On january 1, 2011, sauder corporation signed a five-year noncancelable lease for equipment. the terms of the lease called for sauder to make annual payments of $50,000 at the beginning of each year for five years with title to pass to sauder at the end of this period. the equipment has an estimated useful life of 7 years and no salvage value. sauder uses the straight-line method of depreciation for all of its fixed assets. sauder accordingly accounts for this lease transaction as a capital lease. the minimum lease payments were determined to have a present value of $208,493 at an effective interest rate of 10%.

in 2011, sauder should record interest expense of
a. $15,849
b. $16,600
c. $10,700
d. $15,808.

All else being equal, which is true about a firm with high operating leverage relative to a firm with low operating leverage? select one: a. a higher percentage of the high operating leverage firm's costs are fixed. b. the high operating leverage firm is exposed to less risk. c. the debt payments limit the high operating leverage firm's opportunities to turn a big profit. d. the high operating leverage firm has more debt.

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.

You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?