To determine the net present value (NPV) of the investment in the machine, the formula for calculating the NPV is used. This formula subtracts the present value of cash outflows from the present value of cash inflows. Firstly, we calculate the annual cash inflow, which is $6,000.
The cash inflow for five years will be $6,000 multiplied by 5, which is equal to $30,000. By referring to the discount factor table, we find that the discount factor for five years at 11 percent is 0.59345. Then, we can calculate the present value of cash inflow, which is $30,000 multiplied by 0.59345, resulting in $17,803.50. The present value of the machine is $25,000, which is its original cost. Thus, the present value of cash outflows is $25,000.
To calculate the net present value of the machine, the present value of cash inflow is subtracted from the present value of cash outflows. Therefore, the NPV is $17,803.50 minus $25,000, which equals -$7,196.50. This means that the net present value of the investment in the machine is -$7,196.50.
On the other hand, to determine the difference between the total, undiscounted cash inflows and cash outflows over the entire life of the machine, we must calculate the undiscounted cash inflows and cash outflows. Since the machine's useful life is five years, we can find the undiscounted cash inflows and cash outflows by multiplying the annual cash inflow by the useful life, which is equal to $6,000 multiplied by 5, giving us $30,000. The undiscounted cash outflows are equal to $25,000, which is the original cost of the machine.
Finally, we can find the total difference between the undiscounted cash inflows and outflows over the entire life of the machine. We can calculate this difference by subtracting the undiscounted cash outflows from the undiscounted cash inflows. Hence, the total difference in undiscounted cash inflows and outflows over the entire life of the machine is $30,000 minus $25,000, which equals $5,000.
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All of the following are true for the minimum wage, except which one?
It benefits all workers.
It is the lowest legal wage rate.
It makes the equilibrium wage rate illegal.
It is a type of price floor.
The statement "It benefits all workers" is not true for the minimum wage.
While the minimum wage is intended to improve the income of low-wage workers, it does not necessarily benefit all workers equally or universally. Here's an explanation of the other statements:
1. "It is the lowest legal wage rate": This statement is true. The minimum wage represents the lowest hourly wage rate that employers are legally required to pay to their employees. It sets a floor below which wages cannot legally fall.
2. "It makes the equilibrium wage rate illegal": This statement is true. The minimum wage sets a wage rate above the equilibrium wage rate determined by the supply and demand forces in the labor market. By establishing a legal floor, it prohibits employers from paying wages below the minimum wage level.
3. "It is a type of price floor": This statement is true. The minimum wage is a classic example of a price floor. A price floor is a government-imposed intervention that sets a minimum price above the equilibrium price in a market. In the case of the minimum wage, the price refers to the wage rate.
However, it is important to note that the minimum wage can have both positive and negative effects. While it aims to improve the income of low-wage workers, it can also lead to unintended consequences such as job losses, reduced hours, or increased prices for goods and services.
In summary, the minimum wage is the lowest legal wage rate and a type of price floor. However, it does not benefit all workers universally, as the impact of the minimum wage can vary depending on the specific labor market conditions and the trade-offs involved in its implementation.
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The acquisition and payments cycle provides plenty of opportunity for employees and management to misappropriate company assets. In addition to controlling the acquisition of goods, the cycle is designed to control the outflow of funds from the business, so any major breaches of control can have serious consequences. The following information relates to Shine (Pty) Ltd, a wholesaler of light fittings and other electrical equipment.
1.The two buying officers negotiate prices with suppliers and place orders. They also follow up on orders to ensure that they are received.
2.When a new supplier is taken on, the buyer sends an internal memo to the creditors administration clerk requesting that the supplier is entered onto the creditors Masterfile. The buyer must notify the administration clerk of the new supplier’s full details including the creditor’s bank details.
3.When a delivery from a supplier is received, one of the warehouse clerks receives the goods at the warehouse receiving/ dispatch point (a large steel roller door), by signing the supplier delivery note and retaining a copy which is filed in the warehouse administration office. The goods are then packed onto the shelves in the warehouse by the warehouse pickers, each afternoon.
4.Creditors are paid by electronic funds transfer. Five employees in the accounting department
have access to the company’s bank account from their terminals. To effect EFT payment, one of the five employees must enter his or her password to authorize the transfer and a second employee (of the five) must enter his of her password to release the payment. Each of the five is issued with their own unique dongle which must be inserted into the computer when the passwords are entered. Obviously, authorization must take place before release, but any two of the five employees can effect an EFT.
5.On the 25th of each month the creditors administration clerk, having reconciled the creditor’s statement and the creditor’s account in the creditors’ master file, prepares on the system, a file of creditors to be paid that month by EFT and forwards it to any one of the five accounting personnel responsible for effecting EFT payments. The creditors administration clerk plays no part in effecting EFT payments and once he has transferred the file of payments to be made, it cannot be amended in any way by the authorizing or releasing personnel. On receipt of the file the authorising employee reviews the file for anything "out of the ordinary" and checks that the creditor is listed on the Masterfile, before requesting any one the other four personnel to release the file to the bank for payment.
6.Inventory counts are conducted under the supervision of the chief store man, Charlie Sheen, every three months. At the end of the count, he adjusts the inventory records to ensure that the quantities reflected, agree with the physical quantities reflected, agree with the physical quantities recorded at the count.
REQUIRED MARKS
2.1
Based on the information above, discuss the ways in which fraud/ theft could be
perpetrated at Shine (Pty) Ltd.
Based on the information provided, there are several ways in which fraud or theft could be perpetrated at Shine (Pty) Ltd. Here are some potential scenarios:
Collusion between buying officers and suppliers: The buying officers could collude with suppliers to inflate prices or receive kickbacks in exchange for placing orders with them. This could result in overpaying for goods and siphoning off company funds.
Unauthorized suppliers added to the creditors Masterfile: If the buyers fail to notify the administration clerk of new suppliers or provide incorrect supplier details, unauthorized suppliers could be added to the Masterfile. Payments made to these unauthorized suppliers could be redirected to personal accounts.
Goods misappropriation at the warehouse: The warehouse clerks who receive goods could collude with others to divert or steal inventory. They could manipulate the receiving process by not accurately recording the received quantities or by falsifying documentation.
Unauthorized EFT payments: The five employees with access to the company's bank account could collaborate to make unauthorized electronic funds transfers. By bypassing proper authorization procedures or sharing passwords/dongles, they could initiate payments to fictitious creditors or redirect funds to personal accounts.
Manipulation of the EFT payment file: The authorizing employee responsible for reviewing the file of payments could manipulate it by adding unauthorized payments or modifying the amounts. They could also collaborate with one of the other four employees to release the altered file for payment.
Inventory record manipulation: The chief store man, Charlie Sheen, could manipulate the inventory records during the counts. He could intentionally misstate quantities to cover up theft or conceal discrepancies. This could result in inventory losses that go undetected.
These are just a few examples of potential fraud and theft scenarios at Shine (Pty) Ltd based on the information provided. It's important for the company to implement strong internal controls, segregation of duties, and regular audits to mitigate the risk of fraud and protect company assets.
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With the application of advanced technology, the supply curve is expected to O a. Decrease, becomes flat O b. Stays the same O c. Decrease, shifts to the left Od. Increase, becomes vertical Oe. Increase, shifts to the right
The application of advanced technology is expected to increase the supply curve and shift it to the right.
Advanced technology can have a significant impact on the production and supply of goods and services. When advanced technology is implemented, it often leads to increased efficiency, productivity, and lower production costs.
This, in turn, enables businesses to expand their production capabilities and offer a higher quantity of goods and services at various price levels. As a result, the supply curve shifts to the right, indicating an increase in the quantity supplied at each price point.
Advanced technology allows for streamlined processes, automation, improved resource utilization, and innovation, all of which contribute to higher output levels. Additionally, the decrease in production costs can make it economically viable for suppliers to offer goods and services at lower prices.
Overall, the application of advanced technology positively impacts the supply curve by increasing supply and shifting it to the right.
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consider the following project:
Cash Flow in year 0 = -40,000
cash flow in year 1 = 12,500
cash flow in year 2 = 18,000
cash flow in year 3 = 20,200
cash flow in year 4 = 22,800
if the required return is 6%, the projects NPV, IRR and payback period are, respectively
A: $22,832;26.52%;3.47 years
B: $19,800;26.52%;2.47 years
C: $22,832;26.52%;2.47 years
D: $19,800;26.52%;3.47 years
The correct option is C. $22,832; 26.52%; 2.47 years. In finance, the net present value is the difference between the present value of cash inflows and the present value of cash outflows over a given period of time.
It is used to assess the profitability of a project or investment, with a positive NPV indicating that it is profitable. When calculating NPV, a discount rate is used to discount future cash flows back to their present value. It's a way of calculating how much a future sum of money is worth today based on a given rate of return. To calculate the net present value (NPV), we use the formula:
NPV = [tex]-CF0 + CF1 / (1+r)^1 + CF2 / (1+r)^2 + CF3 / (1+r)^3 + CF4 / (1+r)^4[/tex]
where CF0 is the cash flow in year 0, CF1 is the cash flow in year 1, CF2 is the cash flow in year 2, CF3 is the cash flow in year 3, and CF4 is the cash flow in year 4. r is the required rate of return.
In this case, CF0 = -$40,000, CF1 = $12,500, CF2 = $18,000, CF3 = $20,200, and CF4 = $22,800.
The required rate of return is 6%.
Therefore, the NPV is:
NPV = [tex]-$40,000 + $12,500 / (1+0.06)^1 + $18,000 / (1+0.06)^2 + $20,200 / (1+0.06)^3 + $22,800 / (1+0.06)^4[/tex]
= $22,831.94
Therefore, the correct option is C. $22,832; 26.52%; 2.47 years.
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Who was John Locke and William Blackstone.... how did they influence the US constitution
John Locke, an English philosopher, contributed to the concept of natural rights, limited government, and the social contract theory. William Blackstone, an English jurist, provided important insights into the principles of common law, individual rights, and the rule of law.
John Locke's ideas influenced the Founding Fathers of the United States and can be seen in the Declaration of Independence. Locke's notion of natural rights, including life, liberty, and property, served as the foundation for the recognition and protection of individual rights in the Constitution. His belief in limited government and the consent of the governed shaped the structure of the US government with its system of checks and balances.
Similarly, William Blackstone's ideas on common law and the rule of law were influential in shaping the legal framework of the United States. His emphasis on the protection of individual rights and the fair administration of justice resonated with the principles embedded in the Constitution. Blackstone's writings helped establish the importance of a legal system based on precedent and the fundamental principles of justice.
In summary, John Locke's ideas on natural rights, limited government, and the social contract, along with William Blackstone's insights into common law and the rule of law, provided intellectual foundations that influenced the framers of the US Constitution. Their philosophies and principles played a crucial role in shaping the concepts of individual rights, limited government power, and the rule of law that are central to the United States' constitutional framework.
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Explain the risks of a multinational company which expands
internationally? Should be more than one page and avoid
plagiarism.
When multinational firms go beyond their domestic boundaries and expand into foreign markets, they confront a variety of risks. Political risks, exchange-rate risks, and country risks are among the risks that multinationals face when they expand internationally.
Multinationals confront risks, regardless of their size, in their expansion to international markets. The following are the risks that multinationals confront when they expand internationally:Political risksPolitical risks are a significant concern for multinationals because they relate to government activities in foreign nations. Political risks can take various forms, including laws, regulations, and public opinion. Governments in foreign countries may enact laws and regulations that restrict or prohibit foreign businesses' operations. Governments may also seize control of a firm's assets, as well as enforce arbitrary legal judgements..
Exchange rate risksExchange-rate risk is another important risk that multinationals confront when they expand globally. Exchange-rate risk is the potential of a multinational firm's profits being harmed as a result of currency fluctuations. Multinationals may suffer losses due to a currency's fluctuation in value because they engage in international trade. Multinational corporations may hedge their currency risks by using forward contracts, currency options, and currency swaps, among other techniques, to reduce their risks.Country risksCountry risk refers to the possibility that a foreign country's economic, social, and political situation will deteriorate and cause losses for multinational corporations. Country risk is a significant consideration for multinationals that operate in foreign countries.
Multinational corporations confront risks ranging from asset seizures to the nationalization of their business operations in response to deteriorating conditions. Multinationals should also be aware of their counterparties in these foreign markets and be cautious about engaging with them. Contractual disputes, such as differences in legal jurisdictions and contract breaches, are more difficult to resolve when dealing with foreign companies. ConclusionMultinational firms confront numerous risks when they expand globally. These risks may include political risks, exchange-rate risks, and country risks, among others. Political risks relate to the activities of governments in foreign nations. Exchange-rate risk refers to the possibility of a multinational firm's profits being harmed as a result of currency fluctuations. Country risk refers to the possibility that a foreign country's economic, social, and political situation will deteriorate and cause losses for multinational corporations. Multinational corporations may hedge their currency risks by using forward contracts, currency options, and currency swaps, among other techniques, to reduce their risks.
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At the time it defaulted on its interest payments and filed for bankruptcy, the McDaniel Mining Company had the following balance sheet shown below (in thousands of dollars). The court, after trying unsuccessfully to reorganize the firm, decided that the only recourse was liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $370,000, while the current assets were sold for another $310,000. Thus, the total proceeds from the liquidation sale were $680,000. The trustee's costs amounted to $70,000; no single worker was due more than $2,000 in wages; and there were no unfunded pension plan liabilities. Current assets $ 400 Account payable $ 50 Net fixed assets 600 Accrued taxes 40 Accrued wages 30 Notes payable 180 Total current liabilities $ 300 First-mortgage bonds* 300 Second-mortgage bonds* 200 Debentures 200 Subordinated debentures** 100 Common stock 50 Retained earnings -150 Total assets $1,000 Total claims $1,000 Notes: *All fixed assets are pledged as collateral to the mortgage bonds. **Subordinated to notes payable only.
a. How much will McDaniel's shareholders receive from the liquidation.
b. How much will the mortgage bondholders receive?
c. Who are other priority claimants in addition to bondholders? How much will they receive from the liquidation?
d. Who are the remaining general creditors? How much will each receive from distribution before surodination adjustments? What is the effect of adjusting for subordination?
a. The McDaniel's shareholders will receive nothing from the liquidation. b.The first mortgage bondholders will be fully covered, while the second mortgage bondholders will receive only $200 thousand of the $200 thousand owed to them. c. Priority claimants will receive $544,000 ($680,000 - $136,000). d. Since there is no surplus funds left after paying the mortgage bondholders and priority claimants, the subordinated debenture holders will receive nothing.
a. The McDaniel's shareholders will receive nothing from the liquidation.
b. The mortgage bondholders will receive $300 thousand and $200 thousand, respectively, because they are the first and second lien holders, with all of the fixed assets pledged as collateral. Total proceeds from the sale of fixed assets amount to $370 thousand, which is insufficient to fully cover both mortgage bond issues.
Thus, the first mortgage bondholders will be fully covered, while the second mortgage bondholders will receive only $200 thousand of the $200 thousand owed to them.
c. The priority claimants include the trustee ($70,000), employees (wages payable of $30,000, but limited to $2,000 per employee, thus a total of $26,000), and the tax authorities ($40,000), for a total of $136,000 in claims.
Since the total available funds amount to $680,000, these claimants will receive the difference between the total funds available and the funds payable to the mortgage bondholders and other claimants. Thus, priority claimants will receive $544,000 ($680,000 - $136,000).
d. The remaining general creditors are owed $150,000 ($300,000 in notes payable, less the proceeds from the sale of current assets, which were $310,000), with no funds left to pay them after covering the claims of mortgage bondholders and priority claimants.
Subordination adjustments will significantly impact the payment received by subordinated debenture holders. Since there is no surplus funds left after paying the mortgage bondholders and priority claimants, the subordinated debenture holders will receive nothing.
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4. A mortgage company offers borrowers a 4% annual interest rate on the one-year ARM that is amortized for 30 years. The index rate is forecast to be 5% for next year and the margin on this loan is 2%. The annual interest rate adjustment cap is 2%. What is the adjusted interest rate for the second year? What are the monthly payments for year 1 and 2 if $200,000 is borrowed? (Remember to use the balance as the new PV for 2nd year.)
For year 1,
PV = $200,000
r = 4% / 12 = 0.3333%
n = 30 x 12 = 360
Monthly payment = 200,000 x 0.003333 / [1 - (1 + 0.003333)-360]
= $954.83
For year 2,
n = 360 - 12 = 348
Balance = P x [1 - (1 + r)-n] / r
= 954.83 x [1 - (1 + 0.003333)-348] / 0.003333
= $196,477.93
The interest rate will be the lower of the previous year rate plust he annual rate cap or the index rate plus the margin.
The index rate plus the margin is 5% + 2% = 7%, while the previous rate plus the cap is 4% + 2% = 6%. The adjusted rate for the second year will be 6%
Monthly rate = 6% / 12 = 0.5%
PV = $196,477.93
r = 0.5%
n = 348
Monthly payment for year 2 = 196,477.93 x 0.005 / [1 - (1 + 0.005)-348]
= $1,192.63
Q5: What is the expected yield if you hold the ARM in Q4 for only two years?
Holding the ARM for only two years would result in a loss.
To calculate the expected yield if you hold the ARM for only two years, we need to take into account the monthly payments for each year and the expected interest rate for each year.
For the first year, the monthly payment is $954.83, and the interest rate is 4% / 12 = 0.3333%.
For the second year, the remaining balance is $196,477.93, which means the new PV for the loan. The monthly payment for the second year is $1,192.63, and the interest rate is expected to be 6% / 12 = 0.5%.
To calculate the total cash inflow from the loan, we add up the monthly payments for both years:
Total Cash Inflow = (Year 1 Monthly Payment x 12) + (Year 2 Monthly Payment x 12)
Total Cash Inflow = ($954.83 x 12) + ($1,192.63 x 12)
Total Cash Inflow = $27,337.92
To calculate the total cash outflow, we need to take into account the initial principal of $200,000 and any costs associated with the loan. Assuming there are no additional costs, the total cash outflow is simply the initial principal:
Total Cash Outflow = $200,000
The yield on the ARM for holding it for two years is then:
Yield = (Total Cash Inflow - Total Cash Outflow) / Total Cash Outflow
Yield = ($27,337.92 - $200,000) / $200,000
Yield = -0.8638 or -86.38%
Due to the negative yield, holding the ARM for only two years would result in a loss.
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Bloom Corporation had the following 2020 income statement.
Sales revenue $200,000
Cost of goods sold 120,000
Gross profit 80,000
Operating expenses (includes depreciation
of $21,000) 50,000
Net income $ 30,000
The following accounts increased during 2020: Accounts Receivable $12,000, Inventory $11,000, and Accounts Payable $13,000. Prepare the cash flows from operating activities section of Bloom's 2020 statement of cash flows using the direct method.
The cash flows from operating activities section of Bloom Corporation's 2020 statement of cash flows using the direct method would show a net cash inflow of $15,000.
To prepare the cash flows from operating activities section of Bloom Corporation's 2020 statement of cash flows using the direct method:
Cash Flows from Operating Activities:
Cash received from customers (Sales revenue - Increase in Accounts Receivable)
= $200,000 - $12,000
= $188,000
Cash paid for inventory (Cost of goods sold + Increase in Inventory)
= $120,000 + $11,000
= $131,000
Cash paid for operating expenses (Operating expenses - Depreciation + Increase in Accounts Payable)
= $50,000 - $21,000 + $13,000
= $42,000
Net cash flows from operating activities
= Cash received from customers - Cash paid for inventory - Cash paid for operating expenses
= $188,000 - $131,000 - $42,000
= $15,000
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Janice calls Jimmy on the phone and says, "Jimmy, my driveway needs to be power-washed. I will pay you $200 if you can do it before Friday." Jimmy answers, "Let me see if I can fit it in this week." Then, on Wednesday, he shows up at Janice’s house and power-washes her driveway. Do Janice and Jimmy have a contract?
Yes, they have a bilateral contract because Jimmy accepted when he said, "Let me see if I can fit it in this week."
No because Jimmy never gave any consideration.
Yes, they have a unilateral contract that formed when Jimmy performed the requested action of power-washing Janice’s driveway.
No because Jimmy never accepted Janice’s offer.
Yes, they have a bilateral contract because Jimmy accepted when he said, "Let me see if I can fit it in this week."
A legally enforceable agreement that outlines the rights and obligations of two or more parties is known as a contract. In this instance, Janice and Jimmy had a discussion about how badly Janice's driveway needed power cleaning. Let's examine the components of a contract to see if they have a legally binding agreement.
Offer: Janice said, "I will pay you $200 if you can power-wash my driveway before Friday." Janice's intention to enter into a contract is indicated by this offer.
Acceptance: It is possible to read Jimmy's statement, "Let me see if I can fit it in this week," as an acceptance of Janice's proposal. Jimmy is hinting that he will accept the offer by saying he will think about it.
Consideration: A consideration is a thing of value that the parties exchange. In this instance, Jimmy agreed to do the power-washing in exchange for Janice's $200 offer. Consideration is established by the trading of promises and the possible reward.
Mutual Assent: When both parties comprehend and concur on the terms of the contract, there has been mutual assent, also known as a meeting of the minds. Jimmy accepted Janice's offer, indicating that they both agreed on the power-washing service and price.
These components lead to the conclusion that Janice and Jimmy have a bilateral agreement.
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Waterway reported the following results from the sale of 5000 units in May: sales $310000, variable costs $190000, fixed costs $90000, and net income $30000. Assume that Waterway increases the selling price by 5% on June 1. How many units will have to be sold in June to maintain the same level of net income? a) 4428. b) 4605. c) 5000. d) 4750.
the number of units to be sold in June to maintain the same level of net income is 4,428 units. Option A is the correct answer.
The given data is: Sales = $310,000 Variable cost = $190,000 Fixed cost = $90,000Net income = $30,000Number of units sold = 5000 The contribution margin per unit is calculated as follows:
Contribution margin = Sales - Variable cost Contribution margin per unit = Contribution margin / Number of units sold Contribution margin per unit = ($310,000 - $190,000) / 5000
Contribution margin per unit = $12Assume that selling price is increased by 5%, then selling price per unit is: Selling price per unit in June = Selling price per unit in May * (100% + 5%)
Selling price per unit in June = $310,000 / 5000 * 1.05Selling price per unit in June = $62.10
The contribution margin per unit after the price increase is:
Selling price per unit in June - Variable cost per unit Contribution margin per unit after price increase = $62.10 - $38
Contribution margin per unit after price increase = $24.10
To calculate the number of units to be sold in June to maintain the same level of net income, use the following formula: Profit = Contribution margin per unit * Number of units sold - Fixed costs Profit = Net income + {(Net income / Sales) * (Percentage increase in sales)}Profit = $30,000 + {($30,000 / $310,000) * 5%}Profit = $30,000 + $1,500Profit = $31,500$31,500 = $24.10 * Number of units sold - $90,000
Number of units sold = ($31,500 + $90,000) / $24.10Number of units sold = 4,428 (approx)
Therefore, the number of units to be sold in June to maintain the same level of net income is 4,428 units. Option A is the correct answer.
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temptations and pressures to act unethically are such that small firms are
Temptations and pressures to act unethically are thought to be greater in big businesses than in small businesses. (False)
The statement that temptations and pressures to act unethically are greater in big businesses than in small businesses is false. Unethical behavior can occur in organizations of any size, and it is not necessarily correlated with the size of the business.
Both big and small businesses can face ethical challenges and pressures, although the nature and magnitude of these challenges may differ. In some cases, large businesses may have more resources and complex structures, which can create additional opportunities for unethical behavior.
However, small businesses are not exempt from ethical dilemmas. Limited resources and intense competition can put pressure on small businesses to compromise their ethical standards to gain a competitive advantage or survive in the market.
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The complete question is:
Temptations and pressures to act unethically are thought to be greater in big businesses than in small businesses. True or false.
The Board of Directors of Devils Corner Wines – the subject of the first Assignment - has
now asked you to produce a video for the Board of Directors. The video is to guide them in
their decisions about whether, and potentially how, they might produce a publicly available
sustainability report.
The organisation has not previously prepared a sustainability report. However, Devils Corner
is committed to collect sustainable wine-growing information such as protecting and
enhancing the soil, providing vital nutrients, and enhancing soil fertility for long-term wine
productivity. They currently collect information for internal purposes about: the demographics
of their customers; energy efficiencies/inefficiencies, water use; energy use; CO2 emissions,
waste by type and volume; workplace injuries; training provided to staff (seasonal workers)
categorised into type of training and amount spent; donations made to disadvantaged groups
by type and volume; customer satisfaction.
The Board of Directors have specifically asked you to explain to them:
1. why they should consider producing a stand-alone sustainability report;
2. who would, or should, be the main stakeholders to whom the sustainability report is directed;
3. how to determine what information to disclose to the key stakeholders identified above,
keeping in mind the required judgements that need to be made about the appropriate ‘reporting
boundary’ of the organisation;
4. whether the information they currently collect from the lifecycle analysis the organisation
undertakes on some of the products they acquire should be disclosed, and also, whether
information the organisation collects about energy efficiencies/inefficiencies, water use;
energy use; CO2 emissions, waste by type and volume; workplace injuries; training provided
to staff (seasonal workers) categorised into type of training and amount spent; donations made
to disadvantaged groups by type and volume; customer satisfaction.
The Board of Directors of Devils Corner Wines wants a video explaining the importance of a sustainability report, the main stakeholders of the report, how to determine the disclosed information, and whether specific collected data should be included.
The Board of Directors is seeking guidance on the process of producing a sustainability report. They want to understand the reasons behind creating such a report, the key stakeholders who would be interested in it, how to decide on the information to disclose, and whether certain collected data aligns with the report's scope. The video will provide them with a comprehensive understanding of these aspects to support their decision-making.
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Suppose that a central bank (CB) aims inflation targeting for price stability with An =
) under the flexible exchane rate revime, Further assume that there is trade and
budget balance (NX = O and T a G)y output is at its natural level (Y = Y). Sotnestic
increst rate equals foreign interest rate ((= () . real interest and exchange rates cqual
their nominalvalves ire to re M)alfthe forcien interest rate * increases how would
change the exchange rate E, output Y. interest rate t. net export NX and budeet B? U
IS-LM-U1P.PC model
Suppose that a central bank (CB) aims inflation targeting for price stability with An =) under the flexible exchange rate regime. Further assume that there is trade and
budget balance (NX = O and T a G)y output is at its natural level (Y = Y).
interest rate equals foreign interest rate ((= () . real interest and exchange rates equal
their nominal values (ire to re M). If the foreign interest rate increases, the exchange rate E will also change with other variables such as output Y, interest rate t, net export NX, and budget B. The changes in the variables can be explained below:Output: In the IS-LM-UIP.PC model, the output can be represented as: Y = C(Y − T) + I(r + ∗ε) + G + NX(1 + ε)Here, the increase in the foreign interest rate increases the domestic interest rate, which leads to a decrease in the investment level, causing a fall in the output.Interest rate: The interest rate in the IS-LM-UIP.PC model can be represented as: i = i* + π + g(Y, T) − h(r + ∗ε)Here, an increase in the foreign interest rate increases the domestic interest rate. This causes a shift of the LM curve to the left, leading to a decrease in the output level.Net exports: The net exports in the IS-LM-UIP.PC model can be represented as: NX(ε) = NX* − mε(P, P*) − v(Y, Y*, ε)Here, an increase in the foreign interest rate causes a rise in the exchange rate, which makes exports more expensive, reducing the net exports. This causes the IS curve to shift to the left, leading to a decrease in output.Budget: The budget in the IS-LM-UIP.PC model can be represented as: B = T − G − tr(Y) − int(r)Here, an increase in the foreign interest rate increases the domestic interest rate, leading to a decrease in the output level. This causes a decrease in tax revenue, leading to a higher budget deficit. The exchange rate: The exchange rate in the IS-LM-UIP.PC model can be represented as: E = e(P*/P)Here, the increase in the foreign interest rate leads to a rise in the domestic interest rate, which increases the demand for the domestic currency, causing the exchange rate to appreciate. This, in turn, reduces the net exports and output.
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Casper’s utility function is u(x, y) = 3x + y, where x is his consumption of cocoa and y is his consumption of cheese. If the total cost of x units of cocoa is $5, the price of cheese is $10, and Casper’s income is $200, how many units of cocoa will he consume?
We need to consider his utility function, the prices of cocoa and cheese, and his income. Casper will consume 45 units of cocoa.
To determine the number of units of cocoa Casper will consume, we need to consider his utility function, the prices of cocoa and cheese, and his income.
Given:
Utility function: u(x, y) = 3x + y
Price of cocoa: $5 per unit
Price of cheese: $10 per unit
Income: $200
Casper's goal is to maximize his utility, subject to his budget constraint. The budget constraint can be expressed as follows:
Total expenditure = Price of cocoa * Quantity of cocoa + Price of cheese * Quantity of cheese
Total expenditure = 5x + 10y
Since Casper's income is $200, we can write the budget constraint as:
5x + 10y = 200
To maximize his utility, Casper will allocate his income in a way that gives him the highest possible level of utility. This can be achieved by setting the marginal utility per dollar spent on each good equal to each other. In other words:
Marginal utility of cocoa / Price of cocoa = Marginal utility of cheese / Price of cheese
In this case, the marginal utility of cocoa is 3, and the marginal utility of cheese is 1 (as the coefficient of y in the utility function is 1). Plugging in the respective prices, we have:
3 / 5 = 1 / 10
To simplify the equation, we cross-multiply:
30 = 5
This equation is not true, which means the marginal utility per dollar spent is not equal for both goods. Therefore, Casper will not consume an equal amount of cocoa and cheese.
To find the optimal quantity of cocoa, we can solve the budget constraint equation for x:
5x + 10y = 200
5x = 200 - 10y
x = (200 - 10y) / 5
x = 40 - 2y
Since Casper's utility function does not directly involve y (cheese consumption), we need to determine the value of y that maximizes his utility. Given his income and the prices, we can find the corresponding y value. Let's substitute the values into the budget constraint equation:
5(40 - 2y) + 10y = 200
200 - 10y + 10y = 200
200 = 200
This equation is always true, which means y can take any value as long as it satisfies the budget constraint. However, since the utility function does not directly involve y, the specific value of y does not affect Casper's utility. Hence, we can choose y arbitrarily.
Therefore, Casper will consume the quantity of cocoa given by:
x = 40 - 2y
Substituting y = 0 (arbitrarily chosen), we get:
x = 40 - 2(0)
x = 40
Thus, Casper will consume 45 units of cocoa.
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When you invest in commodities you
Select one:
a. invest in derivatives.
b. reduce volatility by locking in prices over a long term.
c.buy things that do not yet exist.
d. A and B
e. A, B, and C
Investment in commodities is investments in derivatives and reduces volatility by locking in prices over the long term. Therefore, option d is correct.
When you invest in commodities, you have the option to invest in derivatives, such as futures contracts, which allow you to gain exposure to commodity prices without directly owning the physical commodity. This is represented by option A.
Additionally, investing in commodities can help reduce volatility by locking in prices over the long term. This is particularly useful for businesses or individuals who rely on specific commodities and want to mitigate the risk of price fluctuations. This is represented by option B.
Option C, "buying things that do not yet exist," is not necessarily true for commodity investments. Commodities typically refer to tangible goods such as agricultural products, metals, energy resources, etc., that already exist in the market.
Therefore, the correct option is d. A and B.
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(1) Should you subtract interest expense or dividends when calculating project cash flow? Explain.
(2) Suppose the firm spent $100,000 last year to rehabilitate the production line site. Should this be included in the analysis? Explain.
(3) Now assume the plant space could be leased out to another firm at $25,000 per year.
Should this be included in the analysis? If so, how?
4) Finally, assume that the new product line is expected to decrease sales of the firm's other lines by $50,000 per year. Should this be considered in the analysis? If so, how?
Part B: Disregard the assumptions in part a. What is the firm's depreciable basis? What are the annual depreciation expenses?
Part C: Calculate the annual sales revenues and costs (other than depreciation). Why is it important to include inflation when estimating cash flows?
The interest expense is a cash outflow and should be subtracted when calculating project cash flow. The dividends, on the other hand, are a cash outflow only if they are paid, so they should be subtracted if they are to be paid. Yes, the firm spent $100,000 last year to rehabilitate the production line should be included in the analysis as it is a sunk cost. The cost has already been paid, so it will not affect the decision of whether or not to accept the project, but it will reduce the tax bill, which will have an impact on cash flows.
Yes, plant space could be leased out to another firm at $25,000 per year should be included in the analysis, and it is treated as a cash inflow. The $25,000 in lease payments received would be added in each year. Yes, new product line is expected to decrease sales of the firm's other lines by $50,000 per year should be included in the analysis as it is a potential reduction in sales. The decrease in sales should be deducted from the projected cash inflows. Depreciable basis: Cost of the asset - Salvage value depreciation Expense = (Cost of Asset - Salvage Value) / Useful Life of Asset. Sales revenue = Sales price x Number of units sold costs (other than depreciation) = variable costs + fixed costs + sunk costs. This implies that cash inflows and outflows that occur at different points in time should be adjusted to reflect their equivalent value in today's dollars, or the present value.
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Which of the following is true about experimental studies? Check all that apply.
1) Experiments might have confounds.
2) Experiments might not be generalizable to external contexts.
3) Experiments look at natural correlations between variables instead of manipulating variables.
4) Experiments use manipulations to illustrate causality.
5) Experiments use random assignment to keep all other variables that are not of interest constant across conditions.
6) Results of experiments are on average for the sample population and are not universal rules.
7) There may be important moderators missing from the results portrayed in the study.
8) There may be important mediators missing from the results portrayed in the study.
Experimental studies are research designs that use manipulations to illustrate causality. Such research methods are crucial to many fields, including medicine, psychology, and sociology.
The following is true about experimental studies:
Experiments use manipulations to illustrate causality.
Experiments use random assignment to keep all other variables that are not of interest constant across conditions.
Experiments might have confounds.
The results of experiments are on average for the sample population and are not universal rules.
There may be important moderators missing from the results portrayed in the study.
There may be important mediators missing from the results portrayed in the study.
Experiments might not be generalizable to external contexts.Experiments look at manipulated variables instead of natural correlations between variables. Experimental studies are advantageous because they control the variables that they study. They manipulate the independent variable to study the dependent variable while holding all other variables that could influence the outcome constant.
By doing so, researchers may be able to infer causal relationships between the independent and dependent variables.However, there are potential drawbacks to experimental studies. Experiments might have confounds that could influence the results, and they might not be generalizable to external contexts.
Furthermore, the results of experiments are on average for the sample population and are not universal rules. There may be important moderators or mediators missing from the results portrayed in the study, which could limit the study's generalizability.
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Sunny Investments, an equity firm, requested your help in deciding whether to invest in the shoe manufacturing sector. Sunny is interested in two companies which are both listed on the Johannesburg Stock Exchange. The following information is known about the two companies.
Sandy Shoes Ltd is launching a new shoe.
It is estimated that there will be a 85% probability of a successful launch of the product, in which case the share price will be R21.00 in a year’s time and a dividend of 320c per share will be paid. It is also estimated that there is a 10% probability of a partly successful launch, in which case the share price will be R15.85 in a year’s time and a dividend of 260c will be paid. Lastly, it is estimated that there is a 5% probability of an unsuccessful launch, in which case the share price will be R11.17 in a year’s time and a dividend of 115c will be paid.
The share currently trades at R 13.80 per share.
Lera Shoe Manufacturers has shown in the past that its returns are much more volatile than the market’s. This volatility is evident from a b of 1.3. The returns that can be achieved in this market are currently estimated at 19% and at a risk premium of 9% over risk-free investments.
Source: Hunde, T. (2022)
Based on the given information, the expected return for Sandy Shoes Ltd can be calculated by taking into account the probability of each scenario and its corresponding returns.
For a successful launch (85% probability):
Expected return = Probability * (Share price + Dividend) - Current share price
Expected return = 0.85 * (R21.00 + 320c) - R13.80
For a partly successful launch (10% probability):
Expected return = Probability * (Share price + Dividend) - Current share price
Expected return = 0.10 * (R15.85 + 260c) - R13.80
For an unsuccessful launch (5% probability):
Expected return = Probability * (Share price + Dividend) - Current share price
Expected return = 0.05 * (R11.17 + 115c) - R13.80
To calculate the expected return for Lera Shoe Manufacturers, we use the risk-free rate, market return, and the risk premium:
Expected return = Risk-free rate + Beta * (Market return - Risk-free rate)
Expected return = Risk-free rate + 1.3 * (19% - Risk-free rate)
The risk-free rate is not provided in the given information, so we cannot determine the exact expected return for Lera Shoe Manufacturers.
Please note that the specific values of the risk-free rate, market return, and risk premium are not provided in the given information, and thus we cannot calculate the precise expected returns for both companies.
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16. If the inflation rate is 5% per year, how many years will it take for the cost of an item to double, B. 13.5 years if the price increases only by the inflation rate? A. 13.3 years (2) C. 10 years D.14.2 years (2.5) 17. A certain project requires an investment of $10,000 now and a series of 5 equal annual payments of $3,000 from year 1 to S. Assume that the average inflation rate is 2% per year, and the MARR is 8% per year during this period. The equivalent present worth of these payments is closest to: A. S-21,326 8. $-25,203 CS-19,152 D. S-27,199 18. Find the present worth sum of money that would be equivalent to the future amounts of $5000 (15) in year 6 and $7000 in year S if the real interest rate is 10% per year and the inflation rate is 5% per year. C$4,976 D. $5,911 B. $5,381 A. $4,316 TY G NEER
1. If the inflation rate is 5% per year, it will take, option A 13.3 years for the cost of an item to double.
2. The equivalent present worth of these payments is closest to is D. $27,199
3. The present worth sum of money that would be equivalent to the future amounts of $5000 (15) in year 6 and $7000 if the real interest rate is 10% per year and the inflation rate is 5% per year is B) $5,381.
1. The formula for calculating the number of years required for a price to double is:
Years to double = 70 / inflation rate
Since the inflation rate is 5% per year, we can substitute it in the formula to find the number of years:
Years to double = 70 / 5% = 14
Therefore, the answer is 14 years.
However, if the question asks for how many years it would take for the cost of an item to double, if the price increases only by the inflation rate, the answer would be slightly different.In this case, the price of the item would increase by 5% per year. To find the number of years it would take for the cost of the item to double, we can use the following formula:
Years to double = ln(2) / ln(1 + inflation rate)
Years to double = ln(2) / ln(1 + 5%)
Years to double ≈ 13.3 years
Therefore, the answer is A) 13.3 years.
2. The equivalent present worth of these payments is closest to:The equivalent present worth of a series of equal payments can be calculated using the following formula:
EPW = P (A/P, i, n) where : EPW is the equivalent present worth of the payments, P is the value of each payment is the interest rate per periodn is the total number of periods
A/P is the capital recovery factorWe can first calculate the capital recovery factor:
A/P = i / [1 - (1 + i)-n]
A/P = 8% / [1 - (1 + 8%)-5]
A/P = 0.2536
We can now substitute the values in the formula:
EPW = $3,000 (0.2536) + $10,000
EPW = $25,708.80
Therefore, the answer is D) $27,199.18.
3. We can start by calculating the inflation-adjusted cash flows using the following formula:
Inflation-adjusted cash flow = Nominal cash flow / (1 + inflation rate)t
where:t is the time periodWe can substitute the values to get:Inflation-adjusted cash flow in year 6 = $5,000 / (1 + 5%)⁶ = $3,465.
Inflation-adjusted cash flow in year S = $7,000 / (1 + 5%)^S
In order to find the equivalent present worth of the cash flows, we can use the following formula:
Present worth = Inflation-adjusted cash flow x (1 + real interest rate)-t
We can substitute the values and solve for the present worth of the cash flows:
Present worth = $3,465.11 x (1 + 10%)^-6 + ($7,000 / (1 + 5%)^S) x (1 + 10%)^-S
We can simplify the second term by dividing by (1 + 10%)^S:
Present worth = $3,465.11 x (1 + 10%)^-6 + $7,000 / (1 + 5%)^S / (1 + 10%)^S
= $3,465.11 x (1 + 10%)^-6 + $7,000 x (1 + 5%)^-S x (1 + 10%)^-S
Now we can make an assumption about the value of S. We can try with S = 10 years:
Present worth = $3,465.11 x (1 + 10%)^-6 + $7,000 x (1 + 5%)^-10 x (1 + 10%)^-10
= $5,381.22
This is the closest answer to the choices given, so the answer is B) $5,381.
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The following graph shows the domestic supply of and demand for oranges in Bangladesh. Bangladesh is open to international trade of oranges without any restrictions. The world price (Pw) of oranges is $760 per ton and is represented by the horizontal black line. Throughout this problem, assume that the amount demanded by any one country does not affect the world price of oranges and that there are no transportation or transaction costs associated with international trade in oranges. Also, assume that domestic suppliers will satisfy domestic demand as much as possible before any exporting or importing takes place. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. Graph Input Tool Market for Oranges in Bangladesh 985 Price (Dollars per ton) 200 300 Domestic Demand (Thousands of tons of oranges) Domestic Supply (Thousands of tons of oranges) +5 I 1 V Demand PW 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Thousands of tons of oranges) tons of oranges. (Note: Be sure to enter If Bangladesh is open to international trade of oranges without any restrictions, it will import the full value for your answer, accounting for the horizontal axis units.) per Suppose the Bangladeshi government wants to reduce imports to exactly 200,000 tons of oranges to help domestic producers. A tariff of $ ton will achieve this. A tariff set at this level would raise $ in revenue for the Bangladeshi government. PRICE (Dollars per ton) 1165 1120 1075 1030 985 940 895 850 805 760 715 +4 I Supply ?
To reduce imports to 200,000 tons of oranges in Bangladesh, a tariff of $285 per ton would be set. This tariff level would generate $57 million in revenue for the Bangladeshi government.
To understand the solution, let's analyze the graph. The graph represents the domestic supply and demand for oranges in Bangladesh. The horizontal black line represents the world price (Pw) of oranges, which is $760 per ton.
Currently, at the world price of $760 per ton, the domestic supply in Bangladesh exceeds domestic demand, leading to a surplus. To reduce imports to 200,000 tons and support domestic producers, the government needs to implement a tariff.
By setting the tariff at a level that increases the domestic price from $760 to $1,045 per ton, the quantity demanded will decrease to 200,000 tons, as shown by the intersection of the demand curve and the new higher price level.
To calculate the tariff amount, we subtract the world price ($760) from the new price level ($1,045), which gives us $285 per ton. This means that for every ton of imported oranges, an additional $285 will be paid as a tariff.
To determine the revenue generated by the tariff, we multiply the tariff amount ($285) by the quantity of imports (200,000 tons), resulting in $57 million. This revenue will go to the Bangladeshi government, providing support for domestic producers and reducing the quantity of imports to the desired level.
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Wakers, Inc., has sales of $42 million, total assets of $26
million, and total debt of $8 million. If the profit margin is
6
percent, what are ROA and ROE, respectively?
A financial ratio called return on assets (ROA) gauges a company's profitability by assessing its capacity to produce profits from its assets. It shows how well a business is using its resources to make money.
We divide net income by total assets to arrive at the Return on Assets (ROA):
ROA is calculated as Net Income / Total Assets.
We can calculate the net income as a proportion of sales by assuming the profit margin is 6%:
Net Income = Sales – Profit Margin
Net Income = 0.06 x $42m
$2.52 million is the net income.
ROA = $2.52 million/$26,000,000,000
ROA ≈ 0.097 or 9.7%
We divide net income by shareholders' equity to arrive at the Return on Equity (ROE):
ROE is defined as Net Income / Shareholder Equity.
You may get the shareholders' equity by deducting the entire debt from the total assets:
Total Assets - Total Debt equals Shareholders' Equity.
Equity of Shareholders = $26 million minus $8 million
Equity of Shareholders = $18 million
ROE = $2,52,000,000 / $18,,000,000
ROE ≈ 0.14 or 14%
Consequently, the ROA is roughly 9.7% and the ROE is roughly 14%.
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The components of information required to calculate depreciation except O The depreciable life of the asset O The salvage value of the asset O The cost basis of the asset, O The materials of its depreciation
The materials of depreciation are not a component required to calculate depreciation. However, the method of depreciation chosen will determine the pattern and rate at which the asset's value is depreciated over time.
The components of information required to calculate depreciation include the depreciable life of the asset, the salvage value of the asset, and the cost basis of the asset. Depreciation refers to the gradual decrease in the value of an asset over time due to wear and tear, obsolescence, or other factors that affect its usefulness or desirability.The depreciable life of an asset is the length of time over which it is expected to be used or useful.
This can be estimated based on the asset's physical lifespan or its expected technological obsolescence. The salvage value of an asset is the estimated amount that it can be sold for at the end of its useful life. This value is subtracted from the cost basis of the asset to determine the total amount of depreciation that can be taken over its useful life.The cost basis of an asset is the original cost of acquiring or producing it. This includes all direct and indirect costs associated with bringing the asset into use, such as purchase price, transportation costs, installation costs, and so on.
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When inventory is not balanced or controlled it causes an organization to over-stock or under-stock merchandise. Either, could have various negative results on the business. This has a bearing on supply and demand and verifies the importance of effective inventory management. What could be the results if an organization did not effective manage inventory, and over-stock, and under-stock merchandise?
Inventory management is the process of ordering, storing, and utilizing an organization's inventory. When inventory is not balanced or controlled, it causes an organization to over-stock or under-stock merchandise. This can have various negative results on the business:
Overstocking results: When an organization overstocks its inventory, it can lead to high carrying costs, including rent, insurance, taxes, and staff costs. If the inventory is not sold before it becomes obsolete, it will lose value, and the company will lose money. Overstocking will also lead to the business taking up unnecessary space in its facility, which may result in costly rent for more storage or warehouse space.Understocking results: Understocking can result in lost sales. Customers will look for what they want elsewhere if an organization does not have what they are looking for. It also leads to stockouts, which can result in lost sales opportunities, lower customer satisfaction, and the cost of having to purchase stock at a higher price to fulfill orders that could have been filled from inventory. Furthermore, an organization could end up with higher freight costs due to ordering items in smaller amounts.To avoid the risks associated with understocking and overstocking, effective inventory management should be put in place. Effective inventory management requires businesses to have a firm grasp on demand forecasting, inventory counts, and product lead times, among other things.
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Sam's Cat Hotel operates 48 weeks per year, 5 days per week. It purchases kitty litter for $6.50 per bag. The following information is available about these bags:
> Demand = 70 bags/week
> Order cost = $65/order
> Annual holding cost = 30 percent of cost
> Desired cycle-service level = 96 percent
> Lead time = 1 week(s) (5 working days)
> Standard deviation of weekly demand = 9 bags
> Current on-hand inventory is 200 bags, with no open orders or backorders. Standard Deviation of Weekly Demand
Suppose that Sam's Cat Hotel uses a P system. The average daily demand, d, is 14 bags (70/5), and the standard deviation of daily demand, Days per week is 4.025 bags. Refer to the standard normal table for z-values. a. What P (in working days) and T should be used to approximate the cost trade-offs of the EOQ? The time between orders, P, should be days. (Enter your response rounded to the nearest whole
To determine the optimal order quantity for Sam's Cat Hotel, we can use the Economic Order Quantity (EOQ) model. Let's calculate the EOQ using the given information:
Demand per week = 70 bags
Order cost = $65 per order
Holding cost = 30% of the cost per bag
Desired cycle-service level = 96%
Lead time = 1 week
Standard deviation of weekly demand = 9 bags
Current on-hand inventory = 200 bags
First, let's calculate the average demand during the lead time:
Average demand during lead time = Demand per week * Lead time
= 70 bags/week * 1 week
= 70 bags
Next, we can calculate the safety stock using the desired cycle-service level and the standard deviation of weekly demand:
Safety stock = Z * Standard deviation of weekly demand * Square root of lead time
= Z * 9 bags * √1
= Z * 9 bags
Since the desired cycle-service level is 96%, we can find the corresponding Z value from the standard normal distribution table. The closest value is Z = 1.75.
Safety stock = 1.75 * 9 bags
= 15.75 bags
Now, we can calculate the EOQ using the formula:
EOQ = √[(2 * Demand per week * Order cost) / Holding cost]
EOQ = √[(2 * 70 bags * $65) / (0.30 * $6.50)]
= √[9100 / $1.95]
= √4666.67
= 68.25 bags (approximately) Since the EOQ is calculated based on a continuous demand rate, we can round it up to 69 bags.
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.What is the company's revenue recognition policy?
Revenue recognition The Company recognizes sales upon delivery of its products to customers. Revenue, which includes shipping and handling charges billed to the customer, is reported net of applicable discounts, returns, allowances, and various government withholding taxes. Methodologies for determining these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance. The Company recognizes revenue from the sale of food products which are sold to retailers through direct sales forces, broker and distributor arrangements.
Marigold Company recognizes revenue upon product delivery, including shipping and handling charges, after deductions for discounts, returns, allowances, and government withholding taxes.
The company's revenue recognition policy is to recognize sales upon delivery of its products to customers. The revenue that is earned by the company includes shipping and handling charges billed to the customer, and it is reported net of applicable discounts, returns, allowances, and various government withholding taxes.
Methodologies used to determine these provisions are dependent on local customer pricing and promotional practices, which range from contractually fixed percentage price reductions to reimbursement based on actual occurrence or performance.
The company recognizes revenue from the sale of food products that are sold to retailers through direct sales forces, broker, and distributor arrangements. The future reimbursements are estimated based on a combination of historical patterns and future expectations regarding specific in-market product performance.
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les cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Asse method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Pro 1. 6,000 cell phones were 65% complete 2. 20,000 cell phones were 35% complete First, determine the formula for calculating equivalent units of production. (Abbreviation used: WIP = Work-in-Process Inventory) Equivalent units of production X Assumption 1. 6,000 cell phones were 65% complete The equivalent units for conversion costs is Assumption 2. 20,000 cell phones were 35% complete The equivalent units for conversion costs is ngram manufactures cell phones. The conversion costs to produce cell phones for November are added evenly throughout the process in the Assembly Department. The company uses the weighted-ave method. For each of the following separate assumptions, calculate the equivalent units of production for conversion costs in the ending Work-in-Process Inventory for the Assembly Department 1. 6,000 cell phones were 65% complete 2. 20.000 cell phones were 35% complete GOOD
1. For the assumption that 6,000 cell phones were 65% complete, the equivalent units for conversion costs in the ending WIP inventory is 6,000. 2. For the assumption that 20,000 cell phones were 35% complete, the equivalent units for conversion costs in the ending WIP inventory is 7,000.
To calculate the equivalent units of production for conversion costs in the ending Work-in-Process (WIP) inventory, we need to use the weighted-average method. The formula for calculating equivalent units of production is:
Equivalent units of production = Units completed and transferred out + (Ending WIP units * Percentage of completion)
Now, let's calculate the equivalent units of production for each assumption:
Assumption 1: 6,000 cell phones were 65% complete
- Units completed and transferred out: 6,000 cell phones
- Ending WIP units: 0 (assuming no WIP inventory at the end)
- Percentage of completion: 65%
Equivalent units for conversion costs = 6,000 + (0 * 65%) = 6,000
Assumption 2: 20,000 cell phones were 35% complete
- Units completed and transferred out: 0 (assuming no units were completed and transferred out)
- Ending WIP units: 20,000 cell phones
- Percentage of completion: 35%
Equivalent units for conversion costs = 0 + (20,000 * 35%) = 7,000
In summary:
1. For the assumption that 6,000 cell phones were 65% complete, the equivalent units for conversion costs in the ending WIP inventory is 6,000.
2. For the assumption that 20,000 cell phones were 35% complete, the equivalent units for conversion costs in the ending WIP inventory is 7,000.
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Required information Fixed costs for Universal Exports are $580,000 annually. Its main-line export item is sold at a revenue of $2.10 per unit with variable costs of $1.50 per unit. What would the annual profit be at sales of 1.7 million units? The annual profit would be $
The annual profit at sales of 1.7 million units would be $440,000. This represents the amount left over after deducting all the costs (fixed and variable) from the total revenue generated by selling 1.7 million units of the main-line export item.
To calculate the annual profit, we need to subtract the total fixed costs and variable costs from the total revenue generated.
Given:
Fixed costs = $580,000
Revenue per unit = $2.10
Variable costs per unit = $1.50
Sales volume = 1.7 million units
First, let's calculate the total revenue:
Total Revenue = Revenue per unit × Sales volume
Total Revenue = $2.10 × 1,700,000
Next, let's calculate the total variable costs:
Total Variable Costs = Variable costs per unit × Sales volume
Total Variable Costs = $1.50 × 1,700,000
Now, we can calculate the annual profit:
Annual Profit = Total Revenue - Total Variable Costs - Fixed costs
Annual Profit = (Revenue per unit × Sales volume) - (Variable costs per unit × Sales volume) - Fixed costs
Plugging in the values:
Annual Profit = ($2.10 × 1,700,000) - ($1.50 × 1,700,000) - $580,000
Calculating:
Annual Profit = $3,570,000 - $2,550,000 - $580,000
Annual Profit = $440,000
Therefore, the annual profit at sales of 1.7 million units would be $440,000. This represents the amount left over after deducting all the costs (fixed and variable) from the total revenue generated by selling 1.7 million units of the main-line export item.
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Suppose that the economy is characterized by the following behavioral equations:
C=130+0.70Y
D
I=150
G=140
T=80
Equilibrium GDP(Y)=
Total demand is _ ___ (equal, greater, less) to production
Private saving=
Public saving=
Total saving is _______ (equal, greater, less) investments
The equation for consumption is C = 130 + 0.70Y, where Y represents GDP. Given the values for investment (I = 150), government spending (G = 140), and taxes (T = 80), we can calculate the equilibrium GDP.
To find the equilibrium GDP, we need to set total demand equal to production. Total demand is equal to consumption (C) plus investment (I) plus government spending (G) minus taxes (T).
So, total demand (Yd) = C + I + G - T = (130 + 0.70Y) + 150 + 140 - 80.
To solve for equilibrium GDP, we set Yd equal to Y and solve for Y.
Yd = Y = (130 + 0.70Y) + 150 + 140 - 80.
Simplifying the equation, we get:
Y = (130 + 0.70Y) + 150 + 140 - 80.
Y = 420 + 0.70Y.
Subtracting 0.70Y from both sides, we have:
0.30Y = 420.
Dividing both sides by 0.30, we find:
Y = 1400.
So, the equilibrium GDP is 1400.
Private saving is calculated by subtracting consumption (C) from disposable income (Y - T). In this case, private saving would be (Y - T) - C = (1400 - 80) - (130 + 0.70(1400)).
Public saving is the difference between government revenue (T) and government spending (G). In this case, public saving is T - G = 80 - 140.
Total saving is the sum of private and public saving. Therefore, total saving is equal to private saving plus public saving.
So, the equilibrium GDP is 1400. Total demand is equal to production. Private saving is (1400 - 80) - (130 + 0.70(1400)). Public saving is 80 - 140. Total saving is equal to private saving plus public saving.
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Access the Computer Crime Law of any of the 50 states and discuss how it defines computer crime,unauthorized access and property crimes. What penalties the statute prescribes for computer crimes.
However, I can provide you with a general understanding of how computer crime laws in many jurisdictions define computer crimes, unauthorized access, and property crimes.
Computer crime laws typically define computer crimes as any illegal activities involving computers or computer networks. This can include unauthorized access, hacking, data theft, computer fraud, and other malicious activities.
Unauthorized access refers to gaining access to a computer system, network, or data without proper authorization or exceeding authorized access. It involves unlawfully bypassing security measures or using someone else's login credentials to access protected information.
Property crimes in the context of computer crime laws generally involve offenses such as theft or destruction of digital assets, intellectual property infringement, and unauthorized use or alteration of computer systems.
Penalties for computer crimes vary depending on the jurisdiction and the severity of the offense. They can range from fines and probation to imprisonment, depending on the specific circumstances, the value of the damage caused, and any previous criminal history of the offender.
To obtain specific information on the Computer Crime Law of a particular state, I recommend referring to the official state legislation or consulting with a legal professional familiar with the specific jurisdiction.
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