Answer:
Customer-focused compensation strategy
Explanation:
Customer-focused compensation strategy is the rating system where the employees are rated based on the way customers are being serviced. In this scenario, Mich Inc. is rating its employees on their friendliness, usefulness, and product knowledge, so the compensation strategy followed by Mich is closely described as a customer-focused strategy.
Answer:
Year Cashflow [email protected]% PV
$ $
0 (14,900) 1 (14,900)
1-12 4,000 5.6603 <u>22,640</u>
NPV <u> 7,740</u>
Explanation:
In this respect, we need to calculate the discount factor of annual cash inflows for 12 years at 14 discount rate. For this purpose, present value annuity interest factor will be used since the cash inflows are constant. Then, we will multiply the annual cashflows by the discount factor so as to obtain the present value of cash inflows. Then, we will deduct the initial outlay from the present value of cash inflows in order to obtain the net present value of the proposal.
Answer:
In this scenario, <u>LISA</u> has both an absolute advantage in food preparation, and <u>LISA</u> has a comparative advantage in food preparation.
Assume that initially, Sam and Lisa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event, and the other person will use the freed-up time to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by <u>1</u>.
Before they were getting 3 new customers since Sam got 2 and Lisa 1, but since Sam will only look for clients, then the total number of clients will be 4 (or 1 more).
Explanation:
It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client.
- Sam's opportunity cost of preparing food = 12/3 = 4 new clients
- Sam's opportunity cost of getting new clients = 3/12 = 0.25 of food preparation
For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.
- Lisa's opportunity cost of preparing food = 10/5 = 2 new clients
- Lisa's opportunity cost of getting new clients = 5/10 = 0.5 of food preparation
Answer:
a lender pays off your existing loans with a new one at a lower interest rate.
Explanation:
Technical college, junior colleges