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grigory [225]
3 years ago
12

Two successful firms are observed with quite different compensation plans for their salespeople. One firm pays its salespeople o

n a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? Explain.
Business
2 answers:
cricket20 [7]3 years ago
5 0

Answer:

Salary and Commission compensation benefit has its pros and cons. However, The Company that adopts Salary Compensation benefit might be making a mistake.

Explanation:

If you pay salesmen a straight salary, some may have limited motivation to exceed basic expectations. However, commission based remuneration is pro performance in that drive salesmen to set more aggressive goals, work through obstacles and rejection to meet their target for a particular period.

Businesses that pay fixed salaries incur higher overhead costs because you have to pay whether you are making profits or not. But the case is different in Commission based compensation benefit where the risk is shared and commission is only paid when money is made.

jasenka [17]3 years ago
5 0

Answer:The firm who pays on fixed salary is making a mistake.

Explanation: A compensation plan this is the total package which shows details of an employee's salary, wage, terms of payment, and benefits. They also includes comission and bonuses to be paid to employees.

Both firms have different compensation plans, for their ‘salesperson’. firm A would benefit more from paying a commission to their employees because this means they would only have to pay the employee if there is a sale ( or for job done.). This cancels the need to pay employee's for work which does not result in sales. Unlike Firm B who operates on a fixed salaries which translates to having to pay employee's salary even when they are not productive.

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If the donor dies in the year in which a gift is made, the gift tax return
Likurg_2 [28]
<span> Where a gift is made during the calendar year in which the donor dies, the last date for paying the tax required shall be the last date, including extensions, for filing the estate tax return under chapter 217 with respect to such donor.</span>
8 0
3 years ago
At Polar Sportswear, orders have significantly exceeded projections, and Chris, the operations director, has decided to hire for
Viktor [21]

Answer:

Variable

Explanation:

As we can see that there is no fixed point that represents there is not a fixed budget also the company not using the zero or cash budget based and the incremental would be used at the time when the demand is in constant

So the option i.e. left is variable budget and hence, the same is to be considered

Therefore the last option is correct

4 0
3 years ago
Return on investment (ROI) for a firm is _______. a. the firm's total assets multiplied by net profits after taxes b. a measure
Zarrin [17]

Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

<h3>What is the return on investment?</h3>
  • A ratio between net income and investment is known as return on investment or return on costs.
  • A high ROI indicates that the returns on the investment outweigh the costs.
  • ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
  • The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
  • It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
  • Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
  • Anything that has the potential to provide positive economic value qualifies.
  • The ownership value that can be turned into cash is represented by assets.

Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

Know more about revenue here:

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3 0
2 years ago
Stellan Manufacturing is considering the following two investment​ proposals: Proposal X Proposal Y Investment $ 720 comma 000 $
vichka [17]

Answer:

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

Explanation:

Provided cost of Proposal Y = $512,000

Residual Value = $0

Depreciation will not be considered as we need to consider the present value of future cash flows, depreciation does not involve any cash flow.

Useful life = 4 years

Estimated cash inflow per year = $110,000

Discount rate = 9%

Present Value of an Ordinary Annuity = 3.240 @ 9% for 4 years

Thus present value of future cash inflows = $110,000 X 3.240 = $356,400

Note: Net Present Value = Present Value of Cash Inflows - Present Value of  Cash Outflow = $356,400 - $512,000 = -$155,600

Final Answer

Present value of future cash inflows of Project Y = $110,000 X 3.240 = $356,400

6 0
3 years ago
The best defensive driving strategy in planning ahead for an evasive action on the road includes:
Pie

Answer:

A) Scan the highway far and wide.

B) Think about how slow, stop or change lanes suddenly.

Explanation:

The Smith Driving Standards can be a very useful guide for defensive driving techniques. It includes the Five Principles of Defensive Driving:

  1. Aim high : you should be alert and focused, and your head should be held up high so that you can view the whole road.
  2. The Big Picture : try to identify angry or erratic drivers, and always be aware of your surroundings.
  3. Keep Your Eyes Moving: you must be alert and keep your eyes on the road.
  4. Leave Yourself An Out : try to anticipate what other drivers are doing so that you have a possible exit in case you need to change lanes suddenly.
  5. Ensure they see you: make sure other drivers have noticed you.

7 0
3 years ago
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