club, Costco pays higher prices in order to recruit more professionals and to provide better customer service due to lower turnover and a similar financial return.
Direct costs involve wages for staff making a product and employees on the production line, while indirect costs apply to assistance, such as employees repairing factory equipment.
When labor costs are wrongly distributed or measured, the price of goods or services may be changed from their actual costs and profits from losses.
Answer:
5.71%
Explanation:
The after tax cost of debt=pretax cost of debt*(1-t)
where t is the tax rate of 35% or 0.35
pretax cost of debt=yield to maturity
The yield to maturity can be determined using rate formula in excel as below:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest payable by the bonds i.e 12 coupons in 12 years
pmt is the annual coupon=$1000*9.5%=$95
pv is the current market price-flotation cost=$1,100-$48=$1052
fv is the face value of $1000
=rate(12,95,-1052,1000)=8.78%
After tax cost of debt=8.78%
*(1-0.35)=5.71%
Answer:
OPTION C i.e 11%
Option A i.e 30.55 year
Explanation:
we know that capital can be calculated as
from the data given in question we can calculate the value of r
so
solving for r we get
r = 11%
option C
we know that
from the data given we can evealueate the value of n
solving for n we get
n = 30.55 year.
Option A
Answer:
They have risen.
Explanation:
Demand has increased, but supply has remained constant.
Answer:
Net profit is more important to consider because it accounts for all the costs associated with making and selling the product and it includes the operating expenses that are excluded from gross profit. Gross profit is the profit made after deducting costs associated with making and selling its products, or the costs associated with providing its services.
