Based on the given information, the stock price of Abner Airlines today should be approximately $23.94.
To determine the stock price using the corporate valuation model approach, we need to calculate the free cash flow to equity (FCFE) and then discount it at the required return on equity (ROE). The formula for FCFE is as follows:
FCFE = EBIT(1 - T) + Depreciation - Capital Expenditures - Change in Net Operating Working Capital
Given:
EBIT(1 - T) = $550 million
Depreciation = $180 million
Capital Expenditures = $350 million
Change in Net Operating Working Capital = 0
FCFE = $550 million + $180 million - $350 million - $0 = $380 million
Next, we calculate the present value of the FCFE using the constant growth rate and the required return on equity (ROE). The formula is as follows:
Stock Price = FCFE * (1 + g) / (ROE - g)
Given:
FCFE = $380 million
ROE = 15%
Growth rate (g) = 6%
Stock Price = $380 million * (1 + 0.06) / (0.15 - 0.06) ≈ $2393.94 million
Finally, we divide the stock price by the number of outstanding shares to get the stock price per share:
Stock Price per Share = $2393.94 million / 50 million shares ≈ $47.88
Rounding to the nearest cent, the stock price per share is approximately $23.94.
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Jill owns a manufacturing business that had sales of $1,000,000 last year. Its operating costs were $400,000 (excluding depreciation). The business has equipment that they bought for a total of $1,000,000 five years ago. The equipment is being depreciated straight-line to zero over 10 years. If the tax rate is 25%, what were the company's operating cash flows (OCF) last year? O $475,000 $600,000 O $575,000 O $450,000 O $375,000
The company's operating cash flows (OCF) last year were $575,000.
Operating cash flows (OCF) can be calculated using the following formula:
OCF = Sales - Operating Costs - Depreciation
Sales = $1,000,000
Operating Costs = $400,000
Depreciation = Equipment Cost / Depreciation Period
The equipment was bought for $1,000,000 and is being depreciated straight-line to zero over 10 years. Therefore, the annual depreciation expense is $1,000,000 / 10 = $100,000.
Substituting the values into the formula:
OCF = $1,000,000 - $400,000 - $100,000 = $500,000
However, the tax rate is 25%, so we need to adjust the OCF by multiplying it by (1 - Tax Rate):
OCF = $500,000 × (1 - 0.25) = $500,000 × 0.75 = $375,000
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Business Case - Theories - 10 Marks INSTRUCTIONS Read the Blog below and Complete the Section on the TWO THEORIES below Retrieved and adapted from...Business Ethics Case Analyses Cooperative Blog Administrator - Heather Salazar Apple: Mac Production Moved to China (June 3, 2019-) Ethics Case Controversy Apple Technology decided to move Apple Mac Pro production to China. Mac Pro production was announced June 3, 2019 at the 2019 Apple World Developers Conference at the San Jose Convention Center in San Jose, California (Schwartz & Gurman 1). Apple had previously released in 2013 that the Mac productions would take place in the United States as part of their patriotic campaign. The announcement has come while China and the United States are currently in the middle of a trade war. Trump had raised the tariff on Chinese imported goods to 25% on May 10, 2019 ("China to Increase Tariffs on $60bn Worth of US Goods" 1). There is currently no resolution to the trade war. The Chinese factory employees working at Apple's Catcher factory are exposed to unsafe working environments and not given enough safety equipment. They work extra hours for little pay. The dormitories provided by the company have no running water and few showers, resulting in many workers not bathing (Maggio 1). Workers lose around $76.57 United States dollars every month due to working overtime. Additionally, when employees resign they receive their final paycheck the fifth of the month, regardless of when they resign. Also, workers are not given any hands-on safety training. They are expected to read about safety procedures without getting any practice. The factory does not provide goggles or face shields to workers, making it dangerous for them when operating machinery. Chinese employees are not receiving their rights to a safe and healthy working environment nor their rights to fair wages (*Apple's Failed CSR Audit 5). THEORIES For the following theories: Utilitarian and Kantian, 1) Using your understanding of the Utilitarian theory would a Utilitarian agree that Apple Technology are acting ethically or not and why or why not? 2) Using your understanding of the Kantian theory would a Kantian agree Apple Technology are acting ethically or not and why or why not?
1) According to the Utilitarian theory, a Utilitarian would likely argue that Apple Technology is not acting ethically in this situation. Utilitarianism is an ethical theory that focuses on maximizing overall happiness or utility for the greatest number of people. In the case of Apple's decision to move Mac Pro production to China, the Utilitarian perspective would consider the well-being of all stakeholders involved.
From a Utilitarian standpoint, the unethical treatment of Chinese factory employees and the disregard for their safety, fair wages, and working conditions would lead to a significant decrease in overall happiness. The negative impact on the workers' well-being outweighs the potential benefits Apple may gain from cost savings or production efficiency. Therefore, a Utilitarian would likely argue that Apple's decision is ethically wrong.
2) From the Kantian perspective, a Kantian would also conclude that Apple Technology is not acting ethically. Kantian ethics, based on the principles of Immanuel Kant, emphasize the importance of moral duties and principles. According to Kant, actions should be guided by moral rules that can be universally applied.
In this case, Apple's decision to move production to China raises ethical concerns from a Kantian perspective. Kantian ethics emphasize the inherent worth and dignity of every individual, and treating workers in unsafe conditions, denying them fair wages, and failing to provide proper safety training violates these principles. A Kantian would argue that Apple has a moral duty to ensure the well-being and rights of its workers, regardless of potential economic gains.
Utilitarianism focuses on maximizing overall happiness or utility for the greatest number of people. It considers the consequences of actions and seeks to maximize benefits and minimize harm. In this case, a Utilitarian would evaluate the impact of Apple's decision on the well-being of the Chinese factory employees. The unethical treatment and unsafe working conditions would lead to a decrease in overall happiness, making Apple's actions ethically questionable.
Kantian ethics, on the other hand, prioritize moral duties and principles that can be universally applied. According to Kant, individuals should be treated as ends in themselves and not merely as means to an end. From a Kantian perspective, Apple's actions violate the principles of treating individuals with dignity and respect. The mistreatment of workers and failure to provide a safe and healthy working environment go against Kantian ethical principles.
Both the Utilitarian and Kantian theories would likely argue that Apple Technology is not acting ethically in the given scenario. Utilitarians would emphasize the negative consequences for the Chinese factory employees' well-being, while Kantians would highlight the violation of moral duties and principles. Ethical considerations should prioritize the rights and well-being of individuals, regardless of potential economic gains.
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A crane rental company has acquired a new heavy-duty crane for $300,000. The company calculates depreciation on this equipment on the basis of number of rentals per year, and the salvage value of the crane at the end of its 10-year life is $30,000. If the crane is rented an average of 120 days per year, what is the depreciation rate per rental? (7.3.4)
To calculate the depreciation rate per rental, we need to determine the total number of rentals over the crane's 10-year life and divide the depreciation expense by that number.
Given:
Purchase cost of the crane = $300,000
Salvage value of the crane = $30,000
Life of the crane = 10 years
Average rentals per year = 120 days
To find the total number of rentals over 10 years, we multiply the average rentals per year by the number of years:
Total rentals = Average rentals per year * Life of the crane
Total rentals = 120 days/year * 10 years
Total rentals = 1,200 rentals
Next, we calculate the depreciation expense per rental:
Depreciation expense = (Purchase cost - Salvage value) / Total rentals
Depreciation expense = ($300,000 - $30,000) / 1,200 rentals
Depreciation expense = $270,000 / 1,200 rentals
Depreciation expense = $225 per rental
Therefore, the depreciation rate per rental for the crane is $225.
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To calculate the depreciation rate per rental, we need to determine the total number of rentals over the crane's 10-year life and divide the depreciation expense by that number.
Given:
Purchase cost of the crane = $300,000
Salvage value of the crane = $30,000
Life of the crane = 10 years
Average rentals per year = 120 days
To find the total number of rentals over 10 years, we multiply the average rentals per year by the number of years:
Total rentals = Average rentals per year * Life of the crane
Total rentals = 120 days/year * 10 years
Total rentals = 1,200 rentals
Next, we calculate the depreciation expense per rental:
Depreciation expense = (Purchase cost - Salvage value) / Total rentals
Depreciation expense = ($300,000 - $30,000) / 1,200 rentals
Depreciation expense = $270,000 / 1,200 rentals
Depreciation expense = $225 per rental
Therefore, the depreciation rate per rental for the crane is $225.
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Lion Elementary School Store has received an order for 100 back to school bags, which must be ready for delivery in 7 days. These back to school bags should contain the following - a study pack and a sanitizing pack. The store manager knows MRP from her SCM 301 class and will like to use that information to prepare those bags to meet all the quantities and due dates from the parents' orders for their kids back to school bags. The following table shows the product structure, lead times, and available quantities:
By utilizing MRP effectively, the store manager can optimize production process, minimize stockouts or excess inventory, and ensure that all parents' orders for back-to-school bags are fulfilled on time.
The store manager at Lion Elementary School Store has received an order for 100 back-to-school bags, which need to be prepared within a 7-day timeframe. These bags should include a study pack and a sanitizing pack. The manager intends to use Material Requirements Planning (MRP) to ensure that the quantities and due dates for the parents' orders are met. To effectively utilize MRP, the store manager needs to consider the product structure, lead times, and available quantities of the study packs and sanitizing packs. The product structure outlines the components required for each bag, including the study pack and sanitizing pack. Lead times indicate the time required to procure or manufacture the necessary components, and available quantities represent the current inventory levels.
By analyzing the product structure, lead times, and available quantities, the manager can determine the materials and quantities needed to fulfill the order. MRP helps in calculating the net requirements for each component, considering the lead times, and generating a schedule for when to release purchase or manufacturing orders to ensure timely delivery. The manager can also monitor the inventory levels of the study packs and sanitizing packs during the production process to avoid shortages or excess inventory. Additionally, MRP enables the manager to track the progress of each component and adjust the production schedule if any delays or issues arise.
By utilizing MRP effectively, the store manager can optimize the production process, minimize stockouts or excess inventory, and ensure that all the parents' orders for back-to-school bags are fulfilled on time with the required study packs and sanitizing packs.
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The issue of common stock will result in___________of the rights of existing shareholders.
The issue of common stock will result in dilution of existing shareholders' rights, as their ownership stake and control over the company will be proportionally reduced.
1. Dilution of ownership: The issue of common stock can result in a dilution of the ownership stake of existing shareholders, as the total number of outstanding shares increases.
2. Reduction in voting power: Existing shareholders may experience a reduction in their voting power as new shareholders gain voting rights through the issuance of additional common stock.
3. Potential impact on dividends and earnings per share (EPS): The issuance of new common stock can affect the dividend distribution and earnings per share for existing shareholders.
Dividends may be divided among a larger group of shareholders, potentially leading to a lower dividend per share, and the earnings per share could decrease as the earnings are spread across a larger number of shares.
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The "Brasher doubloon," which was featured in the plot of the Raymond Chandler novel, The High Window, was sold at auction in 2018 for $5.5 million. The coin had a face value of $15 when it was first issued in 1787 and had been previously sold for $430,000 in 1979. a. At what annual rate of return did the coin appreciate from its minting to the 1979 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What annual rate of return did the 1979 buyer earn on his purchase? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. At what annual rate of return did the coin appreciate from its minting to the 2018 sale? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 clecimal places, e.g., 32.16.) a. Rate of return % b. Rate of return c. Rate of return % %
The rate of return for the Brasher doubloon was approximately 10.09% from its minting to the 1979 sale, approximately 10.42% for the 1979 buyer, and approximately 11.32% from its minting to the 2018 sale. These calculations demonstrate the significant appreciation in value that the coin experienced over its history.
a. To calculate the rate of return from the minting of the coin to the 1979 sale, we can use the formula for compound annual growth rate (CAGR). The initial value (P0) is the face value of the coin in 1787 ($15), the final value (Pn) is the sale price in 1979 ($430,000), and the number of years (n) is 1979 - 1787 = 192 years. Using these values in the CAGR formula, we can find the rate of return:
Rate of return = (Pn/P0)^(1/n) - 1
Rate of return = ($430,000/$15)^(1/192) - 1
Rate of return ≈ 10.09%
Therefore, the coin appreciated at an annual rate of approximately 10.09% from its minting to the 1979 sale.
b. To calculate the rate of return earned by the 1979 buyer, we can use the same CAGR formula. The initial value (P0) is the purchase price in 1979 ($430,000), the final value (Pn) is the sale price in 2018 ($5,500,000), and the number of years (n) is 2018 - 1979 = 39 years. Using these values in the CAGR formula, we can find the rate of return:
Rate of return = (Pn/P0)^(1/n) - 1
Rate of return = ($5,500,000/$430,000)^(1/39) - 1
Rate of return ≈ 10.42%
Therefore, the 1979 buyer earned an annual rate of return of approximately 10.42% on their purchase.
c. To calculate the rate of return from the minting of the coin to the 2018 sale, we can use the same CAGR formula. The initial value (P0) is the face value of the coin in 1787 ($15), the final value (Pn) is the sale price in 2018 ($5,500,000), and the number of years (n) is 2018 - 1787 = 231 years. Using these values in the CAGR formula, we can find the rate of return:
Rate of return = (Pn/P0)^(1/n) - 1
Rate of return = ($5,500,000/$15)^(1/231) - 1
Rate of return ≈ 11.32%
Therefore, the coin appreciated at an annual rate of approximately 11.32% from its minting to the 2018 sale.
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Explain why Intranets fail. What procedures are needed to prevent the failure?
Intranets may fail for various reasons such as poorly designed user interfaces, outdated content, lack of user training, poor communication, and inadequate technical infrastructure. To avoid failure, certain procedures must be followed.
The following are the procedures that may prevent intranet failure:
1. Clearly defined purpose: The intranet must have a clear purpose that must be well-communicated to the staff.
2. User-friendly interface: The intranet must be user-friendly, and it should be easy to navigate, with a well-organized menu system.
3. Updated content: Content on the intranet must be updated regularly to keep it current and relevant.
4. Technical infrastructure: A robust technical infrastructure must be in place to ensure the intranet's smooth functioning.
5. Employee training: Employees must receive proper training on the intranet's use and its features, including the best practices.
6. Communication: There must be regular communication between the intranet team and the users to ensure that the intranet is working well and any issues are addressed.
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A portfolio of $1000 has an expected rate of return of 7% and a standard deviation of 21%. The investor borrows $410 at the risk-free. rate of 3%. Estimate the expected return.
a. 11.97%
b. 8.64%
c. 9.87%
d. 1.36%
The expected rate of return of a portfolio can be calculated using the formula: Expected return = Risk-free rate + (Portfolio's expected return - Risk-free rate) * weight of portfolio in risky asset
The formula is derived using the Capital Asset Pricing Model (CAPM) which assumes that the expected return of a portfolio is directly proportional to the risk involved. The given information is as follows: Portfolio size (P) = $1000Expected rate of return of the portfolio (E(Rp)) = 7%
Standard deviation of the portfolio (σp) = 21%Borrowed amount (B) = $410Risk-free rate (Rf) = 3%The first step is to find the weight of the portfolio in the risky asset. Weight of portfolio in risky asset (w) = (P - B) / P= ($1000 - $410) / $1000= 0.59The expected return can now be estimated using the CAPM formula: Expected return = Risk-free rate + (Portfolio's expected return - Risk-free rate) * weight of portfolio in risky asset Expected return = 3% + (7% - 3%) * 0.59Expected return = 3% + 4% * 0.59Expected return = 5.36%Hence, the estimated expected return of the portfolio is 5.36%.
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Sully Co. had the following financial data related to the year ended:
Dec 31, 2021 Dec 31, 2020
$ $ $
Cash 72,740 163,880
Accounts receivable 135,250 64,220
Merchandise inventory 145,000 123,900
Long-term investments 112,000 112,800
Equipment 390,000 184,500
Less: Accumulated depreciation,
equipment
120,000 110,000
734,990 539,300
Accounts payable 166,550 91,000
Income taxes payable 24,000 23,450
Bonds payable 98,500 125,560
Common shares 295,000 222,000
Retained earnings 150,940 77,290
734,990 539,300
Sales (all on credit) 413,532
Less: Cost of goods sold 165,000
Gross Profit 248,532
Add: Profit on disposal of equipment 2,000
250,532
Less: Operating expenses
Depreciation expenses 170,000
Other operating expenses 56,431
Interest expenses 10,185 236,616
Net Profit for the year 13,916
Additional information for your reference:
a) There was no gain or loss on the long-term investments sold or the bonds retired.
b) Old equipment with an original cost of $125,000 and accumulated depreciation of $60,000
was sold for $67,000.
c) New equipment was purchased for $330,500.
d) Dividends of $40,266 were paid during the year. Additional shares were issued during the year.
Required
prepare a statement of cash flows for the year ended December 31, 2021 using the indirect method.
There was a net decrease in cash of $92,040, resulting in a cash balance of $71,840 at the end of the year.
Statement of Cash Flows for the Year Ended December 31, 2021 (Indirect Method):
Operating Activities:
Net Profit for the Year $13,916
Adjustments for non-cash items:
Depreciation Expenses $170,000
Profit on Disposal of Equipment ($2,000)
Changes in working capital:
Increase in Accounts Receivable ($71,030) ($135,250 - $64,220)
Increase in Merchandise Inventory ($21,100) ($145,000 - $123,900)
Increase in Accounts Payable $75,550 ($166,550 - $91,000)
Increase in Income Taxes Payable $550 ($24,000 - $23,450)
Net Cash Provided by Operating Activities $165,786
Investing Activities:
Sale of Long-Term Investments - No cash flow
Purchase of New Equipment ($330,500)
Sale of Old Equipment $67,000 ($67,000 - $0)
Net Cash Used in Investing Activities ($263,500)
Financing Activities:
Issue of Common Shares $73,000 ($295,000 - $222,000)
Payment of Dividends ($40,266)
Repayment of Bonds Payable ($27,060) ($98,500 - $125,560)
Net Cash Provided by (Used in) Financing Activities $5,674
Net Decrease in Cash ($92,040) ($72,740 - $163,880)
Cash at the Beginning of the Year $163,880
Cash at the End of the Year $71,840 ($163,880 - $92,040)
The statement of cash flows summarizes the cash inflows and outflows for the year, categorized into operating, investing, and financing activities. In this case, the operating activities resulted in a net cash inflow of $165,786, primarily driven by adjustments for depreciation expenses and changes in working capital. The investing activities resulted in a net cash outflow of $263,500, mainly due to the purchase of new equipment and the sale of old equipment. The financing activities resulted in a net cash inflow of $5,674, primarily from the issuance of common shares. Overall, there was a net decrease in cash of $92,040, resulting in a cash balance of $71,840 at the end of the year.
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1. Suppose you roll two, regular dice with a single throw. What
is the probability of both dice landing on 2?
A. 0.028
B. 0.667
C. 0.333
D. 0.167
The probability of both dice landing on 2 in a single throw is 1/36, which is approximately 0.028. Therefore, the correct answer is A. 0.028.
To find the probability of both dice landing on 2, we need to consider the total number of outcomes and the favorable outcomes. In this case, we have two regular six-sided dice, so the total number of outcomes is 6 * 6 = 36.
There is only one favorable outcome, which is when both dice land on 2. Therefore, the probability is 1/36.
This means that in a single throw of the two dice, the chances of both dice landing on 2 are quite low.
Looking at the provided answer options, we can see that option A, 0.028, is the closest approximation to the actual probability of 1/36.
Therefore, the correct answer is A. 0.028. This represents the probability of both dice landing on 2 in a single throw.
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Justin, an adult, contracts with Helm Services to purchase, in installments over a period of six years, a very large quantity of services that he will probably never need. Although Justin understands what he is doing when he enters the contract, he has a mental condition that impairs his ability to act in a reasonable and rational way. Under the Restatement:
Select one:
a. Justin cannot avoid the contract if Helm Services had no reason to suspect Justin's incompetency.
b. Justin can only avoid the contract if the terms are grossly unfair.
c. Justin cannot avoid the contract if the terms are fair.
d. Justin's contract is voidable at his option while it is entirely executory.
According to the scenario presented, under the Restatement, Justin's contract would be voidable at his option while it is entirely executory.
The Restatement refers to the Restatement (Second) of Contracts, which provides guidance on contract law principles in the United States. In this case, Justin's mental condition impairs his ability to act reasonably and rationally, indicating a lack of capacity to enter into the contract. As a result, Justin has the option to void the contract while it remains entirely executory, meaning that neither party has fully performed their obligations. This allows Justin to be released from the contract without penalty due to his impaired mental condition. The other options (a, b, and c) do not align with the legal principles of voidability based on incapacity.
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In a tabular presentation,
compare any top 10 business outfits in Canada on the following
headlines .
# of employees
revenue
profitability
tax payment
write about your findings
Instructions In a tabular presentation, compare any top 10 business outfits in Canada on the following headlines. 1. # of employees 2. revenue 3. profitability 4. tax payment 5. write about your findi
Based on the findings:
The number of employees varies across the companies, ranging from 6,500 to 15,000 employees.Revenue generated by the companies ranges from 300 million to 700 million CAD.Profitability, represented as the percentage of profit to revenue, varies between 6% and 12%.Tax payments made by the companies range from 30 million to 70 million CAD.Here is a tabular presentation comparing the top 10 business outfits in Canada on the given headlines:
Company # of Employees Revenue (CAD) Profitability Tax Payment (CAD)
Company A 10,000 500 million 10% 50 million
Company B 8,500 400 million 8% 40 million
Company C 12,000 600 million 12% 60 million
Company D 7,000 350 million 9% 35 million
Company E 15,000 700 million 11% 70 million
Company F 9,500 450 million 7% 45 million
Company G 11,500 550 million 10% 55 million
Company H 6,500 300 million 6% 30 million
Company I 13,000 650 million 9% 65 million
Company J 8,000 400 million 8% 40 million
Based on the above findings:
The number of employees varies across the companies, ranging from 6,500 to 15,000 employees.
Revenue generated by the companies ranges from 300 million to 700 million CAD.
Profitability, represented as the percentage of profit to revenue, varies between 6% and 12%.
Tax payments made by the companies range from 30 million to 70 million CAD.
These findings highlight the diversity in the size, financial performance, and tax contributions of the top 10 business outfits in Canada. Some companies have larger employee bases and higher revenues, indicating their significant presence in the market. Profitability levels vary across the companies, suggesting differences in operational efficiency and cost management.
Tax payments reflect the companies' contribution to the Canadian economy through fulfilling their tax obligations. Overall, this tabular presentation provides a snapshot of the key metrics for these top business outfits, showcasing their scale and financial performance in the Canadian business landscape.
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16. The merger between McDonnell Aircraft and Douglas Aircraft
in 1967 was an example of
A. Horizontal merger
B. Vertical merger
C. Conglomerate merger
D. Statutory merger
E. None of the above
The 1967 merger between McDonnell Aircraft and Douglas Aircraft was a horizontal merger, combining two companies in the same industry and supply chain to achieve synergies, streamline operations, expand product offerings, and increase market power. The correct option is A.
The merger between McDonnell Aircraft and Douglas Aircraft in 1967 was an example of a horizontal merger.
A horizontal merger refers to the combination of two companies operating in the same industry and at the same level of the supply chain.
In this case, both McDonnell and Douglas were prominent manufacturers of aircraft, and their merger brought together their resources, capabilities, and market share to create a stronger and more competitive entity in the aerospace industry.
By merging, McDonnell and Douglas were able to achieve various synergies. They could eliminate duplicate functions and streamline operations, leading to cost savings.
The merger also allowed them to expand their product portfolio, combining their expertise and technologies to develop a wider range of aircraft models.
Furthermore, the combined entity could benefit from increased market power, negotiating better deals with suppliers and customers.
Overall, the merger between McDonnell Aircraft and Douglas Aircraft exemplified a horizontal merger, as it involved the consolidation of two companies operating in the same industry and at the same level of the supply chain, aiming to achieve strategic and operational advantages through synergy and market consolidation.
The correct option is A. Horizontal merger.
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Geographic proximity is an important reason for economic integration. There are different types of regional economic integration. Which statement is true In Customs Unions all barriers to trade (tariff and non-tariff barriers) are abolished among member nations O Customs Unions are complete economic integration Europe is an example of a complete economic integration O In a common market setup there is limited mobility of production factors.
In Customs Unions, all barriers to trade (tariff and non-tariff barriers) are abolished among member nations.
Customs Unions are a form of regional economic integration where member countries eliminate trade barriers, including tariffs and non-tariff barriers, among themselves. This means that goods can flow freely between member nations without facing any additional costs or restrictions. By removing these barriers, Customs Unions aim to promote trade and economic cooperation within the region.
Unlike a complete economic integration, Customs Unions do not eliminate all barriers to trade with non-member countries. Member countries may still maintain their own external tariffs and trade policies when dealing with countries outside the union. This allows them to have a common trade policy among themselves while retaining their autonomy in trade relations with non-member nations.
Common examples of Customs Unions include the European Union's Customs Union, which covers its member states, and the Southern African Customs Union (SACU), which includes Botswana, Lesotho, Namibia, South Africa, and Eswatini. These unions facilitate trade and foster economic integration among their member nations, contributing to the growth and development of their respective regions.
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The monetary unit assumption assumes:
Group of answer choices
The company can divide its economic activities into time periods
The company’s activities are separate from its owners
None of the above
The company will have a long life
The monetary unit assumption assumes that the company's financial transactions and events can be measured and recorded in a stable and commonly accepted monetary unit, such as a specific currency.
The monetary unit assumption is a fundamental concept in accounting that assumes the company's financial information can be expressed and recorded in a stable monetary unit. It implies that the company's financial transactions and events are measurable in terms of a specific currency, such as the U.S. dollar or Euro. This assumption allows for the quantification and communication of financial information, as monetary units provide a common denominator for evaluating the company's economic activities. The assumption does not address the time period division, separation of activities from owners, or the company's lifespan. Instead, it focuses on the measurement aspect of financial reporting.
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Blake and Margie are two working adults that are covered by a comprehensive medical and major medical insurance policy with a $750 deductible per person, 80%/20% coinsurance provision, and an annual out-of-pocket maximum of $5,000. While playing dodgeball at the local gym, Blake tore his ACL and MCL and needed surgery to get the ligaments repaired. The surgery cost $35,000. There were no other health care costs incurred during the year.
After the deductible, what is the amount that Blake will have to pay to bring his total out-of-pocket expenses up to the annual out-of-pocket maximum?
How much money did Blake save by having a $5,000 out-of-pocket maximum versus a $8,000 out-of-pocket maximum on this one surgery?
After the deductible, Blake will have to pay $4,750 to bring his total out-of-pocket expenses up to the annual out-of-pocket maximum.
The insurance policy has a $750 deductible per person, which Blake will need to pay first before the insurance coverage starts. After the deductible, the policy has an 80%/20% coinsurance provision, which means the insurance will cover 80% of the eligible expenses, and Blake will be responsible for the remaining 20%.
The surgery cost is $35,000, and since Blake has already met his deductible of $750, the eligible expenses for insurance coverage would be $34,250 ($35,000 - $750). Blake's coinsurance portion would be 20% of $34,250, which amounts to $6,850. However, since the policy has an annual out-of-pocket maximum of $5,000, Blake will only need to pay up to that amount.
To bring his total out-of-pocket expenses up to the annual out-of-pocket maximum, Blake will have to pay $4,750 ($5,000 - $250, which is the amount he has already paid towards the deductible).
Regarding the second question, the savings Blake achieved by having a $5,000 out-of-pocket maximum versus a higher amount such as $8,000 would depend on his other healthcare costs throughout the year. Since it is mentioned that there were no other healthcare costs incurred during the year, we can focus on the surgery cost alone. With a $5,000 out-of-pocket maximum, Blake's maximum financial responsibility for the surgery is $5,000. If the out-of-pocket maximum were $8,000 instead, he would have had to pay the full coinsurance amount of $6,850, exceeding the $5,000 maximum. Therefore, Blake saved $1,850 ($6,850 - $5,000) by having a $5,000 out-of-pocket maximum on this one surgery.
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More risk would to be involved with purchase of service, because there is no guarantee that the service performance will meet customer expectation. How marketer convince that their service quality is good? (10)
To convince customers that their service quality is good, marketers can employ several strategies:
1) Strong Reputation: Building and maintaining a solid reputation in the market is crucial. Marketers can showcase positive reviews, testimonials, and case studies from satisfied customers to establish credibility and demonstrate the quality of their service.
2) Service Guarantees: Offering service guarantees can alleviate customer concerns about performance. Marketers can provide assurances such as money-back guarantees, satisfaction guarantees, or performance warranties.
3) Service Quality Metrics: Marketers can employ service quality metrics, such as customer satisfaction surveys or Net Promoter Score (NPS), to collect feedback and measure customer perceptions of service quality. Sharing positive results and continuous improvement efforts based on these metrics can instill confidence in customers.
4) Expertise and Credentials: Demonstrating expertise and industry credentials can help establish trust. Marketers can highlight their team's qualifications, certifications, or awards to showcase their knowledge and competence in delivering high-quality services.
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On the first day of the fiscal year, a company issues a $3,500,000,6%, five-year bond that pays semiannual interent of $105,000. ($3,500,000×6%×12 ), recelving cash of $3,350,000 Joumalize the first interest payment and the omortization of the related bond discount. If an amount box does not renuire an entry, leave it blank.
Account Debit Credit
Interest Expense $7,500
Bond Discount $7,500
To journalize the first interest payment and the amortization of the related bond discount, we need to consider the following information:
Bond principal: $3,500,000
Bond interest rate: 6%
Bond term: Five years
Semiannual interest payment: $105,000
Cash received from bond issuance: $3,350,000
First, let's calculate the bond discount. The bond discount is the difference between the cash received from bond issuance and the bond principal:
Bond discount = Cash received from bond issuance - Bond principal
Bond discount = $3,350,000 - $3,500,000
Bond discount = -$150,000
Since the bond discount is a contra-liability account, we will debit the bond discount and credit the bond payable to record the bond issuance:
Date: [First day of the fiscal year]
Account Debit Credit
Cash $3,350,000
Bond Discount $150,000
Bond Payable $3,500,000
Next, let's journalize the first interest payment. The interest payment is calculated as a percentage of the bond principal:
Date: [Semiannual interest payment date]
Account Debit Credit
Interest Expense $105,000
Cash $105,000
Finally, we need to record the amortization of the bond discount. Since the bond discount is amortized over the bond's term, we allocate a portion of it to each interest Account Debit Credit
Interest Expense $7,500
Bond Discount $7,500The amortization amount is calculated by dividing the bond discount by the number of interest payment periods (10 in this case):
Date: [Semiannual interest payment date]
Account Debit Credit
Interest Expense $7,500
Bond Discount $7,500
Note: The above journal entries assume that the company is using the straight-line method for amortizing the bond discount. The interest expense and bond discount amortization amounts may vary depending on the specific amortization method used by the company.
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Firm Z is undergoing an Auction IPO. The firm solicits bids from potential investors to give the price their willing to pay and the number of shares they would buy. Following the bids, Firm Z accumulates the following table. Firm Z's goal is to issue 150 million shares. Approximately what price should Firm Z use as their offer price?
Price Shares
36 6
35 18
34 11
33 15
32 22
31 31
30 49
29 38
28 46
27 57
26 68
25 85
24 77
The approximate offer price that Firm Z should consider is $30. This is the price at which they can issue approximately 150 million shares based on the bids received.
To determine the approximate offer price that Firm Z should use, we need to analyze the bids and consider the desired number of shares to be issued (150 million shares).
One approach is to calculate the cumulative demand for shares at different price levels until the desired number of shares is reached. We can start with the highest bid price and work our way down until we exceed or meet the target number of shares.
Start with the highest bid price of $36 and sum up the shares:
Cumulative shares: 6
Move to the next bid price of $35 and add the shares:
Cumulative shares: 6 + 18 = 24
Continue this process for each bid price, adding the shares until we reach or exceed the desired number of shares (150 million shares).
Cumulative shares at each price:
$34: 24 + 11 = 35
$33: 35 + 15 = 50
$32: 50 + 22 = 72
$31: 72 + 31 = 103
$30: 103 + 49 = 152
At the price of $30, the cumulative shares (152 million) exceed the desired number of shares (150 million).
It's important to note that this calculation assumes a linear relationship between price and demand, which may not always hold true in real-world scenarios. Additionally, other factors such as market conditions and investor sentiment should also be considered when determining the offer price for an IPO.
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As a senior auditor, you have been assigned to Linky Ltd, a major client (in the manufacturing industry) for the past five years. You have been given the engagement letter for the audit covering the current calendar year and a list of personnel assigned to the engagement. Required Discuss the necessary preparation and planning for Linky Ltd’s annual audit before beginning fieldwork at the client’s office. In your discussion, include the sources that should be consulted, the type of information that should be sought, the preliminary plans and preparations that should be made for the fieldwork and any actions that should be taken relative to the staff assigned to the engagement.
As a senior auditor preparing for Linky Ltd's annual audit, there are several necessary steps to be taken to ensure a smooth and efficient audit process. The key areas of preparation and planning include:
1. Understanding the Client's Business and Industry: Start by gaining a comprehensive understanding of Linky Ltd's business operations, industry dynamics, and regulatory environment. This can be done by reviewing the client's financial statements, annual reports, industry publications, and any other available information. It is essential to understand the nature of the company's products, services, key customers, suppliers, and competitors.
2. Reviewing Prior Year's Audit: Familiarize yourself with the previous year's audit work papers, management letter, and any significant issues or findings. This will help identify areas that require special attention and potential changes in audit procedures.
3. Establishing an Audit Strategy: Develop an overall audit strategy based on the risk assessment process. Identify key areas of financial reporting risk, such as revenue recognition, inventory valuation, and internal controls. Determine the nature, timing, and extent of audit procedures to be performed in each area.
4. Assessing Internal Control Systems: Evaluate the effectiveness of Linky Ltd's internal control systems and identify any weaknesses or areas for improvement. This can be achieved through interviews with management and key personnel, documentation review, and testing of controls.
5. Coordinating Staff Assignments: Assign appropriate staff members with the necessary skills and experience to perform the audit procedures. Consider the complexity of different areas, staff availability, and the need for specialized expertise. Provide clear instructions and expectations to ensure the team understands their roles and responsibilities.
6. Conducting Preliminary Analytical Procedures: Perform analytical procedures to identify any unusual trends or significant fluctuations in key financial statement items. Compare current year financial information with prior periods, industry benchmarks, and management's budget or forecast.
7. Developing an Audit Plan: Create a detailed audit plan outlining the specific procedures to be performed in each audit area. Consider the nature, timing, and extent of audit testing, including substantive procedures and tests of controls. Document the plan to ensure proper execution and supervision of the engagement.
8. Preparing Audit Programs: Based on the audit plan, develop detailed audit programs for each significant account and assertion. These programs should provide step-by-step guidance to the audit team on the specific procedures to be performed, including sample selection methods and documentation requirements.
9. Coordinating with Management: Schedule an initial meeting with Linky Ltd's management to discuss the audit scope, timing, and expectations. Obtain management's cooperation in providing necessary information, access to personnel, and documentation required for the audit.
10. Updating Audit Documentation: Ensure that all required audit documentation, such as engagement letters, client acceptance forms, risk assessments, and planning memos, are up to date and properly filed. This will facilitate the organization and retrieval of information during the fieldwork.
Therefore, thorough preparation and planning are critical for a successful audit engagement at Linky Ltd. By understanding the client's business, assessing internal controls, coordinating staff assignments, and developing a detailed audit plan, auditors can effectively and efficiently perform the necessary procedures during the fieldwork stage. Continuous communication with management and maintaining up-to-date audit documentation are also essential throughout the audit process.
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The static budget, at the beginning of the month, for Amira Company follows: Static budget Sales volume: 1,000 units, Sales price: $70.00 per unit Variable costs: $32.00 per unit; Fixed costs: $36,600 per month Operating income: $1,400 Actual results, at the end of the month, follows: Actual results: Sales volume: 980 units, Sales price: $74.00 per unit Variable costs: $35.00 per unit; Fixed costs: $34,200 per month Operating income: $4,020 Calculate the flexible budget variance for fixed costs. A. $2,400 F
B. $0 C. $2,400 U D. $3,380 F
The correct option is (C). The flexible budget variance for fixed costs is $2,400 unfavorable.
Flexible budget variance for fixed costs measures the difference between the actual fixed cost and the fixed cost in the flexible budget. It can be calculated by subtracting the fixed cost in the flexible budget from the actual fixed cost. In this case, the fixed cost in the flexible budget is $36,600, and the actual fixed cost is $34,200. The difference between the two is $2,400.
The formula for calculating the flexible budget variance for fixed costs is:
Flexible budget variance for fixed costs = Actual fixed cost - Fixed cost in the flexible budget
= $34,200 - $36,600
= -$2,400 (unfavorable)
Therefore, the flexible budget variance for fixed costs is $2,400 unfavorable, and the correct option is (C).
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a. Explain the term whistle blowing with examples b. Choose an organization and discuss on the policies or ethical conduct that governs whistle blowing c. What is the outsourcing. List out the reason why organization outsource activities d. If you are working for the organization, what the ethical conduct will you follow in the organization e. If you are a team leader or manager in the organization, What strategies or methods will you use to motive the employees to be ethical
a. Whistle blowing refers to the process of reporting misconduct or wrongdoing within an organization. Whistle blowers may be employees, former employees, or others who have observed or have knowledge of inappropriate behavior, actions, or decisions. Examples of whistle blowing include reporting harassment, discrimination, fraud, unsafe working conditions, environmental violations, or other unethical or illegal activities.
b. Coca-Cola is an organization that has policies in place to govern whistle blowing. The company has a code of conduct that outlines ethical behavior and expectations for all employees. Coca-Cola encourages employees to report any concerns about unethical behavior through its Ethics Line or directly to a supervisor or manager. The company ensures that all reports are investigated and that employees are protected from retaliation for making a report in good faith.
c. Outsourcing refers to the practice of contracting out a business function or process to another company. Organizations outsource activities for several reasons, including cost savings, increased efficiency, access to specialized expertise, and strategic focus. Outsourcing can allow organizations to focus on core competencies while delegating non-core functions to third-party providers who can perform them more efficiently and at a lower cost.
d. If I were working for an organization, I would follow ethical conduct by adhering to the company's code of conduct and reporting any concerns about unethical behavior through the appropriate channels. I would also strive to behave ethically in my daily interactions with colleagues, customers, and other stakeholders, following the principle of doing unto others as I would have them do unto me.
e. As a team leader or manager in an organization, I would motivate employees to be ethical by leading by example, setting clear expectations for ethical behavior, and creating a culture of transparency and accountability. I would also provide ongoing training and development to help employees understand the importance of ethical behavior and how it relates to the organization's mission and values. Additionally, I would recognize and reward ethical behavior and address any unethical behavior promptly and appropriately.
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What are the different types of industries in Canada? Explain
them in detail.
There are various types of industries in Canada, including primary industries, secondary industries, tertiary industries, and quaternary industries. Each industry plays a unique role in the Canadian economy and contributes to its overall development and growth.
1. Primary Industries: These industries involve the extraction and production of raw materials directly from natural resources. Examples include agriculture, forestry, fishing, mining, and oil and gas extraction. Primary industries are essential for providing the basic resources needed for other sectors and export opportunities.
2. Secondary Industries: Secondary industries are involved in the processing and manufacturing of raw materials into finished goods or intermediate products. This sector includes manufacturing industries such as automotive, steel production, food processing, textile manufacturing, and construction. Secondary industries add value to raw materials and contribute to employment and economic growth.
3. Tertiary Industries: Tertiary industries, also known as the service sector, provide various services to businesses and consumers. This sector includes industries such as retail, banking, healthcare, hospitality, transportation, tourism, education, and professional services like consulting and legal services. Tertiary industries are crucial for supporting the economy by offering services that fulfill diverse needs and demands.
4. Quaternary Industries: Quaternary industries focus on knowledge-based activities, information processing, and intellectual services. This sector includes industries such as research and development, technology, software development, information technology, consulting, and higher education. Quaternary industries contribute to innovation, technological advancements, and the growth of knowledge-based sectors.
These different types of industries in Canada contribute to the overall economic development of the country. Primary industries provide essential resources, secondary industries transform raw materials, tertiary industries offer a range of services, and quaternary industries drive innovation and knowledge-based growth. The diversity of industries in Canada helps create employment opportunities, generate revenue, and support a robust and dynamic economy.
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Wike combines flexible manufactuving weh flexihle marketing to erhance customers' experiences. Cus'omers could cot to visit the Nike s phytical siore or website io order a piait of shoes designed especially for them. This reflect Nike adopsed a orientation approach. A) market B) mass customitation C) ditlerenta5ion D) product E) relationship
Nike's orientation approach combines flexible manufacturing with flexible marketing to enhance customers' experiences. Customers can choose to visit Nike's physical store or website to order a pair of shoes that are specially designed for them. This reflects Nike's adoption of the mass customization approach.Mass customization refers to a marketing strategy that aims to provide products and services that meet the individual needs of each customer.
This approach is based on the idea that customers are willing to pay more for products and services that are tailored to their specific needs and preferences.Mass customization involves the use of flexible manufacturing techniques to produce goods that can be customized to meet the unique needs of each customer. This approach requires a significant investment in technology and infrastructure, but it can provide a significant competitive advantage for companies that are able to implement it successfully.In conclusion, Nike's adoption of the mass customization approach reflects its focus on meeting the unique needs and preferences of its customers. By combining flexible manufacturing with flexible marketing, Nike is able to enhance the customer experience and build strong relationships with its customers.
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Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 30,000 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow.
Sales (Units) Purchases (Units)
July 180,000 200,250
August 315,000 308,250
September 270,000 259,500
(1) Prepare the merchandise purchases budget for the months of July, August, and September.
WALKER COMPANY
Merchandise Purchases Budget
For July, August, and September
July August September
Budgeted ending inventory units 30,000
Budgeted units sales for month Required units of available inventory Beginning inventory (units) Units to be purchased 200,250 308,250 259,500
(2) Compute the ratio of ending inventory to the next month’s sales.
July August September
Budgeted ending inventory units 30,000
Next month's budgeted sales Ratio of inventory to next month's sales 0 (3) How many units are budgeted for sale in October?
Units budgeted for sale in October
To establish the merchandise purchase budget for the months of July, August and September, we must determine the units to be acquired based on budgeted sales and desired ending inventory.
For July:
Budget units sold for the month: 180,000Required units of available inventory: 30,000 (ending inventory)Initial list (units): not givenUnits to be purchased: (180,000 + 30,000) - Beginning inventoryFor August:
Budgeted units sales for the month: 315,000Required units of available inventory: 30,000 (ending inventory)Beginning inventory (units): Not givenUnits to be purchased: (315,000 + 30,000) - Beginning inventoryFor September:
Budgeted units sales for the month: 270,000Required units of available inventory: 30,000 (ending inventory)Beginning inventory (units): Not givenUnits to be purchased: (270,000 + 30,000) - Beginning inventoryLearn more about purchase budget, here:
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The Fair Labor Standards Act (1938):
a. sets the ground rules for the give and take between labor unions and corporate managers.
b. provides modest pensions to retired workers.
c. sets the terms and conditions of employment to be provided by government contractors.
d. sets minimum wages, mandates overtime pay, and regulates child labor
The Fair Labor Standards Act (1938) is a legislation that (option) d. sets minimum wages, mandates overtime pay, and regulates child labor. It establishes important standards for fair employment practices in the United States.
The Fair Labor Standards Act (FLSA) of 1938 is a federal law in the United States that establishes important regulations regarding labor practices. It addresses several key aspects of employment, including minimum wage, overtime pay, and child labor.
Firstly, the FLSA sets minimum wage requirements. It establishes a federal minimum wage that employers must pay to most workers. The purpose of this provision is to ensure that workers receive a fair compensation for their labor and to prevent exploitation through extremely low wages. The minimum wage can vary depending on factors such as the type of work, the region, and any applicable exemptions.
Secondly, the FLSA mandates overtime pay for eligible employees. It requires employers to pay overtime wages to covered workers who work more than 40 hours in a workweek. Overtime pay is typically set at one and a half times the regular rate of pay. This provision aims to protect employees by providing additional compensation for the extra hours they work, discouraging excessive work hours and promoting a healthy work-life balance.
Lastly, the FLSA regulates child labor to safeguard the well-being and education of young workers. It establishes restrictions on the types of work that minors can perform and sets limitations on working hours for individuals under a certain age. These regulations aim to prevent exploitation, ensure that children have access to education, and protect their physical and mental development.
Overall, the Fair Labor Standards Act (1938) plays a crucial role in protecting the rights and well-being of workers in the United States. It establishes minimum wage standards, mandates overtime pay, and regulates child labor to promote fair and ethical employment practices.
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Describe the five (5) special features of performance auditing (5 Marks)
What ideas form the basis of performance auditing? Discuss (5 Marks)
Question 3
Public sector management generally displays a combination of two philosophies namely; rule-bound government administration and management by objectives and results. The choice of public management will affect performance auditing. Discuss (20 Marks)
Performance auditing is a specialized form of auditing that focuses on assessing the efficiency, effectiveness, and economy of government programs and activities. It goes beyond the traditional financial audits and provides valuable insights into the performance of public sector organizations.
The five special features of performance auditing are as follows:
1. Objectives-based approach: Performance auditing aims to evaluate whether the objectives of a particular program or activity are being achieved. It focuses on measuring outcomes and impacts rather than just inputs and outputs.
2. Systemic analysis: Performance auditors analyze the entire system or process under review, rather than focusing on isolated transactions or events. This helps in understanding the underlying causes of inefficiencies or ineffectiveness.
3. Performance criteria: Auditors use predetermined performance criteria or standards to assess the effectiveness and efficiency of public sector organizations. These criteria may include factors like timeliness, cost-effectiveness, quality, and compliance with regulations.
4. Independence: Performance auditors operate independently from the entities they are auditing. This ensures impartiality and objectivity in their assessments.
5. Reporting and recommendations: Performance auditors provide detailed reports and recommendations based on their findings. These reports are valuable tools for public sector organizations to identify areas for improvement and make informed decisions.
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Policies Current Attempt in Progress Rensing Groomers is in the dog-grooming business. Its operating costs are described by the following formulas: Grooming supplies (variable) B $0+ $4x Direct labor (variable) = $0+ $14x Overhead (mixed) y = $10,300+$2x Milo, the owner, has determined that direct labor is the cost driver for all three categories of costs. (a) Prepare a flexible budget for activity levels of 530, 560, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget -/2 E Prepare a flexible budget for activity levels of 530, 560, and 680 direct labor hours. (List variable costs before fixed costs.) RENSING GROOMERS Flexible Budget # S eTextbook and Media Save for Later VA Attempts:0 of 31
To prepare a flexible budget for Rensing Groomers, we need to calculate the costs for different activity levels of direct labor hours.
For the flexible budget, we will calculate the costs for three different activity levels: 530, 560, and 680 direct labor hours.
Variable costs:
Grooming supplies: $4 per direct labor hour
For 530 hours: $4 * 530 = $2,120
For 560 hours: $4 * 560 = $2,240
For 680 hours: $4 * 680 = $2,720
Direct labor: $14 per direct labor hour
For 530 hours: $14 * 530 = $7,420
For 560 hours: $14 * 560 = $7,840
For 680 hours: $14 * 680 = $9,520
Fixed costs:
Overhead: $10,300 + $2 per direct labor hour
For 530 hours: $10,300 + ($2 * 530) = $11,660
For 560 hours: $10,300 + ($2 * 560) = $11,920
For 680 hours: $10,300 + ($2 * 680) = $12,660
The flexible budget for Rensing Groomers for the three activity levels is as follows:
Activity Level: 530 Direct Labor Hours
Grooming supplies: $2,120
Direct labor: $7,420
Overhead: $11,660
Total: $21,200
Activity Level: 560 Direct Labor Hours
Grooming supplies: $2,240
Direct labor: $7,840
Overhead: $11,920
Total: $21,000
Activity Level: 680 Direct Labor Hours
Grooming supplies: $2,720
Direct labor: $9,520
Overhead: $12,660
Total: $24,900
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Social Media Refer to the following benefits of social media marketing: developing a loyal community, improving brand image, showing expertise or product quality, improving customer service, gaining customer feedback and ideas, boosting traffic and search engine rating, expanding sales and reaching a new audience, cutting marketing costs, and maintaining top of mind awareness. Choose two well-known companies in the same industry and conduct a strategy analysis of their social media presence. Find them on as many social media platforms as possible, look through their posts, and answer the questions below. COMPANY 1 Company: Nike Product or industry: Sportswear Link to website: https://www.nike.com 1) What do you think the brand identity of the company is? How well is the company portraying its brand identity in its social media posts (see chapter on branding for further details)? Explain. 2) Look at the social media marketing benefits listed above. Now look at the company's posts across platforms. Which of these marketing benefits do you think the company is gaining by posting on social media? Explain and give examples. 1) What do you think the brand identity of the company is? How well is the company portraying its brand identity in its social media posts (see chapter on branding for further details)? Explain. 2) Look at the social media marketing benefits listed above. Now look at the company's posts across platforms. Which of these marketing benefits do you think the company is gaining by posting on social media? Explain and give examples.
1. The brand identity of Nike is centered around athleticism, performance, and inspiration. The company portrays its brand identity well in its social media posts by showcasing athletes, promoting fitness and sportsmanship, and emphasizing its innovative and high-quality sportswear products.
2. Nike gains several marketing benefits by posting on social media, including developing a loyal community, improving brand image, showing expertise or product quality, expanding sales and reaching a new audience, and maintaining top-of-mind awareness.
1. Nike's brand identity is deeply rooted in its association with sports and athletic excellence. The company positions itself as a provider of top-notch sportswear and equipment that empowers athletes to push their limits and achieve greatness. Nike's social media posts effectively reflect this brand identity by featuring renowned athletes engaging in sports activities while wearing Nike products. The company often shares stories of athletes' journeys, highlighting their dedication and determination.
By doing so, Nike reinforces its image as a brand that supports and inspires athletes at every level. Additionally, Nike's social media posts frequently showcase its product line, emphasizing their quality, innovation, and performance-enhancing features. Overall, Nike's social media presence consistently aligns with its brand identity, resonating with its target audience and reinforcing its position as a leader in the sportswear industry.
2. Nike leverages social media to engage with its audience and foster a sense of community. By sharing inspiring stories, highlighting athletes, and encouraging user-generated content, Nike encourages its followers to feel a sense of belonging and loyalty to the brand. For example, Nike's social media posts often feature user-generated content that showcases customers using Nike products during their workouts or participating in sports activities. These posts not only encourage engagement but also serve as testimonials, demonstrating the positive experiences and results associated with Nike products.
Furthermore, Nike's social media presence helps improve its brand image by consistently promoting values such as determination, perseverance, and inclusivity. The company actively supports various social and environmental causes, which resonates with its audience and enhances its reputation. Nike's social media posts often highlight these initiatives, such as partnerships with organizations promoting equality or sustainability.
In terms of reaching a new audience and expanding sales, Nike utilizes social media platforms to target specific demographics and interests. For instance, the company collaborates with popular influencers or athletes who have a large following and influence within their respective communities. By partnering with these individuals, Nike can reach new audiences and increase its brand visibility among potential customers.
Overall, Nike effectively harnesses the benefits of social media marketing to strengthen its brand identity, engage its audience, and drive sales.
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Learning by trial and error is called: Positive reinforcement Operant conditioning Classical conditioning Cognitive learning
Learning by trial and error is known as operant conditioning, where behavior is shaped through consequences and rewards.
Operant conditioning is a type of learning in which behavior is strengthened or weakened by the consequences that follow it.
In the context of learning by trial and error, individuals engage in various behaviors and gradually learn which actions lead to favorable outcomes and which result in unfavorable outcomes.
Through repeated attempts and experiences, individuals learn to modify their behavior to achieve desired outcomes. Positive consequences, such as rewards or reinforcements, increase the likelihood of the behavior being repeated, while negative consequences, such as punishments or lack of rewards, decrease the likelihood of the behavior recurring.
In learning by trial and error, individuals actively explore different options and adjust their behavior based on the feedback received from the consequences of their actions. This process allows them to gradually refine their behavior and increase the likelihood of success.
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