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lora16 [44]
3 years ago
11

Explain one opportunity cost of a private limited company deciding to award a pay increase to

Business
1 answer:
Anuta_ua [19.1K]3 years ago
4 0

Answer:

see below

Explanation:

Opportunity costs represent the sacrificed benefits in a decision. when choosing between alternatives, people can only enjoy the benefits from the chosen option. The advantages from the other alternatives not selected are foregone. The missed benefits from the options not selected are the opportunity costs.

Awarding employees with a pay increase will cost the private limited company money. The company could have spent that money in different other ways. For example, instead of awarding a pay increase, the company could have invested in new modern machinery, invested in shares of another company, or opened another branch. Assuming buying shares was the next best alternative to awarding pay rise, the missed dividends, and capital gains from shares not bought is the opportunity cost.

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Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,988. The
cluponka [151]

Answer:

$6,809.04

Explanation:

Calculation to determine what her net pay for the month is

Gross Pay (a) $8,988

Less: Deductions

Social Security Tax $557.26

($8,988 * 6.2%)

Medicare Tax $130.33

($8,988 * 1.45%)

Federal income Tax $1,491.37

Total Deductions (b) $2,178.96

Net Pay (a-b) $6,809.04

($8,988-$2,178.96)

Therefore her net pay for the month is $6,809.04

6 0
3 years ago
You invest $100 in a risky asset with an expected rate of return of 0.21 and a standard deviation of 0.21 and a T-bill with a ra
WARRIOR [948]

Answer:

-0.4242

Explanation:

Ra = 0.21 or 21%

Rf = 0.045 or 4.5%

Rp = 0.28 or 28%

Expected return on a portfolio is weighted average return of its assets :

Rp = Rf*(1-w) + Ra*w

28 = 4.5*(1-w) + 21*w

28 = 4.5 - 4.5w + 21w

28 - 4.5 = 21w - 4.5w

21w - 4.5w = 28 - 4.5

16.5w = 23.5

w = 23.5/16.5

w = 1.4242

Hence, weight of risky asset = 1.4242

So, Weight of risk free asset = 1 - 1.4242

Weight of risk free asset = -0.4242

5 0
3 years ago
Which statements about the offer are true? Check all that apply.
svp [43]

Answer:

there is no picture

Explanation:

4 0
3 years ago
Use the following selected date and additional information from the records of Hitchcock Corporation to answer the question that
yawa3891 [41]

Answer:

$35,000

Explanation:

Requirement:  Prepare the Operating Activities section of the Statement of Cash Flows for the year ended 2004. Use the INDIRECT Method

Cash from Operating Activities

Particulars                                                   Amount$

Net income                                                     6000

Add: Depreciation expense                         <u>50000</u>

Operating Cash Flow before                        56000

Change in Working Capital

Add:

Decrease in inventory                      3000

Increase in incomes taxes payable   7000    <u>10000</u>

Less:

Increase in accounts receivable    10000

Increase in prepaid Rent                  8000  

Decrease in accounts payable        7000

Decrease in salaries payable          6000   <u>-31000</u>

Cash from Operating Activities                  <u>$35000</u>

5 0
3 years ago
Which of the following falls in the category, "place" in the marketing mix?
inna [77]

Answer: trade shows

Explanation:

In marketing mix, the place is simply referred to as the process of movement if goods and services from the producer to the prospective consumers or consumers.

The place also refers to how ones good or service is bought and the place where it is being sold. The movement could be through intermediaries like distributors, the wholesalers, retailers etc.

In the above, the place will be the trade shows.

7 0
3 years ago
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