Delta Cargo Capital Asset - Term Paper

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Bonus Calculation

The purpose of our profit sharing bonus is to encourage employees to understand how their work affects the company's performance and to improve the company's profitability. But it does not end there. Our incentive program also paves the way for employees to exceed their current status of "just another hired employee." This continues to be a useful tool to make our business work and our employees happy. Here are some of the benefits of our employee incentive program.

Motivates employees. Giving our employees a thing to look forward to is most of the time, the only requirement to motivate them. A good incentive program gives reason for them to work extra hard. It may be because of the price at stake or it may be because of the recognition they will receive. But it doesn't matter. What matters is that we are able to motivate our employees to contribute more for the company and for his or her own growth.

Boosts performance. We have found that once we have motivated employees to work harder, it boosts their performance as well. This will result in better output per hour of work, making your business more cost-effective.

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A boost to performance among employees increases sales without hiring more people.

Provides sense of content. Our incentive program provides a sense of content among employees. Since they know that what they do for the company is rewarded back, they enjoy work and they look forward to performing well everyday, not to mention the significant contributions they provide for the company.

Increase the profit of the company. This is the main reason our company companies has an incentive programs. It is the result of having employees with the right motivation, boosted performance, and sense of content.

Our department supports business and accounting practices that affect our incentive program positively. The Straight Line Method of depreciation vs. The Double Declining Method of depreciation results in a net increase of $42,860 in our Bonus Pool. We support a higher bonus structure. Therefore, we elect the Straight Line Method of depreciation.

IV. Exhibits

Exhibit 1 - Depreciation Method Comparison

Exhibit 2 - Depreciation Method Comparison

Exhibit 3 - Bonus Plan Calculation

V......

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