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Natalka [10]
3 years ago
13

Holly's salary is $80,000 per year. She contributes 10% of her salary to her 401(k) plan. Her employer contributes 5% of her sal

ary to a profit share plan. She also contributes $2,500 per year to an IRA. Holly's savings ratio is
Business
1 answer:
pochemuha3 years ago
5 0

Based on the amount that Holly contributes per year, her savings ratio can be said to be<u> 18.1%. </u>

<h3>Savings Ratio</h3>
  • Percentage of annual salary that is contributed to retirement funds.
  • Includes savings made by employer.

Holly's savings are:

= (10% + 5%) of salary + Contribution to IRA

= (15% X 80,000) + 2,500

= $14,500

Savings ratio is:

= Savings / Annual salary

= 14,500 / 80,000

= 18.1%

In conclusion, savings ratio is 18.1%.

Find out more about IRA at brainly.com/question/1637877.

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Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The
AleksAgata [21]

Answer:

Diamond Computer Company

The company should make (Alternative 1) the cases.

Explanation:

a) Data and Calculations:

Purchase price of portable computer cases = $59 per unit

Alternative 1: Make

Direct materials        $35.00

Direct labor                 18.00

Variable overhead       2.70 (15% of $18.00)

Total variable  cost $55.70

Alternative 2: Buy

Purchase price = $59

b) A make or buy decision is determined by preparing a differential analysis.  The differential or incremental analysis evaluates the changes in revenues, costs, and profits resulting from Diamond's decision to make or purchase the computer carrying cases.

3 0
3 years ago
if interest rates are positive, the future value of a given sum will always be less than the present value
Alexeev081 [22]

Answer:

False. If interest rates are positive, the future value will always be more than the present value.

Explanation:

Future value is given by:

FV = PV (1 + i)^{n}

wherein, FV=  Future Value

              PV= Present Value

              i = rate of interest per period

              n = number of periods

So, if interest rates are positive, the current investment shall be compounded to arrive at Future value which would turn out to be more than the present value.

For example, $ 100 invested today at 10% per annum, after an year would yield $110. This represents future value.

In case future value is provided as 110$ and rate of interest is given as 10% per annum, such future value discounted at 10% would give $100 today which represents the present value.

Thus, Future value will always be more than the present value if interest rates are positive.

5 0
3 years ago
Jacob is looking to buy some car insurance and is reviewing different policies from several different agencies. The first policy
Lostsunrise [7]

The expected value of buying this insurance policy is $50.

The expected value of buying the insurance policy is the weighted average of probabilities of the cost of the insurance and the cover if Jacob gets into an accident.

If Jacob gets into an accident and is covered, his payout will be:

= benefit - cost

= 10,000 - 750

= $9,250

The probability of this happening is 8%.

If Jacob does not get into an accident he would lose the $750 he paid in insurance premiums. The probability of this happening is:

= 100% - 8%

= 92%

The expected value of the insurance is:

= (probability of accident * payout if there is an accident) + (probability of no accident * payout if there is no accident)

= (8% * 9,250) + (92% * -750)

= $50

<em>More information on expected value can be found at brainly.com/question/17069001.</em>

5 0
3 years ago
Analyse the quality of social service delivery in South Africa
adoni [48]

Answer:

The quality of social service delivery in South Africa is very poor.

Explanation:

The quality of service may be poor due to several factors such as the manipulation of politicians, no accountability of work done, not enough workforce employed to do the necessary job, unprepared in terms of planning, failure to cope up with change in the dynamic environment etc.

The social service delivery can be improved by understanding the needs of the market, handling the information better, hiring better and qualified workforce, updating and implementing policies to cope up with change and provide time in planning the service delivery.

6 0
3 years ago
John operates a running shoe company and has decided to segment his market into professional track runners, trail runners and re
kkurt [141]

The correct option is (c) benefit segmentation.

Benefits segmentation is a sort of market segmentation that divides consumers into groups according to the advantages and perceived worth of the products and services they can purchase. Additionally, it might entail classifying clients in accordance with functional advantages such features, quality, and customer service.

Benefit segmentation is a technique for market segmentation that entails dividing your customer base into groups according to the benefits customers perceive they will get from your product. This may entail classifying consumers in accordance with their perceived value for things like quality, features, customer service, etc.

Learn more about Benefits segmentation  here

brainly.com/question/16968586

#SPJ4

6 0
2 years ago
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