Silver Springs Company has an unfunded retiree health care plan. Each of the company's four employees has been with the organization since its inception at the beginning of 2020. As of the end of 2021, the actuary estimates the total net cost of providing benefits to employees during their retirement years to have a present value of $196,000. Each of the employees will become fully eligible for benefits after 28 more years of service, but aren't expected to retire for 30 more years. The interest rate is 8%. Required: 1. What is the expected postretirement benefit obligation at the end of 2021? 2. What is the accumulated postretirement benefit obligation at the end of 2021?

Answers

Answer 1

Answer:

1. The expected post-retirement benefit obligation at the end of 2021 is $196,000, the present value of total net costs of providing health care benefits.

2. Calculation of the accumulated post-retirement benefit obligation at the end of 2021 is as below:

APBO = EPBO * Full eligibility period / Attribution period

APBO = $196,000 * 2 / (2+28)

APBO = $196,000 * 2/30

APBO = $13066.66666666667

APBO = $13,066.67

Thus, accumulated post-retirement benefit obligation at the end of 2021 is $13,066.67.


Related Questions

Sid Summitt is the stockholder and operator of Our Idol LLC, a motivational consulting business. At the end of its accounting period, December 31, 2017, Our Idol has assets of $502,000 and liabilities of $120,000. Using the accounting equation, determine the following amounts:______.
a. Stockholders' equity as of December 31, 2017.
$
b. Stockholders' equity as of December 31, 2018, assuming that assets decreased by $117,000 and liabilities decreased by $36,000 during 2018.
$

Answers

Answer:

a. Stockholder's equity as of December 31,2017 = Assets - Liabilities

= $502,000 - $120,000

= $382,000

b. Stockholder's equity as of December 31,2018 = $382,000-($117000 - $36000) = $229,000

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation.
Calculate the adjusted cash balance per books on May 31.
Cash balance per books, 5/31 $3,170
Deposits in transit $215
Notes receivable and interest collected by bank $955
Bank charge for check printing $43
Outstanding checks $1,152
NSF check $173
A. $1,170
B. $3,015
C. $3,909
D. $2,233

Answers

Answer:

C. $3,909

Explanation:

Calculation for the adjusted cash balance per books on May 31.

Cash balance per books, 5/31 $3,170

Add Notes receivable and interest collected by bank 955

Less Bank charge for check printing ($43)

Less NSF check ($173)

Adjusted cash balance per books on May 31 $3,909

Therefore the adjusted cash balance per books on May 31 will be $3,909

ICOT Industries issued 15 million of its $1 par common shares for $424 million on April 11, 2012. Legal, promotional, and accounting services necessary to effect the sale cost $2 million.
Required: Show the journal entry to record the issuance. How does this treatment compare to debt issue costs we talked about in chapter 14?

Answers

Answer:

Date     Account title and Explanation             Debit               Credit

Apr 11   Cash ($424 million - $2 million)     $422,000,000

                    Common stock                                                     $15,000,000

                     Paid in capital in excess of par value                $407,000,000

                      ($422,000,000 - $15,000,000)

              (To record the issue of common Stock)

To be useful code of ethics the code should offer broad policies and procedures rather than detailed rules

Answers

Answer:

False

Explanation:

A code of ethics can be regarded as a principles guide that are out together to aid in conduction of Businesses by Professionals in a way that reflect honesty as well as integrity. It do encompass employee code of conduct as well as professional practice code.

Suppose that there are only two firms in the automobile industry in a particular country. Which term describes the country's automobile market?
Use letters in alphabetical order to select options
A monopolistic competition
B duopoly
C double monopoly
D Nash equilibrium

Answers

Answer:

Duopoly ( B )

Explanation:

The term that describes a country's market whereby there are only two firms in any industry is ; Duopoly  

A Duopoly economy is a type of economy whereby the entirety of an Economy is solely controlled/owned by a not more than two industries/companies, this type of economy can be said to be a form of Oligopoly in its simplest form. while a monopolistic competition involves just one company or industry controlling the economy

Megan and Susan are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Megan takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Susan takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Megan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and Susan's opportunity cost of making a pizza is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer.
(Megan/Susan) has an absolute advantage in making pizza, and (Megan/Susan) has a comparative advantage in making pizza.
If Megan and Susan trade foods with each other, (Megan/Susan) will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer, and the lowest price that makes both roommates better off is (1/2 gallon, 2 gallon, 3/5 gallon, 1 2/3 gallon) of root beer per pizza.

Answers

Answer and Explanation:

The opportunity cost of megan for making pizza would be equivalent to the root amount as she make 1 pizza in 3 hours and in 5 hours she produced 1 boot beer so in one hour she produced 1 by 5th So for 3 hours it produced 3 by 5 so the opportunity cost would be 3 by 5 root beer gallon

Likewise for susan it produced 4 by 8 i..e 1 by 2 root beer gallons

By the above calculation the megan has the absolute advantage as megan takes lesser hours i.e. 3 hours while susan takes 4 hours

And, the susan has the comparative advantage as it contains the less opportunity cost i.e 1 by 2 as compared with megan i.e. 3 by 5

Also in the case of trade off susan would trade away as she has the comparative advantage

The highest price would be better off by 3 by 5 gallon

And, the lowest price is 1 by 2

Five firms exist in the Liagiba industry. Their respective market shares are 35, 25, 15, 15, and 10 percent. Five firms exist in the Haras industry. Their respective market shares are 35, 30, 25, 8, and 2 percent.

Required:
What is the Herfindahl index for the both industries?

Answers

Answer:

Liagiba industry = 2400

Haras industry = 2818

Explanation:

The HHI is calculated by squaring the market share of each firm in the industry.

Liagiba industry = 35² + 25² + 15² + 15² + 10² = 1225 + 625 +225 + 225 + 100 = 2400

Haras industry = 35² + 30² +25² + 8² + 2² = 1225 + 900 + 625 + 64 + 4 = 2818

The subsidiary of a U.S. corporation located in Country Y generated income of $1,000,000 on which it paid $400,000 (40%) in taxes to Country Y. The subsidiary paid a dividend to the U.S. parent of $54,000. How much tax is currently owed to the U.S. government if the federal tax rate is 35%

Answers

Answer:

The tax currently owed to the U.S. government is:

$18,900

Explanation:

a) Data and Calculations:

Income generated by the foreign subsidiary = $1,000,000

Tax paid by the subsidiary in its country of residence = $400,000

Dividend paid to the U.S. parent = $54,000

Federal tax rate = 35%

Tax on the dividend = $18,900 ($54,000 * 35%)

b) The dividend of $54,000 is a foreign-source income earned by a U.S. parent corporation.  This is this amount that will be subject to tax in the U.S. and not the net income of the subsidiary.


Communication may account for as much as. Of a hiring decision
a 25%
b. 40%
C65%
d. 80%

Answers

80% is the best answer

Answer:

A) 25%

Explanation:

Just got it right on edge

Because of specialization and comparative advantage, most people:_______

a. consume the products produced by their family and friends.
b. consume the products of many other specialists.
c. consume only what they produce themselves.
d. do not use money as a medium of exchange.
e. share whatever they produce

Answers

Answer:

B

Explanation:

A country (people) has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries (people).

According to economic theory, a person should specialise in the production of goods for which it has a comparative advantage.

If a person specialises only in the production of goods he specialises, he would not to buy other goods from specialists since she does not produce all the goods

The Oklahoma Department of Transportation (ODOT) is looking at the purchase of a new technology for asphalt paving of major highways. The new machine will cost $1,000,000 and is expected to provide a net revenue of $150,000 per year for 9 years. There is no salvage value for this machine. If MARR=10% per year, what is the exact IRR for this project?
A. 15.15%
B. 13.68%
C. 6.47%
D. 2.14%

Answers

Answer:

Option C (6.47%) is the right answer.

Explanation:

The given values are:

New machine's cost,

= $1,000,000

Net revenue,

= $150,000

Time,

= 9 years

MAAR,

= 10% per year

Now,

On taking, i = 5%

⇒ PW(5%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 5 \ percent, 9)[/tex]

                 = [tex]-1,000,000 + 1,066,200[/tex]

                 = [tex]66,200[/tex]

On taking, i = 10%

⇒ PW(10%) = [tex]-1,000,000 + 150,000(\frac{P}{A} , 10 \ percent, 9)[/tex]

                  = [tex]-1,000,000 + 863,85 0[/tex]

                  = [tex]-136,150[/tex]

By interpolation, we get

⇒ [tex]i=5 \ percent + [\frac{66,220-0}{(66,200-(-136,150)} ]\times (10 \ percent - 5 \ percent)[/tex]

⇒   [tex]=0.05 + (\frac{66,220}{202,350} )\times 0.05[/tex]

⇒   [tex]=0.0663[/tex]

i.e.,

⇒   [tex]= 6.63 \ percen t[/tex]

This information relates to Sheridan Company for the year 2022.

Retained earnings, January 1, 2022 $91,100
Advertising expense 2,450
Dividends 8,160
Rent expense 14,200
Service revenue 78,880
Utilities expense 3,260
Salaries and wages expense 40,800
Prepare an income statement for the year ending December 31, 2022. SHERIDAN COMPANY Income Statement

Answers

Answer:

              SHERIDAN COMPANY

                Income Statement

For the Year Ended December 31, 2022

Revenues

Service Revenue                                        $78,880

Expenses

Salaries and Wages Expense $40,800

Rent Expense                           $14,200

Utilities Expense                      $3,260

Advertising Expense               $2,450

Total Expenses                                             $60,710

Net Income                                                   $18,170

.
Which type of company can list and trade shares on the stock exchange?
А
company can list

Answers

Answer:

A corporation is owned by its shareholders, and selling shares on the open market is one way for a public company to raise capital. To promote trading of its stock, a corporation may choose to list its shares on a stock exchange.

Given the environment in which organizations must function today, which of the following statements about human resource management (HRM) is FALSE?
a. HRM oversees the firm's strategic investment in attracting, retaining, and motivating an effective workforce.
b. HRM should have an important place because of the complex legal environment.
c. HRM should be a part of the strategic planning process.
d. HRM should be left to line managers because they know their people best.
e. HRM should be viewed as a means of significantly increasing productivity.

Answers

Answer:

d. HRM should be left to line managers because they know their people best

Explanation:

Human Resource Management is a holistic endeavor that every company needs to undertake and incorporates the best abilities of the management to cater to the needs of both the employees and stakeholders to create a balance of functionality and growth.

On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June:

a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $1,800.
c. Received cash from fees earned for managing rental property, $10,000.
d. Paid rent on office and equipment for the month, $4,500.
e. Paid creditors on account, $1,250.
f. Billed customers for fees earned for managing rental property, $16,800.
g. Paid automobile expenses (including rental charges) for the month, $750, and miscellaneous expenses, $980.
h. Paid office salaries, $4,000.
i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120.
j. Withdrew cash for personal use, $7,500.

Required:
Indicate the effect of each transaction and the balances after each transaction.

Answers

Answer:

a.

Assets = Increase $30,000

Liability = No effect

Equity = Increase $30,000

Balances : Cash = $30,000 , Capital = $30,000

b.

Assets = Increase $1,800

Liability = Increase $1,800

Equity = No effect

Balances : Office Supplies $1,800, Trade Payables $1,800

c.

Assets = Increase $10,000

Liability = No effect

Equity = Increase $10,000

Balances : Cash = $40,000, Revenue Earned $10,000

d.

Assets = Decrease $4,500

Liability = No effect

Equity = Decrease $4,500

Balances : Rent Expense $4,500, Cash $35,000

e.

Assets = Decrease $1,250

Liability = Decrease $1,250

Equity = No effect

Balances : Trade Payables $550, Cash $33,750

f.

Assets = Increase $16,800

Liability = No effect

Equity = Increase $16,800

Balances : Revenue Earned $26,800 , Trade Receivables $16,800

g.

Assets = Decrease $1,730

Liability = No effect

Equity = Decrease $1,730

Balances : Automobile expenses $750 , Miscellaneous expenses $980, cash $33,000

h.

Assets = Decrease $4,000

Liability = No effect

Equity = Decrease $4,000

Balances : Office salaries $4,000, cash $29,000

i.

Assets = Decrease $1,120

Liability = No effect

Equity = Decrease $1,120

Balances : Office Supplies $680, Supplies expenses $1,120

j.

Assets = Decrease $7,500

Liability = No effect

Equity = Decrease $7,500

Balances : Cash $21,500, Drawings $7,500

Explanation:

When required to give the effect of transactions, always remember the Accounting Equation : Assets = Equity + Liability

Transactions will affect one or more elements of the this equation. Here is a simple approach to arrive at the effects :

Step 1  : The initial step is to identify the Accounts affected.

Step 2 : Classify the Accounts as either Assets, Liabilities or Equity (Capital and Profit)

Step 3 : Give the Effect (Increase, Decrease or No Effect) on the Elements of the equation.

M.A. was counting on her savings that she invested in Social Security. She doubts that this system will support her because the stock market crashed. She believes that the failure of the stock market, and its lack of recovery is because of poor presidential leadership.

a. True
b. False

Answers

Incomplete/unclear question. However, I answered based on what is found in the text.

Answer:

a. True

Explanation:

Based on the text, as part of her plans for old age, M.A was counting on her savings in social security.

And it is also possible for poor presidential leadership to negatively affect stock prices since the executive arm of government (the president) can draft out fiscal policies that could influence the amount of spending in an economy; thereby leading to a lack of recovery in stock prices.

CHECKPOINT QUESTION
Which of the following statements about gossip in the organization is TRUE?
Only small amounts of information are carried on the grapevine of workplace
gossip.
Employees rely on each other for important information more than they rely on
their bosses.
Managers are excluded from using the grapevine to communicate or respond to
messages.
The grapevine can be used to prevent individual agendas and potential
miscommunications.

Answers

Answer:

Only small amounts of information are carried on the grapevine of workplace

gossip.

Explanation:

Grapevine is referred to as the circulation of unofficial information and rumors. Most of the communications in an organization is carried out through grapevine. It is informal communication of messages and information and also gossips in an organization. The grapevine communications carries more of accurate information than gossips. Only a small portion of the information consists of gossips in the functional grapevine.

Is rental income debit or credit

Answers

Answer:

Debit

Explanation:

Rent Income is recorded by crediting the account. Cash is debited if cash is received. Rent Receivable is debited if it is to be collected at a later date.

Balance sheet and income statement data indicate the following:
$842,000
Bonds payable, 10% (due in two years)
Preferred 5% stock, $100 par (no change during year)
Common stock, $50 par (no change during year)
220,000
1,672,000
376,000
Income before income tax for year
Income tax for year
89,000
Common dividends paid
Preferred dividends paid
83,600
11,000
Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?
Oa. 7.9
Ob. 4.5
Oc. 3.5
Od. 5.5

Answers

Answer:

The correct option is d. 5.5.

Explanation:

Note: This question is not properly arranged. It is therefore rearranged before answering the question as follows:

Balance sheet and income statement data indicate the following:

Bonds payable, 10% (due in two years)                              $842,000

Preferred 5% stock, $100 par (no change during year)       220,000

Common stock, $50 par (no change during year)             1,672,000

Income before income tax for year                                       376,000

Income tax for year                                                                  89,000

Common dividends paid                                                         83,600

Preferred dividends paid                                                          11,000

Based on the data presented, what is the times interest earned ratio (rounded to one decimal place)?

Oa. 7.9

Ob. 4.5

Oc. 3.5

Od. 5.5

The explanation of the answer is now given as follows:

The times interest earned ratio can be calculated using the following formula:

Times interest earned ratio = EBIT / Interest expenses ................ (1)

Where;

Interest expenses = Bonds payable * 10% = $842,000 * 10% = $84,200

EBIT = Earnings before interest and taxes = Income before income tax for year + Interest expenses = $376,000 + $84,200 = $460,200

Substituting the values into equation (1), we have:

Times interest earned ratio = $460,200 / $84,200 = 5.46555819477435

Rounded to one decimal place, we have:

Times interest earned ratio = 5.5

Therefore, the correct option is d. 5.5.

Corporations refer to total owner’s equity as what?

Answers

Answer:

total stockholders' equity

Explanation:

In corporations, shareholder equity is regarded as as stockholders' equity. Stockholders equity can be explained as the residual claim of the owner of corporation over an asset provided that debt has been paid. Equity is the difference between the total asset and total liability of the firm. It should be noted that Corporations refer to total owner’s equity as total stockholders' equity

organizations that typically do not integrate the management of operations in different countries.

Answers

Answer:

Individuals from the home country manage operations outside the home country

i tryed

Which professional has helped Jennifer in this example?
Jennifer bought a new smart phone from a local store that sells electronic products. After a week, she started experiencing problems with the
phone's display screen. She went back to the store and spoke to its ___
representative, who replaced the product and
apologized for the inconvenience.

Answers

Answer:

would it be sales representative since they were only able to replace the device and apologize

Answer:

customer service

Explanation:

I'm smart and got it right on my test

If you were given the task of totalling all the M1 money in circulation in the US, which of the following would you include in your calculations?

a. Demand deposits and other checking accounts
b. Currency
c. Savings accounts

Answers

Answer:

A

B

Explanation:

M1 is the most liquid definition of money. M1 includes currency and coin, demand deposits, travellers' checks, other checkable deposits

Savings account is part of M2

Some students and scholars may owe money with their tax return. Nonresidents have which of the following payment options?

a. Ask for an extension of time to pay or an installment agreement.
b. Pay the entire balance by the due date for the return.
c. Put the balance on a credit card.
d. All of the above.

Answers

Answer:

d. All of the above.

Explanation:

In the case where certain students and academics owes their tax return money, the non-resident has the below payment options.

a. Either apply for a pay time extension or an agreement to pay on the basis of payments

b. Pay at the due date of the return the total sum

c. On the credit card, put the balance

Therefore by all of the above options they can be eligible

hence, the correct option is d.

Consider two economies that are identical, with the exception that one has a high marginal propensity to consume (MPC) and one has a low MPC. If the money supply is increased by the same amount in each economy, the high MPC economy will experience:

Select one:
a. a smaller increase in output and a
smaller decrease in the interest rate.
b. A larger increase in output and a
smaller decrease in the interest rate.
c. a larger increase in output and a
larger decrease in the interest rate.
d. A smaller increase in output and a larger decrease in the interest rate

= A larger increase in output and a
smaller decrease in the interest rate.​

Answers

If the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.

What does a high MPC imply?

A high MPC implies increased consumption while a low MPC shows increased savings.

Two factors that increase MPC include:

Readily available credit Lower interest rates.

Thus, if the money supply is increased by the same amount in each economy, the high MPC economy will experience b. A larger increase in output and a smaller decrease in the interest rate.

Learn more about the marginal propensity to consume (MPC) at https://brainly.com/question/14310761

#SPJ1

Family members may lend you money based on
A)Obligation
B)Your sound business plan
C)Your strength of character
D)Guilt

Answers

Answer:

D)Guilt

Explanation:

Commercial lenders consider the ability to repay, collateral offered, credit score, loan purposes, business plan, among other things before advancing credit to an individual or firm. Lenders have formal requirements to be met for a loan to be issued. As for family, there are no set requirements or criteria for lending amongst members.

Family members may lender based on various reasons. From the list provided, guilt could be a base for lending. A family member may feel bad when they turn down a request from a fellow member. To avoid that guilt feeling, a family member will lend out money to another member.

Calculate Tax Rate in Decimal Form (6 decimal places)

City: Reese
Total Assessed Value: $48,000,000
Budget required: $895,000

Answers

Answer:

the tax rate in decimal places is 0.018645

Explanation:

The computation of the tax rate in decimal places is shown below;

tax rate is

= Required budget ÷ Total assessed value

= $895,000 ÷ $48,000,000

= 0.018645

hence, the tax rate in decimal places is 0.018645

Simply divide the required budget from the total assessed value in order to get the tax rate

Your coworker is creating the headings for a report. What advice should you give her?
Do not use first- and second-level headings.
Strive for parallel construction within heading levels.
Use headings as antecedents for pronouns.
Review the following report excerpt, and complete the sentence.
To: Tracy Smallman
From: Diane Martinez, Rene Guzman
Date: June 8, 2009
Subject: Online Certificate Program Status Report
The following status report provides an update on the progress of the Online Certificate Program. The report includes updates on the project outline, a summary of key findings, and an overall evaluation of the project to date.
Progress Update
Phase 1 (Development) is well underway, with research phase and discovery phase milestones completed. In the last month, we completed a course pilot and collected user feedback. Key findings have directed the development of new course offerings and guided the initial development of additional content for course modules to be launched next fall.
The heading "Progress Update" might be improved to read ________
To ensure formatting does not change, how should a report be sent?
As an Excel file
As a Word file
As a PDF file
As a Power Point file
Which of the following is best used for conveying complex information quickly and clearly?
Infographics
Slide decks
Templates
Written text
Which of the following are components of an effective report heading? Check all that apply.
It occurs no more often than every three pages in a report
It is grammatically equal to other headinggs in its level
It uses creative punctuation
It is short and clear
It has punctuation correctly applied
The heading "Progress Update" might be improved to read_______ "Currently accomplished tasks"
To ensure formatting does not change, how should a report Progress Update: Phase 1 accomplishments"
As an Excel file

Answers

Answer:

1. I will offer the following advice for creating effective reports:

a. Make use of appropriate heading levels

b. Use parallel construction

c. Use first- and second-level headings for short reports

d. Capitalize and underline headings carefully

e. Keep headings short and clear

f. Do not use headings as antecedents for pronouns, and

g. Include at least one heading per report page when appropriate.

2. The heading "Progress Update" might be improved to read ________

"Currently Accomplished Tasks"

3. To ensure formatting does not change, a report should be sent:

As a PDF file

4. To convey complex information quickly and clearly, the best is:

Infographics

5. Components of an effective report heading include:

 

It is short and clear

Explanation:

When writing informational reports, ensure that you emphasize the facts, using appropriate formats to convey them.  But if it is an analytical report, the emphasis shifts to the reasoning process and the conclusion(s) to be drawn.  Clear and short headings, including subheadings, are important in every report.  They give reports more clarity and direction, guiding the reader appropriately.

Charles just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price. Identify what role money plays in each of the following parts of the story.

a. Van writes a check for $4,000.
b. Van can easily determine that the price Of the Super is more than the price of the Duper.
c. Van has saved $4,000 in his checking account.

Answers

Answer and Explanation:

The identification of the role that money plays in each of the following transactions done:

1. In the case when Van write the check so it would be classified as the medium of exchange

2. When van would easily measures the price of the super i.e. higher than the duper price so it would be classfied as the unit of the account

3. And, when van saved the amount of $4,000 in his checking account so it would be classified as the store of the value

You have just graduated from college and are looking to buy your first car. Money is tight right​ now, so you are concerned with initial cost as well as ongoing expenses. At the same​ time, you​don't want to drive a​ slow, outdated car like your parents do. You have narrowed your choices down to two​ vehicles: a Honda Enigma and a Bizzarrini Booster. Based on the numbers​ below, calculate the value index for each car. Which car provides you with the greatest​ value?
LOADING...
Click the icon to view the data table.
The value index for Honda Enigma is
Dimension Importance to you Honda Enigma Bizzarrini Booster
Fuel economy 4 2 1
Reliability 3 2 1
Speed and handling 5 4 4
Aesthetics 5 3 5
After-sales support 4 4 4
Purchase price 3 4 2

Answers

Answer:

                                 Importance to you     Honda Enigma  Bizzarrini Booster

Fuel economy                 4                                    2                                1

Reliability                         3                                    2                                1

Speed and handling       5                                    4                                4

Aesthetics                       5                                    3                                5

After-sales support        4                                    4                                4

Purchase price               3                                    4                                2

Honda's value index (4 x 2) + (3 x 2) + (5 x 4) + (5 x 3) + (4 x 4) + (3 x 4) = 77

Bizzarrini's value index (4 x 1) + (3 x 1) + (5 x 4) + (5 x 5) + (4 x 4) + (3 x 2) = 74

You should choose the Honda Enigma.

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