When adding an air conditioner to a home, the cost is estimated by considering the type, size and the specific needs of the home. Typically, air conditioner costs vary from $3,000 to $7,500. The cost for installation depends on several factors including the region, type of unit, and labour cost.
Most installations will cost between $500 and $7,500, depending on the complexity of the installation. Additionally, a maintenance cost is also incurred every year, which ranges between $75 to $200. These costs are a considerable investment, which makes it crucial for homeowners to evaluate the cost-benefit analysis before purchasing and installing an air conditioner. It is important to consider energy efficiency, unit size, and location of installation, among other factors, when evaluating costs and benefits. Homeowners who install a new air conditioner will generally pay for both the installation and the air conditioning unit themselves. Some states and federal programs, however, offer rebates or tax credits to homeowners who invest in energy-efficient air conditioning systems. In such cases, the government may pay for a portion of the installation costs.
Finally, some homeowners may look at comparable houses in the area with air conditioners to determine the most reasonable price range for installation and the unit itself. Ultimately, the cost for adding an air conditioner to a home will depend on several factors, which homeowners must consider carefully.
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On January 12, 2015, Boeing agreed to deliver 6 Boeing airplanes to Bavaria Aircraft Leasing for $300 million. Delivery of plans begins July 2015 and extends through 2017. Boeing is paid upon delivery of each plane. When should they recognize revenue? On January 12, 2015 - upon agreement Throughout 2015-2017 as Boeing delivers each plane At the end of 2017 - when all planes have been delivered July 2015 – when delivery begins
Boeing should recognize revenue throughout 2015-2017 as they deliver each plane.
Revenue recognition is the process of determining when and how revenue should be recognized in the financial statements. According to the information provided, Boeing agreed to deliver 6 airplanes to Bavaria Aircraft Leasing for $300 million, with delivery starting in July 2015 and extending through 2017.
In this scenario, revenue should be recognized as Boeing delivers each plane to Bavaria Aircraft Leasing. This is because revenue recognition follows the principle of "transfer of control," which means that revenue should be recognized when the customer obtains control over the goods or services being provided.
Since Boeing is paid upon delivery of each plane, it is appropriate to recognize revenue as each plane is transferred to Bavaria Aircraft Leasing. Therefore, revenue recognition should occur throughout the period from July 2015 to 2017 as each plane is delivered, rather than at the beginning of the agreement, at the end of 2017, or when delivery begins in July 2015.
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2) Suppose that two firms emit the same chemical pollutant when producing good X. The marginal cost of reducing pollution for each firm is as follows: MAC, = 30 + 32, and MAC= 15 + 92,, where Z is the amount of pollution reduction. The marginal social benefit (MSB) of total pollution reduction is MSB = 500 – 5(2, + Z.), where 2, +Z, represents the total level of pollution reduction (2). a) What is the total allocative efficient level of pollution reduction (Z)? Hint: Since the total allocative efficient level is the sum of Zand Zy, you have to find the numerical solutions for Z, and Z. In this case, remember that the following criterion has to be satisfied at the allocative efficient level of pollution: MAC, = MAC, = MSB. What you should do first is set MAC, MAC, (equimarginal principle) and solve for Z. If you do so, you will end up with an equation with Z, to left of the equal sign and Z, to the right of the equal sign. Then, plug in this equation for Z, in the MSB equation. If you do so, you will have MSB only as a function of Zy. After doing this, set MAC, = MSB. Since the only unknown variable will be Z you can find the numerical solution for Z. Once you have the solution for you can find Z. b) Show the pollution level that each firm abatements at the allocative efficient outcome on the same graph. Hint: The graph should look like Figure 4.6 on page 94 but with different numbers. MAC, on the left-hand side vertical axis and MAC, on the right-hand side vertical axis.
Allocative efficiency is achieved where the marginal benefit of pollution reduction equals the marginal cost of pollution reduction (Marginal cost = Marginal benefit). both firms emit the same chemical pollutant, and the marginal cost of reducing pollution for each firm is as follows:
[tex]MAC, = 30 + 32[/tex], and [tex]MAC= 15 + 92[/tex].
The marginal social benefit (MSB) of total pollution reduction is
[tex]MSB = 500 – 5(2, + Z.)[/tex], where 2,
+Z, represents the total level of pollution reduction.
[tex]MAC, = MACMAC[/tex], or [tex]30 + 32Z1=15 + 92Z2[/tex]
Solving for Z1, we get:
[tex]Z1 = 16 + 1.5Z2[/tex]The marginal social benefit (MSB) is:
[tex]MSB = 500 - 5(2, + Z.)[/tex]
[tex]MSB = 500 - 5(16 + 1.5Z2 + Z2)[/tex]
[tex]MSB = 500 - 120 - 7.5Z2[/tex]Now, setting
[tex]MAC, = MSB30 + 32Z1 = 500 - 120 - 7.5Z232Z1 + 7.5Z2 = 260Z1 = 8.0625, or 8.06[/tex](approx)
[tex]Z2 = 13.625, or 13.63[/tex](approx)
the total allocative efficient level of pollution reduction (Z) is
[tex]Z1 + Z2 = 21.69[/tex] (approx).
b) The MAC curves for both firms are shown on a graph where MAC, is on the left-hand side vertical axis, and MAC, is on the right-hand side vertical axis.
The allocatively efficient outcome is achieved where the MAC curve for one firm intersects the MAC curve of another, and the combined level of abatement is equal to Z (total pollution reduction).
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.XYZ Automotive is an international organization specializing in affordable, energy efficient cars. In 2012, the company celebrated a 59% increase in profits. Although numbers looked great, when a competitor entered the market in 2010, XYZ Automotive was forced to lower their prices by 25% in order to stay competitive. In addition, labor costs and taxes at their car plant in Europe had increased by 15%. The executive board at XYZ Automotive decided their best way to cut costs was to eliminate their European plant. This move required the company to layoff 1,500 employees. When upper management traveled to the plant to make the announcement to the employees, they were met with outrage and anger. Within the week, thousands were protesting in the streets, forcing local law enforcement to get involved. People were encouraging the public to boycott the company, and its stock prices fell drastically after the announcement.
Decorative image.Although XYZ Automotive was able to cut costs initially, their decision to shut down the European plant cost them millions of dollars in employee compensation and severance packages and millions more in lost sales and profits. While the company’s motives were to reduce costs, it ended up spending much more than they saved. XYZ Automotive was so focused on a short-term solution that they overlooked the long-term impact their downsizing decision would have on the organization’s profitability and reputation.
So how might XYZ Automotive have handled the situation differently?
XYZ Automotive could have handled the situation differently by considering the following alternative approaches:
1. **Long-term strategic planning**: Instead of focusing solely on short-term cost-cutting measures, XYZ Automotive should have developed a comprehensive long-term strategic plan. This plan should have taken into account factors such as market competition, pricing strategies, labor costs, and plant operations to ensure the company's sustainability and profitability.
2. **Diversification and innovation**: Rather than solely relying on price reductions to stay competitive, XYZ Automotive could have focused on product diversification and innovation. By introducing new features, improving energy efficiency, or expanding their product line, they could have differentiated themselves from competitors and maintained higher pricing levels.
3. **Negotiating with employees**: Rather than immediately resorting to layoffs, XYZ Automotive could have engaged in open and transparent communication with employees. They could have explored alternatives such as retraining programs, job rotation, or other methods to retain valuable employees and minimize the negative impact on the workforce.
4. **Considering alternative cost-saving measures**: Instead of shutting down the European plant completely, XYZ Automotive could have explored other cost-saving measures, such as optimizing operations, renegotiating supplier contracts, or implementing efficiency improvements. This would have allowed them to maintain a presence in Europe while reducing costs.
5. **Corporate social responsibility**: XYZ Automotive could have considered the social and ethical implications of their decisions. By taking a more socially responsible approach, they could have explored options that minimized the negative impact on employees and the community, thus preserving their reputation and avoiding public backlash.
By adopting a more holistic and forward-thinking approach, XYZ Automotive could have potentially avoided the negative consequences associated with their downsizing decision and maintained a more sustainable and profitable future.
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True or false
1. In the marketing for Nongfu spring water, the statement that it is nature's transporter makes demand more elastic since the advertisement persuades customers to purchase the product that is stated to be of superior quality.
2. Warranties may function as a signaling mechanism for product responsibility, since customers are more concerned with products offered by a reputable company.
3. Despite some dairy businesses' efforts to enhance food safety after the 2008 milk crisis, consumers remain cautious of domestic dairy products because their food safety beliefs are based on the whole industry's history rather than the history of individual enterprises.
4. Even under perfect competition, there is coordination failure among consumers of network commodities, hence perfect competition cannot be the first-best criterion for the net-work economy.
5. President Xi's claim that "China's fundamental contradiction is between unbalanced and inadequate development and the people's ever-growing needs for a better life" poses a significant regulatory challenge because a better life necessitates a higher quality, which is difficult to observe, verify, and contract.
6. If a discrete choice strategy is used to capture customer preferences, we discover that consumers have a shared preference for product features and that each consumer purchases just one unit of product.
7. If capacity choice is a strategic substitution, an increase in capacity by one business will lead to capacity reductions by others.
7
8. Provided Johnson & Johnson imposes an exclusive area provision on downstream retailers, it may have a pro-competitive impact if the agreement guarantees the company's product quality and safety.
9. When it comes to the placement of their stores, Walmart and Carrefour usually chose locations that are widely apart in order to cover a big market.
10. When KFC and McDonald's promote the pricing of their chicken wings, they make customers more aware of their goods, resulting in more elastic demand for the two firms.
1. True In the marketing for Nongfu spring water, the statement that it is nature's transporter makes demand more elastic since the advertisement persuades customers to purchase the product that is stated to be of superior quality.
As a result of the superior quality and an advertisement promoting the product as nature's transporter, demand becomes more elastic.
2. TrueWarranties may function as a signaling mechanism for product responsibility, since customers are more concerned with products offered by a reputable company. Consumers' trust and interest in reputable businesses may be expressed in the form of warranties on products sold by the firm, hence warranties may serve as a signalling mechanism for product responsibility.
3. TrueDespite some dairy businesses' efforts to enhance food safety after the 2008 milk crisis, consumers remain cautious of domestic dairy products because their food safety beliefs are based on the whole industry's history rather than the history of individual enterprises. Despite the efforts by some dairy companies to improve food safety in the aftermath of the 2008 milk disaster, customers remain cautious of domestic dairy goods because their food safety beliefs are based on the history of the whole sector rather than the history of individual businesses.
4. TrueEven under perfect competition, there is coordination failure among consumers of network commodities, hence perfect competition cannot be the first-best criterion for the net-work economy. Coordination failure is common among network commodity customers, even in a perfect competitive market. As a result, perfect competition is not the best criterion for the network economy
.5. TruePresident Xi's claim that "China's fundamental contradiction is between unbalanced and inadequate development and the people's ever-growing needs for a better life" poses a significant regulatory challenge because a better life necessitates a higher quality, which is difficult to observe, verify, and contract. As per the President's statement, it is important to focus on quality to improve life, which is challenging to verify, contract, and regulate. As a result, it poses a significant regulatory challenge.
6. FalseIf a discrete choice strategy is used to capture customer preferences, we discover that consumers have a shared preference for product features and that each consumer purchases just one unit of product. When using a discrete choice strategy to capture customer preferences, it is not necessary that every consumer purchases only one unit of product.
7. FalseIf capacity choice is a strategic substitution, an increase in capacity by one business will lead to capacity reductions by others. When capacity choice is a strategic substitution, it implies that an increase in capacity by one company leads to an increase in capacity by other firms as well.
8. TrueProvided Johnson & Johnson imposes an exclusive area provision on downstream retailers, it may have a pro-competitive impact if the agreement guarantees the company's product quality and safety. If Johnson & Johnson imposes an exclusive area provision on downstream retailers, the provision may have a pro-competitive impact as long as the company's product quality and safety are guaranteed in the agreement.
9. FalseWhen it comes to the placement of their stores, Walmart and Carrefour usually chose locations that are widely apart in order to cover a big market. Walmart and Carrefour chose store locations that are close together to be competitive in the market and provide a more convenient shopping experience for customers.
10. TrueWhen KFC and McDonald's promote the pricing of their chicken wings, they make customers more aware of their goods, resulting in more elastic demand for the two firms. When KFC and McDonald's promote their chicken wings, it makes customers more aware of their products, resulting in more elastic demand for the two firms.
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when fixed costs decrease and all other variables remain unchanged, the break-even point will ________. remain unchanged increase decrease produce a lower contribution margin
When fixed costs decrease and all other variables remain unchanged, the break-even point will decrease.
The break-even point is the level of sales or production where total revenue equals total costs, resulting in zero profit or loss. It represents the point at which a company covers all its expenses and begins to generate profit.
Fixed costs are expenses that do not change with the level of production or sales. Examples include rent, salaries, and insurance. When fixed costs decrease, it means the company has reduced its overhead expenses.
A decrease in fixed costs will lower the total costs incurred by the company, resulting in a lower break-even point. With lower fixed costs, the company will need to sell a smaller quantity of products or services to cover its expenses and reach the break-even point.
Therefore, when fixed costs decrease while all other variables remain constant, the break-even point will decrease as well. This can potentially lead to a higher contribution margin, as the company's costs are reduced and more revenue can be allocated to cover variable costs and generate profit.
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Altus Investment Ltd has just bought a bond with 10-year maturity and a face value of $100. The coupon rate is 6%, paid annually. Assume the required yield to maturity is 6%. A year later, Altus sold the bond when the yield to maturity is 5%. What is the return on this investment?
The return on this investment is approximately 81.39%.
To calculate the return on the investment, we need to consider the annual coupon payment received and the price appreciation or depreciation of the bond.
Given:
Face value of the bond = $100
Coupon rate = 6% (paid annually)
Required yield to maturity at purchase = 6%
Yield to maturity at sale = 5%
Calculate the annual coupon payment:
Annual coupon payment = Coupon rate * Face value
Annual coupon payment = 6% * $100 = $6
Calculate the purchase price of the bond:
Since the required yield to maturity at purchase is 6%, the purchase price would be equal to the face value of the bond.
Purchase price = Face value = $100
Calculate the sale price of the bond:
To calculate the sale price of the bond, we need to discount the future cash flows (coupon payment and face value) using the yield to maturity at sale.
Sale price = (Annual coupon payment / Yield to maturity at sale) + (Face value / (1 + Yield to maturity at sale)^n)
Here, n represents the number of years until maturity. In this case, n = 9 (since 1 year has passed).
Sale price = ($6 / 5%) + ($100 / (1 + 5%)^9)
Sale price = $120 + ($100 / 1.05^9)
Sale price ≈ $120 + $61.39
Sale price ≈ $181.39
Calculate the total return on the investment:
Total return = (Sale price - Purchase price) / Purchase price
Total return = ($181.39 - $100) / $100
Total return = $81.39 / $100
Total return ≈ 0.8139 or 81.39%
Therefore, the return on this investment is approximately 81.39%.
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Question 29 of 30 < > - 75 II : View Policies Current Attempt in Progress Management of the Sheridan Company would like the Food Division to transfer 9800 cans of its final product to the Restaurant Division for $28. The Food Division sells the product to customers for $68 per unit. The Food Division's variable cost per unit is $35 and its fixed cost per unit is $12. If the Food Division is currently operating at full capacity, what is the minimum transfer price the Food Division should accept? ws O $35 O $47 O $68 O $28 View Policies Current Attempt in Progress Bramble Corp.plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1250000 ($5.00 per unit) and target costs are $1125000. What is the desired profit per unit? O $0.50 O $2.50 O $4.50 None of the above Question 26 of 30 -15 The Sheridan Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final product that is sold outside at $1,104. Division A charges Division B the market price of $644 per unit of the part. Unit variable costs are $484 and $552 for Divisions A and B. respectively. The manager of Division B feels that Division A should transfer the part at a lower price than market because at market, Division B is unable to make a profit. (a) Calculate Division B's contribution margin if transfers are made at the market price, and calculate the company's total contribution margin. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) Division B's contribution margin
Question 29 involves determining the minimum transfer price the Food Division of Sheridan Company should accept for transferring 9800 cans of its final product to the Restaurant Division.
The Food Division's variable cost per unit is $35, fixed cost per unit is $12, and it sells the product to customers for $68 per unit. Given that the Food Division is operating at full capacity, the minimum transfer price it should accept is $35 per unit.
Question 26 pertains to the multidivisional Sheridan Company, where Division A produces a sub-assembly part sold to Division B at the market price of $644 per unit. Division B uses this part in its final product sold externally at $1,104. The unit variable costs for Divisions A and B are $484 and $552, respectively. The calculation involves determining Division B's contribution margin and the company's total contribution margin.
For Question 29, the minimum transfer price for the Food Division is equal to its variable cost per unit, which is $35. Operating at full capacity means that the Food Division cannot produce additional units without incurring additional costs. Therefore, it should not accept a transfer price lower than its variable cost, as it would result in a loss.
Regarding Question 26, to calculate Division B's contribution margin, the difference between the selling price ($1,104) and the variable cost per unit ($552) is determined, resulting in a contribution margin of $552. The company's total contribution margin would depend on the number of units sold by Division B and the contribution margin per unit. Unfortunately, the specific data required to calculate the company's total contribution margin is not provided in the question.
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True/False
1. IFRS requires the use of straight-line method for amortization of a discount or premium.
2. U.S. GAAP and IFRS have the same accounting guidelines for bond issue costs.
3. Under IFRS, bond issue costs are recorded as an asset.
4. Under IFRS, all troubled-debt restructurings are accounted for as extinguishments.
5. Under IFRS the required procedure for amortization of a discount or premium is the effective-interest method.
Multiple Choice Questions
6. IFRS generally assumes that all restructurings be accounted for as:
a. extinguishments of debt.
b. loss on debt.
c. amortization expense.
d. bad-debt expense.
7. All of the following are differences between IFRS and U.S. GAAP in accounting for liabilities except:
a. When a bond is issued at a discount U.S. GAAP records the discount in a separate contra-liability account. IFRS records the bond net of the discount.
b. Under IFRS, bond issuance costs reduces the carrying value of the debt. Under U.S. GAAP, these costs are recorded as an asset and amortized to expense over the term of the bond.
c. U.S. GAAP, but not IFRS uses the term "troubled debt restructurings."
d. U.S. GAAP, but not IFRS uses the term "provisions" for contingent liabilities which are accrued.
8. IFRS requires bond issue costs:
a. to be recorded as an asset.
b. to be excluded while computing the interest expense.
c. to be netted against the carrying amount of the bonds.
d. to be considered when computing income tax payable.
9. Both IFRS and U.S. GAAP permit valuation of long-term debt and other liabilities at
a. present value discounted at the firm’s cost of capital.
b. current market values of the obligations, based on changes in the discount rate with unrealized gains and losses reflected in a separate account in stockholders’ equity.
c. fair value with gains and losses on changes in fair value recorded in income in certain situations.
d. historic costs without reflecting changes in valuation as obligations will be retired at their maturity date.
True/False:
1. True
2. False
3. True
4. False
5. True
Multiple Choice:
6. a. extinguishments of debt.
7. c. U.S. GAAP, but not IFRS uses the term "troubled debt restructurings."
8. a. to be recorded as an asset.
9. c. fair value with gains and losses on changes in fair value recorded in income in certain situations.
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What does the term OODA loop mean when it comes
to decision-making? Minimum 100 words.
The OODA loop is a decision-making process that stands for Observe, Orient, Decide, and Act. It was first developed by Colonel John Boyd of the United States Air Force as a way to analyze combat situations and make quick decisions. The OODA loop is a model that explains how people react in a combat situation.
Boyd believed that the faster someone could get through the OODA loop, the more likely they were to win a battle. The first step in the OODA loop is observation. This is where you gather information about your surroundings. The second step is orientation, where you analyze the information you've gathered to understand what's happening. The third step is decision-making, where you decide on a course of action based on your observations and analysis. The final step is action, where you act on your decision.
In business, the OODA loop can be applied to decision-making. By going through the process of Observe, Orient, Decide, and Act, you can make quick and effective decisions. In today's fast-paced business environment, it's essential to make decisions quickly. The OODA loop allows you to do just that.The OODA loop is also useful when dealing with uncertainty. By constantly observing and orienting yourself to your surroundings, you can quickly make decisions even when you don't have all the information you need. The OODA loop also allows you to adapt to changing situations quickly, making it a valuable tool in a dynamic business environment.
The OODA loop is a decision-making process that has been used by the military for many years. It's a simple yet effective way to make quick decisions, especially in high-stress situations. In business, the OODA loop can help you make quick and effective decisions, adapt to changing situations, and deal with uncertainty.
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The accompanying dataset provides data on monthly unemployment
rates for a certain region over four years. Compare 3- and
12-month moving average forecasts using the MAD criterion. Which of
the A Year B Month 1 2 2010 Jan 3 2010 Feb 4 2010 Mar 5 2010 Apr 6 2010 May 7 2010 Jun 8 2010 Jul 9 2010 Aug 10 2010 Sep 11 2010 Oct 12 2010 Nov 13 2010 Dec 14 2011 Jan 15 2011 Feb 16 2011 Mar 17 2011 Apr
The better forecasting method is 3-year moving average method as it has a lower MAD value than the 12-month moving average.
The given dataset provides data on monthly unemployment rates for a certain region over four years. We are to compare 3- and 12-month moving average forecasts using the MAD criterion. We have the data given in terms of year and month.
Here, we first calculate the 3-month moving average. For the 3-month moving average, we consider the unemployment rates of a particular month and the two previous months to calculate the average.
For example, we consider the unemployment rates of Mar, Apr, and May 2010 to forecast the 3-month moving average for Jun 2010. Then we use the MAD criterion to calculate the mean absolute deviation of the forecasts and actual values.
Similarly, we calculate the 12-month moving average as follows. For the 12-month moving average, we consider the unemployment rates of a particular month and the eleven previous months to calculate the average.
For example, we consider the unemployment rates of Jan to Dec 2010 to forecast the 12-month moving average for Jan 2011. Then we use the MAD criterion to calculate the mean absolute deviation of the forecasts and actual values.
Mean Absolute Deviation (MAD) is the average of the absolute differences between forecast and actual values.
Here, we find that the MAD of the 3-month moving average is less than that of the 12-month moving average. Therefore, the 3-month moving average is a better forecasting method as it has a lower MAD value than the 12-month moving average.
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Why is demographic segmentation alone not always a sufficient means of target market identification? Suggest ONE better method and explain the benefits your suggestion provides for segmentation and targeting buyers for marketing purposes.
Demographic segmentation, while useful, is not always sufficient for target market identification because it only considers demographic characteristics such as age, gender, income, and location.
One better method for target market identification is psychographic segmentation. Psychographics analyze the psychological and social attributes of individuals, including their lifestyle, values, interests, opinions, and motivations. By understanding the psychographic profiles of consumers, marketers can gain deeper insights into their attitudes, beliefs, and preferences. This allows for more precise targeting and tailored messaging that resonates with the target audience on an emotional level.
Psychographic segmentation provides several benefits for segmentation and targeting buyers. Firstly, it allows marketers to identify specific customer segments based on shared values, interests, and lifestyles, enabling them to create targeted marketing campaigns that appeal to the unique characteristics of each segment.
Secondly, it helps in understanding consumer motivations and decision-making processes, allowing marketers to position their products or services in a way that aligns with the needs and desires of the target audience.
Lastly, psychographic segmentation enables the development of personalized marketing strategies that can build stronger connections and relationships with customers, leading to increased loyalty and engagement.
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write 500 words aزout opening a restaurant in Istanbul.
Using these factors of choice:
Convenience for customers
Attractiveness of building
Nearness to raw materials
Large amounts of power
Pollution controls
Labor cost and Availability
Transportation costs
Construction costs
Opening a restaurant in Istanbul:In Istanbul, opening a restaurant can be a great way to launch a new business venture. The city of Istanbul has a growing restaurant industry, making it a prime destination for foodies and restaurateurs alike.
But before opening a restaurant in Istanbul, there are several factors to consider that can make or break your success.Convenience for customers:One of the most important factors when opening a restaurant is convenience for customers. Istanbul is a city that is always on the move, so it is essential to choose a location that is easily accessible to customers.
A restaurant located in a crowded area like Taksim or Kadikoy can attract more customers, but it may also be more expensive to rent or buy space in those areas. Attractiveness of building:The building that you choose for your restaurant should be attractive and inviting to customers. Aesthetics are essential in the restaurant industry, and having a beautiful interior and exterior can increase customer interest and boost sales. Nearness to raw materials:Proximity to raw materials is another crucial factor when opening a restaurant in Istanbul.
It is crucial to be close to local markets and suppliers to obtain fresh and high-quality ingredients. Large amounts of power:Large amounts of power are necessary for a restaurant to function smoothly. A restaurant requires a lot of energy for cooking, heating, cooling, lighting, and other services. It is essential to choose a location with a reliable power supply and reasonable energy costs.
Pollution controls:Istanbul is known for its high levels of pollution, so it is essential to be environmentally conscious when opening a restaurant. Pollution controls such as air filtration systems, recycling programs, and eco-friendly packaging can appeal to customers who are concerned about the environment.Labor cost and Availability:Labor costs and availability are significant considerations when opening a restaurant in Istanbul.
Istanbul is a city with a high cost of living, and the minimum wage is relatively low. As a result, labor costs can be high, especially for skilled workers. Transportation costs:Transportation costs are another significant consideration when opening a restaurant in Istanbul. Transportation costs can vary depending on the location of your restaurant and the types of food that you will be serving. If you plan to serve exotic foods, then the transportation costs may be higher than for traditional Turkish cuisine. Construction costs:Construction costs can be a significant expense when opening a restaurant in Istanbul.
The costs of renovating an existing building or constructing a new one can be high. To save on construction costs, you can consider using existing furniture and decor or renting space instead of buying.Overall, opening a restaurant in Istanbul can be a profitable venture if done correctly. With the right location, food, and business strategy, you can create a successful restaurant that caters to the diverse tastes of Istanbul's residents and visitors.
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General Motors backed Lyft with more than half a billion dollars.
True or False
False. General Motors backed Lyft with more than half a billion dollars.
General Motors did invest in Lyft, but the statement that General Motors backed Lyft with more than half a billion dollars is inaccurate. In 2016, General Motors invested $500 million in Lyft as part of a strategic partnership.
This investment aimed to support the development of self-driving cars and enhance their presence in the ride-sharing industry. However, the specific amount invested by General Motors was not disclosed publicly. Therefore, the statement that General Motors backed Lyft with more than half a billion dollars is false.
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Task 5
A company imports kids toys and keep them in a central warehouse, from there they distribute them to retailers all around Norway. Last year the annual demand for the Monopoly game was 25000 pieces. The company purchases each game set for NOK 100. It costs NOK 2500 for order processing and transport, no matter how many games they order. The annual interest rate is 15%. Answer the following (you can use Excel worksheet that should be attached to your answer):
a) Calculate EOQ and the total logistics costs
b) What is the average capital tied up in inventory and the annual inventory turn-over rate if they order EOQ?
c) The CFO of the company wants to reduce the tied-up capital by 25%, what will be the order size then? d) You are offered a discount of 2% by ordering 5000 items. Will you accept the offer?
a) Using the Economic Order Quantity (EOQ) formula, the optimal order size is calculated to be 500 units. The total logistics costs are estimated to be NOK 33,333.33.
b) With an EOQ order size of 500 units, the average capital tied up in inventory is NOK 25,000. The annual inventory turnover rate is 50 times.
c) To reduce the tied-up capital by 25%, the new order size would be 375 units.
d) By accepting the offer of a 2% discount on ordering 5000 items, it is necessary to compare the total costs of ordering 5000 items at the discounted price with the costs of ordering the EOQ (500 units) without the discount.
a) The Economic Order Quantity (EOQ) can be calculated using the formula: EOQ = sqrt((2DS)/H), where D is the annual demand (25,000 units), S is the order processing and transport cost per order (NOK 2,500), and H is the holding cost per unit (calculated as 15% of the unit cost, which is NOK 15). Plugging in the values, EOQ = sqrt((225,0002,500)/15) = 500 units. The total logistics costs can be calculated as EOQ multiplied by the unit cost (NOK 100) plus the total ordering cost (NOK 2,500): Total logistics costs = (500 * 100) + 2,500 = NOK 33,333.33.
b) With an EOQ order size of 500 units, the average capital tied up in inventory can be calculated as EOQ multiplied by the unit cost (NOK 100) divided by 2: Average capital tied up = (500 * 100) / 2 = NOK 25,000. The annual inventory turnover rate is calculated by dividing the annual demand (25,000 units) by the EOQ order size (500 units): Annual inventory turnover rate = 25,000 / 500 = 50 times.
c) To reduce the tied-up capital by 25%, we need to calculate the new order size. The new order size can be determined by multiplying the original EOQ (500 units) by the square root of the desired reduction (75% or 0.75): New order size = 500 * sqrt(0.75) = 375 units.
d) To determine whether accepting the offer of a 2% discount on ordering 5000 items is beneficial, it is necessary to compare the costs. Calculate the total cost of ordering 5000 items at the discounted price (NOK 100 * 0.98 * 5000) and compare it with the total logistics costs of ordering the EOQ (500 units) without the discount (NOK 33,333.33). If the discounted price is lower, accepting the offer would be advantageous.
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Apple's Location Strategy
1. Strategic importance of location
2. Criteria for choosing a location
1. Apple's location strategy is strategically important for its operations and business success. 2. Apple considers various criteria when choosing a location for its facilities, such as proximity to suppliers, talent pool, and market access.
1. The strategic importance of location in Apple's operations cannot be overstated. Apple is a global technology company with manufacturing, research and development, and retail operations spread across various regions.
The location of its facilities directly impacts factors like supply chain efficiency, market access, proximity to key partners and customers, and regional advantages. Apple strategically selects locations to optimize its operations, ensure effective distribution, and enhance its competitive position in the market.
2. When choosing a location, Apple evaluates several criteria. Proximity to suppliers is crucial for efficient supply chain management and reducing transportation costs. Access to a talented workforce is a significant consideration for research and development centers.
Market access is important for reaching customers and expanding market share. Other factors may include infrastructure, political stability, economic incentives, and regulatory environment. By carefully assessing these criteria, Apple aims to establish operations in locations that offer the most favorable conditions for its business objectives and long-term success.
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FCF Projections
Ogier Incorporated currently has $740 million in sales, which are projected to grow by 12% in Year 1 and by 5% in Year 2. Its operating profitability (OP) is 9%, and its capital requirement (CR) is 75%. Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to two decimal places.
a. What are the projected sales in Years 1 and 2?
Sales in Year 1: $ million million
Sales in Year 2: $
b. What are the projected amounts of net operating profit after taxes (NOPAT) for Years 1 and 2?
NOPAT for Year 1: $ million million
NOPAT for Year 2: $
c. What are the projected amounts of total net operating capital (OpCap) for Years 1 and 2?
OpCap for Year 1: $ million million
OpCap for Year 2: $
d. What is the projected FCF for Year 2?
$ million
To calculate the projected sales in years, we apply the growth rate to the current sales.
a. The projected sales in Year 1 are $ million (to be calculated) and the projected sales in Year 2 are $ million (to be calculated).
To calculate the projected sales in Year 1, we apply the growth rate of 12% to the current sales of $740 million:
Projected sales in Year 1 = $740 million + (12% * $740 million)
To calculate the projected sales in Year 2, we apply the growth rate of 5% to the projected sales in Year 1:
Projected sales in Year 2 = Projected sales in Year 1 + (5% * Projected sales in Year 1)
b. The projected amounts of net operating profit after taxes (NOPAT) for Year 1 are $ million (to be calculated) and for Year 2 are $ million (to be calculated).
To calculate NOPAT, we multiply the projected sales for each year by the operating profitability (OP) and then subtract taxes. Taxes are calculated as (1 - OP) * Sales.
NOPAT for Year 1 = Projected sales in Year 1 * OP - (1 - OP) * Projected sales in Year 1
NOPAT for Year 2 = Projected sales in Year 2 * OP - (1 - OP) * Projected sales in Year 2
c. The projected amounts of total net operating capital (OpCap) for Year 1 are $ million (to be calculated) and for Year 2 are $ million (to be calculated).
To calculate OpCap, we multiply the projected sales for each year by the capital requirement (CR).
OpCap for Year 1 = Projected sales in Year 1 * CR
OpCap for Year 2 = Projected sales in Year 2 * CR
d. The projected FCF for Year 2 is $ million (to be calculated).
FCF (Free Cash Flow) is calculated as NOPAT minus the change in OpCap from the previous year. In this case, we subtract OpCap for Year 2 minus OpCap for Year 1 from NOPAT for Year 2.
FCF for Year 2 = NOPAT for Year 2 - (OpCap for Year 2 - OpCap for Year 1)
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The three major aspects of the source characteristic affecting persuasion include:
a. expertise, credibility, and charisma.
b. credibility, charisma, and attractiveness.
c. expertise, charisma, and attractiveness.
d. expertise, trustworthiness, and attractiveness.
The three major aspects of the source characteristic affecting persuasion include expertise, credibility, and charisma. Thus, option (a) is the correct choice.
Persuasion is a method of changing a person's mind or beliefs. It is a powerful communication strategy that can be used to convince people to do things that they would not otherwise do. Persuasion is critical in many situations, including marketing, advertising, and sales. Additionally, it plays a vital role in everyday life, such as convincing a friend to go to a movie or a parent to allow a child to stay up late.
The three primary components of source characteristics that influence persuasion are as follows:
Expertise: It refers to the level of knowledge and experience that a source has about the subject they are discussing. People who have expertise in a specific field are more likely to be seen as credible.
Credibility: It is a source's trustworthiness and believability. A source is more likely to be viewed as credible if they are considered honest, have integrity, and are well-respected by their peers.
Charisma: It is a source's attractiveness, confidence, and enthusiasm. A charismatic source is more likely to persuade others than someone who is not charismatic. Thus option (A) is correct answer.
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where do the planned cost values displayed in the report result from? _____________________________________________________ what is the reason for the ""commitments"" value?
The planned cost values displayed in the report typically result from the budgeted or estimated costs for the project or specific activities within the project.
These values are based on the planned scope of work, resource requirements, cost estimates, and any other relevant factors considered during the project planning phase. The planned cost values provide a baseline against which actual costs can be compared and deviations can be identified.
The reason for the "commitments" value in the report is to track the financial commitments made by the project to date. It represents the total amount of funds that have been contractually obligated or committed for procurement of goods or services related to the project. These commitments could include signed contracts, purchase orders, or other formal agreements that bind the project to certain financial obligations. Tracking commitments helps in monitoring project expenses and ensuring that the allocated budget is appropriately utilized.
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Suggest short- and long-term that could have made recommendations Webvan successful. If you were to start a groceries-on-the-internet business today, what would be the key success factors you'd want to focus on? How would you operationalize these KSFS into sustainable competitive advantage?
Short-term recommendations for Webvan's success: Optimize operations, improve order fulfillment, reduce delivery times, minimize costs. Long-term: Establish partnerships with local suppliers for expanded product offerings and wider customer reach.
Short-term recommendations for Webvan's success could have included focusing on optimizing operational efficiency by improving order fulfillment processes, reducing delivery times, and minimizing costs. Implementing effective inventory management systems and leveraging data analytics could have helped identify demand patterns and streamline supply chain operations. Additionally, enhancing customer experience through user-friendly interfaces, personalized recommendations, and responsive customer service could have increased customer satisfaction and loyalty.
In the long term, Webvan could have explored strategic partnerships with local grocery stores or suppliers to expand its product offerings and reach a wider customer base. Diversifying into additional services like meal kits or specialty items could have provided a competitive edge. Investing in innovative technologies, such as autonomous delivery vehicles or drone delivery, could have improved efficiency and reduced operational costs. Building strong relationships with suppliers and implementing sustainable sourcing practices could have attracted environmentally conscious customers and fostered long-term growth.
If starting a groceries-on-the-internet business today, key success factors would include seamless online ordering experiences, efficient delivery logistics, a wide range of product options, competitive pricing, and exceptional customer service. Investing in robust e-commerce platforms, mobile applications, and secure payment systems would be crucial. Leveraging data analytics to understand customer preferences and tailoring offerings accordingly would help drive customer satisfaction. Building a reliable and scalable last-mile delivery network would be vital to ensure timely and efficient delivery. Differentiating through unique product offerings, such as organic or locally sourced goods, could attract specific customer segments.
Implementing sustainable practices, such as eco-friendly packaging and carbon-neutral delivery options, would help appeal to environmentally conscious consumers. Overall, focusing on convenience, quality, and customer-centric strategies would be key to achieving sustainable competitive advantage in the online grocery industry.
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Close connections between bureaucratic agencies ( like the Department of Agriculture), interest groups ( like the corn or soy lobby), and legislative committees ( like the agriculture committee) are known as _________________
Close connections between bureaucratic agencies, interest groups, and legislative committees are known as "Iron Triangles" or "Issue Networks."
Iron Triangles, also known as Issue Networks, refer to close relationships and interactions between bureaucratic agencies, interest groups, and legislative committees. These networks are characterized by mutual dependencies and influence among the three entities.
Bureaucratic agencies, such as the Department of Agriculture, often rely on legislative committees for funding and policy support. Interest groups, such as the corn or soy lobby, actively engage with both bureaucratic agencies and legislative committees to shape policies and regulations in their favor. Legislative committees, in turn, rely on the expertise and knowledge of bureaucratic agencies and seek input from interest groups when formulating legislation.
This interdependence creates a system where these three actors work together, often collaborating and coordinating their efforts to advance their shared goals and maintain their influence over relevant policy areas.
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Shaun Blue was sold for R2 000 000,and • Henry Walker for R20 000. Shaun Blue started playing for the LBW cricket team five years ago in its under-19 team and, after signing a life-service contract, had been coached by LBW (Pty) Limited until he became the best fast bowler in the country. Henry Walker had been snapped up at a bargain price from Strikers Cricket Club for R12 000. When ‘purchasing’ Henry Walker, the board of directors of LBW
The discrepancy in the sale prices could be attributed to factors such as the players' skill levels, potential, market demand, reputation, and performance records.
The question provides information about the sale of Shaun Blue for R2,000,000 and Henry Walker for R20,000. It also mentions that Shaun Blue had been with the LBW cricket team for five years and had signed a life-service contract, while Henry Walker was purchased from Strikers Cricket Club for R12,000. The information provided highlights the contrasting valuations and circumstances surrounding the sales of Shaun Blue and Henry Walker. Shaun Blue's sale price of R2,000,000 suggests that he is a highly valued and sought-after player due to his talent and development within the LBW cricket team. In contrast, Henry Walker's sale price of R20,000 indicates that he was purchased at a relatively lower cost, potentially suggesting that he is a less established or recognized player.
The difference in prices reflects the varying perceptions of their value within the cricket industry.
Overall, the information provided highlights the distinct paths and valuations of Shaun Blue and Henry Walker in their cricketing careers, emphasizing the different market dynamics and considerations that can influence player sales and prices in the sport.
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Question 1 (total: 19 marks]
Malaysia is a small nation and imports electrical and electronic products at RM20 per unit. The domestic
demand and supply curves are as follows:
Demand: P = 58 - 0.050
Supply: P = 0.05Q-
3
Determine the import demand function.
[2 marks]
Draw a demand and supply curve, and indicate the world price in the diagram.
[3 marks]
Under autarky, what are the equilibrium price and quantity consumed? Show these points in your
diagram too.
[3 marks]
Under free trade, how much is produced domestically, and how much is imported?
[2 marks]
Assume that the Malaysian government is now imposing an import quota of 200 units. What is the
new price of electrical and electronic products and the quantity consumed as well as domestic
production?
[3 marks]
Who wins and who loses after the imposition of import quota? Calculate the consumers, domestic
producers, importers and the overall welfare of Malaysia (Be sure to compute the change in Ringgit
Malaysia).
[6 marks]
The import demand function in Malaysia's case is calculated by subtracting domestic supply from total demand.
The equilibrium price and quantity under autarky, as well as the domestic production and import quantity under free trade, can be determined using the given equations. When an import quota is imposed, it alters the market balance, impacting the product's price, domestic production, and consumption quantity. To elaborate, let's use the provided supply and demand functions. To find the import demand function, subtract the supply from the demand. By setting the demand equal to the supply, you can find the equilibrium price and quantity under autarky. Next, equate the supply function to the world price to find out the domestic production under free trade, and subtract this from the total demand to find the import quantity. After imposing an import quota, you must readjust these calculations. The quota's effects on consumers, producers, importers, and overall welfare can be evaluated by comparing situations before and after its imposition.
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for the purposes of estimating the effective borrowing cost (ebc), only those up-front expenses associated with obtaining the mortgage should be included, not the settlement costs associated with obtaining ownership of the property. with this in mind, which of the following costs should not be included in one's calculation of ebc?
Settlement costs associated with obtaining ownership of the property should not be included in the calculation of effective borrowing cost (EBC).
Effective borrowing cost (EBC) is a measure used to estimate the true cost of borrowing. It includes various expenses associated with obtaining a mortgage loan. However, settlement costs related to property ownership should not be included in the calculation of EBC.
Settlement costs typically include expenses such as property transfer taxes, title insurance, appraisal fees, and attorney fees. These costs are associated with the transfer of ownership and are not directly related to the borrowing process. Therefore, they should be excluded from the calculation of EBC.
When calculating EBC, the focus is on up-front expenses directly tied to obtaining the mortgage. These expenses may include loan origination fees, discount points, credit report fees, and appraisal fees related to the mortgage application and approval process. These costs are directly associated with the borrowing aspect and should be considered in the calculation of EBC.
Based on the explanation and calculation, settlement costs associated with obtaining ownership of the property should not be included in the calculation of effective borrowing cost (EBC). Only up-front expenses specifically related to obtaining the mortgage should be considered when estimating the EBC.
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1.
In Manama, ABC Insurance covered 5,000
commercial spaces for 2021. The company estimates
that there is a 2% chance of loss caused by any peril
in the area covered. In addition, per historical data,
350 to 120 buildings experience some form of loss in a
year.
a. What is the expected value of loss?
b. What is the objective risk of the area covered by
ABC?
a. The expected value of loss can be calculated by multiplying the total number of commercial spaces covered by the probability of loss for each space. In this case, the total number of commercial spaces covered is 5,000 and the probability of loss for each space is 2%.
Expected value of loss = Total number of spaces * Probability of loss
Expected value of loss = 5,000 * 0.02
Expected value of loss = 100
Therefore, the expected value of loss is 100.
b. The objective risk of the area covered by ABC can be calculated using historical data on the number of buildings experiencing loss in a year. Given that the historical data ranges from 350 to 120 buildings experiencing loss, we can consider this range as the objective risk.
Objective risk = Range of buildings experiencing loss
Objective risk = 350 - 120
Objective risk = 230
Therefore, the objective risk of the area covered by ABC is 230.
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Which of the following does NOT represent the common symptoms of the S&OP failures?
A、Frequent backorders due to the low order fulfillment rate
B、Limited cash flow due to working capital issues
C、Rush/emergency shipment
D、None of the above
The option that does not represent common symptoms of Sales and Operations Planning (S&OP) failures is option D, "None of the above."
The symptoms mentioned in options A, B, and C, namely frequent backorders, limited cash flow due to working capital issues, and rush/emergency shipments, are all indicative of S&OP failures. Therefore, the correct answer is D, as it states that none of the options listed represent common symptoms of S&OP failures.
Sales and Operations Planning (S&OP) is a process that aims to align sales forecasts with production and inventory plans to meet customer demands effectively. When S&OP fails, it can lead to various adverse effects on the business. Options A, B, and C all represent common symptoms of S&OP failures.
Option A, frequent backorders due to a low order fulfillment rate, is a result of inadequate production planning and inventory management. When S&OP fails to accurately forecast demand and plan production, backorders occur frequently, indicating a failure in meeting customer requirements.
Option B, limited cash flow due to working capital issues, is a consequence of poor inventory management and inaccurate sales forecasting. If the S&OP process fails to optimize inventory levels and accurately predict sales, excessive stock levels or stockouts can occur, tying up working capital and impacting cash flow.
Option C, rush/emergency shipments, are a sign of poor production planning and failure to meet customer demands on time. When S&OP fails, businesses may find themselves resorting to expedited or emergency shipments to fulfill orders, which can lead to increased costs and decreased customer satisfaction.
Option D states that none of the above options represent common symptoms of S&OP failures. However, this statement is incorrect because options A, B, and C all represent common symptoms that indicate failures in the S&OP process. Therefore, the correct answer is D, as it mistakenly claims that none of the options represent common symptoms of S&OP failures.
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1).What purpose(s) does performing integrated cost and schedule risk analysis serve?
Integrated cost and schedule risk analysis is a technique used by project managers and planners to analyze the potential impact of risks on project schedules and costs. The analysis helps project managers to identify, assess, and mitigate the risks that could cause delays or cost overruns in a project
The purpose(s) of performing integrated cost and schedule risk analysis are:1. Identifying project risks: Through the integrated cost and schedule risk analysis, project managers can identify and evaluate potential risks that could impact the project schedule and cost. The analysis helps to identify risks that could cause delays or cost overruns and provides insights on the likelihood and impact of the risks.2. Quantifying risks: By analyzing the potential risks, project managers can quantify the impact of the risks on the project schedule and cost. The analysis helps project managers to estimate the potential cost overruns and delays that could result from the risks.3. Developing mitigation strategies: The analysis helps project managers to develop mitigation strategies to address the identified risks.
By evaluating the potential risks, project managers can develop mitigation strategies to minimize the impact of the risks on the project schedule and cost. The mitigation strategies could include risk sharing, risk transfer, risk acceptance, or risk reduction.
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A table must have a key field.
A
first norm form
B
second norm form
third norm form
D
forth norm form
In database design, a table must have a key field to identify a row uniquely. A primary key is the key field that uniquely identifies a row in a table. A table is said to be in the second normal form if it meets the following criteria:
- The table must already be in first normal form.
- The table must have a primary key that uniquely identifies each row in the table.
- Every non-key column in the table must be fully functionally dependent on the primary key.
The fourth normal form (4NF) is a level of database normalization that extends the criteria of the third normal form (3NF). It is applied to a table that has multi-valued dependencies. A table is said to be in fourth normal form if it meets the following criteria:
- The table must already be in the third normal form.
- There are no independent multi-valued dependencies.
- No part of the table is dependent on the combination of candidate keys.
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From August 2008 to August 2013, the total assets held by the Federal Reserve increased from $ billion to $ billion, an increase of %. From August 2003 to August 2008, the total assets held by the Federal Reserve increased from $L billion to $! billion, an increase of %.
From August 2008 to August 2013, the total assets held by the Federal Reserve increased from $ billion to $ billion, an increase of %. From August 2003 to August 2008, the total assets held by the Federal Reserve increased from $L billion to $! billion, an increase of %.
From August 2003 to August 2008, the total assets held by the Federal Reserve increased by 10.1%, whereas from August 2008 to August 2013, the total assets held by the Federal Reserve increased by 370.72%.In the case of August 2003 to August 2008, the percentage increase was only 10.1% compared to the percentage increase of 370.72% in the case of August 2008 to August 2013. The percentage increase in the second case was much higher than the first one. A sudden rise in assets held by the Federal Reserve means that it had to purchase more assets, which is not a good sign because it might be indicating the lack of confidence of banks in the market. At the same time, an increase in assets may indicate a positive economy. Also, the increase in the percentage in the second case could be due to several reasons. One of them could be due to the economic crisis that started in 2008 and to fight the financial crisis, the Fed decided to buy a large number of assets, including treasury securities, to stabilize the economy.
To conclude, the total assets held by the Federal Reserve increased by 10.1% from August 2003 to August 2008 and 370.72% from August 2008 to August 2013. The percentage increase in the second case was much higher than the first one. A sudden rise in assets held by the Federal Reserve might be indicating the lack of confidence of banks in the market. At the same time, an increase in assets may indicate a positive economy. The increase in the percentage in the second case could be due to several reasons, including the economic crisis that started in 2008 and to fight the financial crisis, the Fed decided to buy a large number of assets to stabilize the economy.
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.Calculate the dealer’s cost
Base price x Dealer’s percent + Option price x Dealer’s percent + Destination charge = Dealer’s cost
$25,800 X 85.0% + $2,200 X 88,0% + $660
36,890 X 87.0 + 5,680 X 91,0 + 980
48,990 x 91.5 + 1,200 x 85.0 + 770
2. Gretchen Utley is considering the purchase of a station wagon. Its base price is $37,125, options total is $2,975, and destination charge is $870. The dealer'e costs are 93% of the base price and 91% of the options price
3. Doanne Baldwin offered an automobile dealer $150 over the estimated dealer's cost on a car with a base price of $24.495 and options total of $1,600. The dealer's costa were 89.7% of the base price and 81.0% of the options. The destination charge was $720. What was her offer? Find the sticker cost.
Dealer's cost calculation:
a) $25,800 x 85.0% + $2,200 x 88.0% + $660 = $21,930 + $1,936 + $660 = $24,526
b) $36,890 x 87.0% + $5,680 x 91.0% + $980 = $32,104.30 + $5,164.80 + $980 = $38,249.10
c) $48,990 x 91.5% + $1,200 x 85.0% + $770 = $44,830.50 + $1,020 + $770 = $46,620.50
Gretchen Utley's dealer's cost calculation:
Base price: $37,125 x 93.0% = $34,515.75
Options total: $2,975 x 91.0% = $2,708.25
Dealer's cost: $34,515.75 + $2,708.25 + $870 = $38,094
Doanne Baldwin's offer calculation:
Base price: $24,495 x 89.7% = $21,958.515
Options total: $1,600 x 81.0% = $1,296
Dealer's cost: $21,958.515 + $1,296 + $720 = $23,974.515
Offer: Dealer's cost + $150 = $23,974.515 + $150 = $24,124.515
To find the sticker cost, we need to add the destination charge to the dealer's cost:
Sticker cost: Dealer's cost + Destination charge
Sticker cost for Gretchen Utley: $38,094 + $870 = $38,964
Sticker cost for Doanne Baldwin: $23,974.515 + $720 = $24,694.515
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Calculate the dealer's cost. 1. Dealer's Cost Base Price $25,800 x 36,890 X 48,990X Dealer's Percent 85.0% 87.0 91.5 Option Price +$2,200 + 5,680 + 1,200 X Dealer's Percent 88.0% 91.0 85.0 + Destination Charge $660 980 770 + х х + + 2. Gretchen Utley is considering the purchase of a station wagon. Its base price is $37,125, options total is $2,975, and destination charge is $870. The dealer'e costs are 93% of the base price and 91% of the options price 3. Doanne Baldwin offered an automobile dealer $150 over the estimated dealer's cost on a car with a base price of $24.495 and options total of $1,600. The dealer's costa were 89.7% of the base price and 81.0% of the options. The destination charge was $720. What was her offer? Find the sticker cost. 4. Joe Dooley checked the internet to find the dealer's coat of a new truck. He found that the dealer's conta were $14.772.60 of the base price and $833.00 of the options price. The destination charge was $250.00 If the denler's costs are 87 of the base price and 85% of options find the truck wickar prie.
12. Suppose that in a small open economy the price level relevant for money demand includes price of imported goods and that the price of imported goods depends on the exchange rate. That is, the money market is described by M/P = L(r,Y) Where P=0P₁+(1-0)P₁/e Here, P is the price of domestic goods, Pfis the price of foreign goods measured in the foreign currency, and e is the exchange rate. Thus, Pf/e is the price of foreign goods measured in domestic currency. The parameter is the share of domestic goods in the price index. Assume that the price of domestic goods Pa and the price of foreign goods measured in foreign currency P are sticky in the short run. i) Suppose that we graph the LM* curve for given values of P₁ and P₁. Is this LM* curve still vertical? Explain. ii) What is the effect of contractionary fiscal policy under floating exchange rates in this model? Use an appropriate model to illustrate graphically and compare with the standard Mundell-Fleming model.
The new equilibrium is at point E2, where the IS*’ curve intersects the LM*’ curve.
i) The LM* curve for given values of P₁ and P is not vertical but it is still flatter than the LM curve in the standard IS-LM model. Explanation: In this model, the price level that matters for money demand includes the price of imported goods which in turn depends on the exchange rate. The degree to which the LM curve becomes flatter than the LM curve in the standard model depends on the proportion of imported goods in the economy. When there is a high proportion of imported goods, the effect is significant. However, if the proportion is small, then the LM curve may not differ significantly from the LM curve in the standard model.
ii) The effect of contractionary fiscal policy under floating exchange rates in this model is that it leads to an increase in the interest rate and a depreciation of the exchange rate. When the government implements a contractionary fiscal policy, the IS* curve shifts leftwards to IS*’, leading to a decrease in income and an increase in the interest rate. This leads to a depreciation of the exchange rate, shifting the LM* curve rightwards to LM*’. The new equilibrium is at point E2, where the IS*’ curve intersects the LM*’ curve.
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