Answer:
The increase in pre-tax income 20,000
Explanation:
The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.
The sale price for the special order=10
the variable cost per unit=6
contribution margin per unit from special order=10-6=4
The increase in pre-tax income=total contribution margin from special order
The increase in pre-tax income=5000*4
The increase in pre-tax income=20,000
Hence, accepting the order is worthwhile.
Dividends is <span>the earnings of a corporation that are distributed to the stockholders.
To put it simply, dividend is a part of the profit that will be given to everyone that held company's stock which amount will be depended on how much stocks that the owner held.</span>
Answer:
$954.60
Explanation:
Gross Pay: Gross income for an individual, also known as gross pay, is the individual's total pay from his employer before taxes or other deductions.
Net Pay: Gross income for an individual, also known as gross pay, is the individual's total pay from his employer after taxes or other deductions.
Particulars Amount Amount
Gross Pay $1,250
Withholding deduction:
Income tax <em>($201.65)</em>
Social Security <em>(1,250*0.06 = $75)</em>
Medicare tax <em>(1,250*0.015 = $18.75)</em>
Net pay $954.60
Answer:
Option (a) is correct.
Explanation:
Value of stock:
= Present value of all cash flows
![=Dividend[\frac{1-\frac{1}{(1+r)^{n} } }{r}] + Par\ value[\frac{1}{(1+r)^{n} }]](https://tex.z-dn.net/?f=%3DDividend%5B%5Cfrac%7B1-%5Cfrac%7B1%7D%7B%281%2Br%29%5E%7Bn%7D%20%7D%20%7D%7Br%7D%5D%20%2B%20Par%5C%20value%5B%5Cfrac%7B1%7D%7B%281%2Br%29%5E%7Bn%7D%20%7D%5D)
![=50\times 0.12[\frac{1-\frac{1}{(1.08)^{5} } }{0.08}] + 50[\frac{1}{(1.08)^{5} }]](https://tex.z-dn.net/?f=%3D50%5Ctimes%200.12%5B%5Cfrac%7B1-%5Cfrac%7B1%7D%7B%281.08%29%5E%7B5%7D%20%7D%20%7D%7B0.08%7D%5D%20%2B%2050%5B%5Cfrac%7B1%7D%7B%281.08%29%5E%7B5%7D%20%7D%5D)
= $6 × 3.9927 + $50 × 0.6806
= $23.96 + $34.03
= $57.99 or $58
Answer:
The correct answer is B: it increases their switching costs
Explanation:
Relationship marketing is about establishing a long-term bond with consumers. Instead of pursuing a one-time sale, relationship marketing tries to encourage customer loyalty by providing top of the notch products and services. Relationship marketing is usually not linked to a single product or offer. It involves a company perfecting their business to maximize the value of that relationship for the customer.
Relationship marketing principally requires the improvement of internal methods. The objective is to make the costumers experience to the fullest, meeting their expectations and creating a bond beyond the service itself. When you, as a company, achieve a level of uniqueness to the consumer, the cost of switching companies increases. It is more difficult to find a provider that fulfills your needs and desires.
