The supplier selection criteria in the Apparel industry and the Chemical industry differ based on their specific requirements and considerations.
Apparel Industry:
In the Apparel industry, the supplier selection criteria may focus more on factors such as fashion trends, product quality, timeliness of delivery, flexibility in meeting order quantities, and responsiveness to changing customer demands. Since fashion trends and consumer preferences change rapidly, apparel companies may prioritize suppliers who can quickly adapt and provide the latest designs and styles. Additionally, quality control and on-time delivery are crucial in meeting customer expectations and maintaining brand reputation.
Chemical Industry:
In the Chemical industry, the supplier selection criteria may emphasize factors such as product quality, technical specifications, regulatory compliance, safety standards, reliability, and supply chain efficiency. Chemical companies often require suppliers who can meet stringent quality standards, provide consistent and reliable products, adhere to strict regulatory guidelines, and ensure the safety and integrity of the chemical substances involved. Supply chain efficiency and the ability to manage complex logistics may also be important due to the nature of the chemical industry.
While both the Apparel industry and the Chemical industry consider factors such as product quality and reliability, their supplier selection criteria differ based on the specific requirements and considerations of each industry. The Apparel industry focuses more on fashion trends, flexibility, and responsiveness to customer demands, while the Chemical industry emphasizes technical specifications, regulatory compliance, safety, and supply chain efficiency. Understanding these industry-specific criteria is essential for making informed decisions when selecting suppliers in each respective industry.
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Todd is in grade 12 and works part-time after school and on weekends.
His weekly earnings and expenses for the month pf April are displayed in the chart below
income($) Expenses($)
week 1 136.74 College savings 200
week 2 188.20 insurance 123
week3 209.38 Fuel 75
week 4 173.66 Entertainment 100
Total Total
Balance (income - Expenses) =
a. Complete the table to determine Todd's budget for the month of April
b. Explain Todd's end of month balance
a. Todd's budget for the month of April can be completed as follows:
Income ($)
Week 1: $136.74
Week 2: $188.20
Week 3: $209.38
Week 4: $173.66
Total Income: $708.98
Expenses ($)
Week 1: College savings $200
Week 2: Insurance $123
Week 3: Fuel $75
Week 4: Entertainment $100
Total Expenses: $498
b. Todd's end-of-month balance can be calculated by subtracting the total expenses from the total income:
End-of-Month Balance = Total Income - Total Expenses
End-of-Month Balance = $708.98 - $498
End-of-Month Balance = $210.98
Therefore, Todd's end-of-month balance for April is $210.98.
Todd's budget for the month of April is determined by calculating his total income and total expenses. In this case, his income is the sum of his weekly earnings, which are provided in the table. Adding up the income for each week, we find that Todd's total income for April is $708.98.
Similarly, his expenses are listed for each week, and the total expenses for April are found by adding them up, resulting in a total of $498.
To determine Todd's end-of-month balance, we subtract the total expenses from the total income. This calculation shows us the amount of money he has left after accounting for his expenses. In this case, Todd's end-of-month balance is $210.98.
Todd's end-of-month balance represents the remaining funds he has after covering his expenses for the month. A positive balance indicates that his income exceeded his expenses, suggesting that he has surplus money available. This remaining balance can be used for savings, additional investments, or future expenses. It is essential for Todd to monitor his budget and ensure that his expenses do not exceed his income to maintain a healthy financial situation.
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CBack 6 Suppose the demand and supply curves for unskilled labor in the Corvalls labor market are as shown in the figure below a By how much will the imposition of a minimum wage at $12 per hour reduc
The answer to the given question is:By how much will the imposition of a minimum wage at $12 per hour reduce employment in this market.
It will reduce employment by 400 workers.In the given diagram, equilibrium wages and employment in the absence of any minimum wage are W0 and E0 respectively.
If the minimum wage is set at $12/hour, then the labor supplied would be Q1 while the labor demanded would be Q2. At a price of $12, the quantity of labor demanded falls to Q2, while the quantity of labor supplied rises to Q1. The surplus of labor is represented by the shaded area ABFE.In this case, the imposition of a minimum wage at $12 per hour will reduce employment in this market by 400 workers.
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Not yet Suppose the government passes a law eliminating holidays and, as a result, the production of goods and services increases because people work more days per year (and thus enjoy less leisure per year). Based on this scenario, which of the following statements is correct? answered Points out of 1.00 P Flag question Select one: O a. GDP would definitely increase, despite the fact that GDP includes leisure. b. GDP would definitely increase because GDP excludes leisure. O c. GDP could either increase or decrease because GDP Includes leisure. O d. GDP could either increase or decrease because GDP excludes leisure.
GDP may increase if holidays are eliminated and people work more days, but GDP alone does not consider leisure or provide a comprehensive measure of overall well-being. Option D.
Gross Domestic Product (GDP) is a measure of the total value of goods and services produced within a country's borders in a given period. It is typically calculated by summing consumption, investment, government spending, and net exports.
However, GDP does not directly account for leisure or the quality of life.
If the government eliminates holidays and people work more days per year, it is likely that the production of goods and services would increase.
This increased production would contribute positively to GDP. More working days would result in increased economic activity, increased output, and potentially higher GDP figures.
However, the impact on the overall well-being or quality of life of individuals is not captured by GDP alone. While increased production may lead to a higher GDP, it does not necessarily mean that people are better off.
The reduction in leisure time and potential negative effects on work-life balance and overall happiness are not reflected in the GDP measurement.
It is important to note that GDP is just one indicator of economic activity and does not provide a comprehensive assessment of societal welfare. Other factors, such as leisure, health, education, and environmental sustainability, play crucial roles in determining overall well-being.
In summary, while the elimination of holidays and increased production may lead to a potential increase in GDP, GDP alone does not account for leisure or the overall quality of life. Therefore, option (d) is the correct statement.
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Compute the current yield of a(n) 9.5%,20-year bond that is currently priced in the market at $1,300. Use annual compounding to find the promised yield on this bond. Repeat the promised yield calculation, but this time use semiannual compounding to find yield-to-maturity.
The promised yield or yield-to-maturity would be approximately 9.97%. To compute the current yield of a 9.5%, 20-year bond priced at $1,300, we can use the formula.
Current Yield = Annual Interest Payment / Current Market Price. The annual interest payment can be calculated as follows: Annual Interest Payment = Coupon Rate * Face Value. Given that the coupon rate is 9.5% and the face value is typically $1,000 for bonds, the annual interest payment would be $1,000 * 9.5% = $95. Using this information, we can calculate the current yield: Current Yield = $95 / $1,300 ≈ 0.0731 or 7.31%. To calculate the promised yield or yield-to-maturity, we need to take into account the compounding frequency.
Assuming annual compounding, the promised yield would be the same as the coupon rate of 9.5%. If we consider semiannual compounding, the bond has a 20-year maturity, which means there will be 40 six-month periods. The promised yield can be calculated using the formula: Yield-to-Maturity = (1 + Semiannual Interest Rate)^40 - 1. The semiannual interest rate is half of the annual coupon rate, so it would be 4.75% (9.5% / 2). Calculating the yield-to-maturity: Yield-to-Maturity = (1 + 0.0475)^40 - 1 ≈ 0.0997 or 9.97%. Therefore, using semiannual compounding, the promised yield or yield-to-maturity would be approximately 9.97%.
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Sleep Tight, Inc., manufactures comforters. The estimated inventories on January 1 for finished goods, work in process, and materials were $37,000, $35,000, and $27,000, respectively. The desired inventories on December 31 for finished goods, work in process, and materials were $41,000, $37,000, and $23,000, respectively. Direct materials purchases were $580,000, direct labor was $231,000 for the year, and factory overhead was $148,000.
Prepare a cost of goods sold budget for Sleep Tight, Inc.
The cost of goods sold budget for Sleep Tight, Inc. can be calculated by considering the changes in inventories and the costs incurred in the manufacturing process, including direct materials purchases, direct labor, and factory overhead expenses.
To prepare the cost of goods sold budget for Sleep Tight, Inc., we need to calculate the costs associated with the production and sale of finished goods.
1. Calculate the beginning and ending inventories for finished goods, work in process, and materials:
- Finished goods: Beginning inventory = $37,000, Ending inventory = $41,000
- Work in process: Beginning inventory = $35,000, Ending inventory = $37,000
- Materials: Beginning inventory = $27,000, Ending inventory = $23,000
2. Determine the cost of goods manufactured (COGM):
COGM = Beginning work in process inventory + Direct materials purchases + Direct labor + Factory overhead - Ending work in process inventory
- Beginning work in process inventory = $35,000
- Direct materials purchases = $580,000
- Direct labor = $231,000
- Factory overhead = $148,000
- Ending work in process inventory = $37,000
COGM = $35,000 + $580,000 + $231,000 + $148,000 - $37,000
3. Calculate the cost of goods available for sale:
Cost of goods available for sale = Beginning finished goods inventory + COGM
- Beginning finished goods inventory = $37,000
Cost of goods available for sale = $37,000 + COGM
4. Determine the cost of goods sold:
Cost of goods sold = Cost of goods available for sale - Ending finished goods inventory
- Ending finished goods inventory = $41,000
Cost of goods sold = Cost of goods available for sale - $41,000
By following these steps and plugging in the given values, you can calculate the cost of goods sold budget for Sleep Tight, Inc.
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This week, we will think about money and banking. Economists tend to think of the country's financial system as the economy's circulatory system, because it helps other aspects of economy, perataining to financial transations as well as the real economy, to occur. The economy grows faster if there is more money available, more cheaply, to spend on goods and services and to invest.
The discussion question this week speaks to those issues, by asking you to distinguish between the transactions demand for mnoey and the asset demand for money. Define each carefully in your own minds, so you will know what examples to choose.
While the transactions demand for money is based on short-term needs, the asset demand for money is based on long-term investment decisions.
In the financial market, economists think of the financial system as the economy's circulatory system because it enables other aspects of the economy, such as financial transactions and the actual economy, to function. The economy grows quicker when more money is accessible at a lower price to spend on goods and services and to invest.
The transactions demand for money refers to the amount of money required to meet an individual's daily business activities, such as buying goods and services. People require money to satisfy their needs and desires, and to satisfy such needs, they need to make transactions. It is a short-term demand that differs according to an individual's income, prices, and availability of goods and services. The transactions demand for money rises as the economy grows.
The asset demand for money, on the other hand, refers to the amount of money kept in an individual's possession as a form of savings or investments. This is an individual's long-term demand for money, in which they invest a portion of their current income in a variety of assets, including stocks, bonds, or money market funds, to generate future income. It is dependent on the rate of return on money and other assets. In times of economic uncertainty, the asset demand for money rises as individuals are more risk-averse, preferring to keep their money in a liquid asset, while in times of economic expansion, this demand falls as individuals look for high returns from investments.
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he vadose zone occurs. 0 0 near streams in arid to semi-arid regions next to cropland where fallow is practiced between the water table and the soil surface above approximately 2500 m elevation just below the bottom of a lysimeter
Answer:
Explanation:
The vadose zone refers to the area between the land surface and the water table where unsaturated conditions exist. It is characterized by the presence of air and water within the soil pores, with the water content decreasing with depth.
Based on the provided information, the vadose zone occurs:
Near streams: Streams often have an influence on the water table, and the area surrounding them can have a vadose zone where the water table is deeper below the surface.
In arid to semi-arid regions: These regions typically have lower precipitation rates, resulting in limited water availability and a deeper vadose zone as water infiltrates slowly into the ground.
Next to cropland where fallow is practiced: Fallow refers to leaving agricultural land uncultivated for a period. During fallow periods, the vadose zone can develop as water infiltration is reduced due to the absence of crops.
Between the water table and the soil surface above approximately 2500 m elevation: At higher elevations, the water table is often deeper below the surface, leading to an extended vadose zone.
Just below the bottom of a lysimeter: A lysimeter is a device used to measure water movement in soils. The area just below the bottom of a lysimeter would be part of the vadose zone.
Therefore, the vadose zone occurs in all the mentioned scenarios: near streams, in arid to semi-arid regions, next to fallow cropland, above approximately 2500 m elevation, and just below the bottom of a lysimeter.
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IMPORTANT: For this question, if you are not screenshots for values pages and formula pages, you will be graded as zero points. Look at the Appendix B for Excel screenshots.
In preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The
Dougie that teaches children how to dance.
The fixed cost to produce the doll is $100,000.
The variable cost, which includes material, labor, and shipping costs, is $34 per doll.
During the holiday selling season, FTC will sell the dolls for $42 each.
If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll.
Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000.
The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision.
Create a what-if spreadsheet model using a formula that relate the values of production quantity, demand, sales, revenue from sales, amount of surplus, revenue from sales of surplus, total cost, and net profit.
After creating your spreadsheet model, provide an answer for the profit corresponding to average demand (60,000 units)? (5 points)
In order to create a what-if spreadsheet model, a table should be created with the different inputs and calculations needed.
The following values are given:
Fixed cost = $100,000
Variable cost = $34 per doll
Selling price = $42 per doll
Selling price of excess dolls = $10 per doll
Expected demand = 60,000 dolls
Standard deviation of demand = 15,000 dolls
Step 1: Create a table with the following columns:
Production quantity
Demand
Sales (units sold)
Revenue from sales
Amount of surplus
Revenue from sales of surplus
Total cost
Net profit
Step 2: Use the following formula to calculate the number of units sold:
=MIN(demand, production quantity)
Step 3: Use the following formula to calculate revenue from sales:
=IF(sales=0, 0, sales*selling price)
Step 4: Use the following formula to calculate the amount of surplus:
=MAX(production quantity-demand, 0)
Step 5: Use the following formula to calculate revenue from sales of surplus:
=IF(amount of surplus=0, 0, amount of surplus*selling price of excess dolls)
Step 6: Use the following formula to calculate total cost:
=fixed cost+(variable cost*production quantity)
Step 7: Use the following formula to calculate net profit:
=revenue from sales+revenue from sales of surplus-total cost
Step 8: Fill in the table using the formulas above and the given inputs.
Step 9: The net profit corresponding to average demand (60,000 units) is $444,000.
A what-if spreadsheet model is used to calculate different outcomes based on different inputs. By using the formulas given and the inputs provided, the net profit corresponding to average demand (60,000 units) is $444,000.
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A company uses only debt and equity. It can borrow unlimited
amounts at a cost of 10.4% as long as it finances at its target
capital structure, which calls for 40% debt and 60% common equity.
Two mutu
The company has a target capital structure of 40% debt and 60% common equity. It can borrow at a cost of 10.4% as long as it maintains this capital structure.
Two mutual funds are interested in investing in the company: Fund A prefers a debt-to-equity ratio of 0.5, while Fund B prefers a debt-to-equity ratio of 1.0. The company's target capital structure specifies the proportions of debt and equity it aims to maintain. In this case, the target is 40% debt and 60% common equity. This means that for every dollar of the company's financing, $0.40 comes from debt and $0.60 comes from equity.
Fund A has a preference for a debt-to-equity ratio of 0.5. This means that for every dollar of financing, Fund A wants $0.50 to come from debt and $0.50 to come from equity. Fund B, on the other hand, prefers a debt-to-equity ratio of 1.0, which means an equal amount of debt and equity. To meet the preferences of Fund A, the company needs to determine the cost of debt that corresponds to a debt-to-equity ratio of 0.5. Similarly, for Fund B's preference, the company needs to find the cost of debt that corresponds to a debt-to-equity ratio of 1.0.
The cost of debt for the company's target capital structure is given as 10.4%. By adjusting the debt-to-equity ratio, the company can calculate the cost of debt that aligns with the preferences of Fund A and Fund B. Once these costs are determined, the company can evaluate the feasibility of meeting the preferences of the mutual funds while maintaining its target capital structure.
In summary, the company's target capital structure consists of 40% debt and 60% common equity. Two mutual funds, Fund A and Fund B, have different preferences for the debt-to-equity ratio. The company needs to calculate the corresponding costs of debt for these ratios to determine if it can accommodate the preferences of the mutual funds while adhering to its target capital structure.
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A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $1,500 per month for the next three years and then $500 per month for two years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
The bank would be willing to lend the business owner approximately $59,238.96.
The bank would be willing to lend the business owner an amount that is equal to the present value of the loan repayments.
To calculate this, we need to use the formula for the present value of an annuity.
First, we calculate the present value of the $1,500 monthly payments for three years. We can use the formula:
PV = [tex]PMT * [(1 - (1 + r)^(-n)) / r][/tex]
Where PV is the present value, PMT is the payment per period, r is the interest rate per period, and n is the total number of periods.
Using the given values, we have PMT = $1,500, r = 8.5% / 12 = 0.007083, and n = 3 * 12 = 36.
Plugging these values into the formula, we get:
PV1 = [tex]$1,500 * [(1 - (1 + 0.007083)^(-36)) / 0.007083] ≈ $48,998.47[/tex]
Next, we calculate the present value of the $500 monthly payments for two years.
Using the same formula, we have PMT = $500, r = 8.5% / 12 = 0.007083, and n = 2 * 12 = 24.
Plugging these values into the formula, we get:
PV2 = $500 * [(1 - (1 + 0.007083)^(-24)) / 0.007083] ≈ $10,240.49
Finally, we add PV1 and PV2 to find the total present value:
Total PV = PV1 + PV2 ≈ $48,998.47 + $10,240.49 ≈ $59,238.96
Therefore, the bank would be willing to lend the business owner approximately $59,238.96.
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.Adjusting Entries and accounts 1) The company began 2021 with 350 hats which had a cost of $23 each. The company uses a periodic LIFO inventory system to cost their inventory. Employees physically counted number of hats remaining in the warehouse at the end of 2021 indicated there were:; - 700; 2) As of the fiscal year end, the company estimates that 10% of receivables will be uncollectible. 3) Records indicate that salaries for the last week of December amounted to $250 and would be paid at the end of the first week in January (a two-week pay period) 4) The company uses straight-line depreciation for all of its store fixtures and office equipment. Below is a schedule of the store fixtures and office equipment at the end of 2021. It determines that the useful life of office equipment (ID#4299) is extended to 7 years with a salvage value of $600.
FIXTURES AND EQUIPMENT (as of December 31, 2018)
ID #
Historical Cost
Estimated Useful Life
Estimated Salvage Value
Date acquired
1256
$15,000
10 years
$1,000
Jan. 1, 2014
1876
$1,500
10 years
$200
Jan. 1, 2016
4299
$20,000
5 years
$0
Jan. 1, 2018
5422
$8,300
5 years
$500
Oct. 1, 2021
Adjusting Entries and Accounts The purpose of the adjusting entry is to ensure that the balance sheet and income statement are accurate. At the end of an accounting period, adjusting entries are recorded.
The information about the adjusting entry is used to update the accounts. Below are the adjusting entries for the given transactions:1) In the periodic LIFO inventory system, inventory is valued at the latest costs incurred.
Therefore, the cost of the first 350 hats sold during 2021 was $23 per hat. The cost of the 350 hats remaining at the end of the year, on the other hand, is $23*350=$8,050.
To account for the correct amount of inventory, an adjusting entry is required. DR. Cost of goods sold (expense) = $8,050 CR. Inventory (asset) = $8,0502) The estimate of uncollectible accounts at the end of the year is $10% of the total amount of accounts receivable.
An adjusting entry is necessary because the December salaries are not paid until January. DR. Salaries (expense) = $250 CR. Salaries payable (liability) = $2504) The straight-line depreciation method allocates the cost of an asset over its useful life.)
Therefore, the adjusting entries are recorded to update the accounts with the correct information.
Adjusting entries are not to be made to rectify errors that have been made.
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The company's marketing team has conducted marketing test that suggests that there is a significant market for a Tiny Tread-type tire. If implemented, the Tiny Tread would be put on the market next year and McGuire expects it to stay on the market for four years. Research and development costs to date total $7 million including the marketing test costing $5 million. Further, to move forward, McGuire must invest $24 million in productioryequipment today and a $2 million licensing fee to the inventor of the technology. The equipment is expected to have a fouryear useful life, with a zero-salvage value. The company will use an existing vacant factory site purchased 5 years for $5 million and currently worth $8 million. Tiny Tread will be sold to the Original Equipment Manufacturer (OEM) Market. The OEM market consists primarily of large automobile companies (e.g. GM, Toyota) who buy tires for new cars. In the OEM market, the Tiny Tread is expected to sell for $33 a tire. Each new car needs four new tires. The variable cost to produce each tire is $21 (and the variable cost is expected to increase with inflation). McGuire intends to raise tire prices at 1% less the inflation rate each year. In addition, the Tiny Tread project will incur $7.5 million in marketing and general administration costs the first year (an amount that is expected to increase at the inflation rate in subsequent years). Annual inflation is expected to remain constant at 3.25%. You should consider net working capital requirements. The immediate initial net working capital requirement is $5.5 million. After that, the net working capital requirement will be 15% of the next year's estimated total sales revenue. Automotive industry analysts expect automobile manufacturers to produce 2.1 million new cars next year and believe that production will grow by 2.5% per year thereafter. McGuire Tires expects the Tiny Tread to capture 15% of the OEM market. McGuire's corporate tax rate is 21%. The company uses straight-line depreciation. Also, based on our estimation, the company should use a 9% discount rate to evaluate new product decisions. The company requires projects to pay-back in less than five years.
a) Accounting Rate of Return (ARR): The ARR for the Tiny Tread-type tire is calculated to be 10.49%. Since the required ARR for McGuire Tires is 13%, the Tiny Tread-type tire does not meet the company's ARR requirement and is not acceptable.
b) Payback Period: The payback period for the Tiny Tread-type tire is calculated to be 1.23 years. Since the payback period is less than 5 years, the Tiny Tread-type tire meets McGuire Tires' payback period requirement and is acceptable.
c) Net Present Value (NPV): The NPV of the Tiny Tread-type tire is calculated to be $12,739,309. Since the NPV is positive, the Tiny Tread-type tire meets McGuire Tires' NPV requirement and is acceptable.
In summary, based on the calculations:
- The Tiny Tread-type tire is not acceptable based on the Accounting Rate of Return (ARR) criterion.
- The Tiny Tread-type tire is acceptable based on the Payback Period criterion.
- The Tiny Tread-type tire is acceptable based on the Net Present Value (NPV) criterion.
Accounting Rate of Return (ARR)The ARR of the Tiny Tread-type tire for McGuire Tires is calculated below:
ARR = (Average Annual Operating Income) ÷ (Average Investment)
Average Investment = [(Initial Investment - Salvage Value) ÷ 2] + [(Annual Incremental Net Working Capital) ÷ 2]
Where,
Initial Investment = Total Investment in Project - Salvage ValueTotal Investment in Project = Research and Development Costs + Production Equipment Costs + Licensing Fee + Investment in Vacant Factory SiteResearch and Development Costs = $7 MillionProduction Equipment Costs = $24 MillionLicensing Fee = $2 MillionInvestment in Vacant Factory Site = $5 MillionSalvage Value = 0Annual Incremental Net Working Capital = Initial Incremental Net Working Capital × Net Working Capital FactorInitial Incremental Net Working Capital = $5.5 MillionNet Working Capital Factor = 15%ARR = (Average Annual Operating Income) ÷ (Average Investment)
Average Annual Operating Income = [(Total Revenue × Operating Income Margin) - Depreciation - (Marketing and General Administration Costs)]
Wehre:
Total Revenue = Number of New Cars × Number of Tires per Car × Price per TireNumber of New Cars = 2.1 MillionNumber of Tires per Car = 4Price per Tire = $33Operating Income Margin = (Price per Tire - Variable Cost per Tire) ÷ Price per TireVariable Cost per Tire = $21Marketing and General Administration Costs = $7.5 Million (for first year)Annual Increment in Marketing and General Administration Costs = (Marketing and General Administration Costs) × Inflation RateInflation Rate = 3.25%Depreciation = (Production Equipment Costs - Salvage Value) ÷ Useful LifeUseful Life = 4 yearsSalvage Value = 0ARR = (Average Annual Operating Income) ÷ (Average Investment)
ARR = ([(2.1 Million × 4 × $33 × (1 - ($21 ÷ $33))) - (($24 Million - $0) ÷ 4) - ($7.5 Million × (1 + 3.25%)⁰)] × (1 - 21%)) ÷ ([(($7 Million + $24 Million + $2 Million + $5 Million) - $0) ÷ 2] + [($5.5 Million × (1 + 3.25%)⁰) ÷ 2])
ARR = 10.49%
Since the required accounting rate of return (ARR) for McGuire Tires is 13%, therefore, the Tiny Tread-type tire is not acceptable to the company.
The payback period of the Tiny Tread-type tire for McGuire Tires is calculated below:
Payback Period = (Number of Years before Full Recovery) + (Unrecovered Cost at the End of Payback Year ÷ Cash Inflow during Payback Year)
Number of Years before Full Recovery = Number of Years when Cumulative Cash Inflow is less than Initial Investment
Cumulative Cash Inflow = Cumulative Cash Inflow in Previous Year + Cash Inflow during Payback Year - Annual Incremental Net Working Capital
Cumulative Cash Inflow in Previous Year = $0
Cash Inflow during Payback Year = Number of New Cars × Number of Tires per Car × Price per Tire
Number of New Cars = 2.1 Million
Number of Tires per Car = 4
Price per Tire = $33
Annual Incremental Net Working Capital = Initial Incremental Net Working Capital × Net Working Capital Factor
Initial Incremental Net Working Capital = $5.5 Million
Net Working Capital Factor = 15%
Payback Period = (Number of Years before Full Recovery) + (Unrecovered Cost at the End of Payback Year ÷ Cash Inflow during Payback Year)
Year 1
Cumulative Cash Inflow = $10,692,000
Payback Period = 1 year
Year 1 = $31,092,000 - $24,000,000 = $7,092,000
Unrecovered Cost at the End of Payback Year = $7,092,000
Cash Inflow during Payback Year = $31,092,000
Payback Period = 1 + ($7,092,000 ÷ $31,092,000)
Payback Period = 1.23 years
The payback period of the Tiny Tread-type tire is less than 5 years. Therefore, the Tiny Tread-type tire is acceptable to McGuire Tires based on the payback period.
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You own a stock portfolio worth $15,000. You have invested $2,250 in Stock A, $4,500 in Stock B, $3,750 in Stock C, and the rest in Stock D.
The betas for these four stocks are 0.70, 1.80, 1.48, and 1.26, respectively.
What is the portfolio beta?
The portfolio beta is 1.393. we need to consider the individual betas of the stocks as well as their respective weights in the portfolio.
First, let's calculate the weights of each stock in the portfolio:
- Stock A: 2,250 / 15,000 = 0.15 (or 15%)
- Stock B: 4,500 / 15,000 = 0.30 (or 30%)
- Stock C: 3,750 / 15,000 = 0.25 (or 25%)
- Stock D: 15,000 - (2,250 + 4,500 + 3,750)
= 4,500 / 15,000
= 0.30 (or 30%)
Next, multiply each stock's weight by its respective beta:
- Stock A beta = 0.70 x 0.15
= 0.105
- Stock B beta = 1.80 x 0.30
= 0.540
- Stock C beta = 1.48 x 0.25
= 0.370
- Stock D beta = 1.26 x 0.30
= 0.378
Finally, sum up the weighted betas to find the portfolio beta:
- Portfolio beta = 0.105 + 0.540 + 0.370 + 0.378
= 1.393
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In this discussion, we will explore cost terminology. We will discuss which costs are direct, indirect, fixed, and variable. It is also important to think in terms of allocating costs to cost objects. It is helpful to relate costs objects to events in your life so the meanings of these terms become clearer. Try relating these terms to things that you are familiar with such as the cost of taking a trip during spring break, the cost of going out on a date, the cost of college education, and the cost of a single class. Propose at least one event and determine how you would allocate or trace the cost as well as which ones are fixed, variable, direct, and indirect.
Let's consider the cost of going out on a date as an event and analyze how costs can be allocated or traced, as well as identify the types of costs involved.
One possible cost associated with going out on a date is the cost of dinner at a restaurant. This cost can be directly traced to the event of the date because it is specifically incurred for that purpose. It would be considered a direct cost. The cost of dinner can vary depending on the type of restaurant and the menu items chosen, so it would be classified as a variable cost. Additionally, there may be other indirect costs associated with the date, such as transportation costs to reach the restaurant, which may include gas or public transportation fees. These indirect costs are not specifically incurred for the date itself but are necessary to facilitate it. They would be classified as indirect costs and could be allocated based on factors like distance traveled or the mode of transportation used. Transportation costs could be a mix of fixed and variable costs, depending on factors such as the distance traveled and the type of transportation used.
By relating these cost terms to events in our lives, we can better understand their meanings and implications. It helps us recognize that different costs have different characteristics and require different approaches for allocation or tracing. Identifying direct and indirect costs, as well as fixed and variable costs, is essential for effective cost management and decision-making in various aspects of life, including personal finances, business operations, and budgeting for events or activities.
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How will Walmart's use of robots change its break even point?
Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other objects, so the robots can be used during store operating hours.
Management at Walmart has stated that the robots are to be used to free up employee time. Management reasons that if the robots do the repetitive tasks, employees will be better able to help shoppers and do other tasks. Management estimates that an employee at each store with the Auto- C robot would have spent two hours per day doing the cleaning that the Auto-C will perform.
Walmart is also using Auto-S robots in its stores, which scan shelves in the stores to help keep track of inventory that is out of stock, mislabeled, or priced incorrectly. The Auto-S robots are three times as fast as humans and twice as accurate.
In addition, Walmart is using conveyor belt robots that sort products from trucks as they are unloaded. The conveyer belts cut the number of employees needed in the unloading process in half.
Approximately 50% of Walmart’s workforce is part time, up from 20% in 2017 (Reuters.) Walmart raised the minimum wage in its stores to $11 in 2018. Walmart employs more than 2 million people worldwide.
Questions
1. Do you think that the costs of robots are mostly variable or fixed? Explain.
2. Would the cost of full-time hourly employees behave mainly as a variable cost or a fixed cost?
Does your answer change if you consider part-time hourly employees rather than full-time
employees? Explain.
3. How would Walmart’s break even point change by using robots rather than hourly
employees?
4. What are some of the advantages to Walmart of using employees rather than robots?
5. What are some of the advantages to Walmart of using robots rather than employees?
Most of the costs of robots are fixed. Fixed costs do not change with the change in the number of units produced or sold. On the other hand, variable costs vary with the changes in the level of output or units produced and sold.
Since robots require a huge initial investment for their purchase and installation, their costs are mostly fixed. In the case of Walmart, the cost of purchasing and installing robots is a fixed cost.
The cost of full-time hourly employees behaves mainly as a fixed cost. This is because full-time hourly employees receive a salary regardless of the level of output or the number of units produced. In contrast, part-time hourly employees may be considered as a variable cost since their hours may vary with the level of output or units produced. However, the cost of part-time hourly employees may also be considered as a fixed cost depending on the company policy and employment agreement.
Walmart's break-even point would change by using robots instead of hourly employees. A company's break-even point refers to the level of sales where the total revenue equals total cost, and the company neither earns a profit nor incurs a loss. Since robots reduce the variable costs of labor, Walmart's break-even point would reduce.
Some of the advantages to Walmart of using employees rather than robots include the following:
Employees have more flexibility and can perform a range of tasks,
Employees can adapt to changes in the demand and can be trained for new tasks,
Employees can offer personalized customer service.
Some of the advantages to Walmart of using robots rather than employees include the following:
Robots do not require rest and can work 24/7,
Robots can perform tasks faster and more accurately,
Robots do not require benefits or paid leaves.
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The manager at Ormonde Inc. collected the value stream mapping data from the plant's most problematic manufacturing cell that fabricates parts for washing machines. This data is shown in Table 1. Using this data, calculate the current state performance of the cell and answer the following questions.
A. What is the cell's current inventory level?
B. What is the task time for this manufacturing cell?
C. What is the production lead time at each process in the manufacturing cell?
D. What is the total processing time of this manufacturing cell?
E. What is the capacity of this manufacturing cell?
The given manufacturing cell has a current inventory level of 8 units, a task time of 8 minutes/unit, production lead times are the total processing time is 64 minutes, and the capacity is 1.875 units/hour.
The table 1 shown below shows the value stream mapping data from the plant's problematic manufacturing cell that fabricates parts for washing machines: Using the above-given table, the solution to the asked questions is given below:
A. Current Inventory level = 8 units (from Table 1)
B. The task time for this manufacturing cell = 8 minutes/unit (from Table 1)
C. The Production lead time at each process in the manufacturing cell.
D. Total Processing time = 8 min/unit * 8 units = 64 minutes
E. Capacity of manufacturing cell = 1/0.533 = 1.875 units/hour (from Table 1)
Therefore, the given manufacturing cell has a current inventory level of 8 units, a task time of 8 minutes/unit, production lead times are given in the table, the total processing time is 64 minutes, and the capacity is 1.875 units/hour.
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Review the document Operation Eagle Claw Case study.
Do the same lapses in leadership occur in today's military
leadership? Explain your answer.
A general perspective on the lapses in leadership that occur in military leadership today.
Military leadership, like any other form of leadership, can experience lapses and failures. While there may be some similarities across different situations, it is important to recognize that each instance of leadership failure is unique.
Some common causes of leadership lapses in the military include inadequate training or preparation, poor communication, lack of trust between leaders and subordinates, failure to properly assess risks, and unclear objectives or mission statements. These issues can lead to mistakes, misunderstandings, and insufficient planning, which can ultimately compromise the success of a mission.
While many of these issues are not unique to the military, they can be particularly impactful in a military context. The stakes are often higher in military operations, and the consequences of leadership failures can be severe, including loss of life and the failure to achieve mission objectives.
In recent years, there have been several high-profile examples of leadership failures in the military, including instances of misconduct, poor decision-making, and inadequate preparation for missions. However, it is important to note that these incidents are not representative of all military leadership, and many military leaders demonstrate exceptional skill, expertise, and commitment to their duties.
Overall, while there may be some lapses in military leadership today, the military has implemented systems of accountability and continuous improvement to address these issues. As such, military leaders are constantly striving to improve their performance and ensure the safety and success of their troops.
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What are the "Building Blocks" that you need to implement to
create a successful Quality Management System?
To create a successful Quality Management System (QMS), there are several key building blocks that need to be implemented.
These building blocks form the foundation for establishing and maintaining a robust QMS. Here are the essential components: Leadership Commitment: Top management must demonstrate strong commitment to quality and provide clear direction for the organization's quality objectives. This includes establishing a quality policy, allocating necessary resources, and actively engaging in quality improvement initiatives. Quality Policy and Objectives: The organization should develop a quality policy that reflects its commitment to quality and customer satisfaction. The policy should be communicated throughout the organization, and measurable quality objectives should be established to guide performance and improvement efforts. Documentation and Document Control: An effective QMS relies on well-defined processes, procedures, work instructions, and other necessary documentation. Document control procedures should be established to ensure the availability, accuracy, and revision control of documents. Risk Management: Identifying and managing risks is crucial for maintaining product/service quality and meeting customer expectations. Organizations should implement risk assessment and mitigation processes to proactively address potential risks to quality. Training and Competence: Employees at all levels need to be adequately trained and competent to perform their assigned tasks. Training programs should be developed, implemented, and periodically evaluated to ensure that employees have the necessary knowledge and skills to carry out their responsibilities effectively. Supplier Management: Organizations should have a systematic approach to selecting, evaluating, and managing suppliers. Supplier evaluation criteria, performance monitoring, and communication channels should be established to ensure the quality of purchased materials and services. Process Control and Improvement: Processes that directly impact product/service quality should be identified, documented, and controlled. Performance indicators, measurement systems, and regular monitoring should be in place to track process performance and initiate continuous improvement activities. Customer Focus: Understanding and meeting customer requirements and expectations is essential for delivering high-quality products/services. Organizations should gather customer feedback, conduct satisfaction surveys, and use the information to drive improvements and enhance customer satisfaction. Corrective and Preventive Actions: A robust system for identifying, investigating, and resolving non-conformities and customer complaints should be established. Corrective and preventive actions should be implemented to address root causes, prevent recurrence, and drive continual improvement. Internal Audit: Regular internal audits should be conducted to assess the effectiveness and compliance of the QMS. Audits help identify areas for improvement, ensure conformity to established processes, and provide management with an objective view of the QMS performance.Management Review: Periodic management reviews allow top management to assess the overall performance of the QMS, review quality objectives, and make strategic decisions for improvement. These reviews provide a platform for communication, analysis of data, and identification of areas for enhancement.
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Marketing managers are reimagining the positioning for Chrysler automobiles. They communicate the new advertising strategy to their advertising agencies using:
A) Creative briefs
B) Belief dynamics diagrams
C) GRP, CPM, and CTR.
D) Talking points
E) Media plans
They communicate the new advertising strategy to their advertising agencies using Media plans. Thus, the correct option is E.
Marketing managers are reimagining the positioning for Chrysler automobiles. They communicate the new advertising strategy to their advertising agencies using Creative briefs.
Creative briefs are a commonly used tool for marketing managers to communicate the new advertising strategy to their advertising agencies. Creative briefs provide a concise document that outlines the key objectives, target audience, messaging, and creative direction for the advertising campaign. It serves as a guideline and reference for the advertising agencies to develop creative concepts and executions that align with the strategic goals of the brand.
While other options such as belief dynamics diagrams, GRP (Gross Rating Points), CPM (Cost Per Thousand), CTR (Click-Through Rate), talking points, and media plans may also be utilized in the advertising process, creative briefs specifically address the communication of the new advertising strategy to the advertising agencies. They provide the necessary information and direction to guide the creative development and execution of the advertising campaign.
Thus, the correct option is E.
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hello! im autistic so i need help in understanding this through a quick drawing of a figure :((
"malondialdehyde (MDA,1) and 4-hydroxynonenal (4-HNE,2), which are deadly aldehydes and result of lipid peroxidation in corals, will be tested using a colorimetric assay (Lpo-585). Malondialdehyde (MDA) concentrations were used to measure the extent of lipid peroxidation. The procedure is based on the reaction of N-methyl-2-phenylindole, a chromogenic reagent, with MDA at 45 °C. The basic idea behind this test is to assess the absorbance at 586 nm, which may be done using MDA or 4-HNE after reacting with N-methyl-2-phenylindole in an acidic environment. Additionally, employing hydrochloric acid in place of methanesulfonic acid totally suppresses the reaction of 4-HNE, which is followed by the creation of a second chromophore at 505 nm"
The colorimetric assay (Lpo-585) is used to test for the presence of malondialdehyde (MDA) and 4-hydroxynonenal (4-HNE) in corals. These substances are deadly aldehydes that result from lipid peroxidation. To measure the extent of lipid peroxidation, the concentration of MDA is determined.
In the assay, N-methyl-2-phenylindole, a chromogenic reagent, is reacted with MDA at a temperature of 45 °C. This reaction produces a chromophore that can be assessed by measuring the absorbance at 586 nm. The same reaction can also be used with 4-HNE.
To suppress the reaction of 4-HNE, hydrochloric acid can be used instead of methanesulfonic acid. This results in the creation of a second chromophore at 505 nm. By comparing the absorbance at 586 nm and 505 nm, the concentrations of MDA and 4-HNE can be determined.
I hope this explanation helps you understand the procedure. If you have any further questions, feel free to ask!
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For barter exchange to take place. A. money has to be used to put a value on the transaction
B. gold has to be one of the goods traded
C. there has to be a double coincidence of wants D. the product in question have to be divisible E. there has to be a single coincidence of wanis
In a barter exchange, goods or services are directly traded between parties without the use of money so, there has to be a double coincidence of wants.
The correct option is C
In a barter exchange, goods or services are directly traded between parties without the use of money. For a barter exchange to occur, there needs to be a mutual desire or coincidence of wants between the parties involved. This means that each party must have something that the other party desires and is willing to trade for.
This double coincidence of wants is necessary for both parties to agree on the terms of the exchange. Without it, a barter exchange would not be feasible or efficient. The concept of a "double coincidence of wants" is a key requirement for successful barter. It means that both parties involved in the exchange must have something that the other party desires, and they must be willing to trade based on that mutual desire.
Hence , C is the correct option
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Euro-won rate) is 4.125%. KAL can borrow in Korea at 6.125%, and can probably borrow in the U.S. dollar market at 9.000%. below that KAL might deal with its foreign exchange exposure. a. How much in Korean won will KAL pay in 90 days without a hedge if the spot rate in 90 days is the same as the expected spot rate of Won786/ b. How much in Korean won will KAL pay in 90 days with a forward market hedge? c. How much in Korean won will KAL pay in 90 days with a money market hedge? d. How much in Korean won will KAL pay in 90 days with an option hedge if the expected spot rate in 90 days is assumed to be greater than Won783/\$? e. How should KAL plan to make the payment to Boeing if KAL's goal is to maximize the amount of won cash left in the bank at the end of the three-month period? a. How much in Korean won will KAL pay in 90 days without a hedge if the spot rate in 90 days is the same as the expected spot rate of 786/$ ? Won (Round to the nearest whole number.) b. How much in Korean won will KAL pay in 90 days with a forward market hedge? Won (Round to the nearest whole number.) c. How much in Korean won will KAL pay in 90 days with a money market hedge? Wor (Round to the nearest whole number.)
a. If the spot rate in 90 days is the same as the expected spot rate of 786/$, then without a hedge KAL would pay 56,370,000 Korean won for a Boeing aircraft.
b. With a forward market hedge, KAL will pay 56,181,299 Korean won in 90 days.
c. With a money market hedge, KAL will pay 56,363,000 Korean won in 90 days.
d. If the expected spot rate in 90 days is assumed to be greater than Won783/$, then KAL will pay 56,496,000 Korean won with an option hedge.
e. KAL should plan to make the payment to Boeing with a money market hedge because it results in the least amount of Korean won paid (56,363,000).
a. The amount of Korean won that KAL would pay in 90 days without a hedge is calculated using the formula: Amount to be paid in Korean won = $7,000,000 × 786 = 5,502,000,000 Korean won Interest rate in Korea = 6.125%Interest rate in the U.S. = 9.000%
Time in days = 90 days.
Cost of carry = Euro-won rate - U.S. rate = 4.125% - 9.000% = -4.875%
b. With a forward market hedge, the formula is: Amount to be paid in Korean won = $7,000,000 × 786 = 5,502,000,000 Korean won. The amount in Korean won paid in 90 days is:9,083,700 × (1 + 4.125% × 90/360) = 9,154,454 Korean won.
c. With a money market hedge, the formula is:
Amount to be paid in Korean won = $7,000,000 × 786 = 5,502,000,000 Korean won. The forward rate is calculated using the interest rate parity formula:
Ft = St × (1 + R₩ × n/360) / (1 + R$/ × n/360)
Ft = 786 × (1 + 6.125% × 90/360) / (1 + 9.000% × 90/360) = 770.2609
The amount in U.S. dollars to be borrowed is:
$7,000,000 / (1 + 9.000% × 90/360) = $6,877,500
d. With an option hedge, the formula is: Amount to be paid in Korean won = $7,000,000 × 786 = 5,502,000,000 Korean won. The premium paid is calculated using the interest rate parity formula:
C = (St × P₩ / $ × n/360) / (1 + R$/ n/360)
C = (786 × 783 / $ × 90/360) / (1 + 9.000% × 90/360)
Korean won × 786 = 5,407,209
KAL should plan to make the payment to Boeing with a money market hedge because it results in the least amount of Korean won paid (56,363,000) and therefore maximizes the amount of won cash left in the bank at the end of the three-month period.
e. AL is a Korean airline company that wants to buy an airplane from Boeing for $7 million. The exchange rate between the Korean won and the U.S. dollar is 786/$, and the interest rates in Korea and the United States are as follows: Euro-won rate is 4.125% KAL can borrow in Korea at 6.125% KAL can probably borrow in the U.S. dollar market at 9.000%.
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True or false
4. Investing in a 401k will benefit you most if viewed as a long-term plan for retirement, you shouldn't expect a quick return on your money.
The given statement "Investing in a 401k will benefit you most if viewed as a long-term plan for retirement, and you shouldn't expect a quick return on your money" is True because investing in a 401k is a long-term strategy that requires patience, discipline, and consistency.
A 401k is a type of retirement account that enables employees to save and invest for their retirement, and it is generally provided by employers to their workers. There are several reasons why investing in a 401k is viewed as a long-term plan for retirement. First, 401k contributions are tax-deferred, which means that any contributions made to the account are deducted from your taxable income, reducing your tax bill and allowing you to save more. Second, most 401k plans are invested in the stock market, which tends to be volatile and unpredictable in the short term.
However, over the long term, the stock market has historically generated high returns that can significantly boost your retirement savings. Also, you shouldn't expect a quick return on your money in a 401k because there are penalties for early withdrawals before the age of 59 and a half. You can withdraw money from your 401k before that age, but you will be charged a 10% penalty on the amount withdrawn, in addition to paying taxes on the withdrawal as regular income.
Therefore, investing in a 401k is a long-term strategy that requires patience, discipline, and consistency. However, with the right approach, it can provide a reliable source of retirement income that can last for decades after you retire.
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Consider the following information in the sensitivity report for a constraint that limits the minimum number of production for product A: Final Value = 300; Shadow price: = 0; Constraint R. H. Side = 100; Allowable Increase = 200; Allowable Decrease = 1E+30. How many units can be added to the R.H.S of constraint while maintaining the current solution optimal?
a. 30
b. 100
c. 200
d. 300
To determine the number of units that can be added to the right-hand side (R.H.S) of the constraint while maintaining the current solution optimal, we need to consider the allowable increase.
The allowable increase represents the maximum amount by which the R.H.S of the constraint can be increased without affecting the current optimal solution.
In the given sensitivity report, the allowable increase for the constraint is stated as 200.Therefore, the correct answer is: 200 units
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A machinery upgrade project will cost $13 million,and produce cost savings of $4 million in perpetuity. What is the project NPVif the required rate of return is 10%? Enter answer in millions,to two decimal places.
A machinery upgrade project will cost $13 million,and produce cost savings of $4 million in perpetuity. The project NPV is $3.34 million.
The project will cost $13 million upfront and produce cost savings of $4 million in perpetuity. The required rate of return is 10%.
To calculate the NPV, we can use the following formula:
NPV = -initial investment + (annual cash flows * (1 + discount rate)^-n)
where:
NPV = net present value
initial investment = $13 million
annual cash flows = $4 million
discount rate = 10%
n = number of years = infinity
Plugging in these values, we get the following NPV:
NPV = -13 + (4 * (1 + 0.1)^-infinity) = 3.34 million
Therefore, the project NPV is $3.34 million. This means that the project is worth undertaking, as it will generate more cash flows than it costs.
Here are some additional things to consider when evaluating the project:
The project's risk.
The project's impact on the company's other projects.
The project's impact on the company's overall financial performance.
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Shaw Incorporated began this period with a budget for 1,190 units of predicted production. The budgeted overhead at this predicted activity follows. At period-end, total actual overhead was $112,900, and actual units produced were 1,090. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $30 per DLH.
Variable overhead $ 59,500
Fixed overhead 49,500
Total overhead $ 109,000
a. Compute controllable variance.
b. Compute volume variance.
a. To compute the controllable variance, we need to compare the actual overhead with the budgeted controllable overhead. Controllable variance measures the difference between the actual controllable overhead and the budgeted controllable overhead.
Controllable variance = Actual controllable overhead - Budgeted controllable overhead
The budgeted controllable overhead can be calculated by subtracting the fixed overhead from the total overhead:
Budgeted controllable overhead = Total overhead - Fixed overhead
= $109,000 - $49,500
= $59,500
Given that the actual overhead is $112,900, the controllable variance is:
Controllable variance = Actual overhead - Budgeted controllable overhead
= $112,900 - $59,500
= $53,400
b. The volume variance measures the difference between the budgeted overhead for the actual level of activity and the budgeted overhead for the predicted level of activity. It indicates whether the variance is due to the difference in production volume.
Volume variance = (Actual units produced - Budgeted units) * Standard overhead rate
Given that the budgeted units were 1,190 and the actual units produced were 1,090, and the standard overhead rate is $30 per DLH (direct labor hour), we can calculate the volume variance:
Volume variance = (1,090 - 1,190) * $30
= -100 * $30
= -$3,000 (negative value indicates unfavorable variance)
Therefore, the volume variance is -$3,000 or $3,000 unfavorable.
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Route Two Tire Company makes a special kind of racing tre. Variable costs are $20000 per unit, and fixed costs are 530,000 per month, Route Two sells 400 units per month at a sa price of $320.00. The company beteves that it can increase the price in the tire quality is upgraded If so, the variable cost will increase to $230.00 per unt, and the fixed costs will nise by 50%. The CEO wishes to increase the compary's operating income by 35%. Which sales price level would give the degired results? (Round your answee to the nearest cent) A. 5365.00 per unit B. 51,05600 per una C. 540375 per unit D. 527500 per init
The sales price level that would give the desired results, we can calculate the current operating income and the target operating income and then solve for the sales price.
Let's calculate the current operating income and the target operating income:
Current operating income:
Revenue = Current sales price * Current sales volume = $320.00 * 400 = $128,000.00
Total variable costs = Current variable cost per unit * Current sales volume = $200.00 * 400 = $80,000.00
Total fixed costs = Current fixed costs = $530,000.00
Operating income = Revenue - Total variable costs - Total fixed costs = $128,000.00 - $80,000.00 - $530,000.00 = -$482,000.00
Target operating income:
Target operating income = Current operating income + (Target operating income increase * Current operating income) = -$482,000.00 + (0.35 * -$482,000.00) = -$651,700.00
Now, let's calculate the new sales price that would give the desired operating income:
New sales price per unit = (Total variable costs + Total fixed costs + Target operating income) / Current sales volume
New sales price per unit = ($80,000.00 + $530,000.00 + (-$651,700.00)) / 400
New sales price per unit = $540,300.00 / 400
New sales price per unit ≈ $1350.75. The closest option to the calculated new sales price is option C: $5403.75 per unit.
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Describe how the company: AMAZON uses segmentation strategies based on four of the key characteristics of useful segmentation 1. Identifiable 2. Accessible 3. Stable 4. Actionable.
Amazon utilizes segmentation strategies based on the following key characteristics:
1. Identifiable:
Amazon ensures that its segmentation strategy is based on identifying distinct and definable customer segments. They collect and analyze vast amounts of customer data, including demographics, purchase history, browsing behavior, and preferences. By identifying these segments, Amazon can tailor its marketing messages, product recommendations, and user experience to meet the specific needs and preferences of each segment.
2. Accessible:
Amazon's segmentation strategy focuses on reaching and engaging with its target segments through various accessible channels. They have a strong online presence and use their e-commerce platform, mobile applications, and digital marketing to connect with customers. Amazon also leverages social media, email marketing, and personalized advertising to engage with customers directly. By utilizing accessible channels, Amazon can effectively reach and interact with its target segments.
3. Stable:
Amazon aims to identify stable and long-term customer segments that exhibit consistent behavior and preferences over time. They use data analysis and predictive modeling to identify stable segments that are likely to remain consistent in their purchasing habits and preferences. This stability allows Amazon to develop long-term strategies and initiatives to cater to the needs of these segments, enhancing customer loyalty and retention.
4. Actionable:
Amazon ensures that its segmentation strategy is actionable, meaning that it allows them to take specific actions to target and serve each segment effectively. Based on the identified segments, Amazon develops personalized marketing campaigns, product recommendations, and targeted promotions. They create customized shopping experiences, such as personalized homepages and recommendations based on customer browsing and purchase history. By making the segments actionable, Amazon can implement specific marketing and operational tactics to address the unique needs and preferences of each segment.
Overall, Amazon's segmentation strategies based on the characteristics of identifiable, accessible, stable, and actionable enable them to effectively target and serve diverse customer segments, leading to increased customer satisfaction, loyalty, and business growth.
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A Treasury bill has a bid yield of 2.05 and an ask yield of 2.01. The bill matures in 181 days. Assume a face value of $1,000. (Note: You may need to review material from an earlier chapter for the relevant formula.) a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
A Treasury bill has a bid yield of 2.05 and an ask yield of 2.01. The bill matures in 181 days. Assume a face value of $1,000. (Note: You may need to review material from an earlier chapter for the relevant formula.)
a. At what price could you sell the Treasury bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
b. What is the dollar spread for this bill? (Do not round intermediate calculations. Round your answer to 3 decimal places.)
a) The price at which we can sell the Treasury bill can be calculated by using the formula:
P = F / (1 + r * t)
Where,P = Price
F = Face value
r = Yield / 2t = Days / 360
r = Yield / 2 = (2.01 + 2.05) / 2 = 2.03t = 181 / 360 = 0.502777
Therefore, the price of the Treasury bill would be:P = $1000 / (1 + 2.03 * 0.502777)≈ $985.407
b) The dollar spread is calculated by finding the difference between the ask yield and the bid yield.
Hence, the dollar spread for this bill can be calculated as follows:
Dollar Spread = (Ask Yield - Bid Yield) / 2= (2.01 - 2.05) / 2= -0.02 / 2≈ -0.01
The dollar spread for this bill is approximately -$0.010.
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data related to the expected sales of two types of frozen pizzas for norfolk frozen foods inc, for the current year, which is typical of recent years, are as follows:
products unit selling price unit variable cost sales mix
12" pizza 12$ 3$ 30%
16" pizza 15$ 4$ 70%
The estimated fixed costs for the current year are 46,800$
1/ determine the estimated units of sales of the overall (total) product, necessary to reach the break even point of the current year.
2/ based on the break even sales (units) in part 1, determne the unit sales of both the 12" pizza and 16" pizza for the current year
3/ assume that the sales mix was 50% for 12" pizza and 50% for 16" pizza. Compare the breakeven point with part 1. why is it so different?
1. The estimated units of sales necessary to reach the break-even point for the current year are 6,200 units. 2. Based on the break-even sales, the unit sales for the current year are estimated to be 3,720 units for the 12" pizza and 2,480 units for the 16" pizza. 3. When assuming a sales mix of 50% for both the 12" and 16" pizzas, the breakeven point remains the same as in part 1. The difference in sales mix does not affect the break-even point.
1. To determine the estimated units of sales necessary to reach the break-even point, we need to calculate the contribution margin per unit. The contribution margin is the difference between the selling price and the variable cost per unit.
For the 12" pizza:
Contribution margin per unit = Unit selling price - Unit variable cost
= $12 - $3
= $9
For the 16" pizza:
Contribution margin per unit = Unit selling price - Unit variable cost
= $15 - $4
= $11
The sales mix represents the proportion of each product's sales within the total sales. In this case, the sales mix is 30% for the 12" pizza and 70% for the 16" pizza.
Now, we can calculate the weighted average contribution margin per unit:
Weighted average contribution margin per unit = (Contribution margin of 12" pizza * Sales mix of 12" pizza) + (Contribution margin of 16" pizza * Sales mix of 16" pizza)
= ($9 * 0.30) + ($11 * 0.70)
= $2.70 + $7.70
= $10.40
The formula for calculating the break-even point in units is:
Break-even point (units) = Fixed costs / Weighted average contribution margin per unit
Given that the estimated fixed costs for the current year are $46,800, we can calculate the break-even point:
Break-even point (units) = $46,800 / $10.40
≈ 4,500 units
Therefore, the estimated units of sales necessary to reach the break-even point for the current year are 4,500 units.
2. Based on the break-even sales in part 1, we can determine the unit sales of both the 12" pizza and 16" pizza for the current year using the sales mix.
Unit sales of 12" pizza = Break-even point (units) * Sales mix of 12" pizza
= 4,500 units * 0.30
= 1,350 units
Unit sales of 16" pizza = Break-even point (units) * Sales mix of 16" pizza
= 4,500 units * 0.70
= 3,150 units
Therefore, the unit sales for the current year are estimated to be 1,350 units for the 12" pizza and 3,150 units for the 16" pizza.
3. Assuming a sales mix of 50% for both the 12" and 16" pizzas means that the proportion of sales for each pizza size is equal. In this case, the break-even point remains the same as in part 1, which is 4,500 units.
The reason the break-even point does not change is that the change in the sales mix does not affect the weighted average contribution margin per unit. As long as the contribution margins per unit remain the same for
the individual products, the overall break-even point will not be impacted by changes in the sales mix.
Therefore, the break-even point with a sales mix of 50% for the 12" pizza and 50% for the 16" pizza remains at 4,500 units, the same as in part 1.
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