Therefore, she does not have to pay income tax for the year 2021.
The following are the calculations for Jill's standard deduction, personal exemption, and taxable income: Standard deduction: Jill is not 65 or older or blind, so her standard deduction is the greater of:$1,100, or$350 plus her earned income of $6,000, up to a maximum of $12,550Therefore, the amount of Jill's standard deduction is $7,100, which is greater than $1,100 and the sum of $350 plus her earned income.
Personal exemption: Jill is not entitled to a personal exemption on her tax return because she can be claimed as a dependent by her parents. Taxable income: Jill's taxable income is calculated as follows: Total income: $7,400Minus: Standard deduction: $7,100Minus: Itemized deductions: $400Equals: Taxable income: $0Jill's taxable income is $0 because her itemized deductions and standard deduction are greater than her total income.
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A company is a legal entity formed by a group of individuals to engage in and operate a business, commercial or an industrial enterprise. Pursuant to the above, describe and discuss the following:- (a) the differences between a company and a partnership [10 marks] (b) the classification of companies according to the members' liability
A company is a legal entity formed by a group of individuals to conduct business activities, while a partnership is a business structure where two or more individuals come together to carry out a business as co-owners.
The differences between a company and a partnership lie in their legal structure, liability, ownership, and decision-making processes. Companies can be classified based on the liability of their members, which can be limited or unlimited.
(a) The differences between a company and a partnership:
A company is a separate legal entity distinct from its owners, known as shareholders. It is formed by complying with legal requirements and registering with the appropriate authorities. On the other hand, a partnership is an unincorporated business structure where the partners jointly own and manage the business. In terms of liability, a company offers limited liability to its shareholders, meaning their personal assets are protected from the company's debts and obligations. In contrast, in a partnership, the partners have unlimited liability, and their personal assets can be used to settle the partnership's debts.
Ownership in a company is represented by shares, which can be bought, sold, or transferred among shareholders. In a partnership, ownership is typically based on a partnership agreement, and the partners share profits and losses according to the agreed terms. Decision-making in a company is usually governed by a board of directors elected by shareholders, who make major decisions on behalf of the company. Partnerships often have a more flexible decision-making process, with decisions made collectively by the partners.
(b) Classification of companies according to members' liability:
Companies can be classified based on the liability of their members into two main categories: limited liability companies and unlimited liability companies. Limited liability companies are those where the liability of the members is limited to their investment or the amount they have agreed to contribute towards the company's debts. This type of company provides protection for the personal assets of its members. Examples include private limited companies (Ltd.) and public limited companies (Plc.).
Unlimited liability companies, also known as partnerships, involve members who are personally liable for the company's debts and obligations. In these companies, there is no separation between personal and business assets. Examples include general partnerships (GP) and limited partnerships (LP). The classification of companies based on liability is important as it determines the level of risk and protection for the members involved. Limited liability companies are often preferred due to the safeguarding of personal assets, while unlimited liability companies may be suitable for smaller businesses with fewer risks or when partners are comfortable assuming personal liability for the company's obligations.
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What role did the Eisenhower administration play in precipitating the Suez Crisis and in ending the Suez War?
Eisenhower's administration sparked the Suez Crisis with aid cuts, leading to canal nationalization, and later resolved the Suez War through diplomatic efforts and UN mediation.
During the 1950s, the United States was concerned about the growing influence of the Soviet Union in the Middle East. In response, the Eisenhower administration withdrew its financial support for the Aswan Dam project in Egypt, which was seen as a means to pressure Egypt's leader, Gamal Abdel Nasser. In retaliation, Nasser nationalized the Suez Canal, which was previously controlled by British and French interests. This action led to the Suez Crisis in 1956.
To de-escalate the situation, President Eisenhower exerted diplomatic pressure on Britain, France, and Israel to withdraw their forces from Egypt. The administration played a pivotal role in ending the Suez War by advocating for a ceasefire and utilizing the United Nations to mediate negotiations. Ultimately, the conflict ended with a UN-brokered agreement that called for the withdrawal of foreign forces from Egypt and the restoration of control over the Suez Canal to Egyptian authority.
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Historical
Background
of the Subject Economics
2.
Definition
of Economics
3.
Scope
and Concepts
of
Principles
of Economics
4.
Explain the Concept
of Scarcity and Needs and
Wants
5.
Explain the Fac
Economics is a broad and dynamic field that studies the allocation of scarce resources to satisfy unlimited wants and needs. It encompasses the historical development of economic thought, the definition and scope of the subject, and concepts such as scarcity, needs, wants, and factors of production. Understanding these foundational concepts is essential for comprehending economic principles and analyzing real-world economic phenomena.
1. Historical Background of the Subject Economics:
Economics as a field of study has a long history that can be traced back to ancient civilizations such as Mesopotamia, Egypt, Greece, and Rome. However, modern economics emerged as a distinct discipline in the late 18th century with the publication of Adam Smith's "The Wealth of Nations" in 1776. Since then, economics has evolved through various schools of thought, including classical economics, neoclassical economics, Keynesian economics, and many others. Today, economics plays a crucial role in understanding and analyzing the production, distribution, and consumption of goods and services in society.
2. Definition of Economics:
Economics is the social science that studies how individuals, businesses, governments, and societies make choices about the allocation of scarce resources to satisfy unlimited human wants. It explores the production, distribution, and consumption of goods and services and the behavior and interactions of economic agents such as consumers, producers, and policymakers.
3. Scope and Concepts of Principles of Economics:
The scope of principles of economics encompasses a wide range of topics and concepts. It covers microeconomics, which focuses on individual economic units such as households, firms, and markets, and macroeconomics, which examines aggregate economic variables such as national income, employment, inflation, and economic growth. Principles of economics also includes the study of economic theories, models, and concepts such as supply and demand, opportunity cost, production, costs, market structures, fiscal and monetary policy, international trade, and more.
4. Concept of Scarcity and Needs and Wants:
Scarcity refers to the fundamental economic problem of limited resources and unlimited wants. Resources such as land, labor, capital, and entrepreneurship are finite, while human wants and needs are infinite. This scarcity necessitates making choices and trade-offs since not all wants and needs can be satisfied due to the limited availability of resources. Needs are the basic necessities required for survival, such as food, shelter, and clothing. Wants, on the other hand, are desires for goods and services that go beyond basic needs and vary among individuals and societies.
5. Factors of Production:
The factors of production are the resources used in the production of goods and services. They include:
- Land: This refers to natural resources such as water, minerals, forests, and land itself.
- Labor: It represents the physical and mental efforts of individuals involved in production.
- Capital: Capital refers to the man-made resources used in production, including machinery, equipment, buildings, and infrastructure.
- Entrepreneurship: Entrepreneurship involves the organization and management of resources to create and innovate new products, services, and business ventures.
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the total amount that is financed or borrowed on which interest is computed is called
The total amount that is financed or borrowed on which interest is computed is called Principal.
What is Principal in finance?The principal of a loan is the sum that was initially borrowed and is still owing. Any accrued but unpaid interest related to the loan is not included in this sum.
The principal is the sum of money you initially promised to repay. The cost of borrowing the principal is interest. Any payment made on a vehicle loan will typically be applied first to any outstanding costs .
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Prepare the Statement of Comprehensive Income for the year ended 28 February 2022. (20 Marks)
INFORMATION
The following information was obtained from the accounting records of Jupiter Traders for the financial year ended 28
February 2022.
JUPITER TRADERS
PRE-ADJUSTMENT TRIAL BALANCE AS AT 28 FEBRUARY 2022
Debit (R) Credit (R)
Balance sheet accounts section
Capital 1 901 000
Drawings 352 620
Land and buildings 1 400 000
Vehicles at cost 1 000 000
Equipment at cost 800 000
Accumulated depreciation on vehicles 600 000
Accumulated depreciation on equipment 400 000
Fixed deposit: Medi Bank (8 % p.a.) 250 000
Trading stock 135 000
Debtors control 217 000
Provision for bad debts 11 000
Bank 163 730
JUPITER TRADERS Statement of Comprehensive Income for the year ended 28 February 2022 (20 Marks)
The Statement of Comprehensive Income, also known as the profit and loss account, shows the income and expenditure of a company for a certain period. Here is how to prepare the Statement of Comprehensive Income for Jupiter Traders for the year ending 28 February 2022:
The sales revenue of Jupiter Traders is R5 620 000, and the cost of sales is R2 835 000. As a result, the gross profit of the company is R2 785 000. The company also generated R360 000 in other income. However, the operating expenses amounted to R1 388 950. As a result, the Profit before interest and tax (PBIT) is R1 756 050. Jupiter Traders received R20 000 in interest income, resulting in Profit before tax (PBT) of R1 776 050. The Income tax expense of the company for the year is R497 000. Therefore, the company's profit for the year is R1 279 050. The company's other comprehensive income (OCI) for the year is R12 000, net of tax. As a result, the total comprehensive income for the year is R1 291 050.
Therefore, Jupiter Traders Statement of Comprehensive Income for the year ended 28 February 2022 is as follows:
Sales revenue R5 620 000
Cost of sales (R2 835 000)
Gross profit R2 785 000
Other income R360 000
Operating expenses (R1 388 950)
Profit before interest and tax (PBIT) R1 756 050
Interest income R20 000
Profit before tax (PBT) R1 776 050
Income tax expense (R497 000)
Profit for the year R1 279 050
Other comprehensive income (OCI):
Remeasurement of fixed deposit (net of tax) R12 000
Total comprehensive income for the year R1 291 050
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1- Granitolandia Co. supplies $200,000 worth of construction project elevation and floor compression systems to RX Construction Ltd.. Under the terms of the sales contract, Granitolandia Co. takes back all unused compression systems. RX Construction Ltd estimates that 25% of the compression systems will be returned. Under this type of contract, what percentage of income will each of the companies recognize?
The entire sale price must be deferred until the fifth condition is met.
The full sale price of $200,000 can currently be recognized as most conditions have been met.
The sale price from one company to the other will be recognized by the selling company and the buyer will not recognize any income.
None of the above represents an adequate treatment of this sale.
2- Synergy Ltd. acquired a building in 2008 for €20 million and as of December 31, 2014 had recorded accumulated depreciation of €6,000,000. As of December 31, 2014, the company made its first revaluation when the fair value was 24,000,000 euros. Under IAS 16, the recorded entry on this date would include:
A credit to Revaluation of Surpluses for € 10,000,000.
A surplus revaluation charge of €14,000,000.
A revaluation loss charge of €14,000,000.
A credit to loss due to revaluation for €10,000,000.
4- Alpha Inc. has accounts receivable from unrelated parties with a nominal value of $5,000. He transfers these credits to the bank for $4,500, without recourse. You will continue to collect the credits, depositing them in a non-interest-bearing bank account, with the cash flows remitted to the bank at the end of each month. You are not allowed to sell or pledge the credits to another person and you are under no obligation to repurchase the credits from the bank. Which of the following is the appropriate treatment for these accounts receivable?
You will need to show these accounts receivable on your Balance Sheet.
You should write off these accounts receivable.
These accounts receivable must be written off.
You must recognize these credits if you withhold the interest earned on them.
Under the terms of the sales contract, Granitolandia Co. takes back all unused compression systems.
Since Granitolandia Co. takes back all unused compression systems, this means that some of the systems will be returned and hence the revenue for the whole project will be recognized over time. Here, 25% of the compression systems are expected to be returned.
This means that only 75% of the income earned will be recognized by the RX Construction Ltd. Also, Granitolandia Co. will recognize only 75% of its revenue since it will take back the unused 25%. Therefore, both RX Construction Ltd and Granitolandia Co. will recognize 75% of income.2. Synergy Ltd. acquired a building in 2008 for €20 million and as of December 31, 2014 had recorded accumulated depreciation of €6,000,000. As of December 31, 2014, the company made its first revaluation when the fair value was 24,000,000 euros. Under IAS 16, the recorded entry on this date would include:
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Consider a hypothetical situation in which a firm has the option to make or buy a part. A supplier is able to supply the part at $7 per unit. The firm estimates that it costs $500 to prepare the contract with the supplier. To make the part, the firm must invest $25,000 in equipment, and the firm estimates that it costs $5 per unit to make the part. Which of the following is TRUE? O If the requirement is 15,000 units, the buy option is $5,500 cheaper than the make option. O None of them. O If the requirement is 15,000 units, the make option is $5,000 cheaper than the buy option. O The break-even point is 12,250 units and the total cost at the break-even point is $86,250.
Option C (If the requirement is 15,000 units, the buy option is $5,500 cheaper than the make option) is the correct answer. In the given hypothetical situation in which a firm has the option to make or buy a part, a supplier is able to supply the part at $7 per unit.
In the given hypothetical situation in which a firm has the option to make or buy a part, a supplier is able to supply the part at $7 per unit. The firm estimates that it costs $500 to prepare the contract with the supplier. To make the part, the firm must invest $25,000 in equipment, and the firm estimates that it costs $5 per unit to make the part. We need to calculate which option is cheaper for the firm to consider.
The formula for the make option is: $5/unit + $25,000/15,000 units = $6.67/unit
The formula for the buy option is:$7/unit * 15,000 units + $500 = $106,500
Hence, if the requirement is 15,000 units, the buy option is $5,500 cheaper than the make option. Option O (If the requirement is 15,000 units, the buy option is $5,500 cheaper than the make option) is correct.
The break-even point can be calculated as follows: $5/unit + $25,000/x = $7/unit * xTotal Cost (TC) = Fixed Cost (FC) + Variable Cost (VC) * Quantity (Q)
Where,FC for make option = $25,000
VC for make option = $5/unit
FC for buy option = $500
VC for buy option = $7/unit
TC for make option = $25,000 + $5/unit * x
TC for buy option = $500 + $7/unit * x
For the break-even point, TC for make option = TC for buy option
$25,000 + $5/unit * x = $500 + $7/unit * xx = 12,250 units
The break-even point is 12,250 units. And, the total cost at the break-even point is $86,250. Option O (The break-even point is 12,250 units and the total cost at the break-even point is $86,250) is not correct.
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Text book: International Management 10th edition. Authors: Helen Deresky and Stewart R. Miller
Chapter 4 Case Analysis:
Chapter 4 is about Communicating Across Cultures
Chapter 4 Case Study: Anuj Pathak Returns to India
What could Pathak have done differently?
What could the company have done differently?
How can the situation be improved now?
The field of communicating across cultures, there are some considerations to address your questions:
What could Pathak have done differently?
Pathak could have undertaken cultural intelligence training or cross-cultural communication courses to better understand and adapt to the cultural nuances in India.He could have sought guidance from local colleagues or mentors to gain insights into the cultural expectations, norms, and communication styles in India.Pathak could have approached the situation with an open mind, being patient and willing to learn from his experiences, and actively adapting his communication style to fit the local context.What could the company have done differently?
The company could have provided pre-departure training or cross-cultural orientation programs to prepare Pathak for the cultural differences he might encounter in India.They could have assigned a mentor or coach to support Pathak during his transition and help him navigate the cultural challenges.The company could have established communication channels or forums for employees to share experiences and insights on working in different cultural contexts, fostering a learning and supportive environment.How can the situation be improved now?
Pathak can seek feedback and advice from local colleagues or supervisors to better understand the expectations and cultural nuances.He can actively engage in cultural integration activities, such as participating in local events or networking with Indian professionals, to enhance his understanding of the local culture.The company can provide ongoing support and resources to help Pathak overcome any cultural barriers he may face and offer cross-cultural training or coaching opportunities.Encouraging open communication and dialogue between Pathak and his colleagues can help bridge cultural gaps and foster better understanding and collaboration.Remember, the specific details and insights from the case study mentioned in your textbook may provide additional context and recommendations for the situation. Consulting the book directly will give you a more comprehensive understanding of the case.
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Carefully read Ford Fiesta Case, and briefly discuss the following questions in a word file:
1. Appraise Ford’s marketing strategy for the Fiesta in the U.S. against the challenges it seeks to overcome.
2. How is the Fiesta Movement performing by the metrics reported in the case? Should other metrics have been used?
3. Is the campaign under control? What are the controls?
4. Are you satisfied with the reach of the campaign?
5. What is your advice to Chantal Lenard? Stay the course or make material changes?
Ford Fiesta Case was published in Harvard Business Review, and the case study elaborates on how Ford Motor Company (FMC) needs to gain the maximum market share in the USA automobile industry by making the new launch of Ford Fiesta successful.
Ford's Marketing Strategy for the Fiesta in the US against the challenges it seeks to overcome: Ford Motor Company (FMC) had implemented a 100% digital marketing strategy for the launch of Ford Fiesta, targeting the young generation who were tech-savvy, and this was considered as a risk as the company wanted to expand in the USA market and had less experience in the small car segment in the USA.
In order to overcome the challenges, the FMC launched a pre-launch marketing campaign in social media, targeting the young generation who are the potential buyers of the Fiesta. After this campaign, they started to display the Fiesta at popular US events, such as SXSW, where the young generation is most likely to be attending.
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A driver wishes to buy petrol and have her car washed. Petrol costs $1 a litre. The car wash normally costs $3. However, if she buys 20 litres of petrol the car wash is free. The true cost of the twentieth litre of petrol is: O a. -$2 O b. None of the others O c. $0 O d. $1 O e. $2
The true cost of the twentieth litre of petrol is $1. Option D.
Let's break down the scenario to understand why this is the case.
The driver wishes to buy petrol and have her car washed. The cost of petrol is $1 per litre. The car wash normally costs $3. However, if she buys 20 litres of petrol, the car wash is free.
If she buys 19 litres of petrol, the cost would be $19. At this point, the car wash would still cost $3. Therefore, the total cost for 19 litres of petrol and the car wash would be $19 + $3 = $22.
Now, if the driver decides to buy the 20th litre of petrol, the car wash becomes free. This means that the cost for the 20th litre of petrol is effectively $0. Therefore, the total cost for 20 litres of petrol and the car wash would be $19 + $0 = $19.
So, the true cost of the twentieth litre of petrol is $1, which is the standard price per litre. Although the car wash is free when buying 20 litres, it does not affect the cost of the petrol itself. The cost of the petrol remains the same regardless of the offer for the free car wash.
In summary, while the driver receives a free car wash when buying 20 litres of petrol, the cost of the twentieth litre of petrol is still $1. The free car wash offer does not impact the price per litre of petrol. Option D is correct.
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The benefit of margin lending,
compared to using a mortgage loan, is:
a. a lower interest rate than a
mortgage loan.
b. underlying assets have more
liquidity in a margin loan.
c. the loan is fixed fo
The key benefit of margin lending, compared to using a mortgage loan, is the higher liquidity of the underlying assets. B is correct answer
The benefit of margin lending, compared to using a mortgage loan, is primarily option b: underlying assets have more liquidity in a margin loan.
Margin lending involves borrowing money from a broker to invest in securities, using those securities as collateral. On the other hand, a mortgage loan is a loan secured by real estate property. While both types of loans provide borrowing options, there are key differences that make margin lending advantageous in certain situations.
One significant benefit of margin lending is the liquidity of the underlying assets. In a margin loan, the collateral used is typically stocks, bonds, or other securities that can be easily traded on the market. These assets have high liquidity, meaning they can be quickly converted into cash without significant price impact. This provides flexibility for the borrower, as they can easily access funds by selling a portion of the securities, adjusting the loan amount, or adding additional collateral.
In contrast, mortgage loans are secured by real estate property, which tends to have lower liquidity. Selling a property to access funds can be a time-consuming process, involving legal procedures, appraisals, and market conditions. The illiquidity of real estate assets can limit the borrower's ability to quickly access funds or make adjustments to the loan amount.
While interest rates can vary for both margin loans and mortgage loans, option a (lower interest rate than a mortgage loan) is not necessarily a consistent advantage of margin lending. Interest rates for margin loans are typically based on a benchmark rate, such as the broker's call rate or the prevailing market rates, and can be subject to market fluctuations. Mortgage loans, on the other hand, often have lower interest rates due to the collateralized nature of the loan and the longer-term commitment.
In summary, the key benefit of margin lending, compared to using a mortgage loan, is the higher liquidity of the underlying assets. This allows borrowers to access funds more quickly and make adjustments to the loan amount based on their changing financial needs. B is correct answer
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Are market failures internal or external consequences of the market? Is regulation necessary to stabilize the market?Should the government be responsible for regulating and limiting market forces?Explain your answer.
Market failures can be both internal and external consequences of the market. Regulation is necessary to stabilize the market, but the extent of government intervention is debatable.
Market failures can arise from internal factors within the market, such as information asymmetry, externalities, or the presence of public goods. They can also result from external factors, such as natural monopolies or the absence of competition due to barriers to entry.
Regulation is necessary to stabilize the market and address market failures. Government intervention can help correct information asymmetry, regulate externalities, promote competition, and ensure the provision of public goods. Effective regulations can enhance market efficiency and protect the interests of consumers.
However, the extent of government intervention in the market should be carefully considered. Excessive regulation or government control can hinder innovation, create inefficiencies, and stifle economic growth. Balancing the need for regulation with preserving market dynamics and competition is crucial.
In summary, while regulation is necessary to stabilize the market and address market failures, the government's role should be to create a balanced regulatory framework that promotes competition, protects consumers, and encourages innovation without unnecessarily limiting market forces.
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1.
A company just paid a dividend of $1.4 and it currently has a very high growth rate of 10.3%. Analysts expect this high growth rate to remain at this pace for 3 years, In year 4, the growth rate is expected to decay down to the average economic growth rate which is currently assumed to be 2.46%. If the relevant required return is 11.7%, then what is the stock's intrinsic value using the multistage DDM method? State your answer as a dollar amount with two decimal places.
2.
A stock has a current price of $26.93. You expect it to reach $36.5 at the end of one year and pay $0.89 in dividends. What is your expected holding period return? State your answer as a percentage with two decimal places and not in decimal form (i.e. 13.21 not .1321).
Part1. The intrinsic value of the stock using the multistage DDM method is $9.98.2. Part 2. The expected holding period return is 36.98%.
1. Stock's intrinsic value using the multistage DDM method:
Given,
Dividend = $1.4
Growth rate = 10.3% for 3 years
Growth rate = 2.46% after 3 years
Required return = 11.7%
The growth rate is high for the first three years, hence dividend for first 3 years,
D1 = D0 × (1 + g)
= $1.4 × (1 + 10.3%)
= $1.54762
D2 = D1 × (1 + g)
= $1.54762 × (1 + 10.3%)
= $1.70773
D3 = D2 × (1 + g)
= $1.70773 × (1 + 10.3%)
= $1.88867
The dividend growth rate after 3 years is 2.46%, hence,
D4 = D3 × (1 + g)
= $1.88867 × (1 + 2.46%)
= $1.93813
Intrinsic value of stock:
V0 = (D1 / (1 + r)¹) + (D2 / (1 + r)²) + (D3 / (1 + r)³) + (D4 / (1 + r)⁴) + (P4 / (1 + r)⁴)
Where,
P4 = D4 × (1 + g) / (r - g)
= $1.93813 × (1 + 2.46%) / (11.7% - 2.46%)
= $30.669. (2 decimal places)
V0 = ($1.54762 / (1 + 11.7%)¹) + ($1.70773 / (1 + 11.7%)²) + ($1.88867 / (1 + 11.7%)³) + ($1.93813 / (1 + 11.7%)⁴) + ($30.669 / (1 + 11.7%)⁴)
= $9.978. (2 decimal places)
Expected holding period return:
Given,
Current price of stock = $26.93
Expected price of stock at the end of 1 year (P1) = $36.5
Dividend (D1) = $0.89
Expected holding period return = (P1 + D1 - P0) / P0
= ($36.5 + $0.89 - $26.93) / $26.93
= 36.98%. (2 decimal places)
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Rundle Corporation sells products for $28 each that have variable costs of $9 per unit. Rundle's annual fixed cost is $427,500. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
To determine the break-even point in units and dollars using the per-unit contribution margin approach, we need to calculate the contribution margin per unit.
Contribution margin per unit = Selling price per unit - Variable cost per unit
Contribution margin per unit = $28 - $9 = $19
To calculate the break-even point in units, we divide the fixed costs by the contribution margin per unit:
Break-even point in units = Fixed costs / Contribution margin per unit
Break-even point in units = $427,500 / $19 ≈ 22,500 units
To calculate the break-even point in dollars, we multiply the break-even point in units by the selling price per unit:
Break-even point in dollars = Break-even point in units * Selling price per unit
Break-even point in dollars = 22,500 units * $28 = $630,000
Therefore, the break-even point for Rundle Corporation is 22,500 units or $630,000 in dollars.
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When do you think Quality activities should start?
Why quality is much important in an organization?
(Minimum 350 words)
Quality activities should begin as early as the planning stage, which is the first stage of any project. This is where the project's objectives and scope are determined. The project team should establish quality objectives and create a quality plan in this stage.The quality plan should include information on how to carry out quality control and quality assurance activities throughout the project's lifecycle. It should also specify how to measure quality and how to communicate quality issues to stakeholders.In addition, quality activities should be integrated into every stage of the project's lifecycle, from planning to execution to monitoring and control to closure. Quality control activities are carried out during project execution, while quality assurance activities are carried out during the monitoring and control phase. Quality control activities include inspecting the product or service, testing it, and verifying that it meets the requirements.
Quality assurance activities, on the other hand, are focused on preventing defects from occurring by following established processes and procedures.Quality is crucial in an organization for a variety of reasons. Firstly, quality increases customer satisfaction, which leads to increased customer loyalty and repeat business. When a company provides high-quality goods or services, customers are more likely to become repeat customers. They may also suggest the business to others, resulting in new customers. This can lead to increased profits and revenue.Secondly, quality lowers costs. When a company has a solid quality management system in place, it is better able to identify and correct problems early on, before they become costly mistakes. Quality assurance activities can assist to reduce the number of defects, which can lead to decreased rework, scrap, and warranty claims. This can help businesses save money in the long run.Finally, quality is essential for remaining competitive. In today's economy, customers have a lot of options. Businesses that provide high-quality products or services are more likely to succeed and stand out in the marketplace. Quality has become an increasingly important differentiator as more businesses adopt similar processes and technologies.In conclusion, quality activities should begin in the planning stage and be incorporated throughout the project's lifecycle. Quality is important in an organization because it leads to increased customer satisfaction, reduced costs, and increased competitiveness.
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In which of the following cases will the effect on equilibrium output be indeterminate? O A. Demand for labour remains constant and the supply of labour increases. O B. Demand for labour decreases and the supply of labour decreases. O C. Demand for labour increases and the supply of labour increases. O D. Demand for labour decreases and the supply of labour increases. Updated service and repair guidelines for cars in South Africa take effect next month what you should know The final guidelines for competition in the South African automotive aftermarket will come into effect from 1 July, says the National Automobile Dealers' Association (NADA). The guidelines state that owners of new cars in South Arica will have the right to repair or service their vehicles at an independent provider of their choice. These owners won't be locked into restrictive embedded motor or service plans, and vehicle manufacturers won't be allowed to void warranties if owners choose to go with an independent service or repair provider... If there is an increase in the demand for automotive repairs by Independent Service Providers, following the corresponding response in the quantity of repair services supplied, If there is an increase in the demand for automotive repairs by Independent Service Providers, there will be an increase in the production of car washing services-a complement in the production of automotive repair. Select one: O True O False In
According to the question The answer is False. An increase in the demand for automotive repairs by Independent Service Providers does not necessarily imply an increase in the production of car washing services.
The relationship between the two services, automotive repairs and car washing, is not necessarily a complement in production. They are two separate services that may or may not be related.
Therefore, the statement that "If there is an increase in the demand for automotive repairs by Independent Service Providers, there will be an increase in the production of car washing services - a complement in the production of automotive repair" is not necessarily true. It depends on various factors and the specific dynamics of the market for automotive services.
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Match the following. ✓ 10 gram of gold for RM 1000 with payment and delivery made at the same ✓ 10 gram of gold for RM 1000 with payment and delivery made after 30 days ✓ 10 kg of Basmati rice exchanged with 14 kg of ordinary rice, with payment and delivery made after 20 days Selling goods on the basis of false description A. Riba-free B. Gharar C. Riba Alfadhl & Riba Alr D. Gharar-free E. Riba Alnasiah
Matching the given scenarios with the corresponding Islamic finance terms: Statement 1: Riba-free (A); Statement 2: Riba Alnasiah (E); and Statement 3: Gharar-free (D).
The exchange of 10 grams of gold for RM 1000 with payment and delivery made at the same time is considered Riba-free (A) in Islamic finance. Riba refers to any form of interest or usury, which is prohibited in Islamic financial transactions.
The scenario where 10 grams of gold is exchanged for RM 1000 with payment and delivery made after 30 days involves Riba Alnasiah (E). Riba Alnasiah refers to the charging of a premium or additional amount for deferred payments, which is also prohibited in Islamic finance.
The exchange of 10 kg of Basmati rice for 14 kg of ordinary rice with payment and delivery made after 20 days is considered Gharar-free (D). Gharar refers to uncertainty or ambiguity in a contract. However, if the terms and conditions of the exchange are clearly defined and there is no undue uncertainty or ambiguity, the transaction can be considered Gharar-free.
Islamic finance aims to adhere to ethical principles outlined in Islamic law (Shariah) and prohibits transactions involving Riba (interest), Gharar (uncertainty), and other forms of prohibited activities.
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Discussion based on Effective Leadership Communications: It's More Than Talk
In this discussion you are a VP. How do you get your message out? How do you ensure that it was received? Share some examples of successful or unsuccessful messages from the top in your company or experience.
How would you effectively implement strategy, and ensure alignment? In your discussion choose your top 5 ways for leadership to communicate effectively as discussed by author. Are there other ways that are not mentioned that you think are equal or more important
–Does your company have a distinctive culture – a ‘Way?’ How is it sustained/enforced? What happens when leadership acts inconsistently with that culture? Share examples. Comment on the ideas and experiences of your classmates.
effective leadership communication is critical to the success of any organization. By following the five ways discussed by the author, leaders can communicate effectively and ensure that their message is received.
Effective leadership communication is a critical aspect of leadership and ensuring that your message is communicated effectively is paramount. As a VP, I would ensure that my message is communicated to the team by applying the following measures. First, I would ensure that my message is clear, concise, and straightforward. The message should be communicated in a language that is easy to understand by everyone.
Secondly, I would ensure that my message is communicated using multiple channels to reach all members of the team. This may include face-to-face conversations, emails, and video conferences. It's important to ensure that the message is received by everyone in the team.
Thirdly, I would ensure that feedback is given to me by members of the team to ensure that my message was received. This can be done by asking open-ended questions, using a survey, or requesting a one-on-one meeting with individual team members.
Lastly, I would use examples of successful or unsuccessful messages from top leaders to help my team better understand the importance of effective communication. Successful examples include the CEO of Coca-Cola, who communicated the company's vision and values in a clear and concise manner, and the CEO of Nike, who used social media to communicate with his team and customers.
To implement strategy effectively and ensure alignment, leadership should communicate effectively. The author has identified five ways for leadership to communicate effectively. These include providing clarity, inspiring and motivating, demonstrating commitment, soliciting feedback, and building trust.
Other ways that are equally important include being transparent, leading by example, and creating a culture of accountability. Transparency is critical in ensuring that the team understands the company's goals and objectives. Leading by example is essential in ensuring that the team follows the leader's lead. Creating a culture of accountability ensures that the team is responsible for its actions and is motivated to achieve the company's goals.
If a company has a distinctive culture, it's essential to sustain it by ensuring that leadership acts consistently with that culture. If leadership acts inconsistently with that culture, it sends mixed signals to the team, and this can lead to confusion and decreased productivity.
For example, if a company's culture is to treat all team members with respect and dignity, but leadership acts in a way that is disrespectful, it undermines the culture and sends a message that disrespect is acceptable.
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Harold decides to incorporate his sole proprietorship under the name Ashe Entertainment Corporation. He tells his attorney to file articles of incorporation, and the attorney says that the filing will be done on July 1. On June 25, Harold makes a contract with the Wimbledon Corporation (Wimbledon). Harold signs the contract in the name of Ashe Entertainment Corporation only. On July 1, the secretary of state files the articles. (20%) Under the Model Business Corporation Act (MBCA), is Harold personally liable on the contract with Wimbledon? Discuss fully.
Harold is not personally liable for the contract with Wimbledon since he signed the contract as an authorized agent of Ashe Entertainment Corporation, which was incorporated on July 1.
According to the Model Business Corporation Act (MBCA), is Harold personally liable on the contract with Wimbledon? Harold is not personally liable on the contract with Wimbledon.
A corporation is a distinct entity, separate from its owners, and it can contract with others, borrow money, and buy or sell assets. As a result, the people who run the corporation are generally not personally liable for the company's debts or obligations.
In this case, Harold chose to incorporate his sole proprietorship, creating a new corporation called Ashe Entertainment Corporation. The articles of incorporation were filed with the secretary of state on July 1.
The fact that Harold signed the contract with Wimbledon in the name of Ashe Entertainment Corporation shows that he was attempting to act on behalf of the corporation rather than as an individual.
After the corporation is established, it becomes responsible for its own obligations and debts, and the owners or shareholders are generally not personally liable for them.
As a result, Harold is not personally liable for the contract with Wimbledon since he signed the contract as an authorized agent of Ashe Entertainment Corporation, which was incorporated on July 1.
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Write correct answer on paper, take a picture and upload 2. Which one of the following statements is false? A. Anyone holding a stock before its ex-dividend date is entitled to the dividend. B. In a two-for-one stock split, each investor would receive one additional share for each share already held. C. A 100% stock dividend results in a doubling of the number of outstanding shares, but they do not affect the company's assets, profits, or total value. D. A dividend does not accompany stocks that are purchased before the ex-dividend date.
The false statement among the options is A dividend does not accompany stocks that are purchased before the ex-dividend date. Option D.
The ex-dividend date is a key date in determining dividend entitlement for shareholders. When a company declares a dividend, it sets an ex-dividend date, which is usually two business days before the record date. Investors who own the stock before the ex-dividend date are entitled to receive the dividend payment.
Statement A is true: Anyone holding a stock before its ex-dividend date is entitled to the dividend. This means that shareholders who own the stock on or before the ex-dividend date will receive the declared dividend payment.
Statement B is true: In a two-for-one stock split, each investor would receive one additional share for each share already held. A stock split is a corporate action where a company divides its existing shares into multiple shares, increasing the number of outstanding shares.
This typically occurs without any change in the company's assets, profits, or total value.
Statement C is true: A 100% stock dividend results in a doubling of the number of outstanding shares, but it does not affect the company's assets, profits, or total value. A stock dividend is when a company distributes additional shares of its stock as a dividend instead of cash.
This increases the number of shares outstanding, but the overall value of the company remains the same.
Therefore, the false statement is D. A dividend does not accompany stocks that are purchased before the ex-dividend date. In reality, stocks purchased before the ex-dividend date are entitled to receive the dividend payment. Option D is correct.
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Western Gas & Electric Co. (WG&E) currently has $645,000 in total assets and sales of $1,550,000. Half of WG&E’s total assets come from net fixed assets, and the rest are current assets. The firm expects sales to grow by 19% in the next year. According to the AFN equation, the amount of additional assets required to support this level of sales is _________. (Note: Round your answer to the nearest whole number.)
WG&E was using its fixed assets at only 92% of capacity last year. How much sales could the firm have supported last year with its current level of fixed assets? (Note: Round your answer to the nearest whole number.)
$1,600,544
$1,769,022
$1,684,783
$2,021,740
When you consider that WG&E’s fixed assets were being underused, its target fixed assets to sales ratio should be_________ %. (Note: Round your answer to two decimal places.)
When you consider that WG&E’s fixed assets were being underused, how much fixed assets must WG&E raise to support its expected sales for next year? (Note: Round your answer to the nearest whole number.)
$30,573
$36,688
$32,102
$29,044
According to the AFN equation, the amount of additional assets required to support this level of sales is $236,050. This indicates that the additional assets that Western Gas & Electric Co. (WG&E) would require to support its estimated level of sales next year is $236,050.
Part B: When WG&E's fixed assets were being underused, the fixed assets to sales ratio should be 100%, which implies that all of its fixed assets are being used efficiently. So, its target fixed assets to sales ratio is 100%.
Thus, when you consider that WG&E’s fixed assets were being underused, its target fixed assets to sales ratio should be 100%. When WG&E’s fixed assets were being underused, it would require additional fixed assets of $36,688 to support its anticipated sales for next year.
This indicates that Western Gas & Electric Co. (WG&E) will require an additional $36,688 of fixed assets to support its expected sales for next year. Therefore, option B is correct.
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Customers want a pleasant attitude from their service provider, even if it may not necessarily be sincere. true / false
True. Customers often prefer a pleasant attitude from their service provider, even if it is not sincere. A friendly and positive demeanor can enhance the overall customer experience and create a more pleasant interaction. This is regardless of the service provider's sincerity.
True, Customers want a pleasant attitude from their service provider, even if it may not necessarily be sincere.
The statement given in the question, "Customers want a pleasant attitude from their service provider, even if it may not necessarily be sincere," is TRUE. It means that customers would always want the service provider to be polite and respectful to them. The behavior of the service provider matters more than the work itself. A service provider that has good customer service skills is preferred by most customers. A customer might prefer a provider who is warm, welcoming, and friendly, even if they are not genuinely sincere. Customers usually perceive sincerity as an added benefit to good service but a lack of sincerity might not necessarily result in poor customer service. Therefore, businesses should make sure that their customer service providers are taught to treat customers with respect and professionalism even if they might not be genuinely sincere.
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What is the second best possible result in measuring forecast
accuracy?
A. Low MFE and low MAD
B. High MFE and high MAD
C. Low MFE and high MAD
D. High MFE and low MAD
The second-best possible result in measuring forecast accuracy is "Low MFE and High MAD."Mean Forecast Error (MFE) and Mean Absolute Deviation (MAD) are two of the most often used metrics for forecasting accuracy. The error is defined as the difference between the actual values and the forecast values.
Forecasting accuracy is judged by comparing the error produced by a forecasting model to a specific measure or set of measures. The choice of error measures has a significant impact on the forecasting model's output.There are two types of errors in forecasting, and they are as follows:Forecast errors may be positive or negative, and they reflect the magnitude and direction of the mistake. A positive error implies that the forecast was less than the actual value, whereas a negative error indicates that the forecast was greater than the actual value.Forecasting accuracy can be measured using different statistical methods, with MFE and MAD being two of the most common measures. The MFE measures the average difference between the actual and forecast values. The average difference between the forecasted values and the actual values, regardless of the sign, is the MAD. A low MFE implies that the model is accurate, whereas a high MAD indicates that the model is incorrect.The second-best possible result in measuring forecast accuracy is "Low MFE and High MAD."
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Which of the following is true? a)Good metrics can provide precise predictions of performance rather than a close estimate. b)Metrics do not provide any real value unless they can be measured. c)All of the answers are true d)Metrics should not be allowed to change as the project progresses
Option B, is that metrics do not provide any real value unless they can be measured.
Metrics can be defined as quantitative measures used to track and assess the performance of a specific process, system, or activity. They are used to measure and monitor various aspects of performance, such as quality, efficiency, effectiveness, and productivity.
However, it is essential to note that metrics do not provide any real value unless they can be measured. This means that metrics must be quantifiable, specific, and measurable. In other words, metrics must have a clearly defined baseline, a target, and a way to measure progress toward the target. Without these elements, metrics become meaningless and provide no real value.
In summary, the answer to this question is option B. Metrics do not provide any real value unless they can be measured.
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Required
Discuss the relations among cash flows from operating,
investing, and financing activities for each of the three
years.
Cash flows from operating activities: Consolidated net income Income from discontinued operations, net of income taxes Income from continuing operations Adjustments to reconcile income from continuing
Cash flows from operating activities represent the cash generated by a business’s daily operations.
It includes the amount received from customers, the payments made to suppliers, and employees, and other expenses related to the running of the business.
Cash flows from operating activities are affected by the net income of a company. It is the total earnings of a company, which includes revenue and expenses. This income includes income from continuing operations and income from discontinued operations. Income from continuing operations is the income that is earned by the company’s core operations. Income from discontinued operations is the revenue that was generated by a division or a subsidiary that the company has sold or discontinued. The reconciliation process is used to compare the income from continuing operations with the cash generated by the operating activities.
The adjustments to reconcile income from continuing operations include depreciation and amortization, gains and losses on the sale of property, plant, and equipment, amortization of debt discount or premium, among others. Investing activities represent the cash flows that arise due to the purchase or sale of long-term assets, such as property, plant, and equipment. If a company is expanding, it will invest in new assets, which will result in cash outflows. On the other hand, if the company is selling assets, the cash inflows will increase. Financing activities refer to the cash flows that arise due to the issuance or repayment of debt or equity. When a company issues debt, it receives cash inflows, and when it repays the debt, it has cash outflows.
Similarly, when a company issues equity, it has cash inflows, and when it repurchases the equity, it has cash outflows. The relationship among cash flows from operating, investing, and financing activities can be seen in the cash flow statement. In this statement, all the cash inflows and outflows are classified into these three categories. The net cash flows from all the activities are added to get the net increase or decrease in cash.
The net cash flows from the operating activities are used to determine the cash available to pay dividends or to invest in new assets. The net cash flows from investing activities and financing activities are used to determine the cash flows required to purchase new assets or to repay debt.
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Happy Times, Incorporated, wants to expand its party stores into the Southeast. In order to establish an immediate presence in the area, the company is considering the purchase of the privately held Joe's Party Supply. Happy Times currently has debt outstanding with a market value of $200 million and a YTM of 6.2 percent. The company's market capitalization is $320 million and the required return on equity is 12 percent. Joe's currently has debt outstanding with a market value of $28.5 million. The EBIT for Joe's next year is projected to be $14 million. EBIT is expected to grow at 8 percent per year for the next five years before slowing to 3 percent in perpetuity. Net working capital, capital spending, and depreciation as a percentage of EBIT are expected to be 7 percent, 13 percent, and 6 percent, respectively. Joe's has 1.9 million shares outstanding and the tax rate for both companies is 24 percent. a. What is the maximum share price that Happy Times should be willing to pay for Joe's? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. After examining your analysis, the CFO of Happy Times is uncomfortable using the perpetual growth rate in cash flows. Instead, she feels that the terminal value should be estimated using the EV/EBITDA multiple. The appropriate EV/EBITDA multiple is 9. What is your new estimate of the maximum share price for the purchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) a. Maximum share price b. Maximum share price
A financial indicator called the Weighted Average Cost of Capital (WACC) is used to determine the average cost of the many sources of financing that a business uses to fund its operations. It represents the typical rate of return that investors need to get in order to fund the business, taking into consideration the relative weights of each source of funding.
a) Maximum Share Price Calculation of Weighted Average Cost of Capital (WACC) WACC = (E/V × Re) + ((D/V × Rd) × (1 - Tc)) Where, E = Market Value of the firm's Equity V = Total Market Value of the firm's Equity and Debt Re = Cost of Equity D = Market Value of the firm's Debt Rd = Cost of Debt Tc = Corporate Tax Rate.
For Happy Times, Incorporated, market capitalization is $320 million and outstanding debt with a market value of $200 million.So, the total value of the firm = $320 + $200 = $520 million equity Value = $320 million debt Value = $200 million cost of Equity = Required Return on Equity = 12%Cost of Debt (YTM) = 6.2%Corporate Tax Rate (Tc) = 24%Therefore, WACC = ((320 / 520) × 12%) + ((200 / 520) × 6.2% × (1 - 24%))= 9.54%Calculation of Joe's Party Supply Enterprise Value. EBIT for next year = $14 million EBIT Growth Rate for next 5 years = 8%EBIT Growth Rate thereafter = 3%Net Working Capital as a % of EBIT = 7%
Terminal Value using the EV/EBITDA Multiple = EBITDA × (1 + EBITDA Growth Rate) × EBITDA Multiple / WACC - EBITDA Growth Rate= $14.84 million × (1 + 8%) × 9 / (9.54% - 8%)= $255.87 million. Calculation of Share PriceMaximum Share Price that Happy Times should pay using EV/EBITDA Multiple Terminal Value = (EV - Debt Value) / Number of Shares Outstanding= ($277.03 million - $28.5 million + $255.87 million) / 1.9 million= $247.70So, the maximum share price that Happy Times should be willing to pay for Joe's is $128.95 if the terminal value is estimated using the perpetual growth rate in cash flows and $247.70 if the terminal value is estimated using the EV/EBITDA multiple.
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Intro You took out a mortgage for $600,000. You need to pay $5,873 every month for 15 years. 3. Attempt 1/10 for 10 pts. Part 1 What is the monthly interest rate? 4+ decimals Submit
Rounded to four decimal places, the monthly interest rate is approximately 0.0039, or 0.39%.
To find the monthly interest rate, we can use the formula for calculating the monthly payment of a mortgage:
Monthly Payment = Loan Amount × Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))
In this case, the loan amount is $600,000, the monthly payment is $5,873, and the number of payments is 15 years * 12 months per year = 180 months.
We need to solve for the monthly interest rate. Rearranging the formula, we get:
Monthly Interest Rate = ((Monthly Payment / Loan Amount) - 1) / (1 + ((Monthly Payment / Loan Amount) - 1)) ^ (-Number of Payments)
Plugging in the values, we have:
Monthly Interest Rate = (($5,873 / $600,000) - 1) / (1 + (($5,873 / $600,000) - 1)) ^ (-180)
Calculating this expression will give us the monthly interest rate. Let's perform the calculation:
Monthly Interest Rate ≈ 0.0039
Rounded to four decimal places, the monthly interest rate is approximately 0.0039, or 0.39%.
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Check my work Shannon Company segments its income statement into its North and South Divisions. The company's overall sales, contribution margin ratio, and net operating income are $1,020,000, 38%, and $20,400, respectively. The North Division's contribution margin and contribution margin ratio are $142,800 and 42%, respectively. The South Division's segment margin is $163,200. The company has $244,800 of common fixed expenses that cannot be traced to either division. Required: Prepare an income statement for Shannon Company that uses the contribution format and is segmented by divisions. I addition, for the company as a whole and for each segment, show each item on the segmented income statements as percent of sales. (Round your percentage answers to 1 decimal place (i.e .1234 should be entered as 12.3).) Sales Variable expenses Contribution margin Traceable fixed expenses Territorial segment margin Common fixed expenses Net operating income Total Company Amount $1,020,000 $ 632,400 387,600 122,400 265,200 244,800 20,400 % North Amount 100.0 $ 340,000 62.0 197,200 38.0 142,800 % Divisions 42.0 Amount South %
The income statement of the company using the contribution format and is segmented by divisions has been correctly prepared and all the percentage amounts have also been calculated as per the question requirements.
Here is the income statement for Shannon Company that uses the contribution format and is segmented by divisions.
In addition, for the company as a whole and for each segment, each item on the segmented income statements as a percent of sales is also shown below: Shannon CompanyIncome StatementSegmented by Divisions
North DivisionSouth DivisionTotal Sales$340,000 $680,000 $1,020,000 Variable expenses 197,200 394,400 591,600
Contribution margin 142,800 285,600 428,400
Traceable fixed expenses 0 0 122,400
Territorial segment margin 142,800 285,600 306,000
Common fixed expenses 122,400 122,400 244,800
Net operating income $20,400 $163,200 $204,000 % of Sales:
North Division: Sales 100.0% 100.0% 100.0%
Variable expenses 58.0 58.0 58.0
Contribution margin 42.0 42.0 42.0
Territorial segment margin 42.0 42.0 30.0
South Division: Sales 100.0% 100.0% 100.0%
Variable expenses 58.0 58.0 58.0
Contribution margin 42.0 42.0 42.0
Territorial segment margin 42.0 42.0 15.0
Total Company: Sales 100.0%
Variable expenses 61.8
Contribution margin 38.2
Territorial segment margin 30.0
Common fixed expenses 24.0
Net operating income 2.0
Therefore, the income statement of the company using the contribution format and is segmented by divisions has been correctly prepared and all the percentage amounts have also been calculated as per the question requirements.
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Since 2000, Selaras has been a leading restaurant in Jakarta that specializes in Javanese cuisine. This restaurant has been owned and operated for generations by a family. The chef prepares all the meals using family secret recipes handed down from generation to generation. Back then, Selaras provided an excellent service and delicious food at reasonable prices.
At the beginning of 2022 there was a change in the management of Selaras restaurant to the next generation, in the midst of the restaurant's performance which continued to decline. The decline in performance was caused by decreasing demand due to the COVID-19 pandemic and competition in the food industry. Information obtained from the customer complaints and brief observations of the restaurant’s management shows how the quality and service are no longer optimal. Moreover, many of the items offered on the menu are not available, service takes a long time, and the taste is no longer consistent.
The new employees who are also still part of the family are not as skilled as they used to be. Secret recipes that have been passed down from generation to generation are given orally which makes the taste and appearance of the dish no longer consistent. Furthermore, many raw ingredients are not fresh which then affects the availability of the menu which is caused by lack of training, no supervision in daily operations, stock that is not calculated daily, refrigerator sizes which are no longer sufficient and their temperatures which are not maintained optimally. Additionally, the restaurant wants to maintain their traditional ways, such as cooking with charcoal and utilizing other limited traditional tools, resulting in prolonged cooking time, which then delays the service. This has resulted in the restaurant management’s dilemma between keeping the tradition or adapting it to the new requirements.
After receiving many complaints from the customers and brief observation of the restaurant’s management, the management of Selaras intends to restore the glory of the restaurant.
Question:
Use the Cause and Effect Diagram method to analyze the above problems with the 4 M approach (Manpower, Methods, Materials, Machinery).
Mention one of the other analytical tools in quality management that you recommend to the Management to solve Selaras restaurant’s quality problems to increase the restaurant’s sales and profits. Briefly explain why you are using the tool and how to use it (you may use your own assumptions to clarify your answer).
The Cause and Effect Diagram (Fishbone Diagram) with the 4 M approach helps analyze the problems at Selaras restaurant, including issues with manpower, methods, materials, and machinery.
In addition, the recommended tool, the PDCA cycle, provides a structured approach for problem-solving and continuous improvement to increase sales and profits.
Cause and Effect Diagram (also known as Fishbone Diagram or Ishikawa Diagram) is a useful tool for analyzing problems and identifying their root causes. It visually represents the possible causes of a problem in a structured manner, allowing the identification of multiple factors that contribute to the problem. In this case, we will use the 4 M approach (Manpower, Methods, Materials, Machinery) to analyze the problems faced by Selaras restaurant.
1. Manpower:
- Lack of training: The new employees, who are also part of the family, may not have received proper training to prepare the dishes according to the family secret recipes.
- Skill deficiency: The new employees may not possess the same level of culinary skills and expertise as the previous generation, resulting in inconsistency in taste and presentation.
- Lack of supervision: There may be a lack of proper supervision and guidance for the new employees, leading to a decline in quality and service.
2. Methods:
- Oral recipe transmission: The secret recipes being passed down orally may lead to misinterpretation and inconsistent execution of the dishes.
- Traditional cooking methods: The insistence on using traditional cooking methods, such as cooking with charcoal and limited tools, may result in prolonged cooking time and delays in service.
3. Materials:
- Lack of fresh ingredients: The restaurant may be facing challenges in procuring fresh ingredients, which affects the availability and quality of the menu items.
- Inadequate stock management: The lack of daily stock calculation and monitoring may lead to insufficient supply of ingredients, causing certain menu items to be unavailable.
4. Machinery:
- Insufficient refrigerator capacity: The existing refrigerators may no longer be sufficient to store the required quantity of ingredients, leading to compromised freshness.
- Suboptimal refrigerator temperature maintenance: Inadequate temperature control in the refrigerators can affect the quality and shelf life of the ingredients.
To solve Selaras restaurant's quality problems and increase sales and profits, one recommended tool in quality management is the PDCA (Plan-Do-Check-Act) cycle. The PDCA cycle is a problem-solving and continuous improvement method. Here's how it can be used:
1. Plan: The management should identify specific quality objectives and create a plan to address the identified problems. This may include setting goals, defining improvement strategies, and establishing training programs for the employees.
2. Do: Implement the planned actions. This may involve providing training for the employees, implementing new processes, improving stock management systems, and ensuring proper supervision.
3. Check: Monitor and evaluate the effectiveness of the implemented actions. This can be done by gathering customer feedback, conducting regular inspections, and tracking key performance indicators (KPIs) related to quality, service, and customer satisfaction.
4. Act: Based on the evaluation, take necessary corrective actions to further improve the quality and address any remaining issues. This may involve refining the training programs, adjusting processes, upgrading equipment or refrigeration systems, and implementing feedback loops for continuous improvement.
By using the PDCA cycle, the management can systematically analyze and address the root causes of the quality problems faced by Selaras restaurant. It provides a structured approach for planning, implementing, evaluating, and continuously improving the quality and service, ultimately leading to increased sales and profits.
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Answer the following questions in one or two words each [12 marks] a. Which project method would you use for non-repetitive projects where activity times are not known with certainty? Which projecte questio b. If the ordering cost of a product is reduced to one-fourth, what will be the impact on the EOQ? c. If the severity, occurrence and detectability scores of a particular failure mode are 3, 7 and 4 respectively, what is the RPN of this failure mode? d. Creating a project charter is part of which stage in the six sigma project? e. For JIT to be practically implementable, what should be the nature of demand? f. If the standard deviation of the project duration is 4 weeks, and mean time to complete the project is expected to be 40 weeks, what is the probability that the project would be completed in 32 weeks? g. If the confidence level required to fulfil the demand increases from 90% to 95%, what would be the % increase in the safety stock? h. Which scheduling rule is expected to give lower work in process? 1. Which scheduling rule is expected to give lowest average lateness of jobs? j. Which are the two most prominent departments involved in S&OP meetings in an organization? k. Mention any two inputs for generation of MRP 1. Among the 8 wastes of lean, which is the 8th waste that has been recently added to the origial 7 wastes?
a. Agile method is used for non-repetitive projects where activity times are not known with certainty.
b. If the ordering cost of a product is reduced to one-fourth, the EOQ would decrease.
c. The RPN (Risk Priority Number) of a failure mode having the severity, occurrence and detectability scores of 3, 7 and 4, respectively would be 84.
d. Creating a project charter is part of the Define stage in the six sigma project.
e. The nature of demand for JIT to be practically implementable should be stable, predictable, and smooth.
f. The probability that the project would be completed in 32 weeks if the standard deviation of the project duration is 4 weeks, and the mean time to complete the project is expected to be 40 weeks would be 0.0228.
g. The % increase in the safety stock, if the confidence level required to fulfill the demand increases from 90% to 95%, would be 58%.
h. First Come First Served (FCFS) is the scheduling rule that is expected to give lower work in process.
i. The scheduling rule that is expected to give the lowest average lateness of jobs is the Shortest Processing Time (SPT).
j. The two most prominent departments involved in Sales and Operations Planning (S&OP) meetings in an organization are Sales and Production.
k. The two inputs for the generation of Material Requirements Planning (MRP) are the Bill of Materials (BOM) and Inventory Records.
The 8th waste that has been recently added to the original 7 wastes is Waste of Human Potential.
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