Answer:
(a) $35,000
(b) $8,000
Explanation:
(a) Accounting profit:
= Total revenue - Explicit cost
= $75,000 - (wages + Annual rent + Material cost)
= $75,000 - ($13,000 + $5,500 + $21,500)
= $75,000 - $40,000
= $35,000
(b) Economic Profit:
= Total revenue - Explicit costs - Implicit costs
= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)
= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)
= $75,000 - $40,000 - $27,000
= $8,000
I think I just did this one but I’ll check and get back to you
Question Completion with Options:
*Re-evaluate the existing commission plan to determine whether you can eliminate the perception of unfairness. Re-evaluate the base salaries by comparing them to other upscale clothing stores.
*Put all salespeople on the same commission plan regardless of tenure. This will clearly establish a strong relationship between performance and reward for all sales personnel. Increase the base salaries of longer-tenured salespeople who have worked for Swazzi more than two years to reinforce the relationship between their experience/loyalty and their rewards.
*Travel to the stores and explain the system in detail to the sales teams. Tell them you will try to clear up any perceived unfairness once you see whether they are serious about selling
Answer:
*Put all salespeople on the same commission plan regardless of tenure. This will clearly establish a strong relationship between performance and reward for all sales personnel. Increase the base salaries of longer-tenured salespeople who have worked for Swazzi more than two years to reinforce the relationship between their experience/loyalty and their rewards.
Explanation:
Longer-term sales personnel should be rewarded differently from newer personnel. But, this differential reward should not be based on the sales commission. The base salary will be more ideal for this tenure reward. This will be in line with the Expectancy Theory which states that employees base their individual levels of effort on what is necessary to perform well and earn rewards within the workplace. The theory also requires that the reward structure is clear with well-defined goals and routine evaluations. The Expectancy Theory helps workers to put in their best because they are looking forward to some well-defined and clear rewards.
Answer: learning organisation
Explanation: In simple words, this refers to the organisation which focuses on continuous training of their employees and frequently makes changes in their administration structure. These are usually immature organisations who are new in the market.
In the given case, The hotel management is operating at a large scale and is open to new ideas that can improve their business.
Hence from the above we can conclude that Bradley's hotel is a learning organisation.
Answer:
The correct answer is letter "A": group decision making.
Explanation:
Group decision making allows members to share individual experiences among the team. The team usually starts by brainstorming ideas on their tasks so the path they will follow is decided by the majority of them. These types of actions create a sense of justice in the group that later will be translated into commitment with the path taken. Besides, as the team members elected that path by themselves, they are likely to have a deeper understanding of what they are looking for the result of the work to be.
