I took some work home because I had to meet an important deadline the next morning. If I am able to finish the work on time and do it correctly, then there is a chance of getting either a promotion or a pay raise. If I cannot complete it on time, I will not get fired, but any chances of a promotion or pay raise in the near will vanish.

Since I was working at home, I couldn't prepare anything for dinner, so I decided to buy food on a website and get it delivered home. I spent $20 on my dinner, even though I could have prepared a similar dinner for $5.

I was willing to pay for the expensive meal because the opportunity cost of preparing dinner instead was too high. I can afford to pay $15 more for eating, but I cannot afford to lose the opportunity of a promotion or a pay raise. Even if I do not get them immediately, not completing my job would have made it much harder to get it in the future.

My decision is rational because I was sacrificing a small amount of money in order to preserve something that is really valuable for me (promotion or pay raise).

All resources are scarce, and in this case, time was scarce. So I had to decide which action was more valuable and which action could yield a higher benefit.

8 0

2 years ago

Ray Jene earns $900 a week at a Publix supermarket. Ray's payroll deductions are 28%. What is Ray's take-home pay?

kaheart [24]

If Ray earns $900 a week and deductions are 28% Ray's take home pay is:
$648 a week

If we assume that the deductions of 28% are taken out of the $900 weekly we will multiply 900 by 0.28 = 252. Then subtract 252 which is the deduction amount from the 900 and we end up with take home pay of $648.

7 0

1 year ago

Diamond Machine Technology has invested $250,000 in developing a sharpener. Each sharpener costs $3 to make. In addition, fixed

makkiz [27]

Answer:

Diamond Machine Technology

a) Markup price = $4.03

b) Target return price = $3.60

Explanation:

Investment = $250,000

Cost of each sharpener = $3

Additional fixed costs = $10,000

Quantity of sharpeners to sell for the year= 100,000

Markup on sales = 30%

Return on Investment (ROI) = 20%

Markup price = (($3 * 100,000) + $10,000))* 1.3

= $403,000 /100,000 = $4.03

Return on Investment:

Profit for the year = 100,000($4.03 - $3) - $10,000 = $93,000

ROI = $93,000/$250,000 * 100 = 37.2%

Target revenue = (20% of $250,000) + $310,000 = $360,000

Target return price = $360,000/100,000 = $3.60

5 0

1 year ago

Stock repurchase The following financial data on the Bond Recording Company are

Vilka [71]

Answer:

a. 19,048

b. 2.1

c. $21

d. Before $2

After $2.1

e. Explanation of tax implication is below

Explanation:

a. Number of shares = Dividend per share × Number of shares outstanding ÷ cost per share

= 1 × 400,000 ÷ $21

= 19,048

b. Earning per share after repurchase = earnings ÷ (shares before-shares outstanding)

= $800,000 ÷ (400,000-19,048)

= 2.1

c. Market Price = Earning per share Price × Earning

= 2.1 × 10

= $21

d. Earning per share before = Earnings ÷ Before shares

= $800,000 ÷ 400,000

= $2

Earning per share after repurchase = $2.1

After share repurchase the earning per share has increased.

e) Price increased 21 dollars in share repurchased. The price remain constant in dividend payout the amount but additional 1 dollar in dividend the investors gains. If dividend is lesser than tax on capital gain then it will become drawback over collect dividend and vice versa.

4 0

1 year ago