A new car salesman is being paid a straight salary, but has the choice to (a) continue with straight salary, (b) change to straight commission, or (c) change to a combination that includes a lower base salary and a commission on each sale of a new car. What states of nature might be useful in constructing a payoff table for this situation?
The salesman should consider the possible levels of sales he might make as his states of nature. Of course, the various levels of sales would affect his income under the different types of income plans.
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Voluntary payroll deductions may include all of the following except
A) charity donations. B) 401K deductions. C) group health insurance. D) FICA taxes.
The initial term for which a financing statement will be effective is
a. one year. b. five years. c. ten years. d. two years.
A company retires its bonds at 105. The face value is $100,000 and the carrying value of the bonds at the retirement date is $103,745. The issuer's journal entry to record the retirement will include a:
A. Debit to Discount on Bonds. B. Debit to Premium on Bonds. C. Credit to Bonds Payable. D. Credit to Gain on Bond Retirement. E. Credit to Premium on Bonds.
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the appropriate journal entry to record the issuance of the note?
A. Debit Notes Payable $250,000; credit Cash $250,000. B. Debit Cash $287,258; credit Interest Payable $37,258; credit Notes Payable $250,000. C. Debit Cash $250,000; debit Interest Expense $37,258; credit Notes Payable $287,258. D. Debit Cash $37,258; credit Notes Payable $37,258. E. Debit Cash $250,000; credit Notes Payable $250,000.