Answer:
This question is incomplete however as per our research the question should be
<em>You have been offered a job with an unusual bonus structure. As long as you stay with the firm, you will get an extra $70,000 every seven years, starting seven years from now.
</em>
<em>
What is the present value of this incentive if you plan to work for the company for 42 years and the interest rate is 6.0%(EAR)?
</em>
<em>The </em><em>detail answer</em><em> with calculation is given below.</em>
Explanation:
Present value is the discounted value of the future value. Time Value of money theory states that the value of the money increases as time passes. This current value is known as the present value.
The present value of this incentive if you plan to work for the company for 42 years is 126,964.34 $. (W-1)
(W-1)
Year- time Discount Factor* Net present value Calculation
**
7 0.6651 46,554.00
14 0.4423 30,961.07
21 0.2942 20,590.88
28 0.1956 13,694.11
35 0.1301 9,107.37
42 0.0865 6,056.92
126,964.34
*DF=(1+i)^t
**PV= DF*70000
where i=6% i.e interest rate
Answer: Option (c) is correct.
Explanation:
Correct option: <u>Deliberate changes in government spending and taxes to stabilize domestic output, employment, and the price level. </u>
Fiscal policy refers to the policy that is used by the government to stabilize the domestic output, employment and price level. Government uses contractionary and expansionary fiscal policy to stabilize the economy at the equilibrium level.
Changes in government spending and taxes are the tools of the fiscal policy through which government stabilize the economy and it generally affects the aggregate demand & level of economic activities in the country.
Answer:
Level of sales (dollars) to earn profit of $50,000
= <u>Fixed cost + desired profit</u>
Contribution margin ratio
= <u>$275,000 + $50,000</u>
0.5
= $650,000
Number of units to earn profit of $50,000
= <u>Level of sales</u>
Selling price
= <u>$650,000</u>
$200
= 3,250 units
The correct answer is A
Explanation:
First and foremost, the level of sales (dollars) to earn $50,000 profit is calculated, which is the ratio of fixed cost and desired profit to contribution margin ratio. Then, we will calculate the number of units to be sold in order to earn $50,000 profit by dividing the level of sales by selling price.
Answer:
a. Product, price, distribution, and promotion variables
Explanation:
As a customer requires various attributes of the product, that is for which the customer will not compromise in, these include:
The product needed, as for the customer is hungry he shall ask for a pizza, now pizza is a product.
The price of the product, if the price is in the budget of the customer he shall buy it else he shall not buy it.
Distribution associated with it basically the method in which it will be distributed, the packaging extracts.
Promotion variables includes extra benefits like offered with the product, cash backs as for example, etc: