Given the following parameters:
The employer pays the employee (gross earnings) – $1,200
The employer pays for social security and medicare taxes – $91.80
The employer pays for the Federal
Unemployment Tax Act (FUTA) – $9.60
The employer pays for the State
Unemployment Tax Act (SUTA) – $64.80
The total cost of this employee to the employer is the summation of all these costs
1,200 + 91.80 + 9.60 + 64.80 = $1366.20
The number of dollar sales to be achieved to reach the goal is $287,600
<h3>
What is a dollar?</h3>
- The official money of the United States of America is the USD (United States dollar).
- One hundred cents make up one dollar, often known as the U.S. dollar. It is distinguished from other currencies based on the dollar by the symbol $ or US$.
- The U.S. dollar, which is considered a standard, is the most widely used money in transactions globally. In addition, it is used as the official currency in several regions outside of the U.S., while many others use it alongside their own as an unofficial currency.
We have the following details:
Fixed Cost = $ 39,800
Earning Required = $71,900
Hence
Contribution Required= Fixed Cost+Earning Required
Contribution Required = ($39,800+$71,900)
Contribution Required = $ 111,700
We use then the following formula:
Contribution Margin ratio = Contribution Margin/Sales
25%= $ 109,900/Sales
Sales = $ 109,900/25%
Sales = $287,600.
The number of dollar sales to be achieved to reach the goal is $287,600
To learn more about dollar with the given link
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Answer:
$13.89
Explanation:
The computation of the value of stock is shown below:
Year Dividend Present value factor at 16% Present value
1 $1.90 0.862 $1.64
2 $2.10 0.743 $1.56
3 $2.30
Price $14.375 0.743 $10.68
The price is computed below:
= $2.30 ÷ 16% = $14.375
Total present value $13.89
The present value factor is computed below:
= 1 ÷ (1 + rate) ^ years
For Year 1 = 1 ÷ 1.16^1 = 0.862
For Year 2 = 1 ÷ 1.16^2 = 0.743
