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Katyanochek1 [597]
3 years ago
14

Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and ear

ned $210,000 in income. The company's target rate is 10%. Which division has the highest residual income
Business
1 answer:
Rus_ich [418]3 years ago
4 0

Answer:

Division XYZ has the highest residual income

Explanation:

Residual income is the excess of the controllable profit over the opportunity cost of capital invested.

It is used to appraise and evaluate the performance of separate divisions of the same company where different managers are responsible for each

It is computed as follows:

Residual income = Controllable profit - (cost of capital× operating assets)

<em>Division ABC</em>

Residual income = 200,000 - (10%×750,000) = $125,000

Residual income= $125,000

<em />

<em>Division XYZ</em>

Residual income = 210,000 - (10% ×800,000) = $130 ,000

Residual income= $130,000

Division XYZ has a higher residual income of $130,000 compared to the $125,000 of division ABC. A difference of $5,000 higher.

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1.

As an employee working for a salon, it is necessary to have understandings and skills related to this job. They should have hair care skills to provide services for customers such as: washing, cutting, dyeing, etc. In addition, they also need to have good working attitude, which includes being on time for their shifts, being friendly, respectful to the customers. As a service provider, they should also be customer-oriented, which means prioritize the benefits of customers.

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A good team player is the one who have both good individual skills and the team-oriented attitude as well. So that they tend to have these habits:

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+) Second one is to pitch in, start doing something as a group, put the responsibility for and the benefit of the whole group on top.

+) The next one is share your knowledge. Sometimes, in a group, the field of understanding of each member is different. It is necessary to share the knowledge to assure that other people can also understand what you gonna do to have appropriate adjustment or support if necessary. This can also help team members all gain.

+) The fourth one is to have positive mind. The more optimistic and future-focused a member the better they perform at work. And this attitude also helps lift the enthusiasm as well.

+) The fifth one is being willing to resolve conflict. As conflicts are unavoidable in team work due to the difference in many aspects of people. A good team player tends to be more willing to resolve conflict as it could affect the work efficiency.

+) The last one is to be willing to be subordinate and loyal. This could help remain the team spirit well and make a team player become a good listener. Even when they are wrong or have no idea, it is essential that they are willing to be subordinate rather than just want to lead everything.

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Salary plus commission are used when the employees can earn sales or create added value to the business of the firms - which is higher than the required level of their duties.

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Five principles of selling salon products and services are:

+) First, be familiar and have understanding about each product's feature, benefits, effect as well as the other services. This is to assure that they can sell and recommend the right one that the customers need.

+) Second, try to adapt the technique to meet the needs of each client. The clients demand and personality varies so that their needs are different, for example some are willing to have more recommendation to buy, some are easily confused and uncomfortable instead.

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