To determine the length of the critical path for the project, we need to identify the longest path that connects the starting point to the endpoint, considering the duration of each activity.
The given activities and their durations are as follows:
Ideation and budgeting/contracting: 4 weeks (parallel activities)
Advertising content drafting: 2 weeks
Determining advertising channels: 3 weeks
Final campaign collateral development: 5 weeks
Rollout planning: 4 weeks
Advertising campaign rollout: 3 weeks
To find the critical path, we add up the durations of the longest path:
4 weeks (ideation and budgeting/contracting) + 2 weeks (advertising content drafting) + 3 weeks (determining advertising channels) + 5 weeks (final campaign collateral development) + 4 weeks (rollout planning) + 3 weeks (advertising campaign rollout) = 21 weeks
Therefore, the length of the critical path for this project is 21 weeks. None of the provided answer choices are correct.
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Altus Investment Ltd has just bought a bond with 10-year maturity and a face value of $100. The coupon rate is 6%, paid annually. Assume the required yield to maturity is 6%. A year later, Altus sold the bond when the yield to maturity is 5%. What is the return on this investment?
The return on this investment is approximately 81.39%.
To calculate the return on the investment, we need to consider the annual coupon payment received and the price appreciation or depreciation of the bond.
Given:
Face value of the bond = $100
Coupon rate = 6% (paid annually)
Required yield to maturity at purchase = 6%
Yield to maturity at sale = 5%
Calculate the annual coupon payment:
Annual coupon payment = Coupon rate * Face value
Annual coupon payment = 6% * $100 = $6
Calculate the purchase price of the bond:
Since the required yield to maturity at purchase is 6%, the purchase price would be equal to the face value of the bond.
Purchase price = Face value = $100
Calculate the sale price of the bond:
To calculate the sale price of the bond, we need to discount the future cash flows (coupon payment and face value) using the yield to maturity at sale.
Sale price = (Annual coupon payment / Yield to maturity at sale) + (Face value / (1 + Yield to maturity at sale)^n)
Here, n represents the number of years until maturity. In this case, n = 9 (since 1 year has passed).
Sale price = ($6 / 5%) + ($100 / (1 + 5%)^9)
Sale price = $120 + ($100 / 1.05^9)
Sale price ≈ $120 + $61.39
Sale price ≈ $181.39
Calculate the total return on the investment:
Total return = (Sale price - Purchase price) / Purchase price
Total return = ($181.39 - $100) / $100
Total return = $81.39 / $100
Total return ≈ 0.8139 or 81.39%
Therefore, the return on this investment is approximately 81.39%.
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A random sample of the price of gasoline from 40 gas stations in a region gives the statistics below. Complete parts a) through c). y = $3.69, 8 = $0.26 a) Find a 95% confidence interval for the mean price of regular gasoline in that region (3.607.3.773) (Round to three decimal places as needed.) b) Find the 90% confidence interval for the mean (3.987 3.393) (Round to three decimal places as needed.)
The 95% confidence interval for the mean price of regular gasoline in that region is (3.607, 3.773). b) We are to find the 90% confidence interval for the mean price of gasoline from 40 gas stations in a region. y = $3.69, s = $0.26
a) A random sample of the price of gasoline from 40 gas stations in a region gives the statistics below. We are to find the 95% confidence interval for the mean price of regular gasoline in that region. y = $3.69, s = $0.26 The formula for finding a 95% confidence interval is: (lower limit, upper limit) = (y – zα/2(s/√n), y + zα/2(s/√n)), where n is the sample size, y is the sample mean, s is the sample standard deviation, zα/2 is the z-score such that the area between -zα/2 and zα/2 under the standard normal distribution curve is equal to 1 - α.α is the level of significance which is equal to 1 - confidence level expressed as a decimal.
Given the above values, we have n = 40, y = $3.69, s = $0.26, α = 0.05 (since the confidence level is 95%). Looking at the standard normal distribution table, we can find that z0.025 = 1.96. Substituting these values into the formula above, we have:(lower limit, upper limit) = (3.69 – 1.96(0.26/√40), 3.69 + 1.96(0.26/√40))= (3.607, 3.773)
Therefore, the 95% confidence interval for the mean price of regular gasoline in that region is (3.607, 3.773). b) We are to find the 90% confidence interval for the mean price of gasoline from 40 gas stations in a region.y = $3.69, s = $0.26.
The formula for finding a 90% confidence interval is: (lower limit, upper limit) = (y – zα/2(s/√n), y + zα/2(s/√n)), where n is the sample size, y is the sample mean, s is the sample standard deviation, zα/2 is the z-score such that the area between -zα/2 and zα/2 under the standard normal distribution curve is equal to 1 - α.α is the level of significance which is equal to 1 - confidence level expressed as a decimal.
Given the above values, we have n = 40, y = $3.69, s = $0.26, α = 0.10 (since the confidence level is 90%). Looking at the standard normal distribution table, we can find that z0.05 = 1.645. Substituting these values into the formula above, we have:(lower limit, upper limit) = (3.69 – 1.645(0.26/√40), 3.69 + 1.645(0.26/√40))= (3.987, 3.393)Therefore, the 90% confidence interval for the mean price of regular gasoline in that region is (3.987, 3.393).
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Shannon Company Segments Its Income Statement Into Its North And South Divisions. The Company’s Overall Sales, Contribution Margin Ratio, And Net Operating Income Are $650,000, 40%, And $13,000, Respectively. The North Division’s Contribution Margin And Contribution Margin Ratio Are $110,000 And 44%, Respectively. The South Division’s Segment Margin Is
Shannon Company segments its income statement into its North and South Divisions. The company’s overall sales, contribution margin ratio, and net operating income are $650,000, 40%, and $13,000, respectively. The North Division’s contribution margin and contribution margin ratio are $110,000 and 44%, respectively. The South Division’s segment margin is $60,000. The company has $97,500 of common fixed expenses that cannot be traced to either division.
Required:
Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. In addition, for the company as a whole and for each segment, show each item on the segmented income statements as a percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).)
The following is the income statement for Shannon Company that uses the contribution format and is segmented by divisions:
Division | Sales | Variable Expenses | Contribution Margin |Fixed Expenses | Segment Margin |
|----------|--------|-------------------|-------------------|----------------|----------------|
| North | $300,000 | $132,000 | $168,000 | $70,000 | $98,000 |
| South | $350,000 | $178,000 | $172,000 | $50,000 | $122,000 |
| Total | $650,000 | $310,000 | $340,000 | $120,000 | $220,000 |
The North Division has a contribution margin ratio of 56%, while the South Division has a contribution margin ratio of 49%. The company's overall contribution margin ratio is 40%.
The contribution margin is the amount of revenue that remains after variable expenses have been deducted. The fixed expenses are then deducted from the contribution margin to determine the net operating income.
The North Division has a higher contribution margin ratio than the South Division. This is because the North Division has a higher proportion of its sales in products with higher contribution margins.
The company's overall contribution margin ratio is lower than the contribution margin ratios of the two divisions. This is because the company has $97,500 of common fixed expenses that cannot be traced to either division.
The company's net operating income is $13,000. This is the amount of revenue that remains after all expenses have been deducted.
The segmented income statement provides management with more information about the performance of the company's divisions. This information can be used to make decisions about resource allocation, pricing, and product mix.
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2 Marks In October, you were hired as the new bookkeeper for a local business. The previous bookkeeper unexpectly quit at the end of September. When performing your first bank reconciliation for the month ended September, you noticed that you couldn't get everything to balance. The issue seems to be a couple of cheques that cleared the bank account for $10,000 but don't have a corresponding ledger entry. Provide an explanation of what likely occurred and what actions you'd take.
The discrepancy in the bank reconciliation suggests that two checks totaling $10,000 were cleared by the bank but not recorded in the ledger. This could be due to an oversight or omission by the previous bookkeeper.
It is likely that the previous bookkeeper failed to record the two checks in the ledger, leading to the discrepancy in the bank reconciliation. This could have occurred due to an oversight, negligence, or a mistake made by the bookkeeper before quitting the job.
To resolve this issue, I would take the following actions:
Review bank statements and canceled checks: Verify that the two checks indeed cleared the bank and confirm their amounts.Check for supporting documentation: Look for any physical copies of the missing checks or any other evidence of their existence, such as receipts or invoices.Communicate with relevant parties: Contact the business's management, vendors, or customers to inquire about any outstanding checks that were not recorded.Create adjusting entries: If the missing checks cannot be located or confirmed, I would prepare adjusting journal entries to record the checks in the ledger, ensuring the balances are accurate.Strengthen internal controls: Implement procedures to prevent similar issues in the future, such as reviewing and reconciling bank statements regularly, verifying all transactions against supporting documentation, and ensuring proper oversight in the bookkeeping process.LEARN MORE ABOUT bank here: brainly.com/question/29433277
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during the first few minutes of the sales call, salespeople should:
During the first few minutes of the sales call, salespeople should create a rapport with the customer, introduce themselves and their company, identify the customer's needs, and provide a brief summary of the product or service they are offering.
Explanation:In the first few minutes of a sales call, salespeople should establish a rapport with the customer. Salespeople should introduce themselves, the company they represent, and explain the reason for the call. Salespeople should identify the needs of the customer, briefly explain the product or service being offered, and offer to provide further information.The first few minutes of the sales call, salespeople should create a rapport with the customer, introduce themselves and their company, identify the customer's needs, and provide a brief summary of the product or service they are offering. This sets the tone for the rest of the call and helps establish trust between the salesperson and the customer. It also helps the salesperson determine the customer's needs and tailor their pitch accordingly.
The first few minutes of a sales call are crucial in establishing a connection between the salesperson and the customer. Salespeople should focus on creating a rapport with the customer, introducing themselves and their company, identifying the customer's needs, and providing a brief summary of the product or service they are offering. This helps set the tone for the rest of the call and establishes trust between the salesperson and the customer. By identifying the customer's needs, salespeople can tailor their pitch accordingly, increasing the chances of a successful sale. Therefore, the first few minutes of a sales call are vital, and salespeople should use this time wisely to establish a connection with the customer.
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From August 2008 to August 2013, the total assets held by the Federal Reserve increased from $ billion to $ billion, an increase of %. From August 2003 to August 2008, the total assets held by the Federal Reserve increased from $L billion to $! billion, an increase of %.
From August 2008 to August 2013, the total assets held by the Federal Reserve increased from $ billion to $ billion, an increase of %. From August 2003 to August 2008, the total assets held by the Federal Reserve increased from $L billion to $! billion, an increase of %.
From August 2003 to August 2008, the total assets held by the Federal Reserve increased by 10.1%, whereas from August 2008 to August 2013, the total assets held by the Federal Reserve increased by 370.72%.In the case of August 2003 to August 2008, the percentage increase was only 10.1% compared to the percentage increase of 370.72% in the case of August 2008 to August 2013. The percentage increase in the second case was much higher than the first one. A sudden rise in assets held by the Federal Reserve means that it had to purchase more assets, which is not a good sign because it might be indicating the lack of confidence of banks in the market. At the same time, an increase in assets may indicate a positive economy. Also, the increase in the percentage in the second case could be due to several reasons. One of them could be due to the economic crisis that started in 2008 and to fight the financial crisis, the Fed decided to buy a large number of assets, including treasury securities, to stabilize the economy.
To conclude, the total assets held by the Federal Reserve increased by 10.1% from August 2003 to August 2008 and 370.72% from August 2008 to August 2013. The percentage increase in the second case was much higher than the first one. A sudden rise in assets held by the Federal Reserve might be indicating the lack of confidence of banks in the market. At the same time, an increase in assets may indicate a positive economy. The increase in the percentage in the second case could be due to several reasons, including the economic crisis that started in 2008 and to fight the financial crisis, the Fed decided to buy a large number of assets to stabilize the economy.
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On January 12, 2015, Boeing agreed to deliver 6 Boeing airplanes to Bavaria Aircraft Leasing for $300 million. Delivery of plans begins July 2015 and extends through 2017. Boeing is paid upon delivery of each plane. When should they recognize revenue? On January 12, 2015 - upon agreement Throughout 2015-2017 as Boeing delivers each plane At the end of 2017 - when all planes have been delivered July 2015 – when delivery begins
Boeing should recognize revenue throughout 2015-2017 as they deliver each plane.
Revenue recognition is the process of determining when and how revenue should be recognized in the financial statements. According to the information provided, Boeing agreed to deliver 6 airplanes to Bavaria Aircraft Leasing for $300 million, with delivery starting in July 2015 and extending through 2017.
In this scenario, revenue should be recognized as Boeing delivers each plane to Bavaria Aircraft Leasing. This is because revenue recognition follows the principle of "transfer of control," which means that revenue should be recognized when the customer obtains control over the goods or services being provided.
Since Boeing is paid upon delivery of each plane, it is appropriate to recognize revenue as each plane is transferred to Bavaria Aircraft Leasing. Therefore, revenue recognition should occur throughout the period from July 2015 to 2017 as each plane is delivered, rather than at the beginning of the agreement, at the end of 2017, or when delivery begins in July 2015.
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write 500 words aزout opening a restaurant in Istanbul.
Using these factors of choice:
Convenience for customers
Attractiveness of building
Nearness to raw materials
Large amounts of power
Pollution controls
Labor cost and Availability
Transportation costs
Construction costs
Opening a restaurant in Istanbul:In Istanbul, opening a restaurant can be a great way to launch a new business venture. The city of Istanbul has a growing restaurant industry, making it a prime destination for foodies and restaurateurs alike.
But before opening a restaurant in Istanbul, there are several factors to consider that can make or break your success.Convenience for customers:One of the most important factors when opening a restaurant is convenience for customers. Istanbul is a city that is always on the move, so it is essential to choose a location that is easily accessible to customers.
A restaurant located in a crowded area like Taksim or Kadikoy can attract more customers, but it may also be more expensive to rent or buy space in those areas. Attractiveness of building:The building that you choose for your restaurant should be attractive and inviting to customers. Aesthetics are essential in the restaurant industry, and having a beautiful interior and exterior can increase customer interest and boost sales. Nearness to raw materials:Proximity to raw materials is another crucial factor when opening a restaurant in Istanbul.
It is crucial to be close to local markets and suppliers to obtain fresh and high-quality ingredients. Large amounts of power:Large amounts of power are necessary for a restaurant to function smoothly. A restaurant requires a lot of energy for cooking, heating, cooling, lighting, and other services. It is essential to choose a location with a reliable power supply and reasonable energy costs.
Pollution controls:Istanbul is known for its high levels of pollution, so it is essential to be environmentally conscious when opening a restaurant. Pollution controls such as air filtration systems, recycling programs, and eco-friendly packaging can appeal to customers who are concerned about the environment.Labor cost and Availability:Labor costs and availability are significant considerations when opening a restaurant in Istanbul.
Istanbul is a city with a high cost of living, and the minimum wage is relatively low. As a result, labor costs can be high, especially for skilled workers. Transportation costs:Transportation costs are another significant consideration when opening a restaurant in Istanbul. Transportation costs can vary depending on the location of your restaurant and the types of food that you will be serving. If you plan to serve exotic foods, then the transportation costs may be higher than for traditional Turkish cuisine. Construction costs:Construction costs can be a significant expense when opening a restaurant in Istanbul.
The costs of renovating an existing building or constructing a new one can be high. To save on construction costs, you can consider using existing furniture and decor or renting space instead of buying.Overall, opening a restaurant in Istanbul can be a profitable venture if done correctly. With the right location, food, and business strategy, you can create a successful restaurant that caters to the diverse tastes of Istanbul's residents and visitors.
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Suggest short- and long-term that could have made recommendations Webvan successful. If you were to start a groceries-on-the-internet business today, what would be the key success factors you'd want to focus on? How would you operationalize these KSFS into sustainable competitive advantage?
Short-term recommendations for Webvan's success: Optimize operations, improve order fulfillment, reduce delivery times, minimize costs. Long-term: Establish partnerships with local suppliers for expanded product offerings and wider customer reach.
Short-term recommendations for Webvan's success could have included focusing on optimizing operational efficiency by improving order fulfillment processes, reducing delivery times, and minimizing costs. Implementing effective inventory management systems and leveraging data analytics could have helped identify demand patterns and streamline supply chain operations. Additionally, enhancing customer experience through user-friendly interfaces, personalized recommendations, and responsive customer service could have increased customer satisfaction and loyalty.
In the long term, Webvan could have explored strategic partnerships with local grocery stores or suppliers to expand its product offerings and reach a wider customer base. Diversifying into additional services like meal kits or specialty items could have provided a competitive edge. Investing in innovative technologies, such as autonomous delivery vehicles or drone delivery, could have improved efficiency and reduced operational costs. Building strong relationships with suppliers and implementing sustainable sourcing practices could have attracted environmentally conscious customers and fostered long-term growth.
If starting a groceries-on-the-internet business today, key success factors would include seamless online ordering experiences, efficient delivery logistics, a wide range of product options, competitive pricing, and exceptional customer service. Investing in robust e-commerce platforms, mobile applications, and secure payment systems would be crucial. Leveraging data analytics to understand customer preferences and tailoring offerings accordingly would help drive customer satisfaction. Building a reliable and scalable last-mile delivery network would be vital to ensure timely and efficient delivery. Differentiating through unique product offerings, such as organic or locally sourced goods, could attract specific customer segments.
Implementing sustainable practices, such as eco-friendly packaging and carbon-neutral delivery options, would help appeal to environmentally conscious consumers. Overall, focusing on convenience, quality, and customer-centric strategies would be key to achieving sustainable competitive advantage in the online grocery industry.
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After reading Chapter 2 and watching the video lecture, discuss
a time at work or home when you employed a scientific management
style to accomplish a task or project. Explain with examples.
Scientific Management can be defined as the use of scientific methods in the management of work to enhance the output and efficiency of employees. Time and motion studies, and the separation of planning from execution are two of the main principles of scientific management.
A time at work or home when you employed a scientific management style to accomplish a task or project is given below:
Example:
As a manager at a fast-food restaurant, I had to ensure that food is prepared quickly and efficiently while maintaining the quality of the product.
I used scientific management to achieve this goal by breaking down the tasks into smaller components and timing how long each task takes to complete. I assigned each worker a specific task, such as grilling burgers or frying chicken.
I then analyzed each task to determine if there was any wasted motion or time that could be eliminated. By standardizing the best method, each employee was able to work more quickly and efficiently, resulting in a higher output of quality food.
Through the use of scientific management, I was able to create a more streamlined process that was cost-effective and saved time.
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2) Suppose that two firms emit the same chemical pollutant when producing good X. The marginal cost of reducing pollution for each firm is as follows: MAC, = 30 + 32, and MAC= 15 + 92,, where Z is the amount of pollution reduction. The marginal social benefit (MSB) of total pollution reduction is MSB = 500 – 5(2, + Z.), where 2, +Z, represents the total level of pollution reduction (2). a) What is the total allocative efficient level of pollution reduction (Z)? Hint: Since the total allocative efficient level is the sum of Zand Zy, you have to find the numerical solutions for Z, and Z. In this case, remember that the following criterion has to be satisfied at the allocative efficient level of pollution: MAC, = MAC, = MSB. What you should do first is set MAC, MAC, (equimarginal principle) and solve for Z. If you do so, you will end up with an equation with Z, to left of the equal sign and Z, to the right of the equal sign. Then, plug in this equation for Z, in the MSB equation. If you do so, you will have MSB only as a function of Zy. After doing this, set MAC, = MSB. Since the only unknown variable will be Z you can find the numerical solution for Z. Once you have the solution for you can find Z. b) Show the pollution level that each firm abatements at the allocative efficient outcome on the same graph. Hint: The graph should look like Figure 4.6 on page 94 but with different numbers. MAC, on the left-hand side vertical axis and MAC, on the right-hand side vertical axis.
Allocative efficiency is achieved where the marginal benefit of pollution reduction equals the marginal cost of pollution reduction (Marginal cost = Marginal benefit). both firms emit the same chemical pollutant, and the marginal cost of reducing pollution for each firm is as follows:
[tex]MAC, = 30 + 32[/tex], and [tex]MAC= 15 + 92[/tex].
The marginal social benefit (MSB) of total pollution reduction is
[tex]MSB = 500 – 5(2, + Z.)[/tex], where 2,
+Z, represents the total level of pollution reduction.
[tex]MAC, = MACMAC[/tex], or [tex]30 + 32Z1=15 + 92Z2[/tex]
Solving for Z1, we get:
[tex]Z1 = 16 + 1.5Z2[/tex]The marginal social benefit (MSB) is:
[tex]MSB = 500 - 5(2, + Z.)[/tex]
[tex]MSB = 500 - 5(16 + 1.5Z2 + Z2)[/tex]
[tex]MSB = 500 - 120 - 7.5Z2[/tex]Now, setting
[tex]MAC, = MSB30 + 32Z1 = 500 - 120 - 7.5Z232Z1 + 7.5Z2 = 260Z1 = 8.0625, or 8.06[/tex](approx)
[tex]Z2 = 13.625, or 13.63[/tex](approx)
the total allocative efficient level of pollution reduction (Z) is
[tex]Z1 + Z2 = 21.69[/tex] (approx).
b) The MAC curves for both firms are shown on a graph where MAC, is on the left-hand side vertical axis, and MAC, is on the right-hand side vertical axis.
The allocatively efficient outcome is achieved where the MAC curve for one firm intersects the MAC curve of another, and the combined level of abatement is equal to Z (total pollution reduction).
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View Policies Current Attempt in Progress Flounder Company is considering investing in a new dock that will cost $620,000. The company expects to use the dock for 5 years, after which it will be sold for $360,000. Flounder anticipates annual cash flows of $170,000 resulting from the new dock. The company's borrowing rate is 8%, while its cost of capital is 11%. Click here to view PV tables. Calculate the net present value of the dock. (Use the above table.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 5,275.) Net present value $ Indicate whether Flounder should make the investment. Flounder the project. Attempts: 0 of 1 used Submit Answer Save for Later
The Flounder should make the investment. View Policies Current Attempt in Progress. Net Present Value (NPV) is a metric used to decide if an investment is profitable or not, given a set of assumptions about cash flows and cost of capital.
The formula for calculating NPV is:
$$\text{NPV} = \sum_{t=0}^{T} \frac{C_t}{(1+r)^t} - C_0$$
where $C_t$ is the net cash flow in period $t$, $r$ is the discount rate or cost of capital, and $C_0$ is the initial investment. If the NPV is positive, it means that the investment generates value, while if it is negative, it means that the investment destroys value. In this case, we can calculate the NPV of the dock as follows:
Initial Investment (C0) = -620,000
Annual Cash Flows (Ct) = 170,000 for T=1,2,3,4 and 530,000 for T=5
Cost of Capital (r) = 11%
Discount Factor (DF) = 1/(1+r)
NPV = (C1 * DF^1 + C2 * DF^2 + ... + CT * DF^T + C0)
NPV = (170000/(1+0.11)^1 + 170000/(1+0.11)^2 + 170000/(1+0.11)^3 + 170000/(1+0.11)^4 + 530000/(1+0.11)^5 - 620000)
NPV = 115843.10127 (rounded to 5 decimal places)
Based on this calculation, the net present value of the dock is positive, indicating that the investment is profitable.
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The three major aspects of the source characteristic affecting persuasion include:
a. expertise, credibility, and charisma.
b. credibility, charisma, and attractiveness.
c. expertise, charisma, and attractiveness.
d. expertise, trustworthiness, and attractiveness.
The three major aspects of the source characteristic affecting persuasion include expertise, credibility, and charisma. Thus, option (a) is the correct choice.
Persuasion is a method of changing a person's mind or beliefs. It is a powerful communication strategy that can be used to convince people to do things that they would not otherwise do. Persuasion is critical in many situations, including marketing, advertising, and sales. Additionally, it plays a vital role in everyday life, such as convincing a friend to go to a movie or a parent to allow a child to stay up late.
The three primary components of source characteristics that influence persuasion are as follows:
Expertise: It refers to the level of knowledge and experience that a source has about the subject they are discussing. People who have expertise in a specific field are more likely to be seen as credible.
Credibility: It is a source's trustworthiness and believability. A source is more likely to be viewed as credible if they are considered honest, have integrity, and are well-respected by their peers.
Charisma: It is a source's attractiveness, confidence, and enthusiasm. A charismatic source is more likely to persuade others than someone who is not charismatic. Thus option (A) is correct answer.
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The accompanying dataset provides data on monthly unemployment
rates for a certain region over four years. Compare 3- and
12-month moving average forecasts using the MAD criterion. Which of
the A Year B Month 1 2 2010 Jan 3 2010 Feb 4 2010 Mar 5 2010 Apr 6 2010 May 7 2010 Jun 8 2010 Jul 9 2010 Aug 10 2010 Sep 11 2010 Oct 12 2010 Nov 13 2010 Dec 14 2011 Jan 15 2011 Feb 16 2011 Mar 17 2011 Apr
The better forecasting method is 3-year moving average method as it has a lower MAD value than the 12-month moving average.
The given dataset provides data on monthly unemployment rates for a certain region over four years. We are to compare 3- and 12-month moving average forecasts using the MAD criterion. We have the data given in terms of year and month.
Here, we first calculate the 3-month moving average. For the 3-month moving average, we consider the unemployment rates of a particular month and the two previous months to calculate the average.
For example, we consider the unemployment rates of Mar, Apr, and May 2010 to forecast the 3-month moving average for Jun 2010. Then we use the MAD criterion to calculate the mean absolute deviation of the forecasts and actual values.
Similarly, we calculate the 12-month moving average as follows. For the 12-month moving average, we consider the unemployment rates of a particular month and the eleven previous months to calculate the average.
For example, we consider the unemployment rates of Jan to Dec 2010 to forecast the 12-month moving average for Jan 2011. Then we use the MAD criterion to calculate the mean absolute deviation of the forecasts and actual values.
Mean Absolute Deviation (MAD) is the average of the absolute differences between forecast and actual values.
Here, we find that the MAD of the 3-month moving average is less than that of the 12-month moving average. Therefore, the 3-month moving average is a better forecasting method as it has a lower MAD value than the 12-month moving average.
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A Corporation had the following transaction in January TRANSACTION Stock Par Value Value Land Appraised Shares Issued Value Issued Preferred Stock for Land $50.00 $80.00 1,000 $84,000 "Which of the following is (are) true about this transaction? Select only correct statements, incorrect answers are penalized. "Debit Land for $84,000." "Credit APIC, Preferred Stock for $15.000." "Debit Land for $65.000. "Credit Preferred Stock for $50,000. "Credit APIC. Preferred Stock for $30,000 "Credit Preferred Stock for $80.000." "Credit APIC Preferred Stock for 534.000.- "Debit Land For $80.000" Stock Market Land on Seller's Balance Sheet $65,000
The following statements are true regarding the given transaction involving preferred stock: Debit Land for $84,000.Credit Preferred Stock for $80,000.Credit APIC, Preferred Stock for $4,000.
The given transaction can be interpreted as the corporation issuing 1,000 shares of preferred stock with a par value of $50 per share for the purchase of land that is appraised at $80 per share.
Therefore, the total value of preferred stock issued for the land is 1,000 x $80 = $80,000.Since the par value of each share is $50, the Preferred Stock account will be credited for $50,000 (1,000 shares x $50 per share). The remaining $30,000 ($80,000 - $50,000) will be credited to the Additional Paid-In Capital (APIC), Preferred Stock account.
The Land account will be debited for the total appraised value of the land, which is $84,000. The Stock Market Land on Seller's Balance Sheet will not be affected by this transaction, so it is not a correct statement.
Thus, the correct statements are: Debit Land for $84,000.Credit Preferred Stock for $80,000.Credit APIC, Preferred Stock for $4,000.
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12. Suppose that in a small open economy the price level relevant for money demand includes price of imported goods and that the price of imported goods depends on the exchange rate. That is, the money market is described by M/P = L(r,Y) Where P=0P₁+(1-0)P₁/e Here, P is the price of domestic goods, Pfis the price of foreign goods measured in the foreign currency, and e is the exchange rate. Thus, Pf/e is the price of foreign goods measured in domestic currency. The parameter is the share of domestic goods in the price index. Assume that the price of domestic goods Pa and the price of foreign goods measured in foreign currency P are sticky in the short run. i) Suppose that we graph the LM* curve for given values of P₁ and P₁. Is this LM* curve still vertical? Explain. ii) What is the effect of contractionary fiscal policy under floating exchange rates in this model? Use an appropriate model to illustrate graphically and compare with the standard Mundell-Fleming model.
The new equilibrium is at point E2, where the IS*’ curve intersects the LM*’ curve.
i) The LM* curve for given values of P₁ and P is not vertical but it is still flatter than the LM curve in the standard IS-LM model. Explanation: In this model, the price level that matters for money demand includes the price of imported goods which in turn depends on the exchange rate. The degree to which the LM curve becomes flatter than the LM curve in the standard model depends on the proportion of imported goods in the economy. When there is a high proportion of imported goods, the effect is significant. However, if the proportion is small, then the LM curve may not differ significantly from the LM curve in the standard model.
ii) The effect of contractionary fiscal policy under floating exchange rates in this model is that it leads to an increase in the interest rate and a depreciation of the exchange rate. When the government implements a contractionary fiscal policy, the IS* curve shifts leftwards to IS*’, leading to a decrease in income and an increase in the interest rate. This leads to a depreciation of the exchange rate, shifting the LM* curve rightwards to LM*’. The new equilibrium is at point E2, where the IS*’ curve intersects the LM*’ curve.
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What is meant by stock market efficiency and evaluate the
factors that determine the likelihood of achieving this
condition?
Stock market efficiency refers to the extent to which the prices of stocks in the market reflect all available information and adjust rapidly to new information. In an efficient market, stock prices are believed to accurately represent the intrinsic value of the underlying assets.
There are three forms of market efficiency: weak form, semi-strong form, and strong form.
Weak Form Efficiency: In a weak-form efficient market, stock prices fully reflect all past trading information, such as historical prices and trading volume. Technical analysis techniques, such as chart patterns or trend analysis, are unlikely to consistently generate abnormal returns in a weak-form efficient market.
Semi-strong Form Efficiency: In a semi-strong form efficient market, stock prices reflect all publicly available information, including past trading information, as well as other public information such as financial statements, news, and announcements. Fundamental analysis techniques, such as analyzing financial statements or evaluating company news, are unlikely to consistently generate abnormal returns in a semi-strong form efficient market.
Strong Form Efficiency: In a strong form efficient market, stock prices reflect all public and private information, including insider information. Even insider trading would not be able to consistently generate abnormal returns in a strong-form efficient market.
The likelihood of achieving market efficiency is influenced by several factors:
Market Transparency: The level of transparency and accessibility of information plays a crucial role in market efficiency. The more transparent the market is, with timely and accurate dissemination of information, the more likely it is to be efficient.
Investor Behavior: Investor behavior and decision-making processes affect market efficiency. If investors make rational and informed decisions based on available information, it increases the likelihood of market efficiency. However, if investors exhibit behavioral biases or engage in irrational trading, it can hinder efficiency.
Market Liquidity: Adequate market liquidity, with a high volume of trading and low transaction costs, is important for efficient price discovery. A lack of liquidity can lead to inefficient pricing and hinder market efficiency.
Regulatory Framework: A robust regulatory framework that promotes fair trading practices, prevents market manipulation, and ensures the enforcement of securities laws is essential for market efficiency.
Information Flow: The speed and efficiency of information flow within the market impact efficiency. The availability of real-time data and the ability of market participants to access and process information quickly contribute to market efficiency
Therefore, achieving stock market efficiency requires a combination of factors such as market transparency, rational investor behavior, market liquidity, a strong regulatory framework, and efficient information flow. The level of efficiency can vary across different markets and time periods, and it is an ongoing process influenced by the continuous interaction of these factors.
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Apple's Location Strategy
1. Strategic importance of location
2. Criteria for choosing a location
1. Apple's location strategy is strategically important for its operations and business success. 2. Apple considers various criteria when choosing a location for its facilities, such as proximity to suppliers, talent pool, and market access.
1. The strategic importance of location in Apple's operations cannot be overstated. Apple is a global technology company with manufacturing, research and development, and retail operations spread across various regions.
The location of its facilities directly impacts factors like supply chain efficiency, market access, proximity to key partners and customers, and regional advantages. Apple strategically selects locations to optimize its operations, ensure effective distribution, and enhance its competitive position in the market.
2. When choosing a location, Apple evaluates several criteria. Proximity to suppliers is crucial for efficient supply chain management and reducing transportation costs. Access to a talented workforce is a significant consideration for research and development centers.
Market access is important for reaching customers and expanding market share. Other factors may include infrastructure, political stability, economic incentives, and regulatory environment. By carefully assessing these criteria, Apple aims to establish operations in locations that offer the most favorable conditions for its business objectives and long-term success.
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Q.2 Sismondi asserted that the aim of economies should be the wellbeing of people not the accumulation of material wealth alone. What were the contribution to economic thought emanating from this idea? 120 Marks) CO 2
Sismondi's assertion that the aim of economies should be the wellbeing of people not the accumulation of material wealth alone was a significant contribution to economic thought. His ideas challenged the prevailing orthodoxy of the time and laid the foundation for a more comprehensive and inclusive approach to economics
Jean Charles Léonard de Sismondi was a Swiss economist and historian, who was born in Geneva in 1773 and died in Chêne-Bougeries in 1842. He was an author of several works on economic theory, history, and philosophy, including "Nouveaux Principes d'Économie Politique" (1819).Sismondi asserted that the aim of economies should be the wellbeing of people not the accumulation of material wealth alone. According to Sismondi, economic growth does not guarantee social welfare. He believed that economic growth should be directed toward increasing the well-being of people, not just accumulating wealth. He advocated for government intervention in the economy to ensure that the benefits of growth are distributed equitably among all members of society.The contributions to economic thought emanating from this idea are significant. Sismondi is considered one of the earliest critics of the classical economic model that prioritized economic growth above all else. He was concerned that this model would lead to a growing divide between the rich and the poor, which would ultimately be detrimental to society. His ideas laid the groundwork for the development of a more comprehensive and inclusive approach to economics that would take into account the needs of all members of society.In conclusion, Sismondi's assertion that the aim of economies should be the wellbeing of people not the accumulation of material wealth alone was a significant contribution to economic thought. His ideas challenged the prevailing orthodoxy of the time and laid the foundation for a more comprehensive and inclusive approach to economics that would prioritize social welfare over economic growth. Answer: Jean Charles Léonard de Sismondi was a Swiss economist and historian, who was born in Geneva in 1773 and died in Chêne-Bougeries in 1842. He was an author of several works on economic theory, history, and philosophy, including "Nouveaux Principes d'Économie Politique" (1819).Sismondi asserted that the aim of economies should be the wellbeing of people not the accumulation of material wealth alone. According to Sismondi, economic growth does not guarantee social welfare. He believed that economic growth should be directed toward increasing the well-being of people, not just accumulating wealth. He advocated for government intervention in the economy to ensure that the benefits of growth are distributed equitably among all members of society.The contributions to economic thought emanating from this idea are significant. Sismondi is considered one of the earliest critics of the classical economic model that prioritized economic growth above all else. He was concerned that this model would lead to a growing divide between the rich and the poor, which would ultimately be detrimental to society. His ideas laid the groundwork for the development of a more comprehensive and inclusive approach to economics that would take into account the needs of all members of society
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Management is reviewing capital investment calculations for a current proposal. Which of the following will increase the net present value of the proposal?
Group of answer choices
An increase in the discount rate
An increase in the initial investment
A decrease in the discount rate
A decrease in annual cash inflows
An increase in the discount rate will increase the net present value of the proposal, while an increase in the initial investment or a decrease in annual cash inflows will have the opposite effect.
The net present value (NPV) of a capital investment proposal is a measure of its profitability and value. It represents the difference between the present value of cash inflows and the present value of cash outflows over the investment's lifetime. A positive NPV indicates that the investment is expected to generate more cash inflows than outflows and is considered financially favorable.
When considering factors that can affect the NPV, an increase in the discount rate will increase the NPV of the proposal. The discount rate represents the required rate of return or the cost of capital for the investment. As the discount rate increases, the present value of future cash flows decreases. This means that cash flows further in the future are less valuable in today's terms. Consequently, an increase in the discount rate will decrease the present value of cash outflows and cash inflows, thereby increasing the overall NPV.
On the other hand, an increase in the initial investment or a decrease in annual cash inflows would have a negative impact on the NPV as they would decrease the present value of cash inflows and increase the present value of cash outflows. Therefore, among the given options, only an increase in the discount rate will increase the net present value of the proposal.
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The price of Microsoft is $32 per share and that of Apple is $55 per share. The price of Microsoft increases to $38 per share after one year and to 541 after two years. Also, shares of Apple increase to 567 after one year and to 572 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return in year 1 and year 2? Assume no dividends are paid OA 23.79 %, 13.71% OB 20 69%, 7.62% OC. 24.83 %, 11.43% OD. 30 %, 0.30%
The portfolio return in year 1 and year 2 is 24.83% and 11.43%, respectively, the answer to your question is C. 24.83%, 11.43%
How to find?The percentage change in the price of Microsft stock in the second year is:
$\text{Percentage change in the price of Microsoft} =\frac{\text{Increase in the price}}
{\text{Initial price}}\times100\%=\frac{541-38}{38}\times100\%$
Percentage change in the price of Microsft = 1328.95%.
The percentage change in the price of Applee stock in the second year is:
$\text{Percentage change in the price of Apeple= \frac{\text{Increase in the price}}{\text{Initial price}}\times100\%=\frac{572-567}{567}\times100\%$.
Percentage change in the price of Applee = 0.88%.
The Portfolio return in the second year is:
$\text{Portfolio return in second year} = \frac{\text{Total increase in value}}{\text{Total initial value}}\times100\%$.
Total initial value = 100 × $38+567$
Total initial value = $9240$,
Total value after two years = 100 × $541+572$
Total value after two years = $111300$,
Total increase in value = $111300-9240
=102060$.
Portfolio return in second year = $\frac{102060}{9240}\times100\%$Portfolio return in second year = 1104.35%.
Therefore, the portfolio return in year 1 and year 2 is 24.83% and 11.43%, respectively.
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when fixed costs decrease and all other variables remain unchanged, the break-even point will ________. remain unchanged increase decrease produce a lower contribution margin
When fixed costs decrease and all other variables remain unchanged, the break-even point will decrease.
The break-even point is the level of sales or production where total revenue equals total costs, resulting in zero profit or loss. It represents the point at which a company covers all its expenses and begins to generate profit.
Fixed costs are expenses that do not change with the level of production or sales. Examples include rent, salaries, and insurance. When fixed costs decrease, it means the company has reduced its overhead expenses.
A decrease in fixed costs will lower the total costs incurred by the company, resulting in a lower break-even point. With lower fixed costs, the company will need to sell a smaller quantity of products or services to cover its expenses and reach the break-even point.
Therefore, when fixed costs decrease while all other variables remain constant, the break-even point will decrease as well. This can potentially lead to a higher contribution margin, as the company's costs are reduced and more revenue can be allocated to cover variable costs and generate profit.
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***Write one paragraph of respond/feedback to each of your
classmate answer. Please give a feedback to each number. (See
below)***
1.)The article that I read was about positive
and negative externalit
As per your request, here's a feedback for each classmate answer:1.) The article that I read was about positive and negative externalities. It was interesting to learn how externalities can affect not only the producer and consumer but also third parties.
Positive externalities, such as education, can provide benefits to society as a whole, while negative externalities, such as pollution, can cause harm to individuals or the environment. The article also provided examples of how the government can intervene through taxes or subsidies to reduce the negative impact of externalities. Overall, the article was informative and provided a better understanding of how externalities can affect the economy and society.Your answer provides a well-written summary of the article. It's good to know that you've learned how externalities can impact society and how the government can intervene to lessen its negative effects. Your explanation is clear and concise, and it's good to see that you've provided examples to support your points. Overall, great job!
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Question 29 of 30 < > - 75 II : View Policies Current Attempt in Progress Management of the Sheridan Company would like the Food Division to transfer 9800 cans of its final product to the Restaurant Division for $28. The Food Division sells the product to customers for $68 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $12. If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept? ws O $35 O $47 O $68 O $28 View Policies Current Attempt in Progress Bramble Corp.plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1250000 ($5.00 per unit) and target costs are $1125000. What is the desired profit per unit? O $0.50 O $2.50 O $4.50 None of the above Question 26 of 30 -15 The Sheridan Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $1,104. Division A charges Division B the market price of $644 per unit of the part. Unit variable costs are $484 and $552 for Divisions A and B. respectively. The manager of Division B feels that Division A should transfer the part at a lower price than market because at market, Division B is unable to make a profit. (a) Calculate Division B's contribution margin if transfers are made at the market price, and calculate the company's total contribution margin. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Division B's contribution margin
Question 29 involves determining the minimum transfer price the Food Division of Sheridan Company should accept for transferring 9800 cans of its final product to the Restaurant Division.
The Food Division's variable cost per unit is $35, fixed cost per unit is $12, and it sells the product to customers for $68 per unit. Given that the Food Division is operating at full capacity, the minimum transfer price it should accept is $35 per unit.
Question 26 pertains to the multidivisional Sheridan Company, where Division A produces a sub-assembly part sold to Division B at the market price of $644 per unit. Division B uses this part in its final product sold externally at $1,104. The unit variable costs for Divisions A and B are $484 and $552, respectively. The calculation involves determining Division B's contribution margin and the company's total contribution margin.
For Question 29, the minimum transfer price for the Food Division is equal to its variable cost per unit, which is $35. Operating at full capacity means that the Food Division cannot produce additional units without incurring additional costs. Therefore, it should not accept a transfer price lower than its variable cost, as it would result in a loss.
Regarding Question 26, to calculate Division B's contribution margin, the difference between the selling price ($1,104) and the variable cost per unit ($552) is determined, resulting in a contribution margin of $552. The company's total contribution margin would depend on the number of units sold by Division B and the contribution margin per unit. Unfortunately, the specific data required to calculate the company's total contribution margin is not provided in the question.
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Currently, I am writing my research paper on driving behaviors.
I collected driving behavior reports for 3-years and learned that
drivers are performing poorly. hence, I want to investigate the
factor
Your research paper aims to investigate the factors contributing to poor driving behaviors based on three years of collected driving behavior reports.
By examining the data, you have identified a consistent pattern of subpar driving performance. The investigation seeks to identify the underlying factors that contribute to this trend and gain insights into potential solutions for improving driving behaviors.
Analyzing the collected driving behavior reports over the course of three years, you have observed a concerning trend of poor driving performance. To effectively investigate the factors contributing to this issue, it is essential to consider multiple potential influences. Several key factors can contribute to poor driving behaviors, such as driver education and training, enforcement of traffic laws, road infrastructure, and societal attitudes towards driving. By examining each of these elements in detail, you can gain a comprehensive understanding of the underlying factors that contribute to the observed poor driving behaviors.
Driver education and training programs play a crucial role in shaping driving behaviors. Inadequate training or lack of emphasis on safe driving practices may contribute to subpar performance on the road. Additionally, the enforcement of traffic laws and penalties for violations significantly impact driver behavior. Weak enforcement can lead to a disregard for traffic rules, resulting in increased incidents of reckless driving. Furthermore, the condition of the road infrastructure, including signage, lighting, and road maintenance, can influence driving behaviors. Poorly designed or maintained roads can contribute to confusion, frustration, and accidents.
Societal attitudes towards driving also play a significant role. Cultural norms, peer influence, and the overall perception of driving safety within a society can shape individual driver behaviors. Factors such as aggressive driving norms or a lack of awareness about the importance of safe driving can contribute to poor performance on the road. Understanding these cultural and societal influences is essential for identifying effective strategies to improve driving behaviors.
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Shaun Blue was sold for R2 000 000,and • Henry Walker for R20 000. Shaun Blue started playing for the LBW cricket team five years ago in its under-19 team and, after signing a life-service contract, had been coached by LBW (Pty) Limited until he became the best fast bowler in the country. Henry Walker had been snapped up at a bargain price from Strikers Cricket Club for R12 000. When ‘purchasing’ Henry Walker, the board of directors of LBW
The discrepancy in the sale prices could be attributed to factors such as the players' skill levels, potential, market demand, reputation, and performance records.
The question provides information about the sale of Shaun Blue for R2,000,000 and Henry Walker for R20,000. It also mentions that Shaun Blue had been with the LBW cricket team for five years and had signed a life-service contract, while Henry Walker was purchased from Strikers Cricket Club for R12,000. The information provided highlights the contrasting valuations and circumstances surrounding the sales of Shaun Blue and Henry Walker. Shaun Blue's sale price of R2,000,000 suggests that he is a highly valued and sought-after player due to his talent and development within the LBW cricket team. In contrast, Henry Walker's sale price of R20,000 indicates that he was purchased at a relatively lower cost, potentially suggesting that he is a less established or recognized player.
The difference in prices reflects the varying perceptions of their value within the cricket industry.
Overall, the information provided highlights the distinct paths and valuations of Shaun Blue and Henry Walker in their cricketing careers, emphasizing the different market dynamics and considerations that can influence player sales and prices in the sport.
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i. What is the difference between Current liabilities, Non-Current Liabilities and Provisions (3 marks) ANSWER i): ii. Provide an example of each type of liabilities from part I) (3 marks). ANSWER ii): iii. Why is it important to make the distinction between these type of liabilities? (1 mark)
The variances between types of liabilities are given as follows.
The comparison between current and Non- current liabilities.Current liabilities are obligations to be settled within one year, while non-current liabilities extend beyond that timeframe. Provisions are recognized for uncertain obligations.
Examples include trade payables, short-term bank loans (current), long-term bank loans, lease liabilities (non-current), and provisions for warranties, legal claims.
Distinguishing between these liabilities is important for financial analysis, reporting accuracy, decision-making, and disclosure compliance.
Proper classification enables assessing short-term liquidity, risk exposure, financial health, and meeting reporting regulations.
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Task 5
A company imports kids toys and keep them in a central warehouse, from there they distribute them to retailers all around Norway. Last year the annual demand for the Monopoly game was 25000 pieces. The company purchases each game set for NOK 100. It costs NOK 2500 for order processing and transport, no matter how many games they order. The annual interest rate is 15%. Answer the following (you can use Excel worksheet that should be attached to your answer):
a) Calculate EOQ and the total logistics costs
b) What is the average capital tied up in inventory and the annual inventory turn-over rate if they order EOQ?
c) The CFO of the company wants to reduce the tied-up capital by 25%, what will be the order size then? d) You are offered a discount of 2% by ordering 5000 items. Will you accept the offer?
a) Using the Economic Order Quantity (EOQ) formula, the optimal order size is calculated to be 500 units. The total logistics costs are estimated to be NOK 33,333.33.
b) With an EOQ order size of 500 units, the average capital tied up in inventory is NOK 25,000. The annual inventory turnover rate is 50 times.
c) To reduce the tied-up capital by 25%, the new order size would be 375 units.
d) By accepting the offer of a 2% discount on ordering 5000 items, it is necessary to compare the total costs of ordering 5000 items at the discounted price with the costs of ordering the EOQ (500 units) without the discount.
a) The Economic Order Quantity (EOQ) can be calculated using the formula: EOQ = sqrt((2DS)/H), where D is the annual demand (25,000 units), S is the order processing and transport cost per order (NOK 2,500), and H is the holding cost per unit (calculated as 15% of the unit cost, which is NOK 15). Plugging in the values, EOQ = sqrt((225,0002,500)/15) = 500 units. The total logistics costs can be calculated as EOQ multiplied by the unit cost (NOK 100) plus the total ordering cost (NOK 2,500): Total logistics costs = (500 * 100) + 2,500 = NOK 33,333.33.
b) With an EOQ order size of 500 units, the average capital tied up in inventory can be calculated as EOQ multiplied by the unit cost (NOK 100) divided by 2: Average capital tied up = (500 * 100) / 2 = NOK 25,000. The annual inventory turnover rate is calculated by dividing the annual demand (25,000 units) by the EOQ order size (500 units): Annual inventory turnover rate = 25,000 / 500 = 50 times.
c) To reduce the tied-up capital by 25%, we need to calculate the new order size. The new order size can be determined by multiplying the original EOQ (500 units) by the square root of the desired reduction (75% or 0.75): New order size = 500 * sqrt(0.75) = 375 units.
d) To determine whether accepting the offer of a 2% discount on ordering 5000 items is beneficial, it is necessary to compare the costs. Calculate the total cost of ordering 5000 items at the discounted price (NOK 100 * 0.98 * 5000) and compare it with the total logistics costs of ordering the EOQ (500 units) without the discount (NOK 33,333.33). If the discounted price is lower, accepting the offer would be advantageous.
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Hassan's income increases and, as a result, he buys more fish. Is fish an inferior or a normal good? Why? What happens to Hassan's demand curve for fish? Explain. Over the past 30 years, technological advances have reduced the cost of computer chips. How do you think this has affected the market for computers? And the market for typewriters? Explain.
Fish is likely a normal good for Hassan because as his income increases, he buys more of it. The demand curve for fish would shift to the right, indicating an increase in demand, as Hassan's higher income allows him to purchase more fish.
Fish being a normal good for Hassan implies that it is a product for which demand increases as income rises. This suggests that fish is considered a desirable and higher-quality product that people are willing to consume more of when they have more purchasing power. As Hassan's income increases, he has more disposable income available to spend on various goods, including fish. Consequently, he chooses to buy more fish, indicating that it is a normal good for him.
In terms of the demand curve for fish, the increase in Hassan's income would cause a rightward shift in the curve. This means that at each price level, Hassan is now willing and able to buy more fish compared to his previous income level. The shift reflects an increase in demand for fish, as higher income enables him to afford and consume a greater quantity of fish. The entire demand curve would shift, indicating a change in the relationship between the price of fish and the quantity demanded by Hassan. The extent of the shift depends on the income elasticity of demand for fish, which measures the responsiveness of quantity demanded to changes in income.
Regarding technological advances in computer chips, they have had a significant impact on the market for computers. These advancements have led to increased efficiency, improved performance, and reduced production costs for computer manufacturers. As a result, the market for computers has experienced increased supply, lower prices, and higher demand.
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for the purposes of estimating the effective borrowing cost (ebc), only those up-front expenses associated with obtaining the mortgage should be included, not the settlement costs associated with obtaining ownership of the property. with this in mind, which of the following costs should not be included in one's calculation of ebc?
Settlement costs associated with obtaining ownership of the property should not be included in the calculation of effective borrowing cost (EBC).
Effective borrowing cost (EBC) is a measure used to estimate the true cost of borrowing. It includes various expenses associated with obtaining a mortgage loan. However, settlement costs related to property ownership should not be included in the calculation of EBC.
Settlement costs typically include expenses such as property transfer taxes, title insurance, appraisal fees, and attorney fees. These costs are associated with the transfer of ownership and are not directly related to the borrowing process. Therefore, they should be excluded from the calculation of EBC.
When calculating EBC, the focus is on up-front expenses directly tied to obtaining the mortgage. These expenses may include loan origination fees, discount points, credit report fees, and appraisal fees related to the mortgage application and approval process. These costs are directly associated with the borrowing aspect and should be considered in the calculation of EBC.
Based on the explanation and calculation, settlement costs associated with obtaining ownership of the property should not be included in the calculation of effective borrowing cost (EBC). Only up-front expenses specifically related to obtaining the mortgage should be considered when estimating the EBC.
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