Answer: to historical performance or budget
Explanation:
A profit center in a business is a division that is able to make revenues independently and contribute to the revenue of the entire business. In evaluating the performance of a profit center manager, it is best to compare the performance to a budget or their historical performance.
This is because profit centers engage in different businesses and so their revenue making style will be unique. Some profit centers will make more than others because of the goods they produce or the way they produce it. It is therefore best to compare a profit center to an internal measure such as the budget and historical performance.
If the profit center exceeds either of these then they are performing well.
Answer:
AEC needs rubber to make its seals too. Oil is needed to produce rubber and, like coal and iron ore, oil is a natural resource. Without oil, AEC would have no rubber for seals. Natural resources are declining over time + coal reserves, especially, are running out.
Answer:
for $16000 plan B is better than A
Explanation:
We are searching for the stage where Plan A's compensation is less than Plan B's compensation.
Plan A < Plan B
let total of Curt's sales be the x,
x is the basis of the commission under Plan A, but the first 5000 of sales are excluded i.e (x - 5000) from the basis of commissions under Plan B.
350 + x(0.10) < 750 + (x - 5000)(0.15)
800 -750 < (0.15) x - 5000(0.15) - (0.10)x
50 < (0.15 - 0.10)x - 750
50+750 < (0.05)x
800 < (0.05)x
16000 < x
