Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay. The firm has 25 employees who work a 60- hour week and earn an average wage of $12.50 per hour. Using a 10% rate of interest, how much will this change save the firm annually? Format: 1,111

Cleaner’s, Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay. The firm has 25 employees who work a 60- hour week and earn an average wage of $12.50 per hour. Using a 10% rate of interest, how much will this change save the firm annually? Format: 1,111

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter15: Managing Short-term Assets

Section: Chapter Questions

Problem 5PROB

See similar textbooks

Similar questions

Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?
Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
Joshua’s Inc., is switching to paying employees every 2 weeks rather than weekly and will therefore “skip” 1 week’s pay. The firm has 25 employees who work a 60-hour week and earn an Average Wage of $12.50 per hour. Show Solutions and Explanation. A. Using a 10% rate of interest, how much will this change save the firm annually? (Format: 1,111)
Stan Inc. currently asks its credit customers to pay by the end of the month after the month of delivery. In practice, customers take rather longer to pay - on average 70 days. Sales revenue amounts to P 8 million a year and bad debts to P 20,000 a year. The company planned to offer customers a cash discount of 2% for payment within 30 days. Stan estimates that 50% of customers will accept this facility but that the remaining customers, who tend to be slow payers, will not pay until 80 days after the sale. At present the business has an overdraft facility at an interest rate of 12% a year. If the plan goes ahead, bad debts will be reduced to P 10,000 a year and there will be savings in credit administration expenses of P 6,000 a year. (Use 360 days) How much is the net cost/benefit of the proposed policy? A.P 24,000B.(P 24,000)C.(P11,370)D.P2,630
Wall’s Pharmacy will have to sell a new product that has an estimated revenue of $5,100 per month and costs of $1,000 per month with an initial purchase of $28,000. How long will Wall's Pharmacy have to sell a new product if the MARR is 0% per month? Wall's Pharmacy will have to sell a new product for __ months.
Bear Island ltd has a weekly payroll of $450,000. The employees receive entitlements to 2 weeks’ sick leave per year. The sick leave entitlements are classified as non-vesting. Past experience, and experience within the industry, suggest that 55 percent of employees will use their full 2 weeks’ entitlement each year; 10 percent of employees will take 1 weeks’ sick leave each year, and 10 percent of employees will take 1 day’s sick leave each year. Calculate the expected annual sick leave expense for bear island Ltd(on the basis of average salaries
The company offering a starting wage of $15per hour promises a $2 an hour increase after 6 months on the-job. Now what is the pay on an annual basis?
A restaurant has 145 seats needs $60,000 to earn the annual interest payment to the bank. Its monthly fixed labor cost is $7,800 along with other annual fixed cost of $270,000. It has a guest check average of $22 and per guest average cost of $15.50. What revenue is needed to cover all costs? What average daily seat turnover will be needed, assuming the operation is closed 3 days a year?
Dainty Ltd has an average weekly payroll of $200 000. The employees are entitled to 2 weeks', nonvesting sick leave per annum. Past experienc suggests that 56% of employees will take the full 2 weeks' sick leave and 22% will take 1 week's leave each year. The rest of the employees take no sickleave. Required: In the current week an employee with a weekly salary of $600 has been off sick for the first time this year. The employee took 2 days off out of her normal 5-day working week. Assuming that PAYG tax is deducted at 30%, what would the entry be to record the employee's weekly salary (roundamounts to the nearest dollar)?
If a company pays you .69 cents in US dollars per 1,000 views and you have to make $30,000 US dollars by the end of the month. How many views do you need to make $30,000? Please explain and include all used formulas and calculations.