Profit sharing peterborough medical devices makes devices

Assignment Help Financial Accounting

Reference no: EM13376864

Profit sharing. Peterborough Medical Devices makes devices and equipment that it sells to hospitals, The organization has a profit-sharing plan that is worded as follows:

The company will make available a profit-sharing pool that will be the lower of the follow two items:
1. 40% of income before taxes in excess of the targe profit level, which is 18% of net assets, or
2. $7 million.

The individual employee is paid a share of the profit-sharing pool equal to the ratio of that employee's salary to the total salary paid to all employees.

Required:

a) If the company earned $45 million of earnings before taxes and had net assets of $100 million, what would be the amount available for distribution from the profit-sharing pool?

b) Suppose that Marg Watson's salary was $68,000 and that total salaries paid in the company were $25 million. What would Marg's profit share be?

c) What do you like about this profit-sharing plan?

d) What do you dislike about this profit-sharing plan?

Reference no: EM13376864

Questions Cloud

The australian dollar has continued on a roller coaster : the australian dollar has continued on a roller coaster ride over the past few months after a period of relative

Go to each companys website and review the most recent : go to each companys website and review the most recent financial statements for each company and answer the following

Freedom of speech and expression are fundamental human : freedom of speech and expression are fundamental human rights that are protected under the u.s. constitution.commonly

Variance analysis the sudbury south carolina plant of : variance analysis. the sudbury south carolina plant of saldanha sports company has the following standards for its

Profit sharing peterborough medical devices makes devices : profit sharing. peterborough medical devices makes devices and equipment that it sells to hospitals the organization

Question 1list and describe the four standards in the imas : question 1list and describe the four standards in the imas statement of ethical practice.question 2consider the

1 identify at least two control procedures for each of the : 1. identify at least two control procedures for each of the situations below. controls can include physical controls

Question i on 1st november 2012 barry bean a service : question i. on 1st november 2012 barry bean a service manager received 60000 offees for a plant and equipment

1 parent company owns 90 of the stock of subsidiary : 1. parent company owns 90 of the stock of subsidiary company.2. on 1102 subsidiary company purchased equipment at a

User Account

All Pages