Answer:
D. Administrative costs are always relevant.
Explanation:
As Shelby is considering whether to drop a product line from her business. Some administrative costs are always being allocated to the product line but will not change in total if Shelby decides to drop the product line. Administrative costs are always relevant. Administrative costs can be defined as the costs and expenses which are not directly related to any specific department like sales, manufacturing or marketing etc. These are the costs which are related to the company as a whole like, salaries of employees, expenses linked withe the general services like IT and accounting etc. These costs have no linkage with the gross margin. On the other hand, we can define a relevant cost that gives us a differences between two options and alternatives and it can be avoided by choosing one option over another. Therefore, Shelly should take this fact into account because administrative costs are very much relevant and important as well in order to make this particular decision about the product line.
<u>Answer:</u>A 3) Two days off with pay
B. 3)For every 200 Macy's coupons you hand out, you will receive 25% off any item in the store.
3). 2) In the coming weeks, I will be relying on you to make decisions on how best to make this transition.
<u>Explanation:</u>
Expectancy theory has three components which are Valence, instrumentality and effort. Motivation at workplace is essential the above three examples is based on the expectancy theory and the employees are motivated based on the theory.
A. Emily is the employee who has put a lot of effort to complete the task at Macy's. She has helped the store in relocating and attending the young female customers to compete Abercrombie & Fitch. She has worked hard and requires two days off to put herself together. She also needs to be paid for two days for her hard work.
B. Instrumentality is the performance outcome through motivation. Here Emily should be given motivation to do more sales. The target based motivation would be effective and she would be motivated to handout more coupons to avail her discount at the store.
C. Expectancy is the perceived effort performance relationship. Giving Emily the power to make decisions gives her motivation to perform well.
Answer:
EPS
Plan I $2.03 per share
Plan II $1.78 per share
Explanation:
Plan I
As this plan is all equity plan, so there is no debt and no interest expense as well.
In the absence of taxes, We will use the EBIT in the calculation of EPS
EPS = Net Earning / Outstanding numbers of shares = $375,000 / 185,000 = $2.03 per share
Plan II
In this levered plan we have debt and equity combination. We also have to deduct the interest expense from EBIT to calculate the net income.
Interest Expense = $2,700,000 x 5% = $135,000
Net Income = EBIT - Interest Expense = $375,000 - $135,000 = $240,000
EPS = Net Income / Outstanding numbers of shares = $240,000 / 135,000 = $1.8 per share
In dangerous professions like law enforcement and construction, women are respected. Since these jobs are dangerous, many women are not often interested in working in these career fields. Due to the smaller number of women who will work in the career fields, those who do are highly respected by their peers.
