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denis23 [38]
3 years ago
9

The owners of a small manufacturing concern have hired a manager to run the company with the expectation that (s)he will buy the

company after five years. The goal of the owners in making this hire is to find the appropriate manager that will increase profits substantially. Compensation of the new manager is a flat salary plus 50% of first $200,000 of profit, and then 5% of profit over $200,000. Purchase price for the company is set as 41 2 times net earnings (profit), computed as average annual profitability (prior to calculation of the managers bonus) over
the next five years.
(a) Does the bonus structure for the manager provide the manager with the appropriate incentive to increase profits beyond the first $200,000 ? Explain briefly.
(b) Is it a good idea to link the purhcase price of the company to the earnings (profit) of the company. Given this linkage, what do you think the manager will try to do?
(c) Does this contract align the incentives of the new manager with the (current)goals of the owners?
Business
1 answer:
Viefleur [7K]3 years ago
8 0

Answer:

sry need points

Explanation:

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Compared with supermarkets, the product mix for vending machines is: __________.
Vlada [557]

Answer:

d. shallower and narrower

Explanation:

Product width basically refers to how many different product lines are sold, and obviously a supermarket sells hundreds of product line, while a vending machine generally sells soft drinks or snacks, which is only 1 product line.

The product depth refers to the amount of products sold, and a supermarket is much larger than a vending machine so it can sell many more products.

7 0
3 years ago
Sustainable development refers to _____. a. economic activities that do not threaten the environment b. an increase in the numbe
azamat

Answer:

A

Explanation:

The Brundtland Report defines Sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs."

8 0
3 years ago
Bramble Corp. incurs the following costs to produce 13000 units of a subcomponent: Direct materials $10920 Direct labor 14690 Va
Mumz [18]

Answer:

$4,850

Explanation:

The computation is shown below:

Total cost when the production is 13,000 units

Direct materials $10,920

Direct labor $14,690

Variable overhead $16,380

Total $41,900

And, the other case

Their new cost on supplier offer is

= $2.85 × 13,000 units

= $37,050

In the case when the order is accepted So the net income would increased by

= $41,900 - $37,050

= $4,850

7 0
3 years ago
Many television infomercial advertise a product at a very low price. after you order the product, you find there is a fairly sub
musickatia [10]

Answer:

This is an example of multiple pricing.

Explanation:

Sometimes if you add all the extra charges, like shipping and handling, you might realize that the product being offered by the infomercial is actually more expensive than similar products that you can buy on retail stores or websites.

Infomercials do this on purpose, they use low selling prices as bait, but then they charge very high fees for processing your order and shipping it.

4 0
3 years ago
Zappos, an online shoe company, knows shoes are typically a(n) ________ good, with consumers often spending time comparing alter
Leona [35]

Answer:

shopping

Explanation:

Shopping products are the ones that customers tend to compare in order to buy them considering different characteristics like price, style and quality. Because of this, customers take some time before deciding what to purchase and shoes can be considered a shopping good as consumers will make comparisons before deciding which one to buy.

8 0
3 years ago
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