Thus, Tyler's company has acquired a new customer who is willing to purchase 20% of the annual production at a 40% discount.
Solution – Division A
Explanation:
Last year's data shows that Division A contributed 60% of total revenue.
Let total revenue for the company last year be x.
Therefore, Division A earned 0.6x.
Similarly, Division B generated 40% of total revenue last year.
This means Division B’s income was 0.4x.
For the current year, Division A’s earnings have dropped by 35%.
Since last year was 0.6x, the amount lost is 35% of 0.6x.
So this year’s revenue: 0.6x - 0.35(0.6x) = (1 - 0.35) * 0.6x = 0.65 * 0.6x = 0.39x.
Division B’s revenue declined by 5% this year.
Last year’s revenue was 0.4x, so this year it is 0.4x - 0.05(0.4x) = 0.95 * 0.4x = 0.38x.
Comparing both, Division A’s revenue (0.39x) exceeds Division B’s (0.38x) this year.
Answer: The normative decision model by Vroom and Yetton.
Explanation:
The Vroom–Yetton normative decision model represents a situational leadership theory based in industrial and organizational psychology established by Victor Vroom, alongside Phillip Yetton and later with Arthur Jago. This theory posits that the optimal leadership style depends on the context.
In terms of decision-making, the Vroom-Yetton model highlights the necessity of sometimes being autocratic, seeking counsel, considering various approaches prior to making a decision, informing a group about an issue, and allowing that group to devise a solution without imposing one’s ideas.
Answer:
Ending inventory cost for April is equal to $121,875
Explanation:
Based on the information provided in the question:
Unit production cost Absorption cost Variable cost
Direct material $15 $15
Direct labor 10 10
Variable factory overhead 7.5 7.5
Fixed factory overhead 5
Total cost $37.5 $32.5
Finished goods inventory calculation results in 12,500 - 8,750 = 3,750
The cost of the finished goods inventory calculated using absorption costing = 3,750 × $37.50
= $140,625
The finished goods inventory cost using variable costing = 3,750 × $32.50
= $121,875
Response:
The total amount subject to tax will come to $7000
Thus option (d) would be the correct choice
Clarification:
According to IRS regulations, benefits received under a disability policy are fully taxable only if
The employee pays premiums on the policy entirely with pre tax dollars
In this instance, the premium was paid by the employee herself and is assumed to have been with pre tax dollars, thus it is fully taxable i.e 6500$
Consequently, the $500 sick pay from the welfare fund is categorized as earned income and is therefore fully taxable.
Thus the total taxable income amounts to $6500 + $500 = $7000
Consequently, option (d) will be the correct answer
