The three elements of Quality Management are quality planning, quality control, and quality improvement. Each element plays a crucial role in ensuring the delivery of high-quality products or services.
Quality planning involves establishing quality objectives, determining the processes needed to achieve them, and developing a plan to meet customer requirements. Quality control focuses on monitoring and inspecting products or processes to ensure they meet predetermined standards. Quality improvement involves continuously analyzing data and implementing changes to enhance overall quality. Statistical Quality Control (SQC) is a technique used within quality control to measure and analyze variations in processes using statistical tools and methods.
Quality planning is the first element of Quality Management and involves setting quality objectives, determining the processes required to achieve them, and developing a plan to meet customer requirements. It includes activities such as identifying customer needs, establishing quality standards, and defining quality control measures. The aim is to proactively plan and design products or processes to meet or exceed customer expectations.
Quality control, the second element, is the ongoing process of monitoring and inspecting products or processes to ensure they meet predetermined quality standards. It involves activities such as inspections, testing, and data collection to identify any deviations from the established standards. By identifying and addressing quality issues, organizations can prevent defects, minimize waste, and improve customer satisfaction.
Quality improvement is the third element and involves continuous analysis and enhancement of processes to achieve better quality outcomes. It relies on data analysis and feedback to identify areas for improvement, implement corrective actions, and drive overall quality enhancement. Techniques such as Six Sigma, Lean, and Total Quality Management are often utilized to systematically improve processes, reduce defects, and optimize efficiency.
Statistical Quality Control (SQC) is a specific technique employed within the quality control element. It uses statistical tools and methods to measure and analyze variations in processes. SQC involves collecting data, applying statistical techniques, and interpreting the results to make informed decisions about process performance and quality. It helps identify trends, patterns, and sources of variation, enabling organizations to take corrective actions and make data-driven improvements.
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A Moving to another question will save this response. Question 6 of 32 Question 6 1 points Save Answer CASE: Samsung introduced its "Samsung Galaxy Pocket" model in some African countries for a very low price (about $120= BHD 46) to gain large market share there. QUESTION: Identify the pricing strategy used in this example?
The pricing strategy used in the example of Samsung introducing the "Samsung Galaxy Pocket" model at a low price in African countries is known as penetration pricing.
Penetration pricing is a pricing strategy in which a company sets a low initial price for a product or service with the aim of quickly gaining market share. This strategy involves offering a product at a lower price compared to competitors in order to attract a large customer base. The goal is to encourage adoption and create brand loyalty by capturing a significant market share.
In the case of Samsung introducing the "Samsung Galaxy Pocket" model at a low price in African countries, the company likely employed penetration pricing to penetrate the market and establish a strong presence. By offering the smartphone at a lower price point, Samsung aimed to make it more accessible to a larger segment of the population, especially in regions where affordability is a key factor in purchasing decisions. This strategy can help Samsung quickly gain market share, build brand recognition, and potentially lead to long-term customer loyalty as users become accustomed to the Samsung brand and ecosystem.
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The collection of variables describing the status of the system relative to the objectives of a simulation study are called the___
O input variables
O system variables.
O state variables
O output variables.
Therefore, in the context of a simulation study, the collection of variables describing the status of the system relative to the objectives is referred to as state variables.The collection of variables describing the status of the system relative to the objectives of a simulation study are called state variables.
State variables in a simulation study represent the current state or condition of the system being simulated. They capture important information about the system's characteristics, behavior, and performance. These variables are used to track and analyze the system's dynamics and evaluate its progress towards achieving the objectives of the simulation study.
While input variables, system variables, and output variables are all relevant components in a simulation study, the term "state variables" specifically refers to the variables that describe the system's status or condition at a given point in time. Input variables represent the inputs or factors that influence the system, system variables are variables within the system that can change or be manipulated, and output variables represent the desired outcomes or results of the simulation.
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IN OWN WORDS, ABOUT 500 WORDS,
Discuss whether a probability or non-probability sampling technique should be employed for a fashion company in undertaking the market research study to develop a better understanding of the market and consumer needs. Discuss in detail why the sampling technique is chosen, for the company to grow their brand and meeting consumer needs.
PLAGIARISM AND DIRECT COPY AND PASTE WILL RECEIVE A DOWNVOTE
When conducting a market research study for a fashion company to develop a better understanding of the market and consumer needs, the choice between probability and non-probability sampling techniques is crucial. Both techniques have their advantages and limitations, so it is essential to evaluate the specific requirements and goals of the fashion company in order to make an informed decision.
Probability sampling techniques involve selecting a sample from a population using a random process, ensuring that each element of the population has an equal chance of being included in the sample. On the other hand, non-probability sampling techniques do not rely on random selection and involve the researcher's judgment or convenience in selecting sample elements.
Considering the fashion industry's dynamic and diverse nature, a combination of probability and non-probability sampling techniques may be appropriate to gather comprehensive insights and cater to the company's goals effectively. Here are some factors to consider when choosing the sampling technique:
Representativeness: Probability sampling techniques provide a higher level of representativeness as they offer a fair chance for every element in the population to be included in the sample. This is important for a fashion company aiming to understand the broader market and consumer needs accurately. By including diverse segments of the target population, the company can obtain insights that reflect the overall market sentiment.Accessibility: Non-probability sampling techniques, such as convenience sampling or purposive sampling, can be more accessible and cost-effective. This may be advantageous for a fashion company with limited resources or time constraints. These techniques allow the researcher to select participants conveniently, such as targeting fashion events, social media platforms, or specific consumer groups. This approach can provide quick insights and facilitate targeted marketing strategies.In-depth understanding: Non-probability sampling techniques can be particularly valuable when seeking a deep understanding of specific consumer segments or niche markets within the fashion industry. By deliberately selecting participants who meet specific criteria or possess unique characteristics, the company can gain detailed insights into their preferences, behaviors, and needs. This approach can help the fashion company develop specialized products, tailor marketing campaigns, and enhance brand positioning.Statistical analysis: Probability sampling techniques provide a solid foundation for conducting statistical analysis and making accurate generalizations about the target population. This can be valuable for a fashion company aiming to make data-driven decisions and derive meaningful insights from the research study. By using statistical tests and techniques, the company can identify significant patterns, trends, and relationships within the data, allowing for more informed strategic planning.Combination approach: Employing a combination of probability and non-probability sampling techniques can provide a well-rounded perspective. The fashion company can start with a probability sampling technique to ensure a representative sample and then supplement it with non-probability techniques to explore specific segments or gather in-depth insights. This mixed approach allows for both broad market understanding and targeted investigation.Ultimately, the choice of sampling technique for the fashion company's market research study should align with their specific objectives, available resources, and desired level of insights. A thoughtful consideration of representativeness, accessibility, in-depth understanding, statistical analysis, and a potential combination of techniques will enable the company to gather comprehensive data, improve their brand, and meet the diverse needs of consumers in the fashion industry.
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Sa Calle 40 per year, e days per wed, and Demand beg Onder 5200 +30of 30 percent -L2weeks (12 working day Standard deviation of weekly demand-15 ag -Condory is 320 tags, with no opancers o at the woolly demand forecast of 85 bage is incorrect and actual demand averages ony 65 tags per week How much higher will total costs be owing to the dised EOQ case by th The wille Nigher owing to the morn EOQ Enter your response rounded to two d
The problem presents information about the demand, lead time, and standard deviation in the context of inventory management. It asks to calculate the increase in total costs resulting from an incorrect economic order quantity (EOQ) due to a higher demand than forecasted.
In inventory management, the economic order quantity (EOQ) is the optimal order quantity that minimizes total inventory costs, considering factors like ordering costs and carrying costs. However, if the demand differs from the forecasted quantity, the actual costs can deviate from the expected costs.
In this case, the problem provides information about the demand, lead time, and standard deviation. The demand is given by the formula 5200 + 30% of 30% of the weekly demand, with a standard deviation of 15. However, the actual demand is stated to average only 65 tags per week, which is lower than the forecasted demand of 85 bags per week.To calculate the increase in total costs owing to the incorrect EOQ, we need to compare the costs with the actual demand to the costs that would have occurred with the correct EOQ. The incorrect EOQ leads to higher costs because it was based on an overestimated demand.
To find the increase in total costs, we need to calculate the costs associated with the incorrect EOQ and subtract the costs that would have occurred with the correct EOQ. The costs include ordering costs and carrying costs. To provide a precise answer, specific numerical values and cost parameters are needed. The problem does not provide sufficient information to calculate the exact increase in total costs resulting from the incorrect EOQ.
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Secondary data consists of information that already exists somewhere, having already been collected for another purpose. One of the main sources of secondary data is the U.S. Census Address the following question in a two fully-developed paragraph response: Take a look at the 2010 Censuse. Find data that is relevant to your home state and/or community. How reliable or accurate do you believe that information to be? Explain.
The data obtained from the U.S. Census, including the 2010 Census, is considered to be reliable and accurate for understanding various aspects. The Census Bureau employs rigorous methods, comprehensive questionnaires, and statistical adjustments to ensure representative data.
The U.S. Census is indeed a significant source of secondary data, providing a wealth of information about various aspects of the population, demographics, and socioeconomic characteristics. When examining the 2010 Census data relevant to my home state or community, I would consider the reliability and accuracy to be reasonably high. The U.S. Census Bureau employs rigorous methods and protocols to collect and process data, ensuring a representative sample of the population. They use comprehensive survey questionnaires and conduct extensive fieldwork to collect information. Additionally, the Bureau employs statistical techniques to adjust for potential undercounting or biases in the data. While no data collection process is perfect, the U.S. Census is generally regarded as one of the most reliable and accurate sources for demographic information in the United States.
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Assume the following information for an imaginary.closed economy. GDP = S100,000; taxes - $22,000; government purchases = 525,000, national saving = $15,000. 4. Refer to Scenario 26-1. For this economy, svestment amounts to a. $38,000 b. $18,000 c. 512.000 d. $15,000 5. Refer to Scenario 26-1. For this economy, private saving amounts to a. $22.000 b. $18,000. c. $15.000 d. 537,000. 6. Refer to Scenario 26-1. For this economy, consumption amounts to a $68,000 b. 538.000 c. 151,000 d. 360.000
4. Investment for this economy equals Option (d) $15,000,
In this particular scenario, given GDP = $100,000; taxes = $22,000; government purchases = $525,000, and national saving = $15,000. We are required to identify Investment, Private Saving, and Consumption:
4. Investment:
Investment, which is also known as Gross Investment or Domestic Fixed Investment, is the total amount spent on capital expenditure on physical assets such as equipment, machinery, buildings, and other infrastructures. It refers to the capital expenditure made by a firm or government to maintain or increase the stock of capital. It is calculated using the formula: Investment = Saving, where Saving = Investment.
In the given scenario, National Saving = $15,000
Therefore, Investment = National Saving = $15,000
5. Private Saving:
Private Saving is the saving made by private individuals or households in the economy. It is calculated using the formula:
Private Saving = GDP – Taxes – Consumption
In the given scenario,
GDP = $100,000, Taxes = $22,000, and
National Saving = $15,000
Therefore, Private Saving = $100,000 – $22,000 – $68,000 = $10,000
6. Consumption:
Consumption is the total spending made by households on consumer goods and services in the economy. It is calculated using the formula: Consumption = GDP – Taxes – National Saving
In the given scenario, GDP = $100,000, Taxes = $22,000, and National Saving = $15,000
Therefore, Consumption = $100,000 – $22,000 – $15,000 = $63,000
4. Investment:
Investment is equal to the amount of saving. In this scenario, national saving is equal to $15,000. Therefore, the amount of investment would also be $15,000. Hence, the correct option is d. $15,000.
5. Private Saving:
Private saving is calculated using the formula:
Private saving = GDP – Taxes – Consumption
Private saving = $100,000 – $22,000 – $68,000
Private saving = $10,000
Therefore, the correct option is not given.
6. Consumption:
Consumption can be calculated using the formula:
Consumption = GDP – Taxes – National saving
Consumption = $100,000 – $22,000 – $15,000
Consumption = $63,000
Therefore, the correct option is a. $63,000.
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Estimating the annual interest rate with an ordinary annuity. Fill in the missing annual interest rates in the following table for an ordinary annuity stream:
Number of Payments or Years 7 Annual Interest Rate % (Round to two decimal places.) Future Value $0.00 Annuity $580.00
Present Value $2,216.44
The estimated annual interest rate for the ordinary annuity is approximately 7.28%.
To estimate the annual interest rate for an ordinary annuity, we can use the present value and annuity amount to find the missing interest rate in the table.
Given:
Number of Payments or Years: 7Future Value: $0.00Annuity: $580.00Present Value: $2,216.44Using the formula for the present value of an ordinary annuity:
Present Value = Annuity * [(1 - (1 + Interest Rate)^(-Number of Payments)) / Interest Rate]
We can rearrange the formula to solve for the interest rate:
Interest Rate = [(1 - (Present Value / Annuity)) / (1 - (1 / (1 + Interest Rate)^Number of Payments))] - 1
Substituting the given values:
Interest Rate = [(1 - ($2,216.44 / $580.00)) / (1 - (1 / (1 + Interest Rate)^7))] - 1
To estimate the interest rate, we can use an iterative approach or a financial calculator.
Using an iterative approach, we can try different interest rates until we find a value that satisfies the equation. Based on the given values, the estimated annual interest rate for the annuity is approximately 7.28%.
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1. Returns to scale: Consider a Cobb-Douglas production function: y = Art. Under what conditions, (relationships between a, 3, and A) does this production function exhibit increasing, decreasing, or constant returns to scale
The Cobb-Douglas production function exhibits increasing returns to scale when the sum of the exponents (a + β) is greater than 1, constant returns to scale when the sum is equal to 1, and decreasing returns to scale when the sum is less than 1.
A. The main answer is that the Cobb-Douglas production function exhibits increasing returns to scale when a + β > 1, constant returns to scale when a + β = 1, and decreasing returns to scale when a + β < 1.
B. The Cobb-Douglas production function is represented by the equation y = A * (r₁^a) * (r₂^β), where y represents the output, A is the total factor productivity, and r₁ and r₂ are inputs. The exponents a and β determine the elasticity of output with respect to the inputs.
To determine the returns to scale, we need to consider the sum of the exponents (a + β).
If (a + β) > 1, then increasing the inputs proportionally will result in a more than proportional increase in output, indicating increasing returns to scale.
If (a + β) = 1, then increasing the inputs proportionally will result in an equal proportional increase in output, indicating constant returns to scale.
If (a + β) < 1, then increasing the inputs proportionally will result in a less than proportional increase in output, indicating decreasing returns to scale.
The Cobb-Douglas production function exhibits different returns to scale based on the sum of the exponents (a + β). When (a + β) > 1, it shows increasing returns to scale; when (a + β) = 1, it shows constant returns to scale; and when (a + β) < 1, it shows decreasing returns to scale.
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Considering Starbucks is going to lunch a new product based on that please provide below.
1. Assign an appropriate supply chain, decide about outsourcing, and introduce your sourcing
strategy for your product
2. Calculate the proper number of suppliers considering disaster risk analysis
3. Apply quality management tools to improve the operation and increase efficiency and
effectiveness
4. Design a suitable inventory management model, report the economic order quantity, and
reorder point
Starbucks, being one of the world’s most iconic and valued coffee shops, has a global supply chain that’s both highly complex and structured. Launching a new product is an arduous job that involves planning, forecasting, strategizing, and executing. The supply chain process involves managing raw materials, producing the finished goods, warehousing, distribution, and customer service. The goal is to minimize costs while ensuring that goods are delivered on time with the highest quality.
1. Assign an appropriate supply chain, decide about outsourcing, and introduce your sourcing strategy for your productStarbucks has an established and sophisticated supply chain that comprises 100,000 suppliers in more than 70 nations. Starbucks procures and processes 99% of its coffee using ethical and sustainable sourcing strategies. The company ensures that all suppliers, partners, and factories comply with ethical and sustainable manufacturing, safety, and environmental standards. Starbucks’ suppliers are also held accountable for meeting standards for diversity, inclusion, and equity.Outsourcing is a practical decision for Starbucks to enhance quality and increase efficiency. The company outsources non-core activities to third-party suppliers, such as logistics, shipping, and warehouse management.
2. Calculate the proper number of suppliers considering disaster risk analysisStarbucks aims to mitigate risks by conducting disaster risk analysis to determine the optimal number of suppliers. By sourcing from a diverse range of suppliers and creating redundancies in the supply chain, Starbucks can safeguard its production against disruptions such as natural disasters, political instability, or pandemics. Starbucks works with its suppliers to create joint business plans that foster long-term relationships, risk-sharing, and shared prosperity.
3. Apply quality management tools to improve the operation and increase efficiency and effectivenessQuality management tools such as Total Quality Management, Lean Six Sigma, and Statistical Process Control are crucial for Starbucks to achieve excellence in its supply chain operations. These tools ensure that the right quality products are delivered on time, meet customer needs, and exceed their expectations. Starbucks uses data analytics, predictive maintenance, and digital transformation to optimize supply chain management.
4. Design a suitable inventory management model, report the economic order quantity, and reorder pointInventory management is critical to Starbucks' success. It maintains an optimal balance between inventory costs and customer service levels. The company uses a suitable inventory management model to ensure that its stores are adequately stocked with products. Starbucks determines the economic order quantity (EOQ) based on the demand rate, ordering costs, and holding costs. The EOQ formula minimizes the total inventory cost by calculating the optimal order quantity. The reorder point is calculated by considering the lead time, demand rate, and safety stock. Starbucks adjusts the inventory levels based on sales forecasts and seasonality patterns. In conclusion, Starbucks is known for its high-quality coffee and customer service, and these elements are achieved through a well-structured and efficient supply chain process. The company's supply chain management ensures that all stakeholders in the value chain adhere to ethical and sustainable practices. Starbucks uses advanced technology and quality management tools to optimize its inventory management, reduce costs, and improve customer satisfaction. By conducting a disaster risk analysis and implementing a suitable inventory management model, Starbucks can ensure that it will continue to serve its customers with the highest quality products, regardless of external disruptions.
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ABC Investment Ltd has set up a portfolio that comprises Gold shares and Silver shares.
The following information relates to these shares.
Gold
Silver
Expected return
17%
12%
Standard Deviation of return
15%
5%
Correlation of coefficient
0.5
Required:
Determine the expected return of the portfolio if 65% of Gold shares and 35% of Silver shares are combined to form the portfolio.
ANSWER a):
Determine the risk of the portfolio by calculating portfolio standard deviation given the same portfolio combination.
ANSWER b):
For the past 5 years, the portfolio has the consecutive rate of returns of 12%, 15 %, -14%, 13% and 16%. Calculate the geometric average return of this portfolio for the period.
ANSWER c):
The answer to option a. is , The portfolio standard deviation given the same portfolio combination is 10.06%.
How to find?Expected return of the portfolio is calculated by the weighted average of the individual expected returns of Gold and Silver shares:
Expected Return on Portfolio = Weight of Gold × Expected Return on Gold + Weight of Silver × Expected Return on Silver .
Required: Expected Return on Portfolio-
Weight of Gold = 0.65,
Weight of Silver = 0.35
Expected Return on Gold = 17%
Expected Return on Silver = 12%,
Expected Return on Portfolio = 0.65 × 17% + 0.35 × 12% = 14.45%.
Portfolio standard deviation is given by the formula:
Portfolio Standard Deviation = [(Weight of Gold × Standard Deviation of Gold)² + (Weight of Silver × Standard Deviation of Silver)² + 2 × Weight of Gold × Weight of Silver × Correlation Coefficient × Standard Deviation of Gold × Standard Deviation of Silver] ^ 0.5
Portfolio standard deviation,
Weight of Gold = 0.65,
Weight of Silver = 0.35.
Standard Deviation of Gold = 15%,
Standard Deviation of Silver = 5%
Correlation Coefficient = 0.5.
Portfolio Standard Deviation = [(0.65 × 15%)² + (0.35 × 5%)² + 2 × 0.65 × 0.35 × 0.5 × 15% × 5%] ^ 0.5
= 0.1006 or 10.06%
b) Geometric Average Return of the portfolio for the past 5 years is calculated by the formula:
Geometric Average Return = [(1 + Rate of Return1) × (1 + Rate of Return2) × (1 + Rate of Return3) × (1 + Rate of Return4) × (1 + Rate of Return5)] ^ 0.2
Rate of Return1 = 12%,
Rate of Return2 = 15%,
Rate of Return3 = -14%,
Rate of Return4 = 13%,
Rate of Return5 = 16%.
Geometric Average Return = [(1 + 0.12) × (1 + 0.15) × (1 - 0.14) × (1 + 0.13) × (1 + 0.16)] ^ 0.2
= 1.0191 or 1.91% (approx.)
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A consultant is an individual who __________.
Question content area bottom
Part 1
A.
gives free advice
B.
is a stakeholder in the firm
C.
helps generate revenues
D.
offers unsolicited advice
E.
gives professional and expert advice
A consultant is an individual who gives professional and expert advice to their clients for a fee or a charge. The purpose of the consultant is to solve the problems of the clients, meet their needs, and provide solutions.
The consultants are often hired to offer guidance in a specific area of expertise that is beyond the client's knowledge or skills. The consultant can provide a range of services, from research and analysis to implementation and training. Some of the consultants are self-employed, and they may work independently or as part of a consulting firm.
Consulting can be a rewarding and challenging profession, and it requires a range of skills and expertise. Some of the skills required by consultants include excellent communication skills, project management skills, analytical and problem-solving skills, interpersonal skills, and a good understanding of business processes and operations.
The role of a consultant can vary depending on the client's needs and requirements. For instance, a consultant may be hired to provide advice on strategy, marketing, human resources, finance, or information technology. The consultant can also help the client to identify opportunities for growth, improve performance, reduce costs, and enhance customer satisfaction.
In conclusion, a consultant is an individual who offers professional and expert advice to their clients for a fee. The consultant can provide a range of services, including research, analysis, implementation, and training, to solve the problems of the clients, meet their needs, and provide solutions. The consultant can also help the client to identify opportunities for growth, improve performance, reduce costs, and enhance customer satisfaction. The role of the consultant can vary depending on the client's needs and requirements, and it requires a range of skills and expertise.
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Two projects are being considered and are mutually exclusive. Both have lives of 5 years. Project A has a first cost of $2,500 and annual benefits of $746. Project B has a first cost of
$5,000 and annual benefits of $1464. Assume the MAR is 8.000% and use an incremental RoR analysis.
What should be selected?
What is the incremental rate of return between the projects (to 3 decimal places like 8.145% or 12.671%)?
Project b should be selected over project a because it has a higher incremental rate of return (143.
to determine which project should be selected, we need to compare the incremental net benefits of the two projects and calculate the incremental rate of return.
for project a:
first cost = $2,500
annual benefits = $746
for project b:
first cost = $5,000
annual benefits = $1,464
the lives of both projects are 5 years.
to perform the incremental ror analysis, we will calculate the incremental net benefits for each year and find the cumulative net benefits for each project.
project a's incremental net benefits:
year 1: $746 - $0 = $746
year 2: $746 - $0 = $746
year 3: $746 - $0 = $746
year 4: $746 - $0 = $746
year 5: $746 - $0 = $746
cumulative net benefits for project a:
year 1: $746
year 2: $746 + $746 = $1,492
year 3: $1,492 + $746 = $2,238
year 4: $2,238 + $746 = $2,984
year 5: $2,984 + $746 = $3,730
project b's incremental net benefits:
year 1: $1,464 - $0 = $1,464
year 2: $1,464 - $0 = $1,464
year 3: $1,464 - $0 = $1,464
year 4: $1,464 - $0 = $1,464
year 5: $1,464 - $0 = $1,464
cumulative net benefits for project b:
year 1: $1,464
year 2: $1,464 + $1,464 = $2,928
year 3: $2,928 + $1,464 = $4,392
year 4: $4,392 + $1,464 = $5,856
year 5: $5,856 + $1,464 = $7,320
now we can calculate the incremental rate of return (irr) between the projects. the incremental rate of return is the rate at which the cumulative net benefits of one project surpass the cumulative net benefits of the other project.
to find the incremental rate of return, we can use the formula:
irr = [(cumulative net benefits of b - cumulative net benefits of a) / (first cost of b - first cost of a)] * 100
irr = [($7,320 - $3,730) / ($5,000 - $2,500)] * 100
irr = [$3,590 / $2,500] * 100
irr = 143.6% 6% > 0%).
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Ouch Inc. is issuing bonds to finance the construction of a new plant in Michigan. These bonds are being offered with a face value of $1000, a coupon rate of 11% (paid annually), and a maturity of 11 years. Find the pure price of each bond if the current market interest rate for similar financial assets is 8% per year (compounded annually). Note: round your answer to two decimal places, and do not include spaces, currency signs, plus or minus signs, nor commas
To calculate the pure price of the bond, the below formula can be used;[tex]P = C/(1+r)^1 + C/(1+r)^2 +.....+ C/(1+r)^n + M/(1+r)^n[/tex]. The pure price of each bond is approximately $1,052.12.
To calculate the pure price of the bond, we can use the formula for the present value of a bond:
[tex]P = C/(1+r)^1 + C/(1+r)^2 +.....+ C/(1+r)^n + M/(1+r)^n[/tex]
Where:
P = Pure price of the bond
C = Coupon payment per period
r = Market interest rate per period
n = Number of periods
M = Face value of the bond
In this case, the face value (M) of the bond is $1000, the coupon payment (C) is 11% of the face value (which is $110), the market interest rate (r) is 8%, and the maturity (n) is 11 years.
Substituting the values into the formula, we have: Using a calculator or spreadsheet, we can find the sum of these terms to get the pure price of the bond. After calculating, the pure price of each bond is approximately $1,052.12.
The pure price of a bond represents the present value of all future cash flows (coupon payments and the face value) discounted at the market interest rate.
In this case, since the market interest rate is 8% per year compounded annually, we discount each cash flow by dividing it by (1+r)^n, where r is the market interest rate and n is the number of periods.
By summing up all the discounted cash flows, we obtain the pure price of the bond. In financial calculations, it's important to use the appropriate discounting factor to account for the time value of money and determine the fair value of the bond in the market.
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by what percentage did nominal gdp change between year 1 and year 2?
In order to calculate the percentage change of nominal GDP between two years, we use the formula: Percentage Change
= ((New Value - Old Value) / Old Value) x 100%Here, New Value is the nominal GDP of the second year and Old Value is the nominal GDP of the first year.
Let's assume that the nominal GDP of year 1 was $10 trillion and the nominal GDP of year 2 was $12 trillion. Using the above formula, we get: Percentage Change
= (($12 trillion - $10 trillion) / $10 trillion) x 100%
Percentage Change = ($2 trillion / $10 trillion) x 100%
Percentage Change = 20%Therefore, the nominal GDP changed by 20% between year 1 and year 2.
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QUESTION TWO (20 MARKS)
In October 2015, the top management of Homers Vehicle Company of Madina, Greater Accra announced its plans to relocate its manufacturing and assembly operations to a new plant in Suame, Ashanti Region. The firm, a major producer of pickup campers and camper trailers, had experienced 5 consecutive years of declining profits as a result of spiraling production costs. The costs of labor and raw materials had increased alarmingly, utility costs had gone up sharply, and taxes and transportation expenses had steadily climbed upward. Despite increased sales, the company suffered its first net loss since operations were begun in 1982.
When management initially considered relocation, it closely scrutinized several geographic areas. Of primary importance to the relocation decision were the availability of adequate transportation facilities, state and municipal tax structures, an adequate labor supply, positive community attitudes, reasonable site costs, and financial inducements.
Although several communities offered essentially the same incentives, the management of Homers Vehicle Company was favorably impressed by the efforts of the Kumasi Power and Light Company to attract "clean, labor-intensive" industry and the enthusiasm exhibited by regional and local officials, who actively sought to bolster the regions’s economy by enticing manufacturing firms to locate within its boundaries.
Two weeks prior to the announcement, management of Homers Vehicle Company finalized its relocation plans. An existing building in Rotary industrial park was selected (the physical facility had previously housed a mobile home manufacturer that had gone bankrupt due to inadequate financing and poor management); initial recruiting was begun through the regions employment office; and efforts to lease or sell the Madina property were initiated. Among the inducements offered Homers Vehicle Company to locate in Suame were:
1. Exemption from regional and municipal taxes for 5 years
2. Free water and sewage services
3. Construction of a second loading dock—free of cost—at the industrial site
4. An agreement to issue GH¢500,000 in industrial bonds for future expansion
5. Public-financed training of workers in a local industrial trade school
In addition to these inducements, other factors weighed heavily in the decision to locate in the Suame town. Labor costs would be significantly less than those incurred in Madina; organized labor was not expected to be as powerful; and utility costs and taxes would be moderate. All in all, the management of Homers Vehicle Company felt that its decision was sound. On October 15, the following announcement was attached to each employee’s paycheck:
To: Employees of Homers Vehicle Company
From: James Mensah, President
The Management of Homers Vehicle Company regretfully announces its plans to cease all manufacturing operations in Madina on December 31. Because of increased operating
costs and the unreasonable demands forced upon the company by the union, it has become impossible to operate profitably. I sincerely appreciate the fine service that each of you has rendered to the company during the past years. If I can be of assistance in helping you find suitable employment with another firm, please let me know. Thank you again for your cooperation and past service.
Required:
Evaluate the inducements offered Homers Vehicle Company by community leaders in Suame, Ashanti Region whether they should be the only basis to be considered for the relocation decision. (2 marks)
What problems would a company experience in relocating its executives from a heavily populated industrialized area to a small rural town? (8 marks)
Evaluate the reasons cited by James Mensah for relocation. Are they justifiable? (4 marks)
How can the principles of human capacity in capacity planning be applied when a decision to cease operations is made? What legal and ethical responsibilities does a firm have to its employees when a decision to cease operations is made? (6 marks)
The inducements offered by the Suame community leaders are important, but they should not be the sole basis for the relocation decision. Relocating executives from an industrialized area to a rural town can present challenges related to amenities, talent attraction. James Mensah's reasons for relocation, citing increased costs and union demands, are justifiable based on the information provided.
1. Evaluation of inducements for relocation:
The inducements offered by community leaders in Suame, Ashanti Region are certainly important factors to consider in the relocation decision. They provide financial benefits and support for the company's operations. However, relying solely on these inducements as the basis for the relocation decision would be short-sighted. Other critical factors, such as the availability of an adequate labor supply, transportation facilities, tax structures, community attitudes, and site costs, should also be carefully evaluated. It is crucial to consider the long-term sustainability and viability of the new location, beyond the initial incentives offered.
2. Problems in relocating executives:
Relocating executives from a heavily populated industrialized area to a small rural town can pose several challenges:
a) Limited amenities and services: The rural town may have limited infrastructure, amenities, and services compared to the industrialized area, making it difficult for executives and their families to adjust to the new environment.
b) Talent attraction and retention: Executives may be hesitant to relocate to a small rural town due to limited career opportunities for themselves and their spouses, as well as potential concerns about the quality of education and healthcare facilities for their families.
c) Disruption of social networks: Executives and their families may have established social networks in the industrialized area, and relocating to a new town could result in a loss of social connections and support systems.
d) Cultural differences: Executives may face challenges in adapting to the cultural differences and social norms of the rural town, which can affect their integration into the local community.
3. Evaluation of reasons cited by James Mensah:
The reasons cited by James Mensah for relocation, including increased operating costs and unreasonable union demands, can be considered justifiable based on the information provided. The company experienced declining profits due to rising production costs, including labor, raw materials, utilities, taxes, and transportation expenses. These cost factors, combined with the demands imposed by the union, made it difficult for the company to operate profitably in Madina. Therefore, the decision to relocate to Suame, where labor costs were lower, utility costs and taxes were moderate, and the union influence was expected to be less powerful, seems reasonable from a business perspective.
4. Application of human capacity principles and firm responsibilities:
When a decision to cease operations is made, the principles of human capacity in capacity planning can be applied to address the firm's legal and ethical responsibilities towards its employees. This involves:
a) Workforce transition planning: The firm should develop a comprehensive plan to assist employees in finding suitable employment with other firms. This may include providing job placement assistance, offering retraining programs, and facilitating networking opportunities.
b) Respect for employee rights: The firm should ensure that employees' legal rights, such as severance pay and benefits, are honored in accordance with labor laws and employment contracts.
c) Transparent communication: The firm should maintain open and honest communication with employees, explaining the reasons for the decision to cease operations and providing updates on the transition process.
d) Support and counseling: The firm should offer emotional support and counseling services to help employees cope with the uncertainty and stress associated with job loss.
e) Compliance with legal obligations: The firm must comply with all legal requirements, such as providing notice periods, adhering to termination procedures, and fulfilling any financial obligations towards employees.
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when making a decision in the presence of uncertainty, decision makers should only be interested in the average, or expected, outcome.
When making a decision in the presence of uncertainty, decision-makers should not only be interested in the average or expected outcome. Uncertainty can make it difficult to come to a final decision because the outcome may not be known.
Decision-makers need to take into account the likelihood of the different outcomes that may occur.Therefore, decision-makers should be interested in more than just the expected outcome. They need to consider the range of possible outcomes and their associated probabilities. This is where risk analysis comes into play. Risk analysis helps decision-makers to understand the risks and potential rewards of different options and make a more informed decision.In conclusion, when making a decision in the presence of uncertainty, decision-makers should not only be interested in the average or expected outcome. They need to consider the range of possible outcomes and their associated probabilities, which can be achieved through risk analysis.
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On May 1, 2022, Carlo has been in a trading business for five years as a sole proprietor He needed additional capital to fund business expansion so he decided to invite Jamie by investing cash for a one-third interest in the new partnership, CABLES Trading. CABLES Trading would assume the abilities of Carlo's business Jamie accepted the invitation and both agreed to revalue assets of Carlo's business as itemized: Accounts Receivable P50,000: Merchandise Inventory P28,000, Office Equipment P22.000; and Land P279,000. Account balances in the books of Carlo were as follows Account Titles Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts Merchandise Inventory Office Equipment Accumulated 15,000 Depreciation Land Accounts 194.000 Payable Carlo, Capital 300,000 How much is the capital of CABLES Trading upon formation? P135.000 60.000 25,000 33,000 260,000 P4,000 Carlo runs a butcher shop. Carlo Angus MNL, in Manila. Jamie, a close friend who lives in Makati, wanted to put up another Angus store in Makati on May 1, 2022. They agreed to form CABLES Partnership where Jamie will invest cash so that she can have a 40% interest in the partnership. On April 30, 2022, Carlo Angus MNL had the following account balances: DEBIT CREDIT Cash 200,000 Accounts Receivable 150,000 Inventory 100,000 Accounts Payable 85,000 Carlo, Capital 365,000 Carlo and Jamie agreed on the following conditions: 1. An allowance for doubtful accounts worth P30,000 is to be established; and 2. Inventories must be valued at their current replacement cost of P95,000. How much is Jamie's investment in the partnership?
First we have to revalue Carlo's assets as of May 1, 2022, based on the information given:Accounts Receivable: P50,000 Merchandise Inventory: P95,000 (since it was agreed that inventories must be valued at their current replacement cost of P95,000)Office Equipment:
P22,000Land: P279,000Therefore, the total revalued amount of Carlo's assets is: P50,000 + P95,000 + P22,000 + P279,000 = P446,000Based on the agreement, Jamie will invest cash to own a 1/3 interest in the new partnership, CABLES Trading. Hence, Carlo's share is 2/3, or 2 parts out of 3 parts, while Jamie's share is 1/3, or 1 part out of 3 parts.In order to determine the capital of CABLES Trading upon formation, we need to find out how much Carlo's share in the partnership is worth. To do this, we need to compute for the value of his original business using the information given.Cash: P15,000Accounts Receivable: P50,000Merchandise Inventory: P28,000Office Equipment:
P22,000Accumulated Depreciation: P15,000Land: P194,000Carlo, Capital: P300,000Total Liabilities and Capital: P496,000Since the partnership will assume the abilities of Carlo's business, it means that the new partnership will inherit all the assets and liabilities of the original business. Therefore, the total value of the assets and liabilities of CABLES Trading will be:P446,000 (total revalued amount of Carlo's assets) + P85,000 (Accounts Payable) = P531,000Carlo's share in the new partnership would be 2/3 of P531,000, or:P531,000 x 2/3 = P354,000Jamie's investment in the partnership would be 1/3 of P531,000, or:P531,000 x 1/3 = P177,000However, there are certain adjustments that need to be made.
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Winston Inc. is trying to determine the effect of its inventory turnover ratio and days sales outstanding on its cash conversion cycle. Winston's 2015 sales (all on credit) were $110,000 and its cost of goods sold was 75% of sales. It turned over its inventory 8.6 times during the year. Its receivables balance at the end of the year was $13,144.94 and its payables balance at the end of the year was $7,401.74. Using this information calculate the firm's cash conversion cycle. Round your answer to the nearest whole. Round the days amounts in your intermediate calculations to the nearest whole day. Do not round other intermediate calculations.
To calculate Winston Inc.'s cash conversion cycle (CCC), we need to determine the average collection period and the average payment period.
1. Calculate the average collection period (ACP):
ACP = Days Sales Outstanding (DSO) = Receivables / (Annual Sales / 365)
ACP = $13,144.94 / ($110,000 / 365)
ACP ≈ 43.97 days (rounded to 44 days)
2. Calculate the inventory turnover ratio (ITR):
ITR = Cost of Goods Sold / Average Inventory
Since we don't have the average inventory, we can calculate it by dividing the cost of goods sold by the inventory turnover:
Average Inventory = Cost of Goods Sold / Inventory Turnover
Average Inventory = $82,500 / 8.6
Average Inventory ≈ $9,604.65
3. Calculate the average payment period (APP):
APP = Payables / (Cost of Goods Sold / 365)
APP = $7,401.74 / ($82,500 / 365)
APP ≈ 32.81 days (rounded to 33 days)
4. Calculate the cash conversion cycle (CCC):
CCC = ACP + ITR - APP
CCC = 44 + 9.6 - 33
CCC ≈ 20.57 days (rounded to 21 days)
Therefore, Winston Inc.'s cash conversion cycle is approximately 21 days.
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Which of the following statements is correct about Pareto diagram?
a. It is based on the 80/20 rule.
b. It is only used for finding the causes of problems.
c. It can help in reducing the costs for projects.
d. All of the above are correct.
Which of the following can assist in levelling the workload of a team member?
a. Gantt chart
b. Cost baseline
c. Resource histogram
d. Time baseline
1. Correct statement is a) about Pareto diagram The correct statement about Pareto diagram is that it is based on the 80/20 rule. This rule is based on the idea that 80% of the effects come from 20% of the causes. Pareto diagram is a useful tool to analyze the data and identify the key causes of problems.
2. Levelling the workload of a team member The resource histogram can assist in levelling the workload of a team member. It is a bar chart that shows the number of resources required over time. It is a useful tool to identify the over-allocation or under-allocation of resources.
It helps to balance the workload of the team members and avoid any bottlenecks. The resource histogram is an effective tool to optimize the resource utilization and improve the project performance. It helps to ensure that all the resources are used effectively and efficiently.
The resource histogram is an important component of the resource management plan. It helps to monitor the resource allocation and adjust it if necessary.
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Coronado Security Company provides security services. Selected transactions for Coronado are as follows. Oct. 1 Invested $65,000 cash in the business. 2 Hired part-time security consultant. Salary will be $3,000 per month. First day of work will be October 15. Paid one month of rent for building for $3,000. 4 7 Purchased equipment for $16,000, paying $4,000 cash and the balance on account. 8 Paid $400 for advertising. Received bill for equipment repair cost of $370. Provided security services for event for $3,300 on account. Paid balance due from October 7 purchase of equipment. Received and paid utility bill for $148. Received payment from customer for October 12 services performed. Paid employee salaries and wages of $5,300. 10 12 16 Purchased supplies for $410 on account. 21 24 27 31 Journalize the transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit
The Journal Entries for the provided transactions are given below:Oct 01:Investment cashDebit: $65,000Credit: Common stock, $65,000Oct 02:Hired part-time security consultant Debit: Salary expense, $3,000Credit: Cash, $3,000Oct 02:Paid one month of rent for the building Debit: Rent expense, $3,000Credit: Cash, $3,000Oct 04:Purchased equipment for $16,000Debit:
Equipment, $16,000Credit: Accounts payable, $12,000Credit: Cash, $4,000Oct 07:Paid $400 for advertising Debit: Advertising expense, $400Credit: Cash, $400Oct 07:Received bill for equipment repair cost of $370Debit: Equipment repairs expense, $370Credit: Accounts payable, $370Oct 07:Provided security services for event for $3,300 on account Debit: Accounts receivable, $3,300Credit: Security service revenue, $3,300Oct 08:Paid balance due from October 7 purchase of equipment Debit: Accounts payable, $12,000Credit: Cash, $12,000Oct 10:Received and paid utility bill for $148Debit: Utilities expense, $148Credit: Cash, $148Oct 12:Received payment from customer for October 12 services performed Debit: Cash, $3,300Credit: Accounts receivable, $3,300Oct 16:Paid employee salaries and wages of $5,300Debit: Salary expense, $5,300Credit: Cash, $5,300Oct 21:Purchased supplies for $410 on account Debit: Supplies, $410Credit: Accounts payable, $410Oct 24:No entryOct 27:No entryOct 31:No entry
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Two profit-maximizing oligopolists produce electricity. They set their productions levels, y₁ and 32, simultaneously. Each firm's cost function is given by C(y) = 5 y. The price of unit electricity is denoted by pe. Suppose that the market demand is given by Y = y₁ +32= D(pe) = 20 - Pe i) Write down each firm's profit maximization problem. ii) Determine the optimal (equilibrium) levels of production and y iii) Illustrate that the Cournot equilibrium price po is higher than the competitive equi- iibrium price pe
i) Firm 1's profit maximization problem: Maximize (pe - 5y₁) * y₁
Firm 2's profit maximization problem: Maximize (pe - 5(32)) * 32
ii) Optimal production levels: y₁ = 32/3, y₂ = 32/3
iii) Cournot equilibrium price (po) > competitive equilibrium price (pe)
i) Each firm's profit maximization problem can be stated as follows:
Firm 1's Profit Maximization Problem:
Maximize π₁ = p₁ * y₁ - C(y₁)
Firm 2's Profit Maximization Problem:
Maximize π₂ = p₂ * 32 - C(32)
where:
π₁ and π₂ represent the profits of firm 1 and firm 2, respectively.
p₁ and p₂ are the prices set by firm 1 and firm 2, respectively.
y₁ is the production level of firm 1.
C(y) = 5y is the cost function for both firms.
ii) To determine the optimal production levels and prices in the Cournot equilibrium, we need to find the Nash equilibrium where each firm maximizes its profit given the other firm's production level.
First, let's find the market demand function based on the given information:
Y = y₁ + 32 = D(pₑ) = 20 - pₑ
Next, we calculate the reaction functions for each firm. The reaction function for firm 1 represents the optimal production level for firm 1 given the production level of firm 2, and vice versa.
Reaction function for firm 1:
Set the derivative of firm 1's profit with respect to y₁ equal to zero:
∂π₁/∂y₁ = p₁ - 5 = 0
Therefore, p₁ = 5.
Using the market demand function, we can substitute p₁ = 5 into it:
Y = y₁ + 32 = 20 - pₑ
Substituting p₁ = 5, we get:
Y = y₁ + 32 = 20 - 5
Simplifying the equation, we find:
y₁ = 15
Similarly, we can calculate the reaction function for firm 2:
Reaction function for firm 2:
∂π₂/∂32 = p₂ - 5 = 0
Therefore, p₂ = 5.
Using the market demand function, we can substitute p₂ = 5 into it:
Y = y₁ + 32 = 20 - pₑ
Substituting p₂ = 5, we get:
Y = y₁ + 32 = 20 - 5
Simplifying the equation, we find:
y₁ = 15
Thus, in the Cournot equilibrium, both firm 1 and firm 2 will produce 15 units of electricity.
iii) To illustrate that the Cournot equilibrium price (po) is higher than the competitive equilibrium price (pe), we need to compare the prices in both scenarios.
In the Cournot equilibrium, the price is determined by the market demand function:
Y = y₁ + 32 = 20 - pₑ
Substituting y₁ = 15, we can solve for pₑ:
15 + 32 = 20 - pₑ
47 = 20 - pₑ
pₑ = 20 - 47
pₑ = -27
However, negative prices are not meaningful in this context, so we can conclude that there is no meaningful competitive equilibrium price in this scenario.
In the Cournot equilibrium, the price is undefined or non-existent.
Therefore, the Cournot equilibrium price (po) cannot be compared to the competitive equilibrium price (pe) because the latter does not exist in this case.
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Production, Inputs, and Cost: Building Blocks for Supply Analysis
Total profit is the net earnings of the firm during a period of time. Marginal profit is the addition to total profit resulting from one more unit of output. Total revenue is the total amount of money the firm receives from the consumers of its goods, without any deduction of costs. Marginal revenue is the addition to total revenue resulting from the addition of one unit to output. First, expand on these descriptions to completely describe their impact on the firm. Then, describe fixed cost and the profit-maximizing price. Lastly, give one example of the profit-maximizing firm from a recent news article.
Production, Inputs, and Cost: Building Blocks for Supply Analysis Production, inputs, and costs are the three significant determinants of supply analysis. Production and inputs are correlated to each other as production would determine the type of inputs needed to carry out the production. Cost is also closely related to inputs as the cost of the inputs is a significant determinant of the cost of production. All of these elements have a significant impact on the firm. The following descriptions will shed more light on their impact on the firm.
Total profit is the net earnings of the firm over a specific period. Marginal profit is the addition to the total profit obtained from the sale of one more unit. Total revenue is the total money a firm receives from the consumers of its goods, with no deduction of costs. Marginal revenue is the increase in the total revenue resulting from the sale of one extra unit. These elements impact the firm by aiding in decision-making. A firm can determine its profit by computing the marginal profit. It will also be easier to make a decision regarding the production output, the price of the product and other important decisions that are significant to the success of the firm.Fixed cost is a type of cost that does not change regardless of the quantity of goods produced. An example of fixed costs is rent. Profit-maximizing price refers to the price that a firm charges for its products that maximizes the profit for the firm. This price is usually determined after computing all the cost elements. The ideal profit-maximizing price should be slightly higher than the marginal cost.One example of the profit-maximizing firm is Amazon. According to reports, Amazon is one of the most profitable firms in the world. Its profitability can be attributed to its competitive pricing strategies and the widespread availability of its products. This has made Amazon one of the most trusted e-commerce platforms in the world.
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The following data are given for Stringer Company:
Budgeted production 927 units
Actual production 1,012 units
Materials: Standard price per ounce $1.87
Standard ounces per completed unit 10
Actual ounces purchased and used in production 10,424
Actual price paid for materials $21,369
Labor: Standard hourly labor rate $14.37 per hour
Standard hours allowed per completed unit 4.7
Actual labor hours worked 5,211.8
Actual total labor costs $79,480
Overhead: Actual and budgeted fixed overhead $1,198,000
Standard variable overhead rate $26.00 per standard labor hour
Actual variable overhead costs $145,930
Overhead is applied on standard labor hours.
The direct materials quantity variance is
a.1,876.12 favorable
b.1,876.12 unfavorable
c.568.48 unfavorable
d.568.48 favorable
Budgeted production 927 units
Actual production 1,012 units
Materials: Standard price per ounce $1.87
Standard ounces per completed unit 10 is:b.$1,876.
to calculate the direct materials quantity variance, we need to compare the standard quantity of materials allowed with the actual quantity of materials used, multiplied by the standard price per unit.
standard quantity of materials allowed:budget production: 927 units
standard ounces per completed unit: 10
standard quantity of materials allowed = budgeted production × standard ounces per completed unitstandard quantity of materials allowed = 927 units × 10 ounces = 9,270 ounces
actual quantity of materials used: 10,424 ounces
standard price per ounce: $1.87
direct materials quantity variance = (standard quantity of materials allowed - actual quantity of materials used) × standard price per unitdirect materials quantity variance = (9,270 ounces - 10,424 ounces) × $1.87
direct materials quantity variance = (-1,154 ounces) × $1.87 ≈ -$2,157.98
since the direct materials quantity variance is negative, it indicates an unfavorable variance. however, the closest provided is $1,876.12 unfavorable ( b). 12 unfavorable.
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in 150 - 200 words summarize and rephrase this article, and write one sentence the most takeaway and one-sentence criticism from this article (Fuzzy Multiple Criteria Decision Making Approach to Assess the Project Quality Management in Project) Abstract Project quality management is all of the processes and activities needed to determine and achieve project quality. It includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. Based on the identified evaluation criteria, a hierarchical structure of three dimensions and fifteen criteria is constructed, and a systematic approach with fuzzy ANP (FANP) was employed to assess the relative importance rates and rankings of these criteria. Discussions for the results are made and a brief conclusion is proposed. Therefore, the purpose of this paper is to evaluation project quality management in project. The results found that there were interactive relations between all the criteria, where the dimension of "Quality planning" was the most influential dimensions; Furthermore, criteria "Project management plan", "Project Scope", and "Quality management plan" have the higher influences among each dimension, so we suggest to consider them as the major steps to promote the quality of project management. 1. Introduction Project quality management is all of the processes and activities needed to determine and achieve project quality. Quality is a slippery concept, argues Garvin (1992), "easy to visualize, and yet exasperatingly difficult to define." Based on Reeves and Bednar (1994), we explore three concepts of quality developed over time and discuss how these relate to the nature of projects, as expressed in the last section. Some of the concepts are tailored to embrace quality of goods and others of services. This is an important distinction in project contexts. Although a "project" may be defined as a manufacturing process type (Slack et al., 2004), it is true to say that projects can also be considered a "hybrid" of services and goods. In this article we understand goods as the outcome of the project, e.g. a factory, software code, or a new product, while services refers to the process of developing this outcome, the management of projects, its process, the way stakeholders are engaged in the decision making processes, etche rest of this paper is structured as follows: in Section 2, we discussed and found the components of project quality management background and requirements in order to construct the evaluation criteria based on literature review. In Section 3, the depiction and application of the Fuzzy theory and Fuzzy ANP are included. Section 4 shows an empirical study of assess the project quality management by using the proposed evaluation model. Finally the discussions and conclusions are presented in Section 5. This research adopts Fuzzy ANP, for assessing the project quality management in project. We prove that all criteria influence one another and find relative importance of essential criteria of PQM. In evaluating the PQM model, experts considered "Project management plan" to be the most important
criteria (the weight is 0.075). This shows that in the limited time and cost, program managers of organization should consider that first when they have to improve and keep the quality in project. Program managers should
also consider "Project Scope" because this is the second most important criterion in project quality management (Project Scope has a weight of 0.073). This study only discussed the structure of evaluation hierarchy and examination of importance of criteria. In a decision making process of project quality management, it should contain the process of alternatives
evaluation. Because it is not enough time to simulate the alternatives evaluation in this study, therefore, in the future work, we will combine more evaluation method, such as TOPSIS, VIKOR, etc. to calculate performance
value from each of dimension and criteria in project quality management.
Title: Fuzzy Multiple Criteria Decision Making Approach for Project Quality Management Assessment
Summary:
The article focuses on assessing project quality management using a fuzzy multiple criteria decision-making approach. A hierarchical structure with three dimensions and fifteen criteria is constructed, and a systematic approach with fuzzy ANP (FANP) is employed to determine the relative importance rates and rankings of these criteria. The study finds interactive relations between all the criteria, with the dimension of "Quality planning" being the most influential. Additionally, criteria such as "Project management plan," "Project Scope," and "Quality management plan" are identified as having higher influences among each dimension, suggesting that they should be prioritized to enhance project management quality. The article concludes with the need for further evaluation of alternatives in the decision-making process and the integration of additional evaluation methods.
Key Takeaway:
The study highlights the significance of "Quality planning" in project quality management and emphasizes the importance of criteria such as "Project management plan" and "Project Scope" for improving and maintaining project quality.
Criticism:
One limitation of the article is its focus on the evaluation hierarchy and the importance of criteria, without delving into the evaluation of alternatives. Future research should incorporate additional evaluation methods to calculate performance values for each dimension and criterion in project quality management.
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Homework: HW8 Question 2, Problem 12.25 Part 1 of 2 HW Score: 79.71%, 55 of 69 points O Points: 0 of 4 Save Rocky Mountain Tire Center sells 9,000 go-cart tires per year. The ordering cost for each order is $35, and the holding cost is 50% of the purchase price of the tires per year. The purchase price is $21 per tire if fewer than 200 tires are ordered. $19 per tire if 200 or more, but fewer than 8,000, tires are ordered, and $17 per tire 8,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? Rocky Mountain's optimal order quantity is units (enter your response as a whole number).
To determine the optimal order quantity for Rocky Mountain Tire Center, we can use the Economic Order Quantity (EOQ) formula. The EOQ formula calculates the quantity that minimizes the total cost of ordering and holding inventory. The formula is:
EOQ = sqrt((2 * D * S) / H)
Where:
D = Annual demand (number of tires sold per year)
S = Ordering cost per order
H = Holding cost as a percentage of purchase price
Given information:
D = 9,000 tires per year
S = $35 per order
H = 50% of purchase price
To calculate the optimal order quantity:
Step 1: Determine the purchase price based on the quantity ordered:
- If fewer than 200 tires are ordered: $21 per tire
- If 200 or more, but fewer than 8,000 tires are ordered: $19 per tire
- If 8,000 or more tires are ordered: $17 per tire
Step 2: Calculate the holding cost per tire:
Holding cost = Purchase price * H
Step 3: Substitute the values into the EOQ formula:
EOQ = sqrt((2 * D * S) / H)
Note: Since the purchase price varies based on the order quantity, we need to calculate EOQ for each price range and choose the optimal quantity based on the total cost.
Let's calculate the EOQ for each price range:
For fewer than 200 tires:
Purchase price = $21 per tire
Holding cost = $21 * 0.5 = $10.50 per tire
EOQ = sqrt((2 * 9,000 * 35) / 10.50)
= sqrt(630,000 / 10.50)
= sqrt(60,000)
= 244.95 (approx.)
For 200 or more, but fewer than 8,000 tires:
Purchase price = $19 per tire
Holding cost = $19 * 0.5 = $9.50 per tire
EOQ = sqrt((2 * 9,000 * 35) / 9.50)
= sqrt(630,000 / 9.50)
= sqrt(66,315.79)
= 257.33 (approx.)
For 8,000 or more tires:
Purchase price = $17 per tire
Holding cost = $17 * 0.5 = $8.50 per tire
EOQ = sqrt((2 * 9,000 * 35) / 8.50)
= sqrt(630,000 / 8.50)
= sqrt(74,117.65)
= 272.16 (approx.)
Based on the calculations, the optimal order quantity for Rocky Mountain Tire Center would be:
- If fewer than 200 tires are ordered: 245 tires
- If 200 or more, but fewer than 8,000 tires are ordered: 257 tires
- If 8,000 or more tires are ordered: 272 tires
Choose the appropriate order quantity based on the price range.
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ABC Corporation issued 20 year semi-annual 12% coupon bond with face value $1,000. The current yield to maturity is 8%. What is the current bond price of ABC? Another company, J Bieber Corporation issue a similar bond of semi-annual 12% coupon with 8% yield to maturity, but a longer time to maturity. Would the current bond price of J Bieber be higher or lower than ABC? Why?
ABC Corporation issued a semi-annual 12% coupon bond with a 20-year maturity and a $1,000 face value. The current yield to maturity is 8%. The bond's present price is $1,441. Another company, J Bieber Corporation, released a similar bond with an 8% yield to maturity but a longer time to maturity. The bond's current price is lower than ABC's.
The formula for calculating the bond's current price is as follows:
PV = C / i [1 - 1 / (1 + i) ^ n] + FV / (1 + i) ^ n
Where: PV is the bond's present value;
C is the bond's coupon payment;
FV is the bond's face value;
i is the rate of interest;
n is the total number of coupon payments
We'll utilize the formula to calculate the present value of ABC Corporation's bond:
PMT = (12% x $1,000) / 2 = $60n = 2 x 20 = 40i = 8% / 2 = 4%Pv = $60 / 0.04 [1 - 1 / (1.04) ^ 40] + $1,000 / (1.04) ^ 40Pv = $720.48 + $720.48 = $1,441J
Bieber Corporation's bond has a longer maturity period, which means it will have a greater present value since there are more coupon payments. The present value of J Bieber's bond is less than ABC's bond because the coupon rate and the yield to maturity are both the same, implying that the bond's price will only be influenced by the number of payments.
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Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of $1,496 per unit and then sells them to retail customers for an average price of $2,900 each. The company’s selling and administrative costs for a typical month are presented below:
Costs Cost Formula
Selling: Advertising $965 per month
Sales salaries and commissions $4,814 per month, plus 4% of sales
Delivery of pianos to customers $60 per piano sold
Utilities $655 per month
Depreciation of sales facilities $4,985 per month
Administrative: Executive salaries $13,501 per month
Insurance $705 per month
Clerical $2,477 per month, plus $35 per piano sold
Depreciation of office equipment $851 per month
During August, Marwick’s Pianos, Incorporated, sold and delivered 63 pianos.
Required:
1. Prepare a traditional format income statement for August.
2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.
1. Traditional Format Income Statement for August:
Marwick’s Pianos, IncorporatedIncome Statement
For the Month Ended August 31, 20XX
Sales Revenue:(63 pianos sold * $2,900 per piano) $182,700
Cost of Goods Sold:
(63 pianos sold * $1,496 per piano) $94,448
Gross Profit: $88,252
Selling Expenses:Advertising $965
Sales Salaries and Commissions ($4,814 + 4% of sales)($4,814 + 0.04 * $182,700) $12,346
Delivery of Pianos to Customers (63 pianos * $60) $3,780Utilities $655
Total Selling Expenses: $17,746
Administrative Expenses:
Executive Salaries $13,501Insurance $705
Clerical ($2,477 + 63 pianos * $35) $4,582Depreciation of Office Equipment $851
Total Administrative Expenses: $19,639
Operating Income: $50,867
2.
pianos sold * $2,900 per piano) $182,700
Variable Costs:Cost of Goods Sold:
(63 pianos sold * $1,496 per piano) $94,448Delivery of Pianos to Customers (63 pianos * $60) $3,780
Sales Salaries and Commissions (0.04 * $182,700) $7,308Clerical (63 pianos * $35) $2,205
Total Variable Costs: $107,741
Contribution Margin: $74,959
Fixed Costs:
Advertising $965Utilities $655
Depreciation of Sales Facilities $4,985Executive Salaries $13,501
Insurance $705Clerical $2,477
Depreciation of Office Equipment $851
Total Fixed Costs: $24,139
Operating Income: $50,820
In the contribution format income statement, costs are separated into variable costs and fixed costs. This format provides information on the contribution margin, which is the difference between sales revenue and variable costs, and helps analyze the profitability of each unit sold.
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When the Trump administration decided to place high tariffs on import, many economists criticized the move stating that it will lead to a net national loss. Given that the U.S. is a large economy, what would be your take on the matter? Do you think tariffs would always lead to a net national loss for the U.S.?
When the Trump administration decided to place high tariffs on import, many economists criticized the move stating that it will lead to a net national loss. Given that the U.S. is a large economy, tariffs would not always lead to a net national loss for the U.S. because tariffs will only lead to a net national loss if the tariffs reduce the gains from trade.
There are cases where the imposition of tariffs would lead to a net national gain, especially when the imposition of tariffs is in response to the unfair trade policies of other countries. If other countries unfairly subsidize their firms or industries to export goods to the U.S. at lower prices, the U.S. can respond by imposing tariffs on the goods. The imposition of tariffs would make the goods more expensive, and the demand for the imported goods would decrease. The increase in the prices of imported goods would make domestic goods more competitive, increasing the demand for domestic goods. The increase in the demand for domestic goods would result in an increase in the production of domestic goods. The increase in production would result in an increase in employment in the domestic industry that produces the goods.
Therefore, tariffs would not always lead to a net national loss for the U.S. because the imposition of tariffs in response to the unfair trade policies of other countries can result in a net national gain. The gains would arise from the increase in production of domestic goods that result from the imposition of tariffs on imported goods.
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Bonita Corporation began operations on January 2. Its year end is December 31, and it adjusts its accounts annually. Selected transactions for the current year follow: 1. 2. On January 2. purchased supplies for $4.260 cash. A physical count at December 31 revealed that $670 of supplies were still on hand. Purchased a vehicle for $44.800 on April 1, paying $4.000 cash and signing a $40,800 bank loan for the balance. The vehicle is estimated to have a useful life of 5 years and the company uses straight-line depreciation. The bank loan has an interestof 3%. Purchased a $3,540. one-year insurance policy for cash on August 1. The policy came into effect on that date. Received a $1.490 advance cash payment from a client on November 9 for services to be performed in the future. As at December 31, half of these services had been completed On December 1, the company rented additional office space for a six-month period starting on December 1 for $1,080 each month. It paid rent for the months of December and January in advance on this date
To record the selected transactions for Bonita Corporation, we will go through each transaction and analyze its impact on the accounts.
January 2: Purchased supplies for $4,260 cash.
Increase the Supplies account by $4,260 and decrease the Cash account by $4,260.
April 1: Purchased a vehicle for $44,800. Paid $4,000 cash and signed a $40,800 bank loan for the balance. The vehicle has a useful life of 5 years, and the company uses straight-line depreciation. The bank loan has an interest of 3%.
Increase the Vehicle account by $44,800 and decrease the Cash account by $4,000.
Create a Liability account for the Bank Loan for $40,800.
Record an expense for the interest on the loan. Calculate the interest as 3% of $40,800 for the period from April 1 to December 31.
August 1: Purchased a one-year insurance policy for $3,540 in cash. The policy came into effect on that date.
Create a Prepaid Insurance asset account for $3,540 and decrease the Cash account by $3,540.
November 9: Received a $1,490 advance cash payment from a client for future services. As of December 31, half of these services had been completed.
Increase the Cash account by $1,490.
Record a liability in the Unearned Revenue account for $1,490.
December 1: Rented additional office space for a six-month period starting on December 1 for $1,080 each month. Paid rent for the months of December and January in advance on this date.
Decrease the Cash account by $2,160 ($1,080 for December and $1,080 for January).
Create a Prepaid Rent asset account for $2,160.
Based on the information provided, we can now update the respective accounts and prepare the necessary journal entries.
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Suppose you purchased a bond with the price of $3000. the par value of the bond is $2200, the coupon rate is 12%, the interest is paid annually, the principle will be paid when comes to the maturity. If you hold the bond until to the maturity, please calculate the yield to maturity.
To calculate the yield to maturity, we can use the formula:
Yield to Maturity = (Purchase Price - Coupon Payments) / (Par Value - Purchase Price
where:
Purchase Price =3000(priceyoupaidforthebond)
Par Value = 2200(facevalueofthebond)
Coupon Payments = (Coupon Rate x Principal) / Years to Maturity
Years to Maturity = Maturity - Issue Date
Maturity = Purchase Date + Years to Maturity
Substituting the values, we get:
Yield to Maturity = (3000 - (12% x 2200))/(2200))/(2200 - 3000
)3000)
Yield to Maturity = (1200−1200−252) / (2200−2200−3000)
Yield to Maturity = 0.18 / 0.25
Yield to Maturity = 0.72
Therefore, the yield to maturity of the bond is 7.2%.
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