All categories

19 days ago

Fixed expenses are $147,000 per month. The company is currently selling 2,000 units per month. The marketing manager would like

to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $13 per unit. In exchange, the sales staff would accept a decrease in their salaries of $22,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

Business

You might be interested in

Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly

Mariulka [3825]

Answer:

The best approach for acquiring inputs that have clear and quantifiable quality requirements and necessitate specialized investment is through contracts.

Explanation:

The contract formalizes the arrangement between the buyer and seller, establishing legal conditions and agreed responsibilities. One of the significant benefits is that companies and buyers can concentrate on obtaining what they require as contracts apply to physical goods as well as services, minimizing opportunistic behaviors and underinvestment.

An example is CONASUPO, a Mexican government agency that entered into contracts with ranchers across Mexico to procure their milk production at reduced prices to support numerous low-income households.

3 0

3 months ago

Read 2 more answers

E6-18 (Algo) Inferring Bad Debt Write-Offs and Cash Collections from Customers LO6-2 On its recent financial statements, Hassell

Scilla [3833]

Response:

1. During this fiscal year, the total amount of bad debts that were written off was:

Allowance for Doubtful Accounts

$ 147 Credit

$ 94 Credit

$ 58 Debit

$ 183 Credit Balance

Dr Allowance for Uncollectible Accounts $ 58

Cr Accounts Receivable Net $ 58

2. Based on your answer to question (1), determine the cash collected from clients for this financial year.

Accounts Receivable

$ 11,785 Debit

$ 61,170 Debit

$ 58 Credit

$ 58,825 Credit

$ 14,072 Debit Balance

Explanation:

To ascertain the amount of debt written off during the ongoing year, take into account the balance from the previous year and factor in the total recorded for bad debts within the year. The difference between the total for the current year and these figures will indicate the written-off amount.

In the current year, Hassell noted a bad debt expenditure of $94 with no recoveries reported.

Dr Bad Debt Expense $ 94

Cr Allowance for Uncollectible Accounts $ 94

1. What was the total amount of bad debts written off in the current year?

Allowance for Doubtful Accounts

$ 147 Credit

$ 94 Credit

$ 58 Debit

$ 183 Credit Balance

Dr Allowance for Uncollectible Accounts $ 58

Cr Accounts Receivable Net $ 58

2. Using the answer from requirement (1), calculate the cash obtained from customers this year

With previously calculated figures, you can calculate the total amount collected throughout the year. You repeat the process used earlier to figure out the amount; using the movements from the current year, deduce the total collected value.

Accounts Receivable

$ 11,785 Debit

$ 61,170 Debit

$ 58 Credit

$ 58,825 Credit

$ 14,072 Debit Balance

Dr Cash $ 58.825

Cr Accounts Receivable Net $ 58.825

5 0

2 months ago

One local hospital has just enough space and funds currently available to start either a cancer or heart research lab. If admini

marusya05 [3725]

Answer:

The total payoff is $50000

Explanation:

solution

The payment is represented at a certain point in a circular format.

This reflects the cumulative results and their probabilities.

The total payoff point is

total payoff = 0.5 × $100,000 + 0.5 × 0

total payoff = $50000

It indicates that the best decision would be the cancer lab, as it presents the highest expected return of 60000

8 0

3 months ago

Project A has cash flows of –$74,900, $18,400, $26,300, and $57,100 for Years 0 to 3, respectively. Project B has cash flows of

Mariulka [3825]

Respuesta:

El Proyecto A debe ser aceptado NPV 3,948.77

El Proyecto B debe ser rechazado NPV -7,086.76

Explicación:

Calcular el valor presente de cada flujo de caja con una tasa de descuento del 11.5% utilizando la fórmula para el valor presente de un monto único:

$\frac{Nominal}{(1 + rate)^{time} } = PV$

la tasa para cada flujo de caja será del 11.5%

el tiempo corresponderá al año del flujo de caja

y el valor nominal de cada flujo de caja

Proyecto B:

Año 1

$\frac{18400}{(1 + 0.115)^{1} } = PV$

PV 16,502.24

Año 2

$\frac{22700}{(1 + 0.115)^{2} } = PV$

PV 18,258.96

Año 3

$\frac{51500}{(1 + 0.115)^{3} } = PV$

PV 37,152.04

Total flujo de caja descontado: 71,913.24‬

NPV: flujo de caja descontado - inversión

71,913.24 - 79,000 = -7,086.76

El Proyecto B debe ser rechazado NPV -7,086.76

Proyecto A:

Año 1:

$\frac{18400}{(1 + 0.115)^{1} } = PV$

PV 16,502.24

Año 2:

$\frac{26300}{(1 + 0.115)^{2} } = PV$

PV 21,154.66

Año 3:

$\frac{57100}{(1 + 0.115)^{3} } = PV$

PV 41,191.87

Total flujo de caja descontado: 78,848.77

NPV:flujo de caja descontado - inversión

78,848.77 - 74,900 = 3,948.77‬

El Proyecto A debe ser aceptado NPV 3,948.77

6 0

3 months ago