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Mila [183]
3 years ago
9

Oregon Co.'s employees are eligible for retirement with benefits at the end of the year in which both age 60 is attained and the

y have completed 35 years of service. The benefits provide 15 years' reimbursement for health care services of $20,000 annually, beginning one year from the date of retirement. Ralph Young was hired at the beginning of 1985 by Oregon after turning age 22 and is expected to retire at the end of 2023 (age 60). The discount rate is 4%. The plan is unfunded. The PV of an ordinary annuity of $1 where n = 15 and i = 4% is 11.11839. The PV of $1 where n = 2 and i = 4% is 0.92456. With respect to Ralph, what is the interest cost to be included in Oregon's 2022 postretirement benefit expense, rounded to the nearest dollar?
Business
1 answer:
-BARSIC- [3]3 years ago
5 0

Answer:

$205,592

Explanation:

Interest cost is the Present Value of this $ 20,000 annuity streams at time zero i.e. ( Year 2022

Value of annuity stream = $ 20,000 x 11.11839

Present Value of annuity streams at 2015 =$ 222,367.80

Discount Factor for 2017 = (1.04)-2 = 0.92456

Present Value at 2022= $ 222,367.80 x 0.92456

Service Cost= $ 205,592

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Management at the Flagstaff Company currently sells its products for $250 per unit and is contemplating a 40% increase in the se
elena-s [515]

Answer:

393 units will need to be sold to breakeven

Explanation:

Break even point is the point where a Company makes neither makes a profit nor a loss.

Step 1 : Calculate new variables

New Sales = $250 x 1.40 = $350

Variable Costs = $250 x 30 % = $75

New Fixed Costs = $120,000 x 90 % = $108,000

Step 2 : Break even (units)

Break even (units) = Fixed Costs ÷ Contribution per unit

                               = $108,000 ÷ ($350 - $75)

                               = 393 units

Thus, 393 units will need to be sold to breakeven

8 0
2 years ago
In many large U.S. cities, taxicab companies operate as near monopolies because of_____.
Naya [18.7K]

Answer: Option (b) is correct.

Explanation:

Correct Option: Licenses

In United States, there is a licensing system which prohibits the number of taxicabs allowed. So, there are less number of taxicabs companies operates in most of the united states cities.

There is a advantage for the taxicabs companies for using the monopoly power.

Whereas, some of the cities of U.S use 'taxi medallions" as the permits for picking up the passengers.

4 0
3 years ago
How do you manage innovation if ideas can come from anywhere, including people who aren’t your direct employees—or aren’t even p
julsineya [31]

Answer and Explanation:

Development is a significant part for any association. It makes ready for organization's sustenance and ensures that the association is rivalry in a sound way in the market. Be that as it may, overseeing advancement can be a precarious circumstance. So as to oversee advancement that can emerge out of where anyplace, the association needs to comprehend the significance of the development and the wellsprings of development.  

Associations need to make arrangements to support developments, open dialog on these issues and advance individuals who achieve the changes. So as to do that the organization need to instill the way of life of advancement. This requires changes in the manner association works, the objectives, the crucial vision of the organization. The estimation of the organization must be set up in a manner that advances development and prizes the individuals who are engaged with this procedure.

5 0
3 years ago
In which phase of the job search cycle will you write a thank-you letter to the company following your interview?
ikadub [295]

Answer:

c. Shine at Interviews

Explanation:

We write a thank-you letter to the company after shine at Interviews in order to follow up

6 0
3 years ago
Chuck offers $240,000 for a house. The seller turns down the offer but says she will sell the house for $260,000. However, Chuck
qaws [65]

Answer:

Chuck must be less than $260,000

Explanation:

The economic decision rule is: Do it if that marginal benefit exceeds the marginal cost and Since Chuck was unwilling to purchase the house at $260,000, we can deduce that the marginal benefit of purchasing the house must be less than $260,000 due to the fact that the seller turns down the offer but says she will sell the house for $260,000.

6 0
3 years ago
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