According to the organizational behavior, Ben and Julia's behavior is an example of social loathing.
Organizational behavior:
Organizational behavior refers the study of how people interact within groups and its principles are used to make businesses operate more effectively.
Given,
An organizational behavior class are assigned an individual case study project as well as a group project.
The members of the group will all receive the same grade for the group project but will be graded separately for their individual projects.
Drew, Ben, Donna, and Julia are members of one such group. drew and donna worked very hard on the group project.
Where Ben and Julia, however, did not contribute much to the group project because they felt that drew and donna would manage to get good grades for it. Instead, they focused their efforts on their individual projects.
Here we need to identify the behavior of Ben and Julia.
While we looking into the given question, there are four members in the team they are Drew, Ben, Donna, and Julia are members of one such group.
The people work hard on the project is Drew and Donna.
The one who is not contributing the project is Ben and Julia.
Which means that they are simply spend their time as free this refers the social loathing.
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use the aggregate supply (as) curve and aggregate demand (ad) curve below to determine the equilibrium price level and equilibrium real gdp for this economy.
When aggregate supply and demand overlap, the price level and real GDP level are in equilibrium.
Explain about the equilibrium?A static or dynamic balance between opposing forces or activities that occurs when the velocities in both directions are equal, as in the case of a body acting on by forces whose resultant is zero a condition of intellectual or emotional equilibrium.
If the three requirements listed below are true, a solid body subject to three forces with non-parallel lines of action is in equilibrium: There are parallel avenues of action (in the same plane) There is convergence in the channels of action (they cross at the same point) These forces add up to a vector with a value equal to zero.
When the forward and reverse response rates are equal, a system is in equilibrium. The rate of the forward reaction rises when more reactants are introduced.
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What are the 4 successful Strategies for entrepreneurial success?.
Entrepreneurship necessitates balancing the potential advantages of a successful company model against the danger of losing money.
What are the four effective strategies for entrepreneurship?Draw on previous professional experience. Many entrepreneurs don't rise to the top of a traditional corporate totem pole overnight; they frequently start at the bottom.Create a broad range of skills. In many respects, an entrepreneur is first and foremost a full-time problem-solver.Determine a problem that has to be fixed, then fix it. The most successful business owners start by assessing the market, recognizing a problem, and then developing a business concept that aims to address that issue.Keep an open mind. One of the most crucial qualities for entrepreneurs of all ages is curiosity. You must always look for new individuals and new experiences if you want to keep learning and keep up your competitive edge.To learn more about entrepreneurial success refer to:
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What are 5 tips for using a checking account?.
There are 5 contemporary ways to use your checking account that don't involve writing any checks.
What are the 5 tips for using a checking account?The 5 tips for using a checking account are:
Step 1: Recede direct payments- Get paid on the same day it is issued without picking up or depositing a paper check.Step 2 : Manage your finances online- Your checking account serves as your financial hub, allowing you to monitor balances, transfer money between accounts, set up personal alerts, and much more.Step 3 : Make a debit card payment :You don't need to carry cash around in your wallet or frequently visit an ATM to enjoy the convenience of cash.Step 4 : On the fly, check your balance : To easily check your account balance anywhere, use the text banking feature or mobile banking app.Step 5 :Perform simple online payments :Pay your monthly bills using your bank account, including by setting up recurring payments.Nowadays, using a checking account for banking might be a key component of your financial strategy.To learn more about checking account, refer:
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What are the two types of accrual accounting?.
Answer:
pros and cons are the 2 types of accrual accounting
Explanation:
compare and contrast self-selection, vaccination and commitment to choice as functions of realistic job previews
Three functions are served by Realistic Job Previews are Self-selection, Vaccination, Commitment to the choice
Actual Job Preview reveals both information that is likely to be positive and negative about a particular employment. Increased job commitment, self-selection assistance, and vaccination of employee expectations
Several authors have come to the conclusion that self-selection is not a legitimate explanation for how realistic job previews (RJPs) affect job survival, despite the fact that the self-selection matching hypothesis is widely regarded as a crucial component of the psychological impacts of RJPs. During the application process, giving potential new hires a well-designed RJP can lower turnover and increase new hire commitment.
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if you invested $2,000 every year for 30 years, and received a return of 9%, compounded annually, how much would you have in thirty years?
The estimated FV is $272,615.08. One of the financial functions is FV, which uses a constant interest rate to figure out an investment's future value.
The initial loan amount, or principal, is multiplied by the annual interest rate raised to the number of compound periods minus one to get compound interest.
The FV function in Excel is used to calculate value in 30 years:
rate = 9%, n per = 30, p mt = -2000, and the FV is $272,615.08.
If money is invested at 10%, how long will it take for it to double?
7.2 years, for instance, according to the Rule of 72, it would take 7.2 years ((72/10) = 7.2) for a $1 investment to grow to $2. In point of fact, it will take 7.3 years to double an investment of 10% (1.107.3 = 2). For low return rates, the Rule of 72 is reasonably accurate.
How is the compounded monthly rate of return calculated?
The monthly compound interest formula is as follows: P is the principal amount, r is the decimal interest rate, and t is the time. CI = P(1 + (r/12))12t - P.
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When a company has both common and preferred stock, its ROE must be adjusted by ___________. (check all that apply)
1) subtracting preferred stock dividends from net income
2) adding the preferred stock dividends to net income
3) adding the preferred stock balance to to total stockholders' equity 4) subtracting the preferred stock balance from total stockholders' equity
When a company has both common and preferred stock, its ROE must be adjusted by subtracting preferred stock dividends from net income and subtracting the preferred stock balance from total stockholders' equity.
A measure of financial performance known as return on equity (ROE) is obtained by dividing net income by shareholders' equity. ROE is referred to as the return on net assets because shareholders' equity is determined by subtracting a company's debt from its assets.
The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not. Preferred shareholders receive dividend payments prior to common shareholders since they have priority over the company's income.
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when the goals of the organization and the goals of employees are directly related and connected to one another, they are:
When the goals of the organization and the goals of employees are directly related and connected to one another, they are: individual performance contributes to organizational performance.
Leaders may regularly monitor and guide employee performance with the use of a performance management system. These methods assist leaders improve their potential for peak performance in addition to ensuring that workers are working productively toward goals that are in line with the business.
An open discussion between employees, management, and the entire firm is encouraged by effective performance management. As a result, everyone will feel more supported and involved while also increasing trust.
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a process that is operating in the presence of assignable causes is said to be out of statistical control. true false
"A process that is operating in the presence of assignable causes is said to be out of statistical control" This statement is True.
Using statistical methods to eliminate the have an impact on of a selected issue that couldn't be removed or managed through the experimental design which will higher analyze the connection between variables.
Statistical procedure manipulation or statistical great manage is the application of statistical techniques to reveal and control the excellent of a manufacturing manner. This allows ensuring that the manner operates efficaciously, generating greater specification-conforming merchandise with less waste. statistical control Statistical strategies for excluding the influence of particular variables in the analysis. for example, if the data from a pattern survey showed a robust association between unemployment and scientific depression, one might need to manipulate for the impact of social elegance.Learn more about statistical control here: https://brainly.com/question/13842873
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1. The people, procedures, hardware, software, data, and knowledge needed to develop computer systems and machines that can simulate human intelligence process include _____________, _______________, and _______________. a. learning, reasoning, self-correction b. learning, discipline, self-awareness c. reasoning, self-awareness, self-correction d. learning, reasoning, self-awareness
. A trial-and-error method of problem solving used when an algorithmic or mathematical approach is called .
"Learning, reasoning, and self-awareness" are among the people, procedures, equipment, software, data, and knowledge needed to create computer systems and computers that may replicate human intelligence.
Define the term process intelligence?Process intelligence is intelligence that has been methodically gathered to examine each step in an operational workflow or business process.
An organization can increase operational efficiency and detect bottlenecks with the aid of process intelligence. Process intelligence aims to give an organization reliable information about the work items that are currently in use, who is performing them, how long it takes to finish each task, how long the average waiting time is, and which of the bottlenecks are.By tracking and examining processes in the past or in the present, process intelligence technology can assist an organization in improving process management. Software for process intelligence is particularly helpful for managing and evaluating nonlinear processes with numerous dependencies.Thus, the people, processes, tools, gear, software, information, and knowledge required to build computer systems and computers that might replicate human intelligence include "learning, reasoning, and self-awareness."
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Flightline, the 4-year-old colt, was the talk of breeders’ cup weekend. How much is the horse, undefeated in six career starts, projected to fetch in his breeding career?.
Flightline. The Breeders' Cup weekend was all about the 4-year-old colt. The horse won the Breeders' Cup Classic by 814 lengths after going undefeated in six career starts. Flightline was valued at $184 million after owners sold a 2.5% stake in the horse for $4.6 million.
Horse racing, the sport of racing horses at high speeds, primarily Thoroughbreds with a rider astride or Standardbreds pulling a conveyance with a driver.
These two types of racing are known as flat racing and harness racing, respectively. The article quarter-horse racing describes racing on the flat with horses other than Thoroughbreds.
Horse racing is one of the oldest sports, and its basic concept has changed little over the centuries. It evolved from a simple contest of speed or stamina between two horses to a spectacle involving large fields of runners, sophisticated electronic monitoring equipment, and enormous sums of money, but its fundamental feature has always remained the same: the horse that finishes first wins.
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the process of planning and evaluating expenditures on assets whose cash flows are expected to extend beyond one year.
Capital budgeting is the process of planning expenditures on assets (fixed assets) whose cash flows are expected to extend beyond one year. Managers analyze projects and decide which ones to include in the capital budget.
A price range is a calculation plan, usually however not usually economic, for a described period, often 365 days or a month. A price range may additionally include expected income volumes and revenues, useful resource quantities together with time, charges and fees, environmental affects inclusive of greenhouse gas emissions, other affects, belongings, liabilities and cash flows. agencies, governments, households, and other organizations use budgets to specific strategic plans of sports in measurable phrases.
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When prices increase, the ______ inventory method tends to decrease a company's tax liability during a particular fiscal period relative to other inventory methods. (Enter one word per blank)
When prices increase, the last-in, first-out inventory method tends to decrease a company's tax liability during a particular fiscal period relative to other inventory methods.
What is last-in, first-outLast-in and first-out can be defined as an inventory method which implies that inventory that came in last into the warehouse should be the inventory that should be sold first.
Most companies tend to make use of this type of inventory method so as enables the last inventory to be out of the warehouse before the new inventory.
Therefore this last in, first out is an inventory method used my manufacturing companies.
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Grand Lighting Co. has filed a petition for voluntary bankruptcy under Chapter 11 of the Code. The case has gone well and the court confirmed the debtor's plan of reorganization and the case has now been closed. Which of the following will prohibit pre-petition creditors from collecting debts that Grand Lighting incurred before the petition was filed?
Group of answer choices
An automatic stay
A proof of claim
A voluntary petition
the discharge
An automatic stay will prohibit pre-petition creditors from collecting debts that Grand Lighting incurred before the petition was filed.
Debt can be truly understood as the amount owed by the borrower to the lender. Debt is the amount of cash that is borrowed for a positive time period and is to be returned in conjunction with the interest. the quantity as well as the approval of the debt depends upon the creditworthiness of the borrower.
With regard to accounting, debt is considered a liability. on the stability sheet, debt can refer to a ramification of various numbers - from wages payable to tax payable. however, debt is frequently used to refer to more especially regarding quick-term and long-time period loans, in addition to bonds inside the case of an enterprise.
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who cannot be considered a violator of fraud? a. a provider b. an employee of the provider c. anyone can be a violator of fraud d. a beneficiary
Anyone can be a violator of fraud .
The Netherlands Enterprise Agency takes preventing and combating fraud and other ethical lapses very seriously. Fraud or integrity violations of any type are unacceptable. Such actions erode trust in the government and the institutions it has chosen to monitor funding or legal and regulatory compliance. The Netherlands Enterprise Agency conducts an active anti-fraud and anti-integrity stance as a result. Using the form on this website, an outside party can report suspected fraud or integrity violations. You may carry it out in an anonymous manner.
The Dutch Prosecution Office will be informed of the claims by the Netherlands Enterprise Agency if inquiries indicate that there may be justifiable reasons for looking into the suspected fraud.
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on january 1, 2024, the highlands company began construction on a new manufacturing facility for its own use. the building was completed in 2025. the company borrowed $1,750,000 at 8% on january 1 to help finance the construction. in addition to the construction loan, highlands had the following debt outstanding throughout 2024:
The interest costs is $255,960.
What is the interest costs?the building was completed in 2025. the company borrowed $1,750,000 at 8% on january 1 to help finance the construction.
Average expenses, weighted:
1.01.2019 $900,000 x 12.12.2019 = $900,000
March 31: 1,500,000 $ multiplied by
9/12 = 1,125,000
June 30, $1,160,000 x 6/12 = $580,000
September 30: 900,000 multiplied by 312 is $225,000
December 31st $700,000 x 0/12 = $0
overall Average interest on general debt is $2,830,000, which is calculated as ($9,000,000 x 10%) + ($6,000,000 x 8%) = $1,380,000.
$1,380,000/$15,000,000 = 9.2%
interest costs:
Specific debt is $1,750,000 times 8%, or $140,000.
general debt = $630,000 times 9.2% equals $57,960
$255,960 is the
total capitalized interest.
The interest costs is $255,960.
The complete question is on january 1, 2024, the highlands company began construction on a new manufacturing facility for its own use. the building was completed in 2025. the company borrowed $1,750,000 at 8% on january 1 to help finance the construction. in addition to the construction loan, highlands had the following debt outstanding throughout 2024:
$9,000,000, 10% bonds
$6,000,000, 8% long-term note
Construction expenditures incurred during 2021 were as follows:
January 1 $900,000
March 31 1,500,000
June 30 1,160,000
September 30 900,000
December 31 700,000
Required:
Calculate the amount of interest capitalized for 2016 using the specific interest method.
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if generic producers were able to produce a substitute for revlimid that reduced revlimid's sales by 60 percent, how much less revenue would celegne take in per year? instructions: round your response to one decimal place.
Celgene would take Approximately $4.8 Billion less in Revenue per year Step-by-step explanation Initial annual revenue = $8 billion Decrease in revenue = Initial revenue x 60% = $8 billion x 60% = 4.8 bn
What is revenue in businesses?
Revenue is the cash that a business generates via its operations. Depending on the accounting technique used, there are various ways to compute revenue. Sales made on credit will be counted as revenue for products or services delivered to the customer in accrual accounting. Revenue may be recognised in accordance with certain standards even though payment has not yet been made.
The cash flow statement must be examined in order to determine how effectively a business collects debts. Contrarily, cash accounting only counts sales as revenue when money has been exchanged. A "receipt" is a record of money given to a business. Even without income, receipts are possible.
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ap classroom questions - only for use by fellow teachers with accredited access to ap classroom. please respect. 4.4 mc questions 1. a student places a sample of a pure metal in a crucible and heats it strongly in air. data from the experiment are given in the table above. the final mass was determined after the sample was cooled to room temperature. which of the following statements related to the experiment is correct? a the mass of the sample decreased, so physical changes occurred as the metal first melted and then boiled out of the crucible. b the mass of the sample increased, so a chemical change occurred when bonds formed between the metal and another substance. c there was nothing for the metal to react with, so only a physical change could have occurred. d the sample was only heated, so neither a physical nor a chemical change occurred. 2. a student mixes 20.0g of white kcl crystals with distilled water in a beaker. after the mixture was stirred, no crystals are visible and the solution is clear. after several days, all of the water evaporates and white crystals are found in the beaker. which of following pieces of experimental evidence would best help the student to conf
The statement related to the experiment that is correct is b. The mass of the sample increased, so a chemical change occurred when bonds formed between the metal and another substance.
What is an experiment?A scientific experiment is any process in which measurements and tests are used to confirm or refute a hypothesis. A hypothesis is a proposition that appears to be true but has yet to be confirmed, from which an investigation can be developed. An experiment is a procedure that is carried out to support or refute a hypothesis, or to determine the efficacy or likelihood of something that has never been tried before.
In this case, a student places a pure metal sample in a crucible and vigorously heats it in air. After the sample had been cooled to room temperature, the final mass was determined. New substances are formed during a chemical change. To accomplish this, the chemical bonds of the substances are broken, and the atoms that make up the substances separate and rearrange themselves into new substances with new chemical bonds.
In conclusion, the correct option is B.
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which of the following reports is an output of a cost management information system? group of answer choices cash flow statement financial statement sales budget balance sheet
Cash flow statement is an output of a cost management information system. The cash inflow and outflow of a company's cash and cash equivalents are shown in a financial report
What are Cash flow statement?
The cash inflow and outflow of a company's cash and cash equivalents are shown in a financial report called the cash flow statement (CFS) (CCE).
The CFS measures a company's ability to efficiently manage its cash position, or how well it generates cash to pay its debts and fund its operating expenses.
The CFS is the third of the three primary financial statements, along with the balance sheet and the income statement.
The cash flow statement offers details on the operations, funding sources, and financial transactions of a corporation.
The CFS, also known as the statement of cash flows, helps creditors estimate how much cash is available (sometimes referred to as liquidity) for the company to cover operating expenses and pay off obligations.
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Complete the car class by creating an attribute purchase_price (type int) and the method print_info() that outputs the car's information. Ex: if the input is: 2011 18000 2018 where 2011 is the car's model year, 18000 is the purchase price, and 2018 is the current year, then print_info() outputs: car's information: model year: 2011 purchase price: $18000 current value: $5770.
The program to complete the car class by creating an attribute will be:
class Car:
def __init__(self):
self.model_year = 0
# setting the purchase_price attribute that will be used to set the purchase price of the car
self.purchase_price = 0
self.current_value = 0
def calc_current_value(self, current_year):
depreciation_rate = 0.15
# Car depreciation formula
car_age = current_year - self.model_year
self.current_value = round(self.purchase_price * (1 - depreciation_rate) ** car_age)
What is a computer program?It should be noted a computer program is a sequence or set of instructions that are in a programming language for a computer to execute.
In this case, the the car class is illustrated by creating an attribute purchase_price (type int) and the method print_info() that outputs the car's information.
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suppose you invest $20,000 by purchasing 200 shares of abbott labs (abt) at $50 per share, 200 shares of lowes (low) at $30 per share, and 100 shares of ball corporation (bll) at $40 per share. suppose over the next year ball has a return of 12.3%, lowes has a return of 23%, and abbott labs has a return of -10%. the value of your portfolio over the year is . group of answer choices $21,916 $19,828 $20,872 $22,959
The value of your portfolio over the year is
Portfolio return = 0.035 or 3.5%
The portfolio return is a function of the weighted average of individual stocks' returns that form up the portfolio.
The formula to calculate the portfolio return is as follows,
Portfolio return = wA * rA + wB * rB + ... + wN * rN
Where,
w represents the weight of each stock in the portfolio
r represents the return of each stock
First we need to calculate the investment of each stock,
Abbott = 200 * 50 = $10000
Lowes = 200 * 30 = $6000
Ball = 100 * 40 = $4000
Portfolio return = (10000 / 20000) * -0.10 + (6000/20000) * 0.20 +
(4000/20000) * 0.125
Portfolio return = 0.035 or 3.5%
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A corporation issues for cash $1,000,000 of 10%, 20-year bonds interest payable annually, at a time when the market rate is 12%. The straight-line method is adopted for the amortization of bond discount or premium. What is true?he unamortized discount decreases from its balance at issuance date to a zero balance at maturity
The true is unamortized discount decreases from its balance at issuance date to a zero balance at maturity. It's because unamortized discount represents a deviation between the amount actually paid and the face value of a bond for it by investors.
Amortization can be described as the process of writing down the value of either a loan or an intangible asset. Amortization are used by such as financial institutions, to present a loan repayment schedule based on a specific maturity date. The amortization of bonds is a process where discounted amount or the premium is assigned to the payment of interest of each period of the validity of the bond.
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1. which of the following steps is considered the first step in the managerial decision-making process? gather information and perform a differential analysis. review, analyze, and assess the results of the decision. identify alternative courses of action. identify the objective of the decision. 2. an analysis that evaluates differential revenues and costs in order to determine the differential impact on income of two alternative courses of action is called analysis. horizontal vertical ratio incremental 3. costs are costs that have been incurred in the past, cannot be recouped, and are not relevant to future decisions. sunk historical product none of these choices are correct. 4. the revenue that is forgone from an alternative use of an asset, such as cash, is called . sacrificial revenue. an opportunity cost. an economic loss. none of these choices are correct.
The initial step in the solution process is problem identification, which calls for a closer look at the issue and an understanding of its root causes, decision-making process.
What is a decision-making process?You realize that you have to make a choice. Try to be as explicit as possible when describing the type of decision you must make. This first action is really important.
Gather crucial information about what is needed, the best sources of information, and how to get it before making a decision. This step involves both internal and external "effort." Some knowledge is internal, thus you'll search for it by evaluating yourself. A variety of sources, including the internet, books, other individuals, and other sources, provide further information.
You are prepared to select the course of action that seems best to you after assessing all the information that is available. Additionally, you have a few other choices. Your selection in Step 5 is likely to be correct.
Hence, Identification of the problem, which entails a closer examination of the issue and an understanding of its root causes, is the first step in the decision-making process.
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What is opportunity cost in short answer?.
Opportunity cost is the worth of the next-best alternative when a decision is made; it's what is given up.
What is opportunity cost and types?The apparent advantage of not selecting the next best alternative when resources are limited is known as the opportunity cost. Opportunity costs are not just financial or monetary costs. An opportunity cost is also the actual cost of lost productivity, lost time, or any other for-profit gain.
Opportunity cost is calculated as Potential Value - Actual Value of Selected Option. Let's imagine you chose to put $1,000 of your money into Company A. You would have made $1,500 if you had invested in Company B. You would enter the figures in the formula as follows: Advertisement.
The worth of the next greatest thing you forfeit everytime you make a choice is known as opportunity cost. The loss of potential gain from other options is what it is.
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A tax for which the percentage of income paid in taxes decreases as income increases.
A progressive tax is one that is levied in such a way that the tax rate rises as the amount subject to taxation rises. A regressive tax is the inverse of a progressive tax in that the tax rate decreases as the amount subject to taxation increases.
A tax is a mandatory fee or financial charge imposed by a government on an individual or an organization in order to raise funds for public works projects that provide the best facilities and infrastructure.
Examples include general and targeted sales taxes, value-added taxes (VAT), taxes on all aspects of production or manufacturing, taxes on legal transactions, and customs or import duties.
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What is the most important factor for a business to succeed?.
The most important factor for a business to succeed perseverance
When a firm continues to advance in the face of setbacks and difficulties, it means they have exhibited perseverance. Without the determination to persist in the face of obstacles, a firm would fail. But your staff and you are driven to success by a core value of tenacity. It's a crucial quality because practically every entrepreneur will encounter flaws or failures in some way.
It's been said countless times before, that all make mistakes from time to time. One wouldn't be able to learn anything if there were no hurdles. The same concept entails a business pressing on despite obstacles in order to succeed. The key to success in managing workload and achieving goals is having clear goals in mind and working toward them.
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What should you do if an individual asks you to let her follow you into your controlled space, stating that she left her security badge at her desk?.
If someone requests you to let her follow you into your controlled zone and claims that she left her security badge at her desk, you should refuse to give her entry and alert authorities if you notice any suspicious conduct.
What is suspicious conduct?
Any detected behavior that could point to pre-operational planning for terrorism or terrorist-related criminality is referred to as suspicious activity or suspicious conduct. Although some actions may be lawful, trained law enforcement personnel can assess whether the behavior calls for additional action.
If someone requests you to let her follow you into your controlled zone and claims that she left her security badge at her desk, you should refuse to give her entry and alert authorities if you notice any suspicious conduct.
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when firms in a market with free entry and exit experience economic losses, then: new sellers will enter the market, reducing average seller losses. some sellers will exit the market, reducing average seller losses. new sellers will enter the market, raising average seller losses. some sellers will exit the market, raising average seller losses.
In a market with open entry and exit, some sellers will leave the market when their companies suffer financial losses.
Explain about the Firm?One of the three essential components in the money's continuous circulation throughout the economy are businesses. They demand payment for goods and services while paying skilled workers a salary to provide them with an income. Additionally, they pay taxes to the government, and as a result, they gain from government spending in important areas.
Any form of business is a firm. A single proprietorship, partnership, limited liability company, or corporation are examples of firms. The word is a little more frequently connected to a partnership.
A company that sells goods and services for a profit, typically professional services, is referred to as a firm. On the other hand, a company is a business that engages in any activity that generates income through the sale of goods and services, which covers all business trades and structures.
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Blue skies aviation is a manufacturer of small single-engine airplanes. the company is relatively small and prides itself on being the only manufacturer of customized airplanes. the company’s high standard of quality is attributed to its refusal to purchase engines from outside vendors, and it preserves its competitive advantage by refusing to sell engines to competitors. to achieve maximum efficiencies, the company has organized itself into two divisions: a division that manufactures engines and a division that manufactures airplane bodies and assembles airplanes. consultants have estimated that:
Blue Skies Aviation is a manufacturer of small single-engine airplanes. Blue Skies aviation devides their organizational structure into 2 divisions: a division focused to manufacturing process of engines and a division to manufacture and assembles airplanes. Based on the estimation from consultants, it was known that Blue Skies customized airplanes' demand is given by P = 900,000 - 3,000Q. The cost for engine production process is Ce(Qe) = 6,000Qe² and the cost for assembling airplances is Ca(Qa) = 18,000Qa. Then:
The managers of each division should not given incentives to maximize each division's profit separately because each division optimium outputs are different and the maximum overall profit would not be met.To avoid this problem and to maximize the overall profit, Blue Skies Aviation should find the optimum overall output by calculating both costs and produce 51 airplanes.From the case, we have some informations:
P = 900,000 - 3,000Q ... (i)
Ce(Qe) = 6,000Q² ... (ii)
Ca(Q) = 18,000 ... (iii)
Based on the Profit formula, we know that:
Profit (π) = TR - TC ... (iv)
To achieve the maximum overall profit, Blue Skies aviation has to produce the optimum overall output which could make the derivative of profit formula equals to 0 (zero) or fulfill this condition:
π' = TR' - TC' = 0 ... (v)
Now, let's find the equation for total revenue:
TR = PxQ
TR = (900,000 - 3,000Q)Q
TR = 900,000Q - 3,000Q² ... (vi)
Let's find the optimum output for each division
For the manufacturing engines division, the optimum output should be:
π' = TQ(Qe)' - Ce(Qe)' = 0
[(900,000Qe - 3,000Qe²) - 6,000Qe²]/dQe = 0
[900,000Qe - 9,000Qe²]/dQe = 0
900,000 - 18,000Qe = 0
Qe = 50 units ... (vii)
For the manufacturing and assembling airplanes division, the optimum output should be:
π' = TQ(Qa)' - Ca(Qa)' = 0
[(900,000Qa - 3,000Qa²) - 18,000Qe]/dQa = 0
[882,000Qa - 3,000Qa]/dQa = 0
882,000 - 6,000Qa = 0
Qa = 147 units ... (viii)
It could be seen that the optimum outputs for both divisions are different. Hence, making either one of these outputs won't help Blue Skies to gained the maximum overall profit.
Now, let's find the optimum overall output by combining both costs by assuming that both divisions would make the same outputs (Q).
TC = Ca + Ce
TC = 18,000Q + 6,000Q² ... (ix)
The maximum overall profit for Blue Skies will be achieved when Blue Skies produce:
π' = TR' - TC' = 0
[(900,000Q - 3,000Q²) - (18,000Q - 6,000Q²]/dQ = 0
[918,000Q - 9,000Q²]/dQ = 0
918,000 - 18,000Q = 0
Q = 51 units .. (x)
Next, let's prove our findings by assuming that each airplane will need 1 engines to be assembled. Hence both divisions should produce the same amount of outputs:
Q1 = 50
π1 = (900,000Q - 3,000Q²) - (18,000Q - 6,000Q²)
π1 = (918,000(50) - 9,000(50)²)
π1 = 23,400,000
Q2= 147
π2 = (900,000Q - 3,000Q²) - (18,000Q - 6,000Q²)
π2 = (918,000(147) - 9,000(147)²)
π2 = -59,535,000
Q3 = 51
π3 = (900,000Q - 3,000Q²) - (18,000Q - 6,000Q²)
π3 = (918,000(51) - 9,000(51)²)
π3 = 23,409,000
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Complete Question:
Blue Skies Aviation is a manufacturer of small single-engine airplanes. The company is relatively small and prides itself on being the only manufacturer of customized airplanes. The company’s high standard of quality is attributed to its refusal to purchase engines from outside vendors, and it preserves its competitive advantage by refusing to sell engines to competitors. To achieve maximum efficiencies, the company has organized itself into two divisions: a division that manufactures engines and a division that manufactures airplane bodies and assembles airplanes. Consultants have estimated that: Demand for Blue Skies’ customized planes is given by P = 900,000 − 3,000Q. The cost of producing engines is Ce(Qe) = 6,000Qe2, and the cost of assembling airplanes is Ca(Q) = 18,000Q. What problems would occur if the managers of each division were given incentives to maximize each division’s profit separately?
What price should the owners of Blue Skies set for engines in order to avoid this problem and maximize overall profits?
a consumer buys a printer for her computer and receives a money-back offer. to get the premium, she has to mail in a form requesting the money back from the manufacturer rather than the retailer. which of the following consumer-market sales promotion techniques is described here?
To get a premium , a consumer has to mail to manufacturer rather than retailer , this consumer- market sales promotion techniques is ---- A rebate
What is a sales promotion?
A promotion is a marketing strategy in which a company uses temporary campaigns and offers to increase interest and demand for its products and services. There are many reasons why companies run sales promotions (or "promotions"), but the number one reason is to increase sales. Promotions are one element of the promotion mix. The main elements of the promotion mix are advertising, personal selling, direct marketing and advertising/public relations.
Rebate sales promotion :A rebate is a type of purchase discount, an amount paid as a deferred rebate, return, or refund. This is a form of promotion used by marketers primarily as an incentive or supplement to product sales.
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