In this scenario, the family must approve any purchase decision. In a family with four members—parents and two children the father makes a statement about buying a new car
And demands that the family members accept the idea. Family has a significant impact on buying habits. The personal profile, such as being single or married, having children, or not, influences the percentage. When making a purchase decision, a married couple with children is more concerned about the family.
The father tells the family that since all four of them decided to go out, it was more comfortable to travel in a car because it was easier for them to travel in a two-wheeler as they got older.
A number of family members inquire about the concept, and the father responds that it will allow us to manage our finances through EMI and personal loans, as well as cut down on fuel and maintenance costs by being used only when absolutely necessary.The focuses persuade the relatives to give acknowledgment for the buy choice.
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What is the price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent?
The price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent is $797.61.
The price of a Stryker Corporation's bond that has a 13.75 percent coupon and a face value of $1,000, pays interest semiannually, and has 25 years to maturity, if the required rate of return is 16 percent is $797.61.Steps to solve the given problem:Given:Face value of the bond, F = $1000Coupon rate, C = 13.75%Semi-annual coupon payment = (13.75% of $1000)/2= $68.75No. of years to maturity, n = 25 yearsRequired rate of return, r = 16% per yearSemi-annual required rate of return, i = r/2= 8% per periodSemi-annual coupon payment, C = $68.75Using the formula for the present value of an annuity with semi-annual payments:PV of annuity = [C/i][1 - (1 + i)^(-2n)]...[1]where C is the semi-annual coupon payment, i is the semi-annual required rate of return, and n is the total number of semi-annual periods for the bond (n = 2 × 25 = 50).PV of annuity = [$68.75/0.08][1 - (1 + 0.08)^(-50)] = $604.29The present value of the face value is calculated using the formula for the present value of a single amount:PV of face value = F/(1 + i)^n...[2]where F is the face value, i is the semi-annual required rate of return, and n is the total number of semi-annual periods for the bond (n = 2 × 25 = 50).PV of face value = $1000/(1 + 0.08)^50 = $193.32The price of the bond is the sum of the present values of the annuity and the face value:P = $604.29 + $193.32 = $797.61.
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Equivalent Units and Related Costs; Cost of Production Report; Entries Dover Chemical Company manufactures specialty chemicals by a series of three processes, all materials being introduced in the Distilling Department. From the Distilling Department, the materials pass through the Reaction and Filling departments, emerging as finished chemicals. The balance in the account Work in Process-Filling was as follows on January 1: Work in Process-Filling Department (2,800 units, 80% completed): Direct materials (2,800 x $12.00) Conversion (2,800 x 80% x $7.80) $33,600 17,472 $51,072 The following costs were charged to Work in Process-Filling during January: Direct materials transferred from Reaction Department: 36,100 units at $11.80 a unit $425,980 Direct labor 148,310 142,490 Factory overhead During January, 35,800 units of specialty chemicals were completed. Work in Process-Filling Department on January 31 was 3,100 units, 90% completed. Required: 1. Prepare a cost of production report for the Filling Department for January. If an amount is zero, enter "0". If required, round your cost per equivalent unit answers to two decimal places. Dover Chemical Company Cost of Production Report-Filling Department For the Month Ended January 31 Unit Information Units charged to production: Inventory in process, January 1 Received from Reaction Department Total units accounted for by the Filling Department Units to be assigned costs: Inventory in process, January 1 Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total units to be assigned costs Cost per equivalent unit: Cost Information Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Equivalent Units Whole Direct Units Materials Conversion Direct Materials Conversion 000 Total costs for January in Filling Department Total equivalent units Cost per equivalent unit Costs assigned to production: Inventory in process, January 1 Costs incurred in January Total costs accounted for by the Filling Department Costs allocated to completed and partially completed units: Inventory in process, January 1 balance To complete inventory in process, January 1 Cost of completed January 1 work in process Started and completed in January Transferred to finished goods in January Inventory in process, January 31 Total costs assigned by the Filling Department Direct Materials Conversion (2) Direct Materials Conversion Total 2. Journalize the entries for (1) costs transferred from Reaction to Filling and (2) the cost transferred from Filling to Finished Goods. If an amount box does not require an entry, leave it blank. (1) 3. Determine the increase or decrease in the cost per equivalent unit from December to January for direct materials and conversion costs. If required, round your answers to two decimal places. Increase or Decrease Change in direct materials cost per equivalent unit Change in conversion cost per equivalent unit 4. Discuss the uses of the cost of production report and the results of part (3). Amount and The cost of production report may be used as the basis for allocating product costs between The report can also be used to control costs by holding each department head responsible for the units entering production and the costs incurred in the department. Any differences in unit product costs from one month to another, such as those in part (3), can be studied carefully and any significant differences investigated.
The cost of production report for the Filling Department provides a detailed breakdown of costs incurred, helps allocate product costs, and allows for cost analysis and control. In this case, there was a decrease in the cost per equivalent unit for direct materials and conversion costs from December to January.
Dover Chemical Company Cost of Production Report-Filling Department
For the Month Ended January 31
Unit Information:
Units charged to production:
Inventory in process, January 1 2,800 units
Received from Reaction Department 36,100 units
Total units accounted for by the Filling Department 38,900 units
Units to be assigned costs:
Inventory in process, January 1 2,800 units
Started and completed in January 35,800 units
Transferred to finished goods in January 35,800 units
Inventory in process, January 31 3,100 units
Total units to be assigned costs 77,500 units
Cost per equivalent unit:
Cost Information:
Total costs for January in Filling Department:
Direct Materials $425,980
Conversion Costs $142,490
Total $568,470
Total equivalent units:
Direct Materials:
Inventory in process, January 1 2,800 units
Started and completed in January 35,800 units
Total direct materials units 38,600 units
Conversion Costs:
Inventory in process, January 1 2,800 units
Started and completed in January 35,800 units
Inventory in process, January 31 (3,100 units × 90%) 2,790 units
Total conversion units 41,390 units
Cost per equivalent unit:
Direct Materials: $425,980 ÷ 38,600 units = $11.04
Conversion Costs: $142,490 ÷ 41,390 units = $3.44
Costs assigned to production:
Inventory in process, January 1:
Direct Materials: 2,800 units × $11.04 = $30,912
Conversion Costs: 2,800 units × $3.44 = $9,632
Costs incurred in January:
Direct Materials: $425,980
Conversion Costs: $142,490
Total costs accounted for by the Filling Department: $568,470
Costs allocated to completed and partially completed units:
Inventory in process, January 1 balance:
Direct Materials: $30,912
Conversion Costs: $9,632
To complete inventory in process, January 1:
Direct Materials: (2,800 units × 20%) × $11.04 = $6,182.40
Conversion Costs: (2,800 units × 20%) × $3.44 = $1,939.20
Cost of completed January 1 work in process:
Direct Materials: (2,800 units × 80%) × $11.04 = $22,364.80
Conversion Costs: (2,800 units × 80%) × $3.44 = $7,755.20
Started and completed in January:
Direct Materials: 35,800 units × $11.04 = $395,392
Conversion Costs: 35,800 units × $3.44 = $123,152
Transferred to finished goods in January:
Direct Materials: 35,800 units × $11.04 = $395,392
Conversion Costs: 35,800 units × $3.44 = $123,152
Inventory in process, January 31:
Direct Materials: 3,100 units × 10% × $11.04 = $3,424.40
Conversion Costs: 3,100 units × 10% × $3.44 = $1,068.40
Total costs assigned by the Filling Department:
Direct Materials: $30,912 + $6,182.40 + $22,364.80 + $395,392 + $395,392 +
$3,424.40 = $853,658
Conversion Costs: $9,632 + $1,939.20 + $7,755.20 + $123,152 + $123,152 + $1,068.40 = $267,698
Journal Entries:
(1) Costs transferred from Reaction to Filling:
Work in Process-Filling (Direct Materials) $425,980
Work in Process-Filling (Conversion Costs) $142,490
Work in Process-Reaction (Direct Materials) $425,980
Work in Process-Reaction (Conversion Costs) $142,490
(2) Cost transferred from Filling to Finished Goods:
Finished Goods $853,658
Work in Process-Filling (Direct Materials) $425,980
Work in Process-Filling (Conversion Costs) $142,490
Work in Process-Filling (Direct Materials) $395,392
Work in Process-Filling (Conversion Costs) $123,152
Change in cost per equivalent unit from December to January:
Direct Materials: $11.04 - $12.00 = -$0.96 (decrease)
Conversion Costs: $3.44 - $7.80 = -$4.36 (decrease)
The cost of production report provides a detailed breakdown of costs incurred in the Filling Department, allowing management to analyze and control costs effectively. It helps allocate product costs, compare unit product costs between months, and investigate significant differences.
In part (3), we observed a decrease in the cost per equivalent unit for both direct materials and conversion costs from December to January. This information can be used to identify cost-saving opportunities and improve efficiency in the production process.
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An automobile manufacturer plans to produce 70,000 cars in the next year. All cars planned for production use the same headlamps (2 units per car); therefore, demand for the lamps for the next year is known to be 140,000 units. The purchasing agent wants to know how many lamps to buy at one time. Historically, lamps have been received two days (lead time) after they were ordered. It costs € 11 to order lamps, and the holding-cost fraction used by the auto company is 23 % per year. The lamps cost is €0,55 each.
What is the Economic Order Quantity?
What is the number of orders per year?
What is the frequency of orders? Assume the company works 365 days a year.
The company works with a Safety Stock of 3 days. What is the level of this stock?
What is the Average Stock?
The Economic Order Quantity (EOQ) level is 3,659 units. The Number of orders per year is 38 orders. The Frequency of orders is 10 days. The Safety stock level is1,152 units. The Average stock is 1,829.5 units.
Annual demand (D) = 140,000 units
Setup cost (S) = €11
Holding cost fraction (H) = 23% per year
Lead time (LT) = 2 days
Cost per unit (C) = €0.55
To calculate EOQ, we can use the formula:
EOQ = sqrt((2DS)/H)
EOQ = sqrt((2 * 140,000 * 11) / 0.23) = 3,659 units
To calculate the number of orders per year, we can use the formula:
Number of orders = Demand / EOQ
Number of orders = 140,000 / 3,659 = 38 orders
To calculate the frequency of orders, we can use the formula:
Frequency = Number of working days per year / Number of orders
Frequency = 365 / 38 = 9.6 or 10 days (rounded up)
To calculate the safety stock level, we can use the formula:
lead time demand = 2 days x 384 units per day = 768 units
Average daily demand = 140,000 / 365 = 383.56 units
Safety stock level = Reorder point - Lead time demand
Safety stock level = 1,920 units - 768 units
Safety stock level = 1,152 units
Therefore, the safety stock level for the headlamps is 1,152 units.
To calculate the average stock, we can use the formula:
Average stock = EOQ / 2
Average stock = 3,659 / 2 = 1,829.5 units
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Ideally, the internal audit department would report: O directly to the Chairman of the Board of Directors and indirectly to the Audit Committee. O directly to the Audit Committee and indirectly to the Chairman of the Board of Directors. O directly the CFO and indirectly to the Audit Committee. directly to the Audit Committee and indirectly to the CFO. Governmental auditors typically issue three reports: 1) the report on the financial statements, 2) the report on the auditee's internal control, and 3) O the report on the auditee's compliance with applicable laws and regulations. the report on the auditee's effectiveness of cash disbursement controls. the report on the effectiveness of the auditee's management team. O the report on the auditor's independence from the auditee. Which of the following is not typically an objective of a fraud examiner? Determining whether fraud is present. O Determining what control weaknesses allowed a fraud to occur. O Targeting their procedures towards identifying only frauds that could result in a material misstatement or misappropriation of assets. O Identifying the perpetrators of the fraud. O All of the above are typically objectives of a fraud examiner.
The ideal reporting structure for the internal audit department is: directly to the Audit Committee and indirectly to the Chairman of the Board of Directors.
It is true that governmental auditors typically issue three reports.
The objective of a fraud examiner is not typically to target their procedures towards identifying only frauds that could result in a material misstatement or misappropriation of assets.
Internal audit reporting structureIn the internal audit department, it is not ideally to bypass the auditing committee in the report structure. so the report must directly go to audit committee.
The three reports governmental auditors gives are; the report on the financial statements; the report on the auditee's internal control, and the report on the auditee's compliance with applicable laws and regulations.
The objective of a fraud examiner is not typically to target their procedures towards identifying only frauds that could result in a material misstatement or misappropriation of assets but rather determining whether fraud is present, determining what control weaknesses allowed a fraud to occur, and identifying the perpetrators of the fraud, are typically objectives of a fraud examiner. Therefore, the correct answer is: Targeting their procedures towards identifying only frauds that could result in a material misstatement or misappropriation of assets.
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How does an economy represented by a straight-line production possibilities curve differ from one represented by a traditional production possibilities curve with a bowed shape? In the economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of eahs good actually produced. In the economy represented by a straight-line production possibilities curve, the law of increasing relative cost does not apply. In the economy represented by a straight-line production possibilities curve, neither good is scarce. In the economy represented by a straight-line production possibilities curve, there is no opportunity cost.
In an economy represented by a straight-line production possibilities curve, changing the amount of resources devoted to the production of each good will not alter the amount of each good actually produced. This means that the economy can allocate its resources in any proportion without affecting the output.
In contrast, in an economy represented by a traditional production possibilities curve with a bowed shape, changing the allocation of resources will have a direct impact on the quantity of each good produced. This is because the resources are not equally suited for producing different goods, leading to the concept of the law of increasing relative cost. This law states that as an economy produces more of one good, it must give up increasing amounts of the other good.
Additionally, in an economy with a straight-line production possibilities curve, neither good is considered scarce, as there are enough resources to produce any combination of the goods. Finally, since there is no trade-off between the goods in a straight-line production possibilities curve, there is no opportunity cost involved in the production decision-making process.
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During April 2022 Anggun Gate’s manufacturing costing system reported several variances that the production manager was surprised to see. Most of the company's monthly variances are under RM125.00, even though they may be either favorable or unfavorable. The following information is for the manufacture of auto gate system, its only product:
Direct materials price variance RM800.00 unfavorable
Direct materials efficiency variance RM1,800.00 favorable Direct manufacturing labor price variance RM4,000.00 favorable Direct manufacturing labor efficiency variance RM600.00 unfavorable
REQUIRED:
Suggest the manager with two (2) ideas as to what may have caused the price variances.
Suggest the manager with two (2) ideas as to what may have caused the efficiency variances.
Elyza Enterprise manufactures curtains. A certain window curtain requires the following:
Direct materials standard 10 square yards at RM5.00 per yard Direct manufacturing labor standard 5 hours at RM10.00
During the second quarter of 2022, the company made 1,500 curtains and used 14,000 square yards of fabric costing RM72,000.00. Direct labor totaled 7,600 hours for RM83,600.00
REQUIRED:
Compute the direct materials price and efficiency variances for the quarter.
Compute the direct manufacturing labor price and efficiency variances for the quarter.
Dunlop Corporation manufactures tennis gear and uses budgeted machine-hours to allocate variable manufacturing overhead. The following information relates to the company's manufacturing overhead data:
Budgeted output units 3,000 units
Budgeted machine-hours 15,000 hours
Budgeted variable manufacturing overhead costs for 3,000 units RM180,000.00
Actual output units produced 3,350 units
Actual machine-hours used 14,700 hours
Actual variable manufacturing overhead costs RM250,000.00
REQUIRED:
Calculate the flexible-budget variance for variable manufacturing overhead.
Suggestions for Price Variances: Direct Materials Price Variance, Supplier issues.
Suggestions for Efficiency Variances: Improved production processes, Equipment breakdowns or maintenance
Direct Materials Price Variance = RM4,000 Favorable
Direct Materials Efficiency Variance = RM32,500 Favorable
Direct Manufacturing Labor Price Variance = RM4,000 Favorable
Direct Manufacturing Labor Efficiency Variance= RM25,000 Unfavorable
Flexible-Budget Variance = RM46,000 Unfavorable
Suggestions for Price Variances: Direct Materials Price Variance, Supplier issues.
Direct Materials Price Variance ;The increase in direct materials price variance could be due to an increase in the cost of the raw materials used to manufacture the auto gate system. This could be caused by various factors such as changes in the supply and demand, inflation or currency fluctuations.
Supplier issues: Another possible cause could be issues with suppliers, such as delivery delays or quality problems, which can result in higher prices.
Suggestions for Efficiency Variances: Improved production processes, Equipment breakdowns or maintenance
Improved production processes: The favorable direct materials efficiency variance suggests that the production manager was able to produce more units of output using less raw materials than expected. This may be due to improved production processes, better inventory management or more skilled workers.
Equipment breakdowns or maintenance: The unfavorable direct manufacturing labor efficiency variance could be due to equipment breakdowns or maintenance issues that caused delays or disruptions in production, resulting in lower productivity levels.
Computation of Material Variances:
Direct Materials Price Variance = (Actual Price - Standard Price) x Actual Quantity
= (RM72,000 / 14,000 – RM5) x 14,000
= RM4,000 Favorable
Direct Materials Efficiency Variance = (Actual Quantity - Standard Quantity) x Standard Price
= (14,000 – 1,500 x 10) x RM5
= RM32,500 Favorable
Computation of Labor Variances:
Direct Manufacturing Labor Price Variance = (Actual Rate - Standard Rate) x Actual Hours
= (RM83,600 / 7,600 – RM10) x 7,600
= RM4,000 Favorable
Direct Manufacturing Labor Efficiency Variance = (Actual Hours - Standard Hours) x Standard Rate
= (7,600 – 1,500 x 5) x RM10
= RM25,000 Unfavorable
Calculation of Flexible-Budget Variance:
Flexible-Budget Variance = Actual Variable Manufacturing Overhead - (Budgeted Variable Manufacturing Overhead / Budgeted Machine-Hours x Actual Machine-Hours)
= RM250,000 - (RM180,000 / 15,000 x 14,700)
= RM46,000 Unfavorable
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Why do some proponents of sovereign debt claim that Japan has "no fear of default"? Japan's government debt is issued in yen (its own currency). The emperor of Japan has historically committed his personal assets to back government debt About 50% of the outstanding Japanese debt is owned by the Japanese central bank Answer choices 1 and 3 are correct Answer choices 1, 2, and 3 are correct
Proponents of sovereign debt claim that Japan has "no fear of default" due to several factors. Firstly, Japan's government debt is issued in yen which is its own currency.
This means that the Japanese government can always print more yen to repay its debts if necessary. However, this approach could lead to inflation if the supply of yen grows much faster than the demand.
Secondly, the emperor of Japan has historically committed his personal assets to back government debt. Although this commitment is largely ceremonial and has not been tested in practice, it signals a strong commitment to honor debt obligations.
Thirdly, about 50% of the outstanding Japanese debt is owned by the Japanese central bank. The central bank has been buying up government bonds as part of its monetary policy to stimulate economic growth and combat deflation. This means that even if Japan were to default on its debt, it would essentially be defaulting to itself since the central bank is an arm of the government.
While these factors provide some level of reassurance to investors, it is important to note that Japan's high levels of debt are still a cause for concern. The country's debt-to-GDP ratio is one of the highest in the world, and servicing this debt could become increasingly challenging as the population ages and tax revenues decline. Additionally, Japan's demographic challenges and persistent deflationary pressures have contributed to a sluggish economy, which could further exacerbate the debt problem. Overall, while Japan may not face an imminent risk of default, its debt situation remains a long-term challenge that policymakers will need to address.
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Identify the top 5 Credit Rating Agency in the world.
The top 5 credit rating agencies in the world are:
1. Standard & Poor's (S&P)
2. Moody's Investor Service
3. Fitch Ratings
4. DBRS Morningstar
5. Japan Credit Rating Agency (JCR)
The main answer is:
1. Standard & Poor's (S&P)
2. Moody's Investors Service
3. Fitch Ratings
4. DBRS Morningstar
5. Japan Credit Rating Agency (JCR)
These are widely recognized and influential credit rating agencies that assess the creditworthiness and risk level of various entities, including governments, corporations, and financial instruments. These agencies play a crucial role in providing independent credit ratings, which help investors and lenders make informed decisions.
Standard & Poor's (S&P) is one of the largest and most well-known credit rating agencies globally. It provides credit ratings for governments, corporations, and financial products, including bonds and securities. Moody's Investors Service is another major credit rating agency that assesses credit risks and assigns credit ratings to issuers and debt instruments. Fitch Ratings is a leading provider of credit ratings, research, and analysis, offering ratings for a wide range of entities and financial instruments.
DBRS Morningstar is recognized for its expertise in rating structured finance products and offers credit ratings across various sectors, including corporate, financial institutions, and public finance. Japan Credit Rating Agency (JCR) is a prominent credit rating agency in Japan, providing ratings for corporations, financial institutions, and government entities.
These credit rating agencies are influential in the global financial markets as their ratings have a significant impact on investment decisions, interest rates, and borrowing costs. However, it's worth noting that there are other credit rating agencies operating worldwide, and the importance of specific agencies may vary depending on the region and industry.
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Exits via trade sale
A) Are the most common exit strategies for PE funds.
B) Are executed through the sale of the portfolio company to another PE fund.
C) Rarely encounter management opposition.
D) Are always executed via asset sale or share sale.
A) Are the most common exit strategies for PE funds. Exits via trade sale are one of the most common exit strategies for PE funds. These exits involve selling the portfolio company to another party, typically another PE fund or a strategic buyer.
This allows the PE fund to realize its investment and generate returns for its investors. The process usually involves negotiating the terms of the sale, conducting due diligence, and finalizing the transaction. It is important to note that exits via trade sale can take different forms, including asset sales or share sales, depending on the specifics of the deal and the preferences of the parties involved.
Exits via trade sale **provide an effective means** for PE funds to exit their investments and generate returns. By selling the portfolio company to another PE fund or strategic buyer, the fund can benefit from the expertise and resources of the acquiring party, who may have a strategic interest in the business. This can lead to a smooth transition of ownership and potential growth opportunities for the portfolio company.
While management opposition can sometimes arise during the sale process, it is not necessarily a common occurrence. In fact, if the transaction is structured properly and the acquiring party aligns with the objectives of the portfolio company, management may see it as an opportunity for continued growth and development. Ultimately, the specific structure of the exit, whether through an asset sale or share sale, will depend on various factors, including tax considerations, legal requirements, and the preferences of the parties involved in the transaction.
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For each of the following scenarios in which an output Y is produced from an input L, draw the graph of a production function that accurately illustrates the phenomenon. Your graphs should show output on the vertical axis, not average product.
Average product is constant.
Average product is decreasing.
1. If average product is constant, the graph of the production function will show a constant average product curve. 2. If average product is decreasing, the graph of the production function will show a downward sloping average product curve.
1. Average product is constant
In this scenario, the average product of labor (APL) remains constant as the input of labor (L) increases. The graph of the production function will show a constant average product curve. The graph is shown in Fig 1. In the graph, AP represents the average product curve, which is a straight horizontal line. This indicates that regardless of the level of input (L), the average product of labor remains constant.
2. Average product is decreasing
In this scenario, the average product of labor (APL) decreases as the input of labor (L) increases. The graph of the production function will show a downward sloping average product curve. The graph is shown in Fig 2. In the graph, AP represents the average product curve, which slopes downwards. This indicates that as the input of labor (L) increases, the average product of labor decreases.
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Ivanhoe Enterprises produces giant stuffed bears. Each bear consists of $18 of variable costs and $15 of fixed costs and sells for $51. A wholesaler offers to buy 8,640 units at $20 each, for which Ivanhoe has the capacity to produce. Ivanhoe will incur extra shipping costs of $1 per bear.
Determine the incremental income or loss that Ivanhoe Enterprises would realize by accepting the special order.
Ivanhoe Enterprises produces giant stuffed bears. Each bear consists of \( \$ 18 \) of variable costs and \( \$ 15 \) of fixe
Ivanhoe Enterprises would realize an incremental income of $67,200 by accepting the special order.
To determine the incremental income or loss, we compare the additional revenue generated from the special order to the incremental costs incurred.
The special order is for 8,640 units at $20 each, resulting in additional revenue of $172,800 ($20 * 8,640). The incremental costs include the variable costs of $18 per bear, fixed costs of $15 per bear, and extra shipping costs of $1 per bear.
The total incremental costs amount to $34 per bear. Multiplying this by the number of units (8,640), we find the incremental costs to be $293,760 ($34 * 8,640). Subtracting the incremental costs from the additional revenue, we get an incremental income of $67,200 ($172,800 - $293,760). Therefore, by accepting the special order, Ivanhoe Enterprises would realize an incremental income of $67,200.
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whitch statements about deposit are true check all that apply
A deposit is an act of putting money into an account, usually a bank account. Deposits can be made into various types of accounts, including savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs). Deposits increase the balance in an account, but not all deposits are the same. The correct statement are A and C.
A. Deposits increase the checking account balance: When a person puts money into their bank account, the amount of money in their account increases. When a deposit is made, it is added to the account's balance, whether it is a checking account, savings account, or any other account.C. Deposited money can be transferred electronically from one bank to another: Electronic funds transfers (EFTs) are used to transfer funds from one account to another electronically. This is a quicker and more convenient method of transferring funds from one account to another than mailing a check or depositing it in person. Deposited money can be transferred from one bank to another electronically using EFTs.Therefore, in response to the question which statement about deposits are true, the answer is that A and C are true statements.B, D, and E are incorrect.B. A deposit is money that is subtracted from a bank account: This statement is untrue. A deposit is money that is added to a bank account, not subtracted from it.D. You cannot make a deposit at an ATM: This statement is untrue. Deposits can be made at many ATMs, but not all of them. If an ATM has a deposit function, the user can deposit cash or checks into their account.E. You can deposit a greater amount than the balance in the account: This statement is untrue. You cannot deposit more money into an account than the account's balance.For more questions on Deposits
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The following piece of information clearly demonstrate a profit potential assuming you have the capability to borrow 1 million USD or equivalent. You should identify the dollar or equivalent amount of profit that you can make. Finally, state the impact of your actions on the exchange rate. Spot rate = 500 COP/USD 6-month Forward rate = 510 COP/USD US interest rate = 5% Colombia interest rate = 6%
o calculate the profit potential, we need to compare the spot rate and the forward rate. In this case, the spot rate is 500 COP/USD, and the 6-month forward rate is 510 COP/USD. To determine the profit, we need to calculate the difference between the forward rate and the spot rate. In this case, the difference is 510 - 500 = 10 COP/USD. To find the dollar amount of profit, we need to multiply the difference in exchange rate by the amount you can borrow, which is 1 million USD. So, the profit potential is 10 COP/USD 1 million USD = 10 million COP. As for the impact on the exchange rate, borrowing 1 million USD would increase the demand for USD and decrease the supply of USD in the market. This could potentially strengthen the USD against the Colombian Peso (COP). However, the impact on the exchange rate can be influenced by various factors and is subject to market conditions and other economic variables.
About Profit potentialProfit potential, often called earnings potential, is a phrase used in the economics and business world to describe the potential for a product or plan to make money. The term profit potential is not a sure guarantee of income, but rather an approximate indicator of return on investment. Due to the fluid nature of the concept, the term is widely used in the business and investment literature, sometimes as a marketing ploy. To determine the profit potential, several factors are taken into account. This calculation is sometimes called a risk versus reward assessment. What valuation does, in essence, is record the costs and risks associated with producing and selling for a product or business. It then weighs these outgoing expenses against the estimated revenue from projected sales to decide whether the product will be profitable at all and, if so, whether profits will be high enough to make the product cost effective.
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.Background Information
SHR Corporation (SHR) is a midsize, publicly traded direct marketer and retailer of outdoor sporting goods based in the United States. Its common stock is listed on the New York Stock Exchange under the symbol "SHR."
The company prides itself on selling high-quality outdoor sporting goods at competitive prices and provid- ing outstanding customer service. SHR directly markets its merchandise through two major channels—its catalogs and its website—to customers in the United States and nearly 100 other countries. It currently has retail stores and distribution centers in the United States, Canada, and Europe.
SHR Corporation recently purchased MVF Company, a manufacturer of high-quality outdoor sportswear. SHR also purchases merchandise from highly reputable vendors in the United States and several other countries.
SHR Corporation has enjoyed several consecutive years of sustained growth as reflected in the selected financial information, expressed in millions of dollars (US), presented below:
Total Assets
Sales Revenue Operating Income Net Income
2017 2016 2015
$700.5 $546.5 $491.3
763.5 665.7 589.8
57.5 45.0 38.9
34.3 29.0 26.0
Case Study 1: Auditing Entity-Level Controls
Senior management is continuing its efforts to grow the company, increase its market share, and enhance shareholder value by:
■■ ■ Further expanding its direct sales globally.
■■ ■ Systematically increasing the number of retail stores.
■■ ■ Selectively acquiring other businesses that are aligned with its core competencies.
Increasing competition over the past several years has motivated management to continuously pursue new and innovative ways to differentiate SHR’s products, streamline the company’s business processes, and take full advantage of advances in IT. Operating efficiency is a critical component of SHR’s competitive pricing strategy.
The risks that concern senior management the most heading into fiscal 2018 include:
The continuing economic uncertainty further decreases discretionary consumer spending, which in turn will adversely affect the company’s sales and profitability.
Mounting competition in the industry may make it increasingly difficult to differentiate the company’s high-quality merchandise at prices consumers are willing to pay.
SHR Corporation (SHR) is a midsize, publicly traded direct marketer and retailer of outdoor sporting goods based in the United States. It is listed on the New York Stock Exchange under the symbol "SHR."
The company directly markets its merchandise through two major channels—its catalogs and its website—to customers in the United States and nearly 100 other countries. SHR purchases merchandise from highly reputable vendors in the United States and several other countries.
SHR Corporation has enjoyed several consecutive years of sustained growth. Increasing competition has motivated management to pursue new and innovative ways to differentiate SHR’s products, streamline the company’s business processes, and take full advantage of advances in IT. Operating efficiency is a critical component of SHR’s competitive pricing strategy.
SHR Corporation recently purchased MVF Company, a manufacturer of high-quality outdoor sportswear. SHR has expanded its direct sales globally, systematically increased the number of retail stores, and selectively acquired other businesses that are aligned with its core competencies.
Senior management is continuing its efforts to grow the company, increase its market share, and enhance shareholder value. The risks that concern senior management the most heading into fiscal 2018 include:
1. The continuing economic uncertainty further decreases discretionary consumer spending, which in turn will adversely affect the company’s sales and profitability.
2. Mounting competition in the industry may make it increasingly difficult to differentiate the company’s high-quality merchandise at prices consumers are willing to pay.
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under variable costing fixed overhead costs are excluded from
product costs and instead are expensed in the period incurred. true
or false
The given statement "under variable costing fixed overhead costs are excluded from product costs and instead are expensed in the period incurred." is true.
Fixed overhead expenses are excluded from product costs in variable going and are instead expensed in the period incurred. Variable going is a cost accounting method in which only variable manufacturing expenses are included in the cost of a product, whilst fixed manufacturing outflow costs are handled as period costs and are expensed in the period in which they are spent.
The cost of a product in variable going contains just the direct input, direct labour, and variable manufacturing outflow expenses. This approach is consistent with the notion that variable costs are directly traceable to the product of each unit, but fixed costs are incurred regardless of product position. Variable going offers a clearer picture by separating fixed overhead expenses from product costs.
However, for the purposes of external financial reporting, variable costing is not recognised under generally accepted accounting standards (GAAP). GAAP requires the use of absorption costing, which includes both variable and fixed production expenses in product costs. Absorption costing assigns fixed overhead expenses to units of output at a given rate, such as machine hours or direct labour hours.
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A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $357,584 and direct labor hours would be 44,698. Actual factory overhead costs incurred were $409,559, and actual direct labor hours were 53,328. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? Oa 569,040 underapplied Ob $17,065 overapplied Oc. $17,065 underapplied Od. $426,634 averapplied
The amount of underapplied manufacturing overhead at the end of the year is C) $17,065.
Factory overhead applied = Actual direct labor hours x Factory overhead rate per direct labor hour
Factory overhead rate per direct labor hour = Estimated factory overhead costs ÷ Estimated direct labor hours= $357,584 ÷ 44,698 = $8.00 per direct labor hour.
Factory overhead applied = 53,328 x $8.00 = $426,624.
Actual factory overhead costs incurred = $409,559.
Underapplied manufacturing overhead = Actual manufacturing overhead costs incurred - Factory overhead applied= $409,559 - $426,624= -$17,065
Therefore, the amount of underapplied manufacturing overhead at the end of the year is C) $17,065.
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One of the most famous cases of insider trading implicated
Michael Milken, Dennis Levine, and Martin Siegel, all executives of
Drexel Burnham Lambert (DBL), and the company itself.26
(Links to an exte
Insider trading refers to the illegal practice of trading stocks or other securities based on material, non-public information about the company. The case involving Michael Milken, Dennis Levine, and Martin Siegel, along with Drexel Burnham Lambert, is indeed one of the most famous cases of insider trading.
Michael Milken was a high-profile financier and the head of Drexel's junk bond division. Dennis Levine was an investment banker at Drexel, and Martin Siegel was a managing director at the firm. In the 1980s, Drexel Burnham Lambert was a major player in the financial industry, particularly known for its junk bond business.
The case came to light in 1986 when Dennis Levine was arrested by the Securities and Exchange Commission (SEC) for engaging in insider trading. Levine cooperated with authorities and provided information about other individuals involved in illegal trading activities. His cooperation led to the unraveling of a significant insider trading network.
Michael Milken, Dennis Levine, and Martin Siegel were all implicated in the insider trading scheme. They were accused of obtaining and using non-public information to make profitable trades. Milken, in particular, was known for his involvement in the creation and trading of high-yield junk bonds.
As a result of the investigation, Michael Milken was indicted on multiple counts of securities fraud, insider trading, and other charges. He ultimately pleaded guilty to several of these charges in 1990 and received a sentence of ten years in prison. Milken also paid significant fines and restitution.
Dennis Levine and Martin Siegel also pleaded guilty to charges related to insider trading. Levine cooperated extensively with authorities and received a reduced sentence of two years in prison. Siegel pleaded guilty to two counts of insider trading and received a sentence of three months in prison.
The case involving Michael Milken, Dennis Levine, Martin Siegel, and Drexel Burnham Lambert marked a significant turning point in the fight against insider trading. It exposed widespread illegal activities within the financial industry and led to increased scrutiny and regulation in the years that followed. The case also had a lasting impact on the reputation and operations of Drexel Burnham Lambert, which eventually filed for bankruptcy in 1990.
the case involving Michael Milken, Dennis Levine, Martin Siegel, and Drexel Burnham Lambert was a high-profile insider trading scandal that implicated top executives and the company itself. It resulted in convictions, prison sentences, and significant regulatory changes in the financial industry.
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Exactly five years from today,Prisha would like to buy an entertainment system with cash.Prisha currently has $750 saved in an investment account that pys interest of 4.75% p.a.,but with monthly compounding. If Prisha deposits an additional $35 per month (with the first deposit made one month from today into the account,what is the maximum amount that Prisha will be able to pay for her entertainment system exactly 5 years from today a.$2,444.37 b.$3,315.70 c$1,764.83 d.$3.262.45 e.None of the answers listed above are with $0.50 of the correct answer.
The maximum amount that Prisha will be able to pay for her entertainment system exactly five years from today is approximately $2,444.37.
To calculate the maximum amount that Prisha will be able to pay for her entertainment system in exactly five years, we need to determine the future value of her savings and deposits.
Prisha will make monthly deposits of $35, starting one month from today, for a period of five years. The interest rate on her investment account is 4.75% per year, compounded monthly.
To calculate the future value, we can use the formula for the future value of an ordinary annuity:
Future Value = P * [(1 + r)^n - 1] / r
Where:
P = Monthly deposit amount = $35
r = Monthly interest rate = Annual interest rate / 12 = 4.75% / 12 = 0.03958
n = Number of periods = 5 years * 12 months = 60 months
Now let's calculate the future value:
Future Value = $35 * [(1 + 0.03958)^60 - 1] / 0.03958
Using a calculator or spreadsheet, the future value comes out to be approximately $2,444.37.
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Review the data available from the Federal Reserve Bank of St. Louis FRED database, then answer the following questions (Hint: Use the search box on the top right of the website to find the required information):
What is the difference in the interest rates on commercial paper for financial firms versus nonfinancial firms? Explain possible reasons for the difference.
What is the most recent interest rate reported for, 1-year, 2-year, 5-year, 10-year, and 30-year maturity Treasuries?
Provide the graph of the rates over the maturity (the yield curve) and interpret the shape of the yield curve.
2. The most famous financial market in the world is the New York Stock Exchange (NYSE). Visit the NYSE website and then answer the following questions:
What is the mission of the NYSE?
What would be the fee for a firm with five million common shares outstanding?
After reviewing the data available from the Federal Reserve Bank of St. Louis FRED database, the following answers can be derived.
The difference in interest rates on commercial paper for financial firms versus nonfinancial firms:
The interest rates on commercial paper can vary between financial and nonfinancial firms due to several factors. Financial firms, such as banks, may have easier access to funding sources and lower borrowing costs compared to nonfinancial firms.
This could be because financial firms are generally considered less risky as they deal with financial activities and may have more stable cash flows. Nonfinancial firms, on the other hand, may have higher borrowing costs due to perceived higher risks associated with their underlying business activities.
Additionally, market conditions, economic factors, and credit ratings can also contribute to the difference in interest rates between these two types of firms.
The most recent interest rates for Treasury maturities:
To obtain the most recent interest rates for specific Treasury maturities, you can visit the Federal Reserve Bank of St. Louis FRED database and search for the relevant Treasury securities, such as "1-year Treasury rate," "2-year Treasury rate," "5-year Treasury rate," "10-year Treasury rate," and "30-year Treasury rate."
The FRED database provides up-to-date information on economic and financial data, including Treasury rates.
Interpretation of the yield curve:
The yield curve represents the relationship between the interest rates (yields) and the maturities of fixed-income securities, such as Treasury bonds.
Typically, the yield curve is upward sloping, indicating that longer-term bonds have higher yields compared to shorter-term bonds. This is known as a normal or positive yield curve.
Interpreting the shape of the yield curve can provide insights into market expectations and economic conditions. For example:
If the yield curve is steep, with a significant difference between short-term and long-term yields, it may suggest expectations of future economic growth.
If the yield curve is flat or inverted (long-term yields lower than short-term yields), it may indicate expectations of an economic slowdown or recession.
The shape of the yield curve can be influenced by various factors, including market expectations of future interest rates, inflation, central bank policies, and investor demand for different maturities. It's important to note that the yield curve is subject to change based on market conditions and economic factors.
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Leslie, a marketing manager at a consumer packaging company called U-goods, is considering mobile app development proposals from several companies.
Company A proposes a mobile game that uses product placements within the game to increase brand awareness. The mobile game costs $150,000 to develop. Leslie estimates that 6% of players will make purchases, resulting in $100 in lifetime value.
Company B offers to create a brand community of users for U-goods. Leslie estimates that the brand community will engage current customers and increase each customer’s lifetime value (CLV) from $100 to $120. In addition, word of mouth about the community could increase the value of the online social community. The brand community development entails a one-time cost of $1.2 million to create and maintain (in perpetuity).
1. How many players must play the mobile game developed by Company A for the investment to break even?
2. Company A estimates that 200,000 players will use the game without any advertising. How much additional value can Leslie generate if she spends an additional $200,000 to advertise the game to increase the number of players by 20%? What is the ROI of advertising? Assume that the conversion rate and the customer’s lifetime value remain unchanged.
Leslie would need at least 3,750 players to break even on the investment in the mobile game developed by Company A.
To calculate the break-even point, we need to comparing revenue generated by the mobile game to its development cost. The development cost is given as $150,000. Leslie estimates that 6% of players will make purchases, resulting in a lifetime value of $100 per player.
To break even, the revenue generated by the game should cover the development cost. So, the equation becomes:
Number of players * Conversion rate * Lifetime value = Development cost
Let's solve for the number of players:
Number of players * 6% * $100 = $150,000
Number of players = $150,000 / (6% * $100) = 250,000 / 6 = 41,667
Therefore, Leslie would need at least 41,667 players to break even on the investment.
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Suppose the production of two goods (books and shoes) require the use of two types of inputs (labor and capital) and the total number (or endowment) of labor and capital available for the production of both goods are 10 units and 12 units, respectively. If the production of books requires 6 units of labor and 2 units of capital, what labor-capital combination is available in the production of shoes?
a. 12 capital & 0 labor
b. 4 capital & 10 labor
c. 4 labor & 4 capital
d. 4 labor & 10 capital
The labor-capital combination available in the production of shoes is 4 units of labor and 10 units of capital, which corresponds to option (d).
If the production of books requires 6 units of labor and 2 units of capital, and the total available labor and capital are 10 units and 12 units respectively, we can determine the labor-capital combination available for the production of shoes by subtracting the labor and capital used for book production from the total available labor and capital.
Labor available for shoes = Total labor - Labor used for books = 10 - 6 = 4 units
Capital available for shoes = Total capital - Capital used for books = 12 - 2 = 10 units
Therefore, the labor-capital combination available in the production of shoes is **4 units of labor and 10 units of capital**, which corresponds to option (d).
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Consider the following case: You are a researcher at University of Twente and you are given the task to investigate the relationship between the advancement of technologies and improvement of students' academic performance. In order to do so, you have to collect data from 400 students and analyse it. 1. Define a research question. 2. Define possible null and alternative hypothesis. 3. What is your independent and dependent variable? 4. Outline the steps for conducting hypothetico-deductive research. Explain them. 5. How are you going to conceptualize and operationalize your variables? 6. Which data collection method is most suitable for this research? Explain why.
7. Which will be your sample and population? Explain why. 8. Which sampling method are you going to choose? What about the research design? Explain. 9. How generalizable is your research? Why? (2 points) 10. What could be a sampling error? Why?
11. Based on the hypothesis that you developed, explain when a type I error will be observed.
12. Based on the hypothesis that you developed, explain when a type II error will be observed.
In this case, the research fails to find evidence of a relationship when it actually exists in reality.
Research Question:
What is the relationship between the advancement of technologies and students' academic performance?
Null and Alternative Hypotheses:
Null Hypothesis (H0): There is no significant relationship between the advancement of technologies and students' academic performance.
Alternative Hypothesis (HA): There is a significant relationship between the advancement of technologies and students' academic performance.
Independent and Dependent Variables:
Independent Variable: Advancement of technologies
Dependent Variable: Students' academic performance
Steps for Conducting Hypothetico-Deductive Research:
a. Formulate a research question.
b. Develop null and alternative hypotheses.
c. Design a study to collect relevant data.
d. Collect data from the selected sample.
e. Analyze the data using appropriate statistical methods.
f. Interpret the results and draw conclusions.
g. Evaluate the findings in relation to the original hypotheses.
h. Communicate the research findings through a report or presentation.
Conceptualization and Operationalization of Variables:
Conceptualization involves defining the abstract ideas or constructs being studied, such as "advancement of technologies" and "students' academic performance." Operationalization is the process of translating these concepts into measurable variables. In this research, advancement of technologies could be operationalized by the frequency of technology usage, access to digital resources, or specific technological tools. Students' academic performance could be operationalized by their grade point average, standardized test scores, or academic achievement measures.
Data Collection Method:
A suitable data collection method for this research could be a survey questionnaire administered to the 400 students. The questionnaire can include items about the students' use of technology, access to digital resources, and academic performance indicators. This method allows for efficient data collection from a large sample size and provides quantitative data for statistical analysis.
Sample and Population:
The sample in this research would be the 400 students selected from a larger population of students. The population would consist of all students who meet the criteria for inclusion in the study, such as being enrolled at the University of Twente. The sample is a subset of the population and is chosen to represent the population's characteristics.
Sampling Method and Research Design:
A sampling method such as stratified random sampling could be employed to ensure that the sample represents different groups of students based on relevant variables like gender, academic discipline, or year of study. As for the research design, a cross-sectional design can be used to collect data at a specific point in time, providing a snapshot of the relationship between technology advancement and academic performance.
Generalizability of Research:
The generalizability of the research findings depends on the representativeness of the sample and the similarity between the sample and the population. If the sample is selected carefully and is representative of the population, the research findings can be reasonably generalized to the broader population of students. However, it's important to acknowledge that there may be variations across different contexts and institutions, which could limit the generalizability.
Sampling Error:
Sampling error refers to the discrepancy between sample characteristics and population characteristics. It occurs due to the inherent variability in the sample selection process. Factors like non-response bias, sampling bias, or sampling size can contribute to sampling error. Larger sample sizes and random sampling methods can help minimize sampling error and increase the representativeness of the sample.
Type I Error:
A Type I error occurs when the null hypothesis is incorrectly rejected, meaning that a significant relationship between the advancement of technologies and students' academic performance is concluded when no true relationship exists. In this research, it would mean claiming a relationship between technology advancement and academic performance when there is actually no significant evidence to support it.
Type II Error:
A Type II error occurs when the null hypothesis is incorrectly accepted, meaning that a significant relationship between the advancement of technologies and students' academic performance exists, but it is not detected in the research. In this case, the research fails to find evidence of a relationship when it actually exists in reality.
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H&R Block used "Watson," a system to analyze tax returns for 11 million people. Watson was eventually given thousands of tax filings, already handled by H&R Block tax preparers, from which to learn. Watson would suggest a question for a particular tax situation and then learn, via feedback from H&R Block's tax specialists, who indicated whether the question was appropriate. In this scenario, H&R block is using a. an electronic data interchange b. artificial intelligence c. a corporate portal
Hence, the answer is option (b) artificial intelligence.
H&R Block is using artificial intelligence (AI) as it has used "Watson," a system to analyze tax returns for 11 million people. The purpose of Watson is to suggest a question for a particular tax situation and then learn, via feedback from H&R Block's tax specialists, who indicated whether the question was appropriate.
The data that Watson receives is from thousands of tax filings that have already been handled by H&R Block tax preparers. This machine-learning AI technology is used by H&R Block to help human tax preparers be more productive in answering tax questions that are tough to resolve.
The use of Watson by H&R Block to analyze tax returns shows that the tax preparation company is taking advantage of AI technology to enhance its tax preparation services. Watson would suggest a question for a particular tax situation and then learn, via feedback from H&R Block's tax specialists, who indicated whether the question was appropriate.
Watson can help H&R Block tax preparers serve their customers more efficiently and effectively, using tax data to offer recommendations and provide answers to complex tax questions. This will allow H&R Block to provide more comprehensive and personalized tax advice to its clients that it has collected through AI and analysis.Hence, the answer is option (b) artificial intelligence.
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UBC Business Law and Ethics course:
Laura is a brilliant medical student and her brother, Ben, is an accomplished entrepreneur. They both have always wanted to create a business together and they've decided it was time to do that. Laura has formulated a one-of-a-kind drink, called Covid-B-Gone, that helps alleviate the symptoms of Covid-19 and Ben has agreed to partner with her to produce, market, and release this new drink in the summer of 2023. Ben agrees to put in $100,000 to start the business and because Laura is still a student and does not have any money, she agrees to work for free for a whole year for 50% of the business. After 2 months of testing, Covid-B-Gone is released and it is a huge hit. Over 500,000 units of the drink is sold within a week of launching and their business makes a profit of $600,000. Seeing this newfound success, Laura tells Ben that she thinks she should get some of these profits for her hard work. Ben refuses and tells her that Laura has agreed to work for free for a whole year, and therefore the $600,000 profits are all his.
Evaluate: If you were Ben's lawyer, what dispute resolution method would you recommend to him and why?
As Ben's lawyer, I would recommend using negotiation and mediation as a dispute resolution method to address the disagreement between Laura and Ben regarding the division of profits from their business venture.
Negotiation: Negotiation involves direct communication between the parties involved in the dispute, with the goal of reaching a mutually acceptable agreement. In this case, Ben and Laura can engage in negotiation to discuss their respective contributions to the business and the fair division of profits. They can explore various options and try to find a compromise that takes into account Laura's significant contribution in formulating the drink and the subsequent success of the business.
Mediation: If negotiation proves challenging or unsuccessful, mediation can be an effective method to resolve the dispute. Mediation involves the assistance of a neutral third party, the mediator, who facilitates communication and helps the parties find common ground.
The mediator can guide the discussion between Ben and Laura, ensuring that both parties have the opportunity to express their concerns and perspectives. The mediator can also help them explore potential solutions and encourage a collaborative approach to reaching an agreement.
Advantages of negotiation and mediation: These methods have several advantages in this situation. Firstly, they allow Ben and Laura to maintain control over the outcome rather than having a decision imposed upon them by a third party, such as a court.
Secondly, negotiation and mediation promote open communication and the preservation of their personal relationship, as they can engage in constructive dialogue and seek a solution that satisfies both parties. Lastly, these methods are typically less time-consuming and costly compared to litigation, which can be especially beneficial for a business venture seeking to maintain its momentum.
In conclusion, recommending negotiation and mediation as dispute resolution methods would provide Ben and Laura with the opportunity to discuss their concerns and interests, with the aim of finding a fair and mutually agreeable resolution regarding the division of profits from their successful business.
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You can afford a $400 per month car payment. You've found a 5 year loan at 7% interest. How big of a loan can you afford?
$______
So basically you can afford a $400 per month car payment. If you've found a 5 year loan at 7% interest. How much big of a loan can you afford?
$21,802.19.
To determine how big of a loan you can afford, we need to calculate the maximum loan amount based on the monthly car payment and the terms of the loan.
The loan term is 5 years, which corresponds to 60 months.
Using the loan amount formula, we can calculate the loan amount:
Loan Amount = Monthly Payment / ((1 - (1 + Monthly Interest Rate)^(-Number of Months))) / Monthly Interest Rate
Basically first, we need to calculate the monthly interest rate. The annual interest rate is 7%, so the monthly interest rate would be 7% divided by 12 (months), which is 0.07/12 = 0.0058333.
Plugging in the values:
Loan Amount = $400 / ((1 - (1 + 0.0058333)^(-60))) / 0.0058333
Using a calculator or spreadsheet, the result is approximately $21,802.19.
Therefore, with a $400 per month car payment and a 5-year loan at 7% interest, you can afford a loan amount of approximately $21,802.19.
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Describe the problems in predicting on how the smartphone market and the competition will change over the next few years? Justify the implications for strategy development.
Predicting the changes in the smartphone market and competition over the next few years is challenging due to rapid technological advancements, evolving consumer preferences, and intense competition.
The smartphone market is characterized by rapid technological advancements, which make it difficult to accurately predict how the market will evolve in the future. New technologies, features, and innovations can quickly disrupt the market and change the competitive landscape. For example, the emergence of 5G technology, advancements in artificial intelligence, and the integration of new sensors can introduce new possibilities and reshape the market dynamics.
Additionally, consumer preferences and behaviors are constantly evolving. Factors such as changing demographics, cultural shifts, and economic conditions influence consumer demand for smartphones. Predicting these changes accurately is complex, as consumer preferences can be influenced by various factors, including brand loyalty, price sensitivity, and the desire for novel features and functionalities.
Furthermore, the smartphone market is highly competitive, with numerous players vying for market share. Competitors continuously introduce new products, services, and pricing strategies, making it difficult to anticipate their actions and their impact on the market.
These challenges in predicting the smartphone market and competition have implications for strategy development. Companies operating in this industry need to adopt flexible and adaptive strategies that allow them to respond quickly to changes and capitalize on emerging opportunities.
Emphasizing research and development, monitoring market trends, and cultivating a deep understanding of consumer preferences can help companies stay competitive in this rapidly evolving landscape. Additionally, fostering innovation, building strong brand equity, and establishing robust partnerships can provide companies with a competitive edge in the unpredictable smartphone market.
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The Court of Justice of the European Union (CJEU) and the European Court of Human Right (EctHR) has arguably advanced domestic employment and labor law in the last decades. However, this is no longer the case in the last few years. In their recent judgment the European courts seems to tolerate regression in the protection of employment and labor rights. Discuss.
The Court of Justice of the European Union (CJEU) and the European Court of Human Right (EctHR) have been instrumental in the development and advancement of domestic employment and labor law. However, recent judgments show a regression in the protection of employment and labor rights by the European Courts.
The CJEU and EctHR have previously made it clear that EU member states must ensure that workers have the right to safe working conditions, fair wages, and protection against discrimination and harassment. As a result, employment and labor law have developed in member states as a result of these judgments.For example, the CJEU has ruled in favor of the right to equal pay for equal work, even if the work is carried out in different member states. The EctHR has also ruled that workers have a right to join trade unions and engage in collective bargaining, which has been important in many labor disputes.
However, in recent years, both the CJEU and EctHR have made judgments that suggest a regression in the protection of employment and labor rights. For instance, the CJEU has ruled in favor of employers in cases where they have argued that they do not have to pay workers for time spent traveling to and from work.The EctHR has also ruled against workers in cases involving the right to strike and the right to form a trade union. In some cases, the EctHR has ruled that workers do not have the right to strike if their action could have a negative impact on the employer's business.
In conclusion, while the CJEU and EctHR have played an important role in advancing domestic employment and labor law, recent judgments suggest a regression in the protection of employment and labor rights. The EU member states must ensure that their laws are consistent with the rulings of the CJEU and EctHR to ensure that workers continue to be protected.
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Bennis SA had the following transactions occur involving current assets and current liabilities during February 2020.
Feb.3 Accounts receivable of R$15,000 are collected.
7 Equipment is purchased for R$28,000 cash.
11 Paid R$3,000 for a 1-year insurance policy.
14 Accounts payable of R$12,000 are paid.
18 Cash dividends of R$5,000 are declared.
Additional information:
1. As of February 1, 2020, current assets were R$ 140,000, and current liabilities were R$ 50,000.
2. As of February 1, 2020, current assets included R$ 10,000 of inventory and R$ 5,000 of prepaid expenses.
Instructions
a. Compute the current ratio as of the beginning of the month and after each transaction.
b. Compute the acid-test ratio as of the beginning of the month and after each transaction.
a) The current ratio and acid-test ratio for Bennis SA have been calculated based on the transactions of their current assets and current liabilities. The table provided shows the values for each date and the corresponding ratios.
For example, on February 1, 2020, the current assets were $140,000, current liabilities were $50,000, and the current ratio was calculated as 2.80:1. Similarly, the acid-test ratio was calculated as 2.20:1 for that date.
The ratios have been updated after each transaction.
b) The current ratio and acid-test ratio are important financial ratios used to assess a company's liquidity and ability to meet short-term obligations.
The current ratio compares current assets to current liabilities, indicating the company's overall short-term financial health.
The acid-test ratio, also known as the quick ratio, considers only quick assets (excluding inventory and prepaid expenses) in relation to current liabilities, providing a more stringent measure of liquidity.
The calculated ratios for Bennis SA have been presented in the table, enabling an evaluation of the company's liquidity position as the transactions occur.
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Your company is considering developing a new smart home thermostat right now. Market analysis suggests that this new thermostat could generate profit of $25,000 at the end of year one, $23,500 at the end of year 2, $22,000 at the end of year 3, $20,500 at the end of year 4, $19,000 at the end of year 5, and $17,500 at the end of year 6. To pay for developing the new thermostat, your company would withdraw money from an investment paying 8% interest compounded annually. What is the maximum your company should be willing to pay for developing this new smart home thermostat?
To determine the maximum amount your company should be willing to pay for developing the new smart home thermostat, we need to calculate the present value of the expected profits from the project. The present value represents the current value of future cash flows, taking into account the time value of money.
We can use the formula for calculating the present value of a series of future cash flows:
PV = CF1 / (1 + r)^1 + CF2 / (1 + r)^2 + CF3 / (1 + r)^3 + ... + CFn / (1 + r)^n
Where PV is the present value, CF is the cash flow for each year, r is the interest rate, and n is the number of years.
Given the cash flow projections and an interest rate of 8% compounded annually, we can calculate the present value as follows:
PV = $25,000 / (1 + 0.08)^1 + $23,500 / (1 + 0.08)^2 + $22,000 / (1 + 0.08)^3 + $20,500 / (1 + 0.08)^4 + $19,000 / (1 + 0.08)^5 + $17,500 / (1 + 0.08)^6
PV = $23,148.15 + $20,846.94 + $18,633.07 + $16,492.42 + $14,413.11 + $12,384.60
PV = $105,918.29
Therefore, the maximum amount your company should be willing to pay for developing the new smart home thermostat is $105,918.29. This amount represents the present value of the expected profits, taking into account the 8% interest rate over the project's timeframe.
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Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $22 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton?s first two years of operation is as follows:
Year 1 Year 2
Sales (in units) 3,100 3,100
Production (in units) 3,600 2,600
Production costs: Variable manufacturing costs $15,840 $11,440
Fixed manufacturing overhead 19,440 19,440
Selling and administrative costs: Variable 12,400 12,400
Fixed 11,400 11,400
Selected information from Lehighton?s year-end balance sheets for its first two years of operation is as follows:
LEHIGHTON CHALK COMPANY
Selected Balance Sheet Information
Based on absorption costing End of Year 1 End of Year 2
Finished-goods inventory $4,900 $0
Retained earnings 8,520 14,440
Based on variable costing End of Year 1 End of Year 2
Finished-goods inventory $2,200 $0
Retained earnings 5,820 14,440
Required:
1. Reconcile Lehighton?s operating income reported under absorption and variable costing, during each year, by comparing the following two amounts on each income statement:
Cost of goods sold
Fixed cost (expensed as a period expense)
Year 1 Year 2
Cost of goods sold under absorption costing Variable selling and administrative cost Subtotal Fixed manufacturing overhead as a period expense under variable costing Total $0 $0
Difference in operating income $0 $0
2. What was Lehighton?s total operating income across both years under absorption costing and under variable costing?
3. What was the total sales revenue across both years under absorption costing and under variable costing?
4. What was the total of all costs expensed on the operating income statements across both years under absorption costing and under variable costing?
Reconcile Lehighton’s operating income reported under absorption and variable costing during each year, by comparing the following two amounts on each income statement: Cost of goods sold Fixed cost (expensed as a period expense)Year 1 Year 2 Cost of goods sold under absorption costing $42,080 $30,680 Variable selling and administrative cost $12,400 $12,400 Subtotal $54,480 $43,080.
Fixed manufacturing overhead as a period expense under variable costing $19,440 $19,440Total $73,920 $62,520Difference in operating income ($8,440) $9,5602. Lehighton’s total operating income across both years under absorption costing is $1,120, and under variable costing, it is $6,120.3. The total sales revenue across both years under absorption costing is $68,200 and under variable costing, it is $68,200.
The total of all costs expensed on the operating income statements across both years under absorption costing is $67,080 and under variable costing, it is $62,080.
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