Answer:
Explanation:
Desk Chairs Total
Sales 187,500 40,000 227,500
Fixed sales /fixed sales unit
Desk
180000/144 = 1250
150 units = 1250*150
Chair
36,000/72= 500
80 units 500*80 =40,000
Variable expenses 112,500
Desk
Budgeted variable expenses /Budgeted units
108,000/144 = 750
150 units = 750*150= 112,500 20,000 132,500
Chairs
18000/72 =250
250*80=20,000
Flexible performance report
Flexible budget Actual result variance
Desk Sales 187,500 186,000 1,500 U
Chairs 40,000 41,200 1,200 F
Variable Exp ( 132,500 ) ( 132,880 ) 380 U
Contribution 95,000 94,320 680 U
Fixed Exp. (30,000) ( 31,000 ) 1,000 U
Income 65,000 63,320 1,680 U
Johnny LaRue sells men's jackets to men's clothing stores, including Melonville Man. Melonville Man orders a selection of men's jackets from LaRue's catalog, asking that LaRue select an assortment of goods for the buyer. LaRue takes advantage of this opportunity to get rid of the odd-sized jackets and those in pastel colors that are no longer popular. LaRue:
Answer:
violated the good faith requirement under sales contracts
Explanation:
In this scenario, it seems that LaRue violated the good faith requirement under sales contracts. In the context of business contracts, good faith refers to dealing honestly and fairly with one another in order for both parties to receive the benefits of the negotiated contract/agreement. In this scenario, LaRue did not do this. Instead, he used the opportunity to take advantage of Melonville Man by adding all the jackets that were unsellable into their purchased package.
Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a(n) _______ and under a fixed exchange rate system a decrease in the official value of a currency is called a(n) ________.
Answer:
Depreciation:devaluation.
Explanation:
Under a flexible exchange rate system a decline in the value of a currency relative to other currencies is a called a depreciation. This could be as a result of factors such as government monetary policies, varying interest rates, aversion of risks by investors, inflation etc.
On the other hand, under a fixed exchange rate system a decrease in the official value of a currency is called a devaluation. This is mainly due to the government monetary policy, so as to shore up the export of a country and to improve foreign trade.
A non-discriminating monopolist will find that marginal revenue:
A. Exceeds average revenue or price
B. Is identical to price
C. Is sometimes greater and sometimes less than price
D. Is less than average revenue or price
Answer:
is less than average revenue or price
Beef Burgers, Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller delivers, an outbreak of disease causes a quarantine of the ranch. In this circumstance, the perfect tender rule:________.
A) applies to both parties.
B) no longer applies.
C) applies only to Beef Burgers.
D) applies only to Cattle Ranch.
Answer:
B) no longer applies.
Explanation:
Based on the information given the perfect tender rule will NO LONGER APPLIES because the seller which is Cattle Ranch is yet to deliver the cattle to Beef Burgers, Inc before the outbreak of the disease causes a quarantine of the ranch, which is why the perfect tender rule states that a buyer is only permitted to reject goods that is been delivered to him or her from a seller only in a situation where the seller's delivered the goods in way that are not perfect or that does not meet the contract agreement between both the buyer and the sellers or in a situation where the goods did not conform to the description which may make the buyer to legally reject the goods delivered.
Therefore based on above scenario between Beef Burgers, Inc the buyer and Cattle Ranch the perfect tender rule will NO LONGER APPLIES .
Vernon Inc. would like to set the best price for a new product. The firm conducts an experimental study by selling the new product at two different prices in two different locations keeping other factors constant to see if a lower price results in better sales. This is most likely an example of ________ research.
When the firm conducts an experimental study by selling the new product at two different prices in two different location, this is most likely an example of casual research.
What is casual research?A causal Research refers to type of conclusive research a research that want to establish a cause and effect relationship between two or more variables in order to draw a conclusion.
Hence, the type of research done by the firm is an example of causal research.
Read more about casual research
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Hector Company gathered the following reconciling information in preparing its March bank reconciliation: Cash balance per books, 3/31$12,000 Notes receivable collected by bank6,000 Outstanding checks9,000 Deposits in transit4,500 Bank service charge75 NSF check1,200 Using the above information, determine the adjusted cash balance for March. a.$7,500 b.$16,725 c.$15,500 d.$12,225
Answer: $16,725
Explanation:
Given the following :
Cash balance per books for March = $12,000
Notes receivable collected by banks = $6000
Bank service charge - $75
Non-sufficient fund (NSF) check - $1200
Therefore, Adjusted cash balance for March:
(balance per books + notes receivable - bank service charge - NSF check)
$(12,000 + 6,000 - 75 - 1200)
$(18000 - 1275)
= $16,725
The risk-free rate of return is 5%, the required rate of return on the market is 10%, and High-Flyer stock has a beta coefficient of 1.5. If the dividend per share expected during the coming year, D1, is $2.50 and g = 4%, at what price should a share sell? (Do not round intermediate calculations. Round your answer to 2 decimal places.
Answer:
$ 29.41
Explanation:
The first is to calculate the investor's required rate of return on the stock as shown below:
Ke=Risk-free rate+Beta*(return on the market-Risk-free rate)
Risk-free rate is 5%
Beta is 1.5
return on the market is 10%
Ke=5%+1.5*(10%-5%)=12.50%
The stock price formula is given below
stock price=D1/Ke-g
D1 is the expected dividend of $2.50
Ke is 12.50%
g =4%
Stock price=2.50/(12.50%-4%)=$ 29.41
Answer:
Explanation:
k=Rf+B(E[r]-Rf): k=5%+1.5(10$-5%)=12.5%
V=2.4/(12.5%-4%)= 30
Hancock Company has 900,000 shares authorized and 350,000 shares issued and outstanding of its $2 par value common stock. The stock is currently selling for $20 per share. If Hancock Company declared and distributed a 30% stock dividend, what journal entry would the company make
Answer:
Dr Retained Earnings 210,000
Cr Common Stock 210,000
Explanation:
Based on the information given we were told that the company has 350,000 shares issued with an outstanding of its $2 par value of common stock which means that if Company declared and as well distributed a 30% stock dividend, the transaction will be recorded as
Dr Retained Earnings 210,000
Cr Common Stock 210,000
(350,000 Shares *$2 par value common stock)
=$700,000*30%
=$210,000
Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disadvantages of his new riding mower as he learned more about other riding mowers available in the same price range. Bill is in which of the following stages of the buyer decision process?
a. purchase decision
b. need recognition
c. postpurchase behavior
d. information search
e. alternate evaluation
Pearl Windows manufactures and sells custom storm windows for three-season porches. Pearl also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Pearl enters into the following contract on July 1, 2017, with a local homeowner. The customer purchases windows for a price of $2,440 and chooses Pearl to do the installation. Pearl charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $630. The customer pays Pearl $2,040 (which equals the standalone selling price of the windows, which have a cost of $1,130) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Pearl completes installation on October 15, 2017, and the customer pays the balance due.
Given uncertainty of finding skilled labor, Pearl is unable to develop a reliable estimate for the standalone selling price of the installation.
Prepare the journal entries for Pearl in 2017.
Answer:
July 1, 2017
No journal entry required because no money or goods have been exchanged.
September 1, 2017
Dr Cash 2,040
Dr Accounts receivable 400
Cr Sales revenue 1,621.37
Cr Unearned revenue 418.63
sales revenue = [$2,040 / ($2,040 + $630)] x $2,440 = $1,621.37
unearned revenue = $2,040 - $1,621.37 = $418.63
September 1, 2017
Dr Cost of goods sold 1,130
Cr Inventory 1,130
October 15, 2017
Dr Cash 400
Dr Unearned revenue 418.63
Cr Accounts receivable 400
Cr Sales revenue 418.63
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period:
Office Expenses Total Allocation Basis
Salaries $ 42,000 Number of employees
Depreciation 22,000 Cost of goods sold
Advertising 45,000 Net sales
Item Drilling Grinding Total
Number of employees 1,200 1,800 3,000
Net sales $ 340,000 $ 510,000 $ 850,000
Cost of goods sold $ 95,000 $ 155,000 $ 250,000
The amount of the total office expenses that should be allocated to Drilling for the current period is:
A. $71,600.
B. $43,160.
C. $109,000.
D. $600,000.
$53,000.
Answer:
Total Office expense allocated to Drilling for this current period is $43,160
Explanation:
Office expense allocation to Drilling
Salaries = $42,000 x 1200 employees/3000 total employee = $16,800
Depreciation = $22,000 x $95,000/ $250,000 total COGS= $8,360
Advertising = $45,000 x $340,000/ $850000 total Sales = $18,000
Total Office expense allocated to Drilling= $43,160
Distinguish among operating, investing, and financing activities for the statement of cash flows indirect method) Aurum Investments specializes in low-risk government bonds. Identify each of Aurum's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a transaction that is not reported on the statement of cash flows (N). Indicate whether each item increases (+) or decreases (minus) cash. The indirect method is used for operating cash flows.
A. Acquisition of equipment by issuance of note payable
B. Purchase of long-term investment with cash
C. Issuance of long-term note payable to borrow cash
D. Increase in prepaid expenses
E. Decrease in accrued liabilities
F. Loss of sale of equipment
G. Decrease in accounts receivable
H. Depreciation of equipment
I. Increase in accounts payable Amortization of intangible assets
K. Purchase of treasury stock
L. Payment of long-term debt
M. Increase in salary payable
N. Cash sale of land
O. Sale of long-term investment
P. Acquisition of building by cash payment
Q. Net income
R. Issuance of common stock for cash
S. Payment of cash dividend
Answer:
A. noncash investing and financing (NIF)
B. investing (I), decreases (minus)
C. financing (F), increases (+)
D. operating (O), decreases (minus)
E. operating (O), increases (+)
F. operating (O), increases (+)
G. operating (O), increases (+)
H. operating (O), increases (+)
I. operating (O), increases (+)
J. operating (O), increases (+)
K. financing (F), decreases (minus)
L. financing (F), decreases (minus)
M. operating (O), increases (+)
N. investing (I), increases (+)
O. investing (I), increases (+)
P. investing (I), decreases (minus)
Q. operating (O), increases (+)
R. financing (F), increases (+)
S. financing (F), decreases (minus)
Explanation:
Operating Activities includes the Net Income and adjustments to the net income for (1) non-cash items previously included or deducted and (2) changes in working capital.
Investing Activities includes sale and investments in Property , Plant and Equipment items.
Financing Activities includes sale of ownership interest and aquisition of financing sources.
To answer this question, the cash flow from operating activities, cash flow from investing activities, and cash flow from financing activities are first as explained.
Cash flow from operating activities represents the revenue generated by a company's ongoing, routine business activity, such as manufacturing and selling things or providing a service to clients.
On a company's cash flow statement, cash flow from operating activities is the first section shown they comprise of net Income, as well as revisions to net Income for previously included or subtracted non-cash items and changes in working capital.
Cash flow from investing activities refer to the cash generated or expended on non-current assets that are expected to yield a profit in the future.
Capital expenditures, lending money, and the sale of investment securities are examples of cash flow from investing activities.
Cash flow from financing activities portion of a company's cash flow statement illustrates the net cash flows used to finance the business.
Examples of cash flow from financing activities include sales of shares, issue of debentures, and among others.
As a result of the above explanation, we have:
A. Acquisition of equipment by issuance of note payable = NIF
B. Purchase of long-term investment with cash = I-
C. Issuance of long-term note payable to borrow cash = F+
D. Increase in prepaid expenses = O-
E. Decrease in accrued liabilities = O-
F. Loss of sale of equipment = O+
G. Decrease in accounts receivable = O+
H. Depreciation of equipment = O+
I. Increase in accounts payable = O+
J. Amortization of intangible assets = O+
K. Purchase of treasury stock = F-
L. Payment of long-term debt = F-
M. Increase in salary payable = O+
N. Cash sale of land = I+
O. Sale of long-term investment = I+
P. Acquisition of building by cash payment = I-
Q. Net income = O+
R. Issuance of common stock for cash = F+
S. Payment of cash dividend = F-
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Thompson Company had $1,000 in office supplies at the beginning of the fiscal year. At the end of the fiscal year, Thompson Company did an inventory of the office supplies and determined that $300 of supplies remained in the supply room unused. What is the amount of Supplies Expense at the end of the fiscal year?
Answer: Amount of supplies expense = $700
Explanation:
Given the following :
Amount of supplies at the beginning of the year = $1000
Amount of supplies which remained unused = $300
Amount of supplies expense at the end of the fiscal year = Amount of used supplies
Amount of used supplies = (amount of supplies at beginning - amount of unused supplies)
Amount of used supplies = ($1000 - $300)
Amount of used supplies = $700
Therefore, amount of supplies expense = $700
The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50. The lead time for the component is 9 days. If a service level of 95% is desired then the company's reorder point for this component would be approximately Group of answer choices
Answer:
4,747
Explanation:
The computation of the reorder point is shown below:-
Reorder Point = Average Daily demand × Lead time + ( Service level × (Average lead time × standard deviation of demand^2 )^ 0.5
For service probability level of 95% is 1.64
= 500 × 9 + 1.64 × (9 × 50^2)^0.5
= 4,500 + 1.64 × 150
= 4,500 + 247
= 4,747
Therefore for computing the reorder point we simply applied the above formula.
During the month of April, it is permissible for an institution's basketball coach to lecture at a non institutional, privately owned basketball camp that is operated under restrictions applicable to institutional camps. True or False
Answer:
False
Explanation:
Since in the question, it is given that in the month of April there is the permission of basketball coach for lecturing at non-institutional camp i.e private owned but it is operated under the restrictions i.e to be applied for only institutional camps
Since it is applicable for only institutional camps but he coached to non-institutional, privately owned
so the given statement is false
Two technicians are discussing the hvac r fild. Technician a says that industry codes that require certain types of installation practice carry the forced of law with them technician b say that ansi is a organization's that estblis codes for the hvac/r fild
Answer: Technician B is correct.
Explanation: It should be noted that, that ansi is a organization's that establishes codes for the hvac/r fild. Therefore, the position of technician a that says industry codes that require certain types of installation practice carry the forced of law with them is wrong.
When a business combination occurs, or a company obtains control over another, a special set of accounting principles known as the acquisition method applies. The acquisition method requires that the acquired net assets are recorded on the balance sheet at fair value, regardless of the amount paid by the acquirer.
a. True
b. False
Answer:
a. True
Explanation:
The Acquirer is deemed to have acquired the assets at Fair Value at the Acquisition date.
These assets are then included in the Consolidated Statements at their fair values at acquisition irregardless of the amount paid by the acquirer.
The difference in the amount paid by Acquirer and the Net Assets acquired can bring about Goodwill or a Gain from Bargain Purchase.
The records of Skilling Inc. include the following information on one of its departments, which is considered an investment center. Sales totaled $9,800,000 and investment center income totaled $766,500 for the most recent year. Investment center average invested assets were $3,650,000 during that year. Top management has set a target income of 11.5% of investment center assets. What is the department's residual income
Answer:
Residual income= 346,750
Explanation:
Residual income is the excess of the controllable profit over the opportunity cost of capital invested.
It is used to evaluate the financial performance of a division or department
It is computed as follows:
Residual income = Controllable profit - (cost of capital× operating assets)
Net income - 766,500
investment asset-3,650,000
Cost of capital - 11.5%
Residual income = 766,500 - (11.5%×3,650,000) = 346750
Residual income= 346,750
calculate revenue and capital expenditure
a) purchase of machinery 6500
Answer with its Explanation:
I was unable to find the question, but I think that I can help you understand the difference between the revenue expenditure and the capital expenditure.
Capital Expenditure:
Capital expenditure is the purchase of an asset whose value will last more than a year or expenditure incurred to increase the life of the asset above the initial life or expenditure to increase the productivity of the asset above productivity of the asset when it was purchased.
Examples include the purchase of van. It has life of more than a year hence it must be capitalized. Likewise if we install security system in it then this expenditure will qualify for capital expenditure as it adds additional feature to the asset.
a. The purchase of Machinery of $6,500 is capital expenditure as it has life more than a year.
Revenue Expenditure
The revenue expenditure is the purchase of product or services whose benefits will last within a year or are expenditure on the fixed asset to keep it running. Examples are, ballpoints which is a product that has life< one year. So it must be expensed out at the spot. Likewise the entertainment expenditures of $50 which includes the purchase of pizza and other items for guests, also has less than one year life. Hence these entertainment expenditures must also be expensed out.
Depreciation is a special case here, it is the decrease in the value of Non Current Asset. Hence the decrease in the value of the Non Current Asset must be reduced to its fair value. Depreciation is an utilization of the Non Current Asset's value in the form of benefits drawn from it and it can be measured as decrease in the asset's value. However, sometimes it is difficult to find the fair value of the asset in the market. To resolve this issue, we use depreciation formula to estimate the decrease in the value of the asset.
Which of the following examples illustrates an oligopoly market? a. a farmers’ market with many individuals selling sweet corn and tomatoes b. a city whose electrical service is provided by one electric co-operative c. a city with two firms who are licensed to sell school uniforms for the local schools d. a city with many independently-owned hair styling salons
Answer:
c. a city with two firms who are licensed to sell school uniforms for the local schools
Explanation:
An oligopoly is an industry that is dominated by few large firms.
characteristics of an oligopoly are :
high barriers to entry or exit of firms
few large firms
interdependence among firms
a farmers’ market with many individuals selling sweet corn and tomatoes is an example of a monopoly
a city whose electrical service is provided by one electric co-operative is an example of a monopoly
a city with two firms who are licensed to sell school uniforms for the local schools is an example of a duopoly which is a type of monopoly
a city with many independently-owned hair styling salons is an example of monopolistic competition
Charlie, the CEO of Collier Chemical, likes to boast that his company offers the highest salaries in the industry, has excellent working conditions, and has clear and consistent company policies. Yet he admits his workforce is not highly motivated. Herzberg's research suggests that Collier Chemical is having difficulty motivating its employees because it is focusing on:
Answer: hygiene factors
Explanation:
From the analysis in the question, we can infer that the organization is focusing on the hygiene factors. According to Herzberg, even though the hygiene factors are vital, they don't motivate workers but they may lead to dissatisfaction at workplace when they're not in place.
Examples of hygiene factors are the organizational policies, relationships with co-workers, compensation, physical work environment, and job security.
Carrie recently received the Employee of the Year award at the call center where she works as a customer service representative. She was chosen for the award because she is known to be highly courteous toward even the most difficult of callers and is efficient at handling their queries. A month after receiving the award, Carrie submits her resignation. According to her exit interview, she felt burnt out. Which of the following best explains this situation?
A) Carrie was overwhelmed by the award.
B) Carrie lacked the skills and motivation to perform her job in an effective manner.
C) Carrie felt the strain of having to constantly fake positive emotions towards her customers.
D) Carrie was demotivated by the lack of recognition and respect from her peers.
E) Carrie was unable to empathize with her callers and the problems that they faced.
Answer: C. Carrie felt the strain of having to constantly fake positive emotions towards her customers
Explanation: Burn outs describes conditions where an individual becomes tired due to overwork. Carrie feeling the strain of having to constantly fake positive emotions towards her customers (due to her highly courteous nature) turned in her resignation as this can be very draining and can be seen as overwork.
Once a surplus is accumulated, more people can engage in trade. Initially, the surplus goods of preindustrial economies are distributed through a system of __________, which is the direct exchange of goods or services considered of equal values by the traders.
Answer: battering
Explanation:
Initially, the surplus goods of preindustrial economies are distributed through a system of battering which is the direct exchange of goods or services considered of equal values by the traders.
In trade by barter, no cash is involved but rather goods with thesame values that are equivalent are exchanged.
In January, Stitch, Inc. adopted the dollar-value LIFO method of inventory valuation. At adoption, inventory was valued at $50,000. During the year, inventory increased $30,000 using base-year prices, and prices increased 10%. The designated market value of Stitch's inventory exceeded its cost at year end. What amount of inventory should Stitch report in its year-end balance sheet
Answer:
$83,000
Explanation:
Calculation of the amount of inventory that Stitch should report in its year-end balance sheet
First step is to calculate for the 10% price increase
Increase price = ( $30,000 x 10% ) =$3,000
Second step is to add up the price increase to the amount of increase in inventory
$30,000 + $3,000 =$33,000
Hence, $33,000 will now be the increased in price inventory
Last step is to calculate for the amount of inventory that Stitch should report in its year-end balance sheet
Using this formula
Inventory to be reported = Valued of the Adoption inventory + Increase price Inventory
Where,
Adoption inventory value= $50,000
Increase price Inventory=$33,000
Let plug in the formula
Inventory to be reported = $50,000 + $33,000
Inventory to be reported =$83,000
Therefore the amount of inventory that Stitch should report in its year-end balance sheet will be $83,000
Which of the following may be deductible in 2019? a.Fines paid for violations of the law. b.Interest on a loan used in a hobby. c.Bribes that relate to a U.S. business. d.All of these choices are correct. e.None of these choices are correct.
Answer:
b.Interest on a loan used in a hobby.
The cost method that will yield an ending inventory that is closer to current prices is the a.FIFO inventory cost method. b.LIFO inventory cost method. c.specific identification inventory cost method. d.weighted average inventory cost method.
Answer: a.FIFO inventory cost method
Explanation: The First-In-First-Out inventory costing method involves applying the price associated with the oldest inventory purchase to goods sold. When the FIFO inventory method is used, when the number of goods purchased for the oldest inventory is exhausted, the cost of goods sold is then associated with the next oldest inventory. With these cost inventory method, the ending inventory always moves closer to the current prices of goods since the older inventory cost is applied first.
A firm has current assets that could be sold for their book value of $30 million. The book value of its fixed assets is $68 million, but they could be sold for $98 million today. The firm has total debt with a book value of $48 million, but interest rate declines have caused the market value of the debt to increase to $58 million. What is this firm's market-to-book ratio
Answer:
The market-to-book value ratio = market value is to book value of the firm
= $70 : $50 (in millions)
= 7: 5
= 1.4 : 1
Explanation:
a) The book value of the firm is calculated as follows:
Current assets = $30,000
Fixed assets = 68,000
less liabilities = (48,000)
Net book value = $50,000
b) The market value of the firm is calculated as follows:
Current assets = $30,000
Fixed assets = 98,000
less liabilities = (58,000)
Net market value = $70,000
c) The market-to-book ratio is a financial metric that calculates the relationship between the market value and the book value of the firm. The market value represents what the firm's net assets are worth in the market. The book value represents the firm's net assets according to the records kept, which are usually based on the historical costs of assets and liabilities.
Suppose Asarta Inc. is polluting yucko and they have been tasked with cleaning up some of their waste. The company decides to clean up Q tons of yucko—are they cleaning up enough?
Answer: The answer is No, because the MB > MC
Explanation:
They are not cleaning up enough because the MB>MC. Therefore, all other options which cut across - Yes, because the MC > MB,
No, because the MB > MC,
Yes, because the MB > MC and
No, because the MC > MB are wrong.
Taylor s has a beta of .78 and a debt-to-equity ratio of .2. The market rate of return is 10.6 percent, the tax rate is 34 percent, and the risk-free rate is 1.4 percent. The pretax cost of debt is 6.1 percent. What is the firm's WACC
Answer: 7.82%
Explanation:
Given the following :
Beta (B) = 0.78
Debt to equity ratio = 0.2
Market rate of return (Rm) = 10.6% = 0.106
Tax rate (T) = 34% = 0.34
Risk free rate (Rf) = 1.4% = 0.014
Pretax cost of debt (Kd) = 6.1% = 0.061
WACC =
Cost of equity (Ke) = Rf + (Rm - Rf) * B
Ke = 0.014 + (0.106 - 0.014) * 0.78
Ke = 0.014 + (0.092)*0.78
Ke = 0.014 + 0.07176
Ke = 0.08576
Equity (E) = 1
Debt (D) = 0.2
Total volume of company's finance (V) = 1+0.2 = 1.2
WACC = (E/V)*Ke + (D/V)*(1 - T)*Kd
WACC = [(1/1.2)*0.08576] + [(0.2/1.2)*(1 -0.34)*0.061
WACC = [0.0714666 + 0.00671]
WACC = 0.0781766 = 0.0782 = 7.82%
How does merit pay differ from a bonus? Group of answer choices A bonus becomes part of an employee's base pay, but merit pay does not. A bonus is linked to individual performance, while merit pay is linked to team performance. Merit pay is linked to individual performance, while a bonus is linked to team performance. Merit pay becomes part of an employee's base pay, but a bonus does not.
Answer: Merit pay becomes part of an employee's base pay, but a bonus does not.
Explanation:
A merit is an increase in the salary of an employee due to the employee's performance, dedication and hardwork towards his or her job and it is becomes part of the base pay of the employee.
A bonus is a financial compensation that is given to a worker. It should be noted that the bonus is usually a one time payment and doesn't become part of a worker's pay.