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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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Assume an organization's current service level on order fill is as follows:
frosja888 [35]

Answer:

Answer for the question:

Assume an organization's current service level on order fill is as follows:

Current order fill 80%

Number of orders per year 5,000

Percent of unfilled orders back-ordered 70%

Percent of unfilled orders cancelled 30%

Back order costs per order $150

Lost pretax profit per cancelled order $12,500

a) What is the lost cash flow to the seller at this 80 percent service level?

b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent

c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?

d) What is the role of activity-based costing in customer relationship management? In customer segmentation?

is given in the attachment.

Explanation:

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7 0
3 years ago
The national accounts of Parchment Paradise are kept on​ (you guessed​ it) parchment. A fire in the statistics office destroys s
Mama L [17]

Answer:

GDP [Expenditure Approach] is $7,040,  Depreciation is $920

Explanation:

The formula for calculating GDP [Expenditure Approach] is Consumption expenditure + Investment + Government expenditure + Exports − Imports

Mathematically,

Y = C + I + G +  (X − M)

Where C = $7,000, I = $160, G = $180, (X-M) = -$300

Y = 7000 + 160 + 180 - 300 = $7,040  

GDP [Expenditure Approach] is $7,040  

Depreciation = GDP - NDP

NDP = wages + profits + interest + rent + net factor income of unincorporated businesses

Where wages = $5,900, profits + interest + rent = $220, net factor income from abroad = $0

NDP = 5900 + 220 + 0 = $6,120

Applying Depreciation = GDP - NDP, we have:

Depreciation = 7040  - 6120 = $920

N.B: The depreciation is a measure of the statistical discrepancy between the GDP and NDP

7 0
3 years ago
Under what conditions would you recommend using each of these funding methods to pay for information systems expenses: allocatio
Arada [10]

Answer:

The conditions under which each funding method for paying for IT system expenses would be recommended are:

Allocation method is preferred to other methods when actual usage cannot be captured but, some other cost drivers can be used as the allocation bases.

Chargeback method works better than others when actual usage by each unit can be accurately captured.

Explanation:

The Allocation Funding Method charges IT costs to individuals, departments, or business units based on revenues, number of employees, and other cost drivers and not based on usage. It is often used when actual usage cannot be recorded.

The chargeback method charges IT costs to individuals, departments, or business units based on their actual usage of the IT services.  With wide variation in IT usage, business units need to be charged their actual costs consumed.

The corporate budget method allocates IT cost based on a periodic predetermined rate. It is used where unit managers need to be given control over their budgets, enabling them to search for cost-saving technologies.

6 0
2 years ago
A tile manufacturer has supplied the following data: Boxes of tiles produced and sold 520,000 Sales revenue $ 2,132,000 Variable
svetoff [14.1K]

Answer:

unitary contribution margin= $2.52

Explanation:

<u>First, we need to calculate the total variable cost:</u>

Total variable cost= Variable manufacturing expense + Variable selling and administrative expense

Total variable cost= 560,000 + 260,000

Total variable cost= $820,000

<u>Now, the unitary variable cost and the selling price:</u>

unitary variable cost= 820,000 / 520,000= $1.58

Selling price= 2,132,000 / 520,000= $4.1

<u>Finally, the unitary contribution margin:</u>

unitary contribution margin= selling price - unitary variable cost

unitary contribution margin= 4.1 - 1.58

unitary contribution margin= $2.52

7 0
2 years ago
For the month of June, Mae Green budgeted the following amounts: $180 for food, $475 for rent, $15 for transportation, $50 for i
Vinil7 [7]

Answer:

No, she did not

Explanation:

In this question, we are asked to answer if Mae stayed within her budget, given her budget and the total amount she later spent.

To solve this problem, what we need to do is to add up all what she budgeted. Afterwards we add up all she spent. Then , we see the difference between the two to actually know if she stayed within her budget of not.

We proceed as follows:;

Let’s calculate budgeted amount: This is ; 180 + 475 + 15 + 50 + 65 + 25 + 150 + 30 = $990

Now, let’s calculate how much she later spent; That would be; 182 + 475 + 12 + 65 + 68 + 12.5 + 36 + 150 = $1000.5

We can see that she spent more that the amount she had budgeted. This means she didn’t stay within the total amount allocated for her budget

3 0
2 years ago
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