Answer:
Sales Quota is the amount of sales that an individual sales person or group of sales people is expected to make within a specific amount of time.
Explanation:
Sales Quotas are the goals of the sales team that they are expected to achieve in a given period of time. It can be monthly, quarterly, or yearly. Sales Quota can be based on one person or can be set for a team or a group.
This helps an organization to achieve sales and revenue targets. Managers are able to learn about the productivity of the team and their success rate with the help of Sales quota. Sales quota also motivate the team to do better and achieve the goals.
Answer:
The correct answer is $7,500
Explanation:
So, the hiring cost would be:
Hiring quater × hiring cost
= 300 × $20
= $6,000
Firing Cost would be:
Firing cost = 100 × $5
= $500
= 200 × $5
= $1,000
Therefore, the total hiring and firing cost = $6,000 + $500 + $1,000
= $7,500
Answer:
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300
Explanation:
currently Blue Ridge's costs are:
variable costs = $69,000
fixed costs = $69,000
total $138,000
total cost per unit = $138,000 / 45,000 units = $3.0667 per unit
if Blue Ridge decide to outsource the production of the parts:
variable costs = 45,000 x $4 = $180,000
decrease in fixed costs = $69,000 x -30% = -$20,700
total costs = $159,300
If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300
Answer:
The false statement is letter "D": Contracts that can be performed within one year.
Explanation:
The statute of frauds establishes contracts to be written for some agreements to be secured. It mainly applies to land sales and purchases of goods $500 (U.S. dollars) and above, but it is not limited to only those two kinds of transactions. The statute of frauds capitalizes that contracts cannot be completed in less than one year. In that sense, the option "D" is a false statement.
Answer:
Cost of common equity=15.74%
WACC=11.91%
Explanation:
Complete Question:
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0=$22.00. The last dividend was D0=$2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?
Answer and Explanation:
First we have to calculate the cost of equity which shall be calculated as follows:
Cost of equity=D0(1+g)/P0+g
In the given question:
D0=$2.25
P0=$22.00
g=growth rate=5%
Cost of common equity=$2.25(1+5%)/$22.00+5%
=15.74%
Now we will calculate the WACC which shall be determined through following mentioned formula:
WACC=[Portion of Equity in capital structure*Cost of equity+Portion of Debt in capital structure*Post tax cost of debt]/Portion of Equity in capital structure+Portion of Debt in capital structure
WACC=[65%*15.74%+35%*(1-40%)*8%]/100%
WACC=11.91%
