A customer is looking for a particular brand of sunscreen and has not been able to find it in the store. He approaches you and a

Response:

Net operating profit equals 102,000

Explanation:

Based on the following data:

Selling price per unit is $ 71

Manufacturing costs:

Direct materials cost $ 12

Direct labor cost $ 6

Variable manufacturing overhead is $ 3

Annual fixed manufacturing overhead totals $ 264,000

Selling and administrative expenses:

Variable selling/admin expenses per sold unit are $ 4

Annual fixed selling/admin expenses total $ 74,000

Year 1

Starting inventory numbers 0

Units produced throughout the year are 11,000

Sold units during the year total 8,000

Ending inventory numbers 3,000

Year 2

Beginning inventory equals 3,000

Units manufactured for the year total 12,000

Units sold throughout the year are 14,000

Ending inventory is 1,000

Unitary cost is calculated as: (12 + 6 + 3) + (264,000/11,000)= $45

Income statement details:

Sales total = (8,000*$71)= 568,000

COGS total = (8,000*45)= 360,000 (-)

Gross profit = 208,000

Variable selling/admin costs = (4*8000)= 32,000 (-)

Fixed selling/admin costs = 74,000 (-)

Net operating profit rounds to 102,000

Answer:

-Managers will be driven to achieve their targets since these incentives will be awarded only if the company's performance is strong.

Explanation:

Variable pay refers to bonuses or commissions granted upon reaching specific objectives. This type of remuneration serves as a reward for employees achieving their goals.

Conversely, base salary is a constant payment made irrespective of how well one performs.

In this instance, where the HR director at Clearwater Electronics has been tasked with advising the board regarding a proposed variable compensation scheme for senior executives across various departments, such a plan will incentivize those executives to excel, as they will be rewarded if the company accomplishes its objectives

Response:

At the time of retirement, Luis will possess $ 1,153,675.657524 in his retirement account.

Reasoning:

Luis currently has $170,000 in his retirement fund

After compounding at 4.5% quarterly for 30 years, his account will grow to

Account balance = $ 170,000(1 + (0.045/4))^(4*30)

Account balance = $ 650,838.260724

Moreover, Luis intends to contribute $2000 each quarter into the new account for the next 30 years prior to retirement.

The future value (FV) of this account is calculated as

FV = 2000[(1 + (0.045/4))^(4*30) -1] / (0.045/4)  0.01125

FV = $ 502,837.3968

To determine Luis’s total balance at retirement, we calculate the following:

Total amount = Account balance + FV

Total amount = $ 650,838.260724 +  $ 502,837.3968

Total amount = $ 1,153,675.657524

Luis will have $ 1,153,675.657524 in his retirement account.

Answer:

The dividend expense will total $20,000

Explanation:

We know the total shares issued = 12,000

And Treasury stock = 2,000 shares

A regular dividend of $2 per share is declared

Now, we must calculate the total dividend

Outstanding shares = Issued shares - Treasury stock = 12,000 - 2,000 = 10,000 shares

Thus, the dividend expense is calculated as $2 × 10,000 = $20,000

Therefore, the total dividend expense equates to $20,000