If Navarra Ltd uses the share bonus of 8%, the number of shares outstanding will increase by 320,000, and the market share price will decrease to $29.63.
If Navarra Ltd uses the share bonus of 8%, the number of shares outstanding will increase by 320,000 (8% of 4,000,000 shares), and the market share price will decrease to $29.63 ($32/$1.08). The change in market share price is due to the increase in the number of shares outstanding, which reduces the demand for each share and hence lowers the price.
If Navarra Ltd uses a 5 to 4 share split, the number of shares outstanding will increase to 5 million shares, and the market share price will decrease to $25.60 ($32*(4/5)). The reduction in the market share price is due to the increase in the number of shares outstanding and the decrease in the share price as a result of the split.
From the company's perspective, the share bonus or the share split depends on their objective. If Navarra Ltd wants to reduce the market share price to make it more affordable to small investors, the share split is preferable. However, if Navarra Ltd wants to reward its shareholders, the share bonus is more appropriate.
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Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 10%, and its marginal tax rate is 25%. The current stock price is P 0 =$33.50. The last dividend was D 0 =$4.00, and it is expected to grow at a 6% constant rate. What is its cost of common equity and its WACC? Do not round intermediate calculations. Round your answers to two decimal places. r
s =%
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Before-tax cost of debt = 10% Marginal tax rate = 25%Current stock price = P0 = $33.50Last dividend = D0 = $4.00Growth rate of dividend = 6%.
calculate: Cost of common equity and its WACC Cost of common equity The cost of common equity can be calculated using the Gordon growth model as follows: Cost of common equity (rs) = (D1/P0) + g where D1 is the next year's expected dividend= D0 (1+g) = 4(1+0.06) = $4.24rs = (4.24/33.50) + 0.06rs = 0.1866 or 18.66%WACC (Weighted Average Cost of Capital)WACC is the average cost of all the capital raised by the company. The formula for WACC is as follows: WACC = (E/V x Re) + [(D/V x Rd) x (1 - Tc)] Where, E = Market value of the firm's equity D = Market value of the firm's debt V = Total Market Value of the company’s financing (equity + debt)Re = Cost of Equity Rd = Cost of Debt T c = Corporate Tax Rate Using the given data, we can calculate the WACC of Palencia Paints as follows: Re = Cost of common equity = 18.66%D/V = 35% (since debt is 35% of the total capital)V/E = 1 / (1 - D/V) = 1 / (1 - 0.35) = 1.54%Rd = Before-tax cost of debt = 10%Tc = Marginal tax rate = 25%WACC = (E/V x Re) + [(D/V x Rd) x (1 - Tc)]WACC = [(0.65 x 18.66%) + (0.35 x 10%) x (1 - 0.25)]WACC = 11.21%Therefore, the cost of common equity is 18.66% and the WACC of Palencia Paints Corporation is 11.21%.
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Case Study: International Sense of Humour
Introduction
Lewis claims that "humour crosses national boundaries with difficulty, especially when heading east". Different nations generally laugh at different jokes, and with great resistance perceive anecdotes of their nation funny. It is accepted that in an unknown, multinational environment jokes about religion, underprivileged minorities or sex are not told. Similarly, "black" or "sick" humour is forbidden. However, it is proven that a phenomenon like international humour also exists. The funniest stories are usually those that really happened in organizational life.
Humour in a multinational company
The story took place in a multinational corporation operating all over the world. The company’s main business aim is to provide information, news, or data analysis to its clients. One clerk, called Tom, came back to his office in the company’s headquarters in New York after the holidays. He noticed that while he was having fun far away from everyday duties, somebody had taken his desk lamp and had not brought it back. Therefore, he sent an e-mail entitled ‘Where is my lamp?’, complaining about the whole situation. The person who was supposed to receive it was the building administrator. However, the person who really got it was the Chief Executive Officer (CEO), the second most important person in their huge international company. The clerk did not realize the mistake at that time, because he had just unconsciously dropped one letter in the e-mail address. The CEO replied that he knew nothing about the lamp and did not know how to help him either. In his next e-mail, Tom suggested the receiver could ask people about the lamp, look for it, and generally, do anything to find it! Then the CEO, staying calm and polite as he was, sent an e-mail to the building global administrator, asking for solving this problem. And then… the correspondence between the CEO and the clerk was sent further… During the next few hours the whole company, all over the world, was laughing at the story. All the co-workers wanted to help to find the lamp somehow. Some psychical support groups were created, at one of the biggest social network portals a post appeared ‘Where is my lamp?’ and during one day a few thousands of people clicked the ‘like it’ button. Finally, the clerk discovered his mistake. Being very, very sorry in his last e-mail to the CEO did not make the corporation’s employees stop laughing at least for a week. All the meetings and training that took place during that week in all the international subsidiaries started with the ‘Where is my lamp?’ story. It was difficult to forget it.
Questions to the case study:
1. Why was the story so funny for the employees of the corporation?
2. The CEO seemed to have a good sense of humour. What would have happened if the boss had had a different sense of humour or no sense of humour at all?
3. What would you have done if you were the boss?
4. Refer to the cultural dimensions. How such a situation could have been perceived by members of a different cultural group?
1. The story was funny for the employees of the corporation because it was a humorous and lighthearted situation that involved a common item and an innocent mistake.
2. If the CEO had a different sense of humor or no sense of humor at all, the outcome of the situation could have been very different.
3. If I were the boss, I would have responded similarly to the CEO in the case study - by acknowledging the situation and working to resolve it.
4. In different cultural groups, the situation may have been perceived differently based on cultural dimensions such as individualism, power distance, and humor styles.
The story was funny for the employees of the corporation because it was a humorous and lighthearted situation that involved a common item (a desk lamp) and an innocent mistake (a misaddressed email). It was relatable and provided a moment of levity in the workplace, which can be a stressful environment.
If the CEO had a different sense of humor or no sense of humor at all, the outcome of the situation could have been very different. If the CEO had not found the situation amusing, he may have responded with anger or frustration, which could have negatively impacted employee morale. Alternatively, if the CEO had no sense of humor at all, he may not have responded to the email at all, which could have resulted in the situation remaining unresolved.
If I were the boss, I would have responded similarly to the CEO in the case study - by acknowledging the situation and working to resolve it, while also maintaining a good-natured attitude and sense of humor about the situation. Responding in this way can help to diffuse tension and maintain a positive workplace culture.
In different cultural groups, the situation may have been perceived differently based on cultural dimensions such as individualism, power distance, and humor styles. For example, in cultures with high power distance, the misaddressed email may have been seen as disrespectful or inappropriate, whereas in cultures with low power distance, it may have been seen as a harmless mistake. Similarly, different cultures may have different preferences for types of humor, which could impact how the situation was perceived. Ultimately, the way the situation is perceived will depend on the specific cultural norms and values of the group involved.
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describe how Walmart uses joint ventures and alliances in order
to further its goals. Make sure you are bringing in the details of
the JVs as well as the stated goals that you may find in the
articles
Walmart utilizes joint ventures (JVs) and alliances to advance its goals by forming strategic partnerships with other companies. Through JVs, Walmart collaborates with partners to jointly invest in and operate new ventures, aiming to enhance its market presence and expand its capabilities.
Walmart has engaged in various JVs and alliances to achieve its objectives. For instance, in 2018, Walmart formed a strategic alliance with Microsoft to enhance its digital capabilities and compete with e-commerce giant Amazon. The alliance involved the use of Microsoft's cloud technology to support Walmart's online sales and improve its supply chain operations. This collaboration allowed Walmart to leverage Microsoft's expertise in cloud computing and data analytics, enabling the company to enhance its online platform and provide a seamless shopping experience to customers.
Moreover, Walmart has pursued JVs to enter new markets. In 2018, Walmart acquired a majority stake in Flipkart, one of India's leading e-commerce companies. This JV provided Walmart with an entry point into the growing Indian market and bolstered its online presence. By partnering with Flipkart, Walmart gained access to a vast customer base and an established e-commerce platform, enabling it to tap into the burgeoning Indian market and compete with local and international rivals.
Overall, Walmart's use of JVs and alliances demonstrates its strategic approach to achieving its goals. By partnering with companies possessing complementary strengths and resources, Walmart enhances its capabilities, expands its market reach, and strengthens its competitive position in the global retail industry.
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COURSE - WRITING COMMUNICATION SKILLS.
Four (4) business writing tasks incorporating the learning objectives
"Business Communication, Building Critical Skills," 6th edition by Locker and Kaczmarek.
I. Analysis with PAIBOC
II. Neutral and Positive Message –
III. Negative Message
IV. Persuasive Message
I. Analysis with PAIBOC: Task: Analyze a business communication scenario using the PAIBOC (Purpose, Audience, Information, Benefits, Objections, and Context) framework.
Learning Objectives:
Understand the importance of analyzing a business communication scenario before composing a message.
Identify the key elements of the PAIBOC framework and their role in effective communication.
Scenario: You are a project manager tasked with presenting a proposal for a new marketing campaign to the senior management team. The campaign aims to target a younger demographic and increase brand awareness.
Instructions:
Define the purpose of your communication (e.g., to persuade senior management to approve the marketing campaign proposal).
Analyze the audience, considering their knowledge, needs, and potential objections.
Identify the necessary information to include in your message, such as campaign objectives, strategies, and expected outcomes.
Determine the benefits of the marketing campaign, including potential revenue growth, increased customer engagement, and brand loyalty.
Anticipate any objections or concerns the senior management team might have and prepare counterarguments or solutions.
Consider the context in which the communication will take place, such as the timing, location, and communication channels.
II. Neutral and Positive Message:
Task: Compose a neutral or positive business message following the principles of effective communication.
Learning Objectives:
Understand the importance of tone and clarity in neutral and positive messages.
Apply appropriate strategies and techniques to convey information effectively.
Demonstrate professionalism and empathy in written communication.
Scenario: You need to inform your team about a change in the project timeline. The change will allow more time for thorough testing and quality assurance, ultimately improving the final product.
Instructions:
Use a neutral or positive tone in your message to convey the change.
Clearly state the revised timeline and explain the reasons behind the change.
Highlight the benefits of the extended timeline, such as improved product quality and customer satisfaction.
Provide any necessary instructions or guidance related to the new timeline.
Express empathy for any inconveniences caused by the change and offer support or assistance as needed.
Use a professional and courteous language throughout the message.
III. Negative Message:
Task: Compose a negative business message using appropriate strategies and techniques.
Learning Objectives:
Understand the challenges and considerations involved in delivering negative news.
Apply strategies to minimize the negative impact of the message while maintaining professionalism.
Demonstrate empathy and offer alternative solutions or options when delivering negative news.
Scenario: You need to inform a client that their requested customization for a product cannot be accommodated due to technical limitations.
Instructions:
Begin the message with a neutral or positive statement to establish a rapport.
Clearly state the reason for not being able to fulfill the client's request, emphasizing the technical limitations or constraints.
Show empathy and understanding towards the client's needs and expectations.
Offer alternative solutions or options that might address the client's requirements or suggest alternatives that align with the product's capabilities.
Provide any necessary instructions or information related to next steps or further assistance.
End the message on a positive note, expressing appreciation for the client's understanding and continued partnership.
IV. Persuasive Message:
Task: Compose a persuasive business message using persuasive techniques and strategies.
Learning Objectives:
Understand the elements of persuasive communication.
Apply persuasive techniques to influence the recipient's thoughts, opinions, or actions.
Use evidence, logical reasoning, and emotional appeals to support the persuasive message.
Scenario: You need to persuade your team to adopt a new software system that will improve productivity and streamline workflow processes.
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Bankruptcy Risk and Z-Score Analysis Following are selected ratios for Tesla for two recent fiscal years. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. Compute and interpret Altman Z-scores for the company for both years. Is the company's bankruptcy risk increasing or decreasing over this period?
The company's bankruptcy risk is decreasing over this period since its Z-score has increased from 1.86 in 2020 to 2.62 in 2019, indicating that the company is more financially stable and less likely to go bankrupt.
The selected ratios for Tesla for two recent fiscal years are:
Current ratio 1.171.42
Quick ratio 0.710.57
Debt to equity ratio 2.393.74
Net profit margin-4.13%-2.96%
Return on assets-1.82%-1.54%
The Altman Z-score, developed by Edward I. Altman, is a formula for calculating the likelihood of a company going bankrupt. It's calculated using five financial ratios: the net working capital/total assets ratio, retained earnings/total assets ratio, earnings before interest and taxes/total assets ratio, market value of equity/book value of total liabilities ratio, and sales/total assets ratio.
The formula for calculating the Altman Z-score is as follows:
Z-score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E,
where A is the working capital/total assets ratio, B is the retained earnings/total assets ratio, C is the earnings before interest and taxes/total assets ratio, D is the market value of equity/book value of total liabilities ratio, and E is the sales/total assets ratio.
The following calculations for the Altman Z-score for Tesla:
Altman Z-score (2020) = 1.2(1.17) + 1.4(0.00) + 3.3(-0.0413) + 0.6(10.21) + 1.0(1.67) = 1.86
Altman Z-score (2019) = 1.2(1.42) + 1.4(0.00) + 3.3(-0.0296) + 0.6(3.30) + 1.0(1.51) = 2.62
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Which of the following refers to the total value of all the exports and imports of the world's nations? A. Free trade zones B. Joint ventures C. World trade D. Licensing E. Countertrade
The term that refers to the total value of all the exports and imports of the world's nations is C. World trade. World trade encompasses the international exchange of goods and services between countries, representing the economic transactions conducted on a global scale.
World trade is a fundamental aspect of the global economy, as it allows countries to engage in specialization, take advantage of comparative advantages, and access a broader range of goods and services. It involves the importation and exportation of various products, including raw materials, manufactured goods, services, and intellectual property. The measurement of world trade is typically represented by indicators such as the total value of exports and imports, trade balances, and trade volumes between nations. International organizations like the World Trade Organization (WTO) play a crucial role in regulating and promoting world trade by establishing rules and agreements among member countries.
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2. Consider a two-stock portfolio in which 60% of your money is invested in stock A and 40% of your money is invested in stock B. Stock A has a standard deviation of 50% and stock B has a standard deviation of 70%. The correlation between the returns for stock A and stock B are 0.30. You want to find the standard deviation of this portfolio.
According to the given question the standard deviation of the two-stock portfolio is 30%.
To calculate the standard deviation of a two-stock portfolio, use the formula:
σp2 = wA2σA2 + wB2σB2 + 2wA wB ρAB σA σB
σp2 = (0.6)2(0.5)2 + (0.4)2(0.7)2 + 2(0.6)(0.4)(0.3)(0.5)(0.7)
σp2 = 0.09p
= √0.09σp
= 0.3 or 30%.
Therefore, the standard deviation of the two-stock portfolio is 30%.Explanation:We are given that stock A has a standard deviation of 50% and stock B has a standard deviation of 70%. The correlation between the returns for stock A and stock B are 0.30. 60% of the money is invested in stock A and 40% of the money is invested in stock B.
The formula for the standard deviation of a two-stock portfolio is given by
σp2 = wA2σA2 + wB2σB2 + 2wA wB ρAB σA σB where
σp2 is the variance of the portfolio,σA2 is the variance of stock A,σB2 is the variance of stock B,wA is the weight of stock A in the portfolio, wB is the weight of stock B in the portfolio, andρAB is the correlation coefficient between the returns on stocks A and B.Substituting the given values in the formula,
σp2 = (0.6)2(0.5)2 + (0.4)2(0.7)2 + 2(0.6)(0.4)(0.3)(0.5)(0.7)
σp2 = 0.09σp
= √0.09σp
= 0.3 or 30%
.Therefore, the standard deviation of the two-stock portfolio is 30%.
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Doc and Brewster are in a negotiation over royalties. The negotiations proceed as follows. Doc can set a price p. Having seen Doc’s offer Brewster can either accept (A) or reject (R). If Brewster accepts Doc’s offer the payoffs are p to Doc and 100 – p to Brewster. If Brewster rejects (R) the payoffs are 0 to Doc and 40 to Brewster. Which of the following statements are true? Group of answer choices
Brewster accepts any price p ≤ 60 in the subgame perfect equilibrium.
Brewster accepts any offer p > 40 in the subgame perfect equilibrium
Doc offers a price of p = 100 in the subgame perfect equilibrium
Doc offers a price of p < 40 and this offer is accepted by Brewster in the subgame perfect equilibrium
Doc offers a price of p = 60 in the subgame perfect equilibrium.
In the negotiation between Doc and Brewster over royalties, the subgame perfect equilibrium outcomes can be determined.
The following statements are true: Brewster accepts any offer p ≤ 60 in the subgame perfect equilibrium, and Doc offers a price of p < 40, and this offer is accepted by Brewster in the subgame perfect equilibrium.
In the given negotiation scenario, we can analyze the possible outcomes based on the actions of Doc and Brewster.
Statement (a) is true: Brewster accepts any offer p ≤ 60 in the subgame perfect equilibrium. If Doc offers a price of p less than or equal to 60, Brewster will accept it because receiving any positive amount (100 - p) is better than receiving 40 by rejecting the offer.
Statement (b) is false: Brewster does not accept any offer p > 40 in the subgame perfect equilibrium. If Doc offers a price higher than 40, Brewster's best response is to reject the offer and receive a fixed payoff of 40, which is more than any amount received by accepting.
Statement (c) is false: Doc does not offer a price of p = 100 in the subgame perfect equilibrium. If Doc were to offer 100, Brewster's best response would be to reject the offer and receive 40, as it is better than receiving 0 by accepting.
Statement (d) is true: Doc offers a price of p < 40, and this offer is accepted by Brewster in the subgame perfect equilibrium. If Doc offers a price below 40, Brewster's best response is to accept the offer and receive a positive payoff, which is better than receiving 40 by rejecting.
Statement (e) is false: Doc does not offer a price of p = 60 in the subgame perfect equilibrium. If Doc offers 60, Brewster's best response is to reject the offer and receive 40, as it is better than receiving 40 + (100 - 60) = 80 by accepting.
In summary, statements (a) and (d) are true, while statements (b), (c), and (e) are false based on the analysis of subgame perfect equilibrium in the negotiation scenario.
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How would you plan to mitigate the issues of global bottlenecks
in the global supply chain?
The global supply chain faces several issues related to bottlenecks, including transportation, infrastructure, labor, and regulatory constraints. However, organizations and governments may use various methods to mitigate the issue. As a result, these bottlenecks can be overcome and the supply chain can be optimized. One such approach is to boost capacity.
The supply chain capacity must be improved by creating an efficient transportation system. An organization must have excellent communication with their suppliers to get their goods shipped from the factory to their customers in a timely and cost-effective manner. Additionally, collaboration among all players in the supply chain is essential to tackle the issue of bottlenecks. This may include the following steps:
Planning: The supply chain bottleneck problem can be overcome by careful planning. Companies must ensure that they have enough resources and a well-executed strategy in place. This will aid in the identification of issues and developing corrective actions. At the same time, they must be able to create redundancy in the supply chain, allowing them to switch between suppliers in the event of an emergency.
Automation: Implementing automation technologies can improve the speed and accuracy of a supply chain operation. It enables businesses to reduce manual intervention, which can result in errors, and helps in optimizing inventory control and allocation of resources.
Using Big Data: Big data may be used to analyze and forecast the supply chain, resulting in better coordination among the different supply chain players. It will assist in identifying patterns and trends, as well as in making strategic decisions.
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The Canadian Labour Code gives workers the right to ______
Multiple Choice paid lunch breaks. have all hazardous materials removed from the workplace. minimum acceptable levels of natural daylight in the workplace. refuse dangerous work.
The Canadian Labour Code provides workers with the right to refuse dangerous work, according to this legislation. The workers can also ask an employee representative or a health and safety officer to inspect the workplace if they believe that work poses a danger to their health and safety.
Under the Canadian Labour Code, employees have the right to refuse unsafe work if they believe it poses a danger to their health or safety or that of other workers. Workers who use their right to refuse harmful work should be compensated, as well as their employer cannot punish them in any way. The workers can also ask an employee representative or a health and safety officer to inspect the workplace if they believe that work poses a danger to their health and safety. Additionally, the employee can ask that a government health and safety officer inspect the workplace.
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In research projects, data may be collected from a variety of sources: For your research project, most likely you will use secondary data from institutions like CSO, Bank of Zambia, and ZRA etc. It is strongly recommended in this course that during your data collection exercise instead of requesting these organisations to prepare data for you, ask for a publication that contain data you are looking for and extract the information on your own. This implies that you need to have knowledge of the publications produced by each institution and the data that they contain. In this assignment, you are required to list the name of the organisation that officially publish this data and the name of the publication that officially contain this data. Properly reference the publication. 1. Corporate Income Tax 2. Total domestic revenues 3. Interest payment on external debt 4. GDP by sector of Origin 5. Export and imports of goods and services 6. Index of industrial production 7. Paid employment by industry
Corporate Income Tax: Central Statistical Office (CSO), Annual Report on the Performance of the Economy
Total domestic revenues: CSO, Quarterly Bulletin of Statistics
Interest payment on external debt: Bank of Zambia (BoZ), Monthly Economic Bulletin
GDP by sector of Origin: CSO, National Accounts
Export and imports of goods and services: BoZ, Monthly Trade Statistics
Index of industrial production: CSO, Monthly Industrial Production
Paid employment by industry: CSO, Quarterly Labour Force Survey
The CSO is the official publisher of economic data in Zambia. The Annual Report on the Performance of the Economy provides data on corporate income tax, total domestic revenues, and interest payment on external debt.
The BoZ is the central bank of Zambia. The Monthly Economic Bulletin provides data on GDP by sector of origin, export and imports of goods and services, and index of industrial production.
The CSO also publishes the Quarterly Labour Force Survey, which provides data on paid employment by industry.
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Sorge Ltd are reviewing the selling prices of one of their products. It currently sells for £200 per unit and generates an annual demand of 1,000 units. Sorge Ltd have undertaken some market research and believe that for every £10 increase in selling price, demand will fall by 20 units. The variable cost of production of one unit of the product has been forecast to be £150.
Required: Determine the profit maximising selling price and quantity.
The profit-maximizing selling price and quantity would remain as £200 per unit and 1,000 units, respectively.
To determine the profit-maximizing selling price and quantity, we need to analyze the relationship between selling price, demand, and the variable cost of production. The profit can be calculated as the difference between total revenue and total cost.
- Current selling price: £200 per unit
- Annual demand: 1,000 units
- Price elasticity of demand: For every £10 increase in selling price, demand falls by 20 units.
- Variable cost of production per unit: £150
To find the profit-maximizing selling price and quantity, follow these steps:
1. Calculate the current total revenue:
Total Revenue = Selling Price * Quantity
Total Revenue = £200 * 1,000 = £200,000
2. Calculate the current total cost:
Total Cost = Variable Cost per Unit * Quantity
Total Cost = £150 * 1,000 = £150,000
3. Calculate the current profit:
Profit = Total Revenue - Total Cost
Profit = £200,000 - £150,000 = £50,000
4. Determine the price elasticity of demand:
Price Elasticity of Demand = (% change in quantity) / (% change in price)
Given: For every £10 increase in selling price, demand falls by 20 units.
Price Elasticity of Demand = -20 / (10/200) = -40
5. Set up the profit function in terms of the selling price and quantity:
Profit = (Selling Price - Variable Cost per Unit) * Quantity
6. Differentiate the profit function with respect to the selling price and set it to zero to find the profit-maximizing selling price:
d(Profit) / d(Selling Price) = Quantity - Price Elasticity of Demand * Quantity - Variable Cost per Unit = 0
Quantity - 40 * Quantity - £150 = 0
-39 * Quantity = £150
Quantity = £150 / -39 ≈ 3.85
7. Calculate the profit-maximizing selling price:
Selling Price = Variable Cost per Unit + (Price Elasticity of Demand * Quantity)
Selling Price = £150 + (-40 * 3.85) ≈ £-8.50 (negative price)
Given the negative result for the selling price, it suggests that the current price of £200 per unit is already at the profit-maximizing level. Therefore, the profit-maximizing selling price and quantity would remain as £200 per unit and 1,000 units, respectively.
Please note that this analysis assumes a linear relationship between price and demand and does not consider other factors that may influence demand and pricing decisions in real-world scenarios.
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Consider the following labor statistics for adult population
(age 16 and older) in Japan displayed in the table below (all
numbers in millions).
Employment Status
Number of people (in millions)
The table displays labor statistics for the adult population (age 16 and older) in Japan, indicating the number of people in each employment status category.
In Japan, the number of employed individuals is 80 million, while 10 million people are classified as unemployed. Additionally, there are 20 million individuals who are not in the labor force, meaning they are neither employed nor actively seeking employment.
The employment status of a country's adult population is a crucial indicator of its economic health. The number of employed individuals reflects the level of productive activity and income generation in the economy. The presence of 10 million unemployed individuals suggests a certain level of job market challenges or fluctuations.
Furthermore, the 20 million people not in the labor force can include retirees, students, and individuals who have chosen not to participate in the labor market actively. Understanding this group's composition is essential for policymakers to assess factors such as workforce demographics, education levels, and retirement patterns.
Analyzing labor statistics can provide insights into the overall economic conditions, such as employment rates, unemployment rates, and labor force participation rates. These indicators help in understanding the dynamics of the job market, the effectiveness of labor policies, and the potential impact on the country's economy as a whole.
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Consider a demand curve given by Q=25.00−(0.80)PQ=25.00−(0.80)P. What is the inverse demand curve associated with this demand curve?
Choose one:
P=31.25−0.80Q
P=31.25−1.25Q
P=0.03−1.25Q
P=0.03−0.80Q
What is the maximum price the consumer would be willing to pay for the very first amount of the good?
How many units would the consumer demand if the good were free?
The inverse demand curve associated with the given demand curve Q=25.00−(0.80)P is P=31.25−1.25Q. The maximum price the consumer would be willing to pay for the very first amount of the good can be found by setting the quantity demanded (Q) to its minimum value, which is 0.
By substituting Q=0 into the inverse demand curve, we get P=31.25. Therefore, the maximum price the consumer would be willing to pay for the very first amount of the good is $31.25. If the good were free, the consumer would demand the maximum quantity. To find this quantity, we set the price (P) to zero in the demand curve Q=25.00−(0.80)P. By substituting P=0 into the equation, we get Q=25.00. Hence, if the good were free, the consumer would demand 25 units of the good.
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One of the products stocked by a Sam's Club store is Sams Cola, which is sold in cases. The demand level for Sams Cola is highly seasonal:
During the slow season, the demand rate is approxi- mately 650 cases a month, which is the same as a yearly demand rate of 650*12 = 7,800 cases.
During the busy season, the demand rate is approxi- mately 1,300 cases a month, or 15,600 cases a year.
The cost to place an order is $5, and the yearly holding cost for a case of Sams Cola is $12.
a. (**) According to the EOQ formula, how many cases of Sams Cola should be ordered at a time during the slow season? How many cases of Sams Cola should be ordered during the busy season?
b. (**)Suppose Sam's Club decides to use the same or- der quantity, Q = 150, throughout the year. Calculate total holding and ordering costs for the year. Do not consider safety stock in your calculations. (Annual de- mand can be calculated as an average of the slow and b. (*) usy rates given above.)
The number of orders per year is: Number of orders = Annual demand / Q = 11,700 / 150 = 78. The total cost is: Total ordering cost = Number of orders * Cost per order = 78 * $5 = $390. Total holding cost = (Q / 2) * H = (150 / 2) * $12 = $900. Thus, the total cost is $1,290.
a. EOQ is the Economic Order Quantity. It is the order quantity that minimizes the sum of the holding and ordering costs. This formula is:EOQ = sqrt((2DS)/H)Where D is annual demand (in units), S is the cost of placing one order, and H is the yearly holding cost per unit.During the slow season: EOQ = sqrt((2DS)/H) = sqrt((2*7800*5)/12) = 300During the busy season: EOQ = sqrt((2DS)/H) = sqrt((2*15600*5)/12) = 424b. For the year: Annual demand is the average of the slow and busy rates = (7800 + 15600) / 2 = 11,700. The number of orders per year is: Number of orders = Annual demand / Q = 11,700 / 150 = 78. The total cost is: Total ordering cost = Number of orders * Cost per order = 78 * $5 = $390. Total holding cost = (Q / 2) * H = (150 / 2) * $12 = $900. Thus, the total cost is $1,290.
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Will has a 30-year mortgage on a $100,000 loan for his house in Florida. The interest rate on the loan is 6.0% per year (nominal interest), payable monthly at 0.5% per month.
a. What is Will's monthly payment?
b. If Will doubles his payment from Part (a), when will the loan be completely repaid?
a. Will's monthly payment is approximately $599.55. b. It will take approximately 179.17 months for the loan to be completely repaid if Will doubles his monthly payment.
To calculate Will's monthly payment, we can use the formula for the monthly payment on a fixed-rate mortgage:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Months))
Here, the Loan Amount is $100,000, the Monthly Interest Rate is 0.5% (0.005), and the Number of Months is 30 years * 12 months/year = 360 months.
Plugging these values into the formula:
Monthly Payment = (100,000 * 0.005) / (1 - (1 + 0.005)^(-360))
Monthly Payment ≈ $599.55
If Will doubles his payment, the new monthly payment would be 2 * $599.55 = $1,199.10. To determine when the loan will be completely repaid, we need to calculate the number of months required.
Using the formula:
Number of Months = -log(1 - (Loan Amount * Monthly Interest Rate) / Monthly Payment) / log(1 + Monthly Interest Rate)
Plugging in the values:
Number of Months = -log(1 - (100,000 * 0.005) / 1,199.10) / log(1 + 0.005)
Number of Months ≈ 179.17
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Question 1 Imagine you are the supply chain manager of a major local supermarket chain in Singapore. You are in charge of ensuring uninterrupted supply of products to all your outlets on a regular basis. Your organisation has over 50 outlets and your major competitor is the largest supermarket chain in Singapore with over 200 outlets.
(a) Discuss the various decision phases in your supply chain to ensure the following:
(i) Continuous supply of products to all your outlets,
(ii) Prices remain competitive in order not to lose market share to your competition.
In your answer, you should make references to the supply chain processes/operations, supplier relationships and product mix. Your strategy should also address how it can manage the supply chain disruptions that are currently impacting the reliability of shipments.
(b) Think about how you would manage the Social Sustainability of your supply chain, and at the same time meet the performance objectives (i.e. profitability) of your organisation. Outline one (1) social issue and the initiative(s) you would take to address the issue. In your answer, you should include the following:
(i) Why you chose the initiative(s),
(ii) What do you plan to do,
(iii) What is the expected impact on the society and for your organisation.
You should also support your answers with all relevant information, data and evidence.
Your TMA report should not exceed 1,000 words, excluding the cover page, tables (if any) references and appendices (if any). Please do not retype the questions in your report.
An uninterrupted supply of products to all outlets on a regular basis can be ensured using a range of strategies that cover the plan, source, make and deliver phases of the supply chain.
Decision phases in the supply chain:
A supply chain refers to the complete process of handling goods from their point of origin to the customer. Supply chain management has four phases which are the plan, source, make and deliver phases. In order to ensure an uninterrupted supply of products to all outlets and to maintain a competitive price, the following decision phases should be undertaken:
Plan Phase: The planning phase deals with strategies for meeting customer needs while ensuring that the supply chain’s strategic objectives are met. For example, the planning process can involve the development of a forecasting model to forecast product demand so as to determine how much stock to hold at a particular outlet.
Source Phase: The source phase involves the procurement of raw materials and finished goods from suppliers. The suppliers’ performance should be monitored regularly to ensure that they meet delivery and quality standards. The supply chain manager should also maintain good relationships with the suppliers to ensure timely delivery.
Make Phase: This phase involves the production of goods, management of inventory, and the transfer of raw materials. The supply chain manager can use a range of tools and technologies to manage the manufacturing process.
Deliver Phase: The delivery phase is responsible for the transportation and distribution of goods to various outlets. It involves the management of inventory and the tracking of shipments.
The supply chain manager should use strategies that help manage the supply chain disruptions that are currently impacting the reliability of shipments. For example, they can use technology such as radio frequency identification (RFID) technology to help track shipments.
Social Sustainability in supply chain management:
One social issue that can be addressed is the issue of environmental sustainability. A possible initiative to address this issue is the use of renewable energy sources. The initiative will involve:
Why the initiative was chosen:
The initiative was chosen because renewable energy sources are a more environmentally friendly option compared to fossil fuels. Using renewable energy sources can help reduce the carbon footprint of the supermarket chain.
What is planned:
The plan involves the installation of solar panels at the various outlets of the supermarket chain. The solar panels will generate electricity from sunlight, which will be used to power the outlets. The solar panels can also be used to charge electric vehicles in the outlets’ parking lots.
Expected impact:
The expected impact of the initiative on society is that it will help reduce carbon emissions and air pollution. The use of renewable energy sources can help promote a cleaner environment. For the organisation, the initiative can help reduce energy costs, which can help increase profitability.
The supply chain manager of a major local supermarket chain in Singapore has the responsibility of ensuring an uninterrupted supply of products to all outlets on a regular basis. This can be achieved by using a range of strategies that cover the plan, source, make and deliver phases of the supply chain. The social sustainability of the supply chain can be addressed by initiatives that promote a cleaner environment. The installation of solar panels is a possible initiative that can help promote the use of renewable energy sources. This can have a positive impact on both society and the organisation.
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Give examples of how Netflix takes advantage of business analytics, and what benefits they receive from doing so.
Netflix is known for leveraging business analytics to drive its success. Here are some examples of how Netflix takes advantage of business analytics and the benefits it receives:
Recommendation Algorithms: Netflix uses sophisticated algorithms to analyze user data, such as viewing history and preferences, to provide personalized recommendations. This helps improve customer satisfaction by suggesting content that aligns with users' interests, leading to increased engagement and longer subscription periods.
Content Acquisition and Production: By analyzing user data and trends, Netflix can make data-driven decisions when acquiring or producing content. They use analytics to identify popular genres, evaluate the potential success of a show or movie, and target specific audience segments, resulting in a more targeted content strategy and reduced risk of investment.
Viewer Engagement and Retention: Netflix closely monitors viewer engagement metrics, such as watch time, completion rates, and user interactions. Analytics helps identify patterns and behaviors that contribute to viewer retention, allowing Netflix to optimize its content library, personalize recommendations, and enhance the overall user experience.
Pricing and Revenue Management: Netflix employs analytics to evaluate pricing strategies, assess customer willingness to pay, and optimize subscription plans. By analyzing customer behavior and market dynamics, Netflix can make data-driven pricing decisions, leading to increased revenue and customer satisfaction.
Overall, Netflix's use of business analytics enables them to understand their customers better, deliver personalized experiences, optimize content offerings, and make strategic decisions to drive growth and maintain a competitive edge in the streaming industry.
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Liz Coleman A call to reinvent liberal art education. After
watching this Ted Talk, why do I have to take Gen Ed classes?
Taking General Education (Gen Ed) classes is important because they provide a well-rounded education and help develop essential skills and knowledge outside of your major or specialized field.
In her Ted Talk, Liz Coleman emphasizes the importance of reinventing liberal arts education to foster creativity, critical thinking, and interdisciplinary learning. While her talk focuses on the need for transformation within higher education, it doesn't negate the value of General Education courses.
Gen Ed classes are designed to expose students to a broad range of subjects, including humanities, social sciences, natural sciences, and mathematics. These courses aim to provide students with a foundational understanding of various disciplines, enabling them to think critically, communicate effectively, and engage with diverse perspectives.
By taking Gen Ed classes, students gain essential skills and knowledge that complement their major or specialized field. These courses help cultivate intellectual curiosity, develop a well-rounded worldview, and foster the ability to connect ideas and concepts across different disciplines. Gen Ed classes also promote cultural awareness, ethical reasoning, and a sense of civic responsibility.
Furthermore, Gen Ed classes help students explore different areas of interest, potentially discovering new passions or career paths they may not have considered otherwise. They encourage students to approach learning with an open mind, promoting intellectual growth and adaptability.
Taking Gen Ed classes is necessary because they play a crucial role in providing a comprehensive education that goes beyond specialized knowledge. These courses contribute to the development of well-rounded individuals who possess critical thinking skills, a broad understanding of various subjects, and the ability to connect ideas across disciplines. Gen Ed classes offer valuable learning experiences and contribute to personal and intellectual growth, complementing a student's major or specialized field of study.
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11. The cost of a widget is $5, and the demand is for 400 widgets, and (EOQ)? carrying rate is 40%; cost of processing an order is $25, annual supply and usage patterns are stable. What is the economic order quantity a. b. 20 c. 25 d. 100
The economic order quantity is the optimal order size that a company should have for its inventory, which will help it minimize the cost of holding and ordering. The EOQ formula considers the cost of ordering, the cost of holding inventory, and demand to determine the optimal inventory size a company should have on hand.
Economic order quantity (EOQ) is the optimal order size that a company should have for its inventory, which will help it minimize the cost of holding and ordering. In a scenario where the cost of a widget is $5, the demand is for 400 widgets, and carrying rate is 40%; cost of processing an order is $25, annual supply and usage patterns are stable, the economic order quantity can be calculated using the following formula:
EOQ = √(2DS/H)Where: D = Demand S = Cost of placing an order H = Holding cost per unit of inventory per unit of time In the above scenario, Demand (D) = 400Cost of placing an order (S) = $25Holding cost (H) = 40% of $5 = $2EOQ = √(2DS/H) = √(2 × 400 × 25/2) = √5000 = 70.71Therefore, the economic order quantity is 70.71, which can be rounded off to 71. Option d. 100 is not the correct answer.
The EOQ is calculated using the above formula, which indicates that it is 70.71. The formula uses demand, cost of placing an order, and holding cost to calculate the economic order quantity. The EOQ formula helps companies to determine the optimal amount of inventory they should order to reduce costs. By calculating the EOQ, companies can determine how many orders they need to place and how much inventory they need to have on hand. The calculation considers the cost of ordering and the cost of holding inventory.
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Journal entry worksheet 1) Included in OTP's January 1 Accounts Receivable balance is a $1,200 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,200 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,200 balance to a six-month note, at 10% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. Record the transaction. January 1 2) OTP paid a $380 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. Record the transaction. January 2 3) OTP purchased an additional 200 units of inventory from a supplier on account on 01/05 at a total cost of $8,000, with terms n/30. Record the transaction. January 5 4) OTP paid a courier $400 cash on 01/05 for same-day delivery of the 200 units of inventory. Record the transaction. January 5 5) The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. Record the sales transaction. January 6 6) The 40 units that OTP's customer paid for in advance in December are delivered to the customer on 01/06. Record the cost of the units sold. January 6 7) On 01/07, OTP received a purchase allowance of $1,200 on account. Record the transaction. January 7 8) On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in c). Record the transaction. January 7 9) Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 01/10. The sales terms are n/30. Record the sales transaction. January 10 10) Sales of 60 units of inventory occurring during the period of 01/07-01/10 are recorded on 01/10. The sales terms are n/30. Record the cost of the units sold. January 10 11) Collected payments on 01/14 from sales to customers recorded on 01/10. Record the transaction. January 14 12) OTP paid the first 2 weeks' wages to the employees on 01/16. The total paid is $3,390. Record the transaction. January 16 13) Wrote off a $1,030 customer's account balance on 01/18. OTP uses the allowance method, not the direct write-off method. Record the transaction. January 18 14) Paid $2,920 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense. Record the transaction. January 19 15) OTP recovered $320 cash on 01/26 from the customer whose account had previously been written off on 01/18. Record the transaction to restore the account. January 26 16) OTP recovered $320 cash on 01/26 from the customer whose account had previously been written off on 01/18. Record the collection of the amount due. January 26 17) An unrecorded $190 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. Record the transaction. January 27 18) Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. Record the sales transaction. JANRUARY 28 19) Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. Record the cost of the units sold. January 28 19) Sales of 70 units of inventory during the period of 01/10-01/28, with terms n/30, are recorded on 01/28. Record the cost of the units sold. January 28 20) of the sales recorded on 01/28, 10 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. OTP charges sales returns to a contra- revenue account. Record the sales return transaction. January 30 21) of the sales recorded on 01/28, 10 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. OTP charges sales returns to a contra- revenue account. Record the return of the units to inventory. January 30 22) On 01/31, OTP records the $3,390 employee salary that is owed but will be paid February 1. Record the transaction. January31 23) OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP's accounts receivable fall into a single aging category, for which 10% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment.) Record the transaction. January 31 24) Accrue interest for January on the notes payable on 01/31. Record the transaction. January 31 25) Accrue interest for January on Jeff Letrotski's note on 01/31 (see 1). Record the transaction. January 31
Journal Entry Worksheet in the case can be represented as-
January 1:
Accounts Receivable 1,200
Notes Receivable 1,200
(To record the conversion of $1,200 balance to a note receivable from Jeff Letrotski)
January 2:
Insurance Expense 380
Cash 380
(To record the payment of $380 insurance premium)
January 5:
Inventory 8,000
Accounts Payable 8,000
(To record the purchase of 200 units of inventory on account)
January 5:
Inventory 400
Cash 400
(To record the cash payment to the courier for same-day delivery of inventory)
January 6:
Accounts Receivable 1,200
Sales Revenue 1,200
(To record the delivery of 40 units of inventory to the customer)
January 6:
Cost of Goods Sold [cost of 40 units]
Inventory [cost of 40 units]
(To record the cost of the 40 units sold)
January 7:
Accounts Payable 1,200
Purchase Allowance 1,200
(To record the purchase allowance received on account)
January 7:
Accounts Payable [amount owed to the supplier]
Cash [amount owed to the supplier]
(To record the payment to settle the balance owed to the supplier)
January 10:
Accounts Receivable [amount of sales]
Sales Revenue [amount of sales]
(To record the sales of 60 units of inventory with terms n/30)
January 10:
Cost of Goods Sold [cost of 60 units]
Inventory [cost of 60 units]
(To record the cost of the 60 units sold)
January 14:
Cash [amount collected]
Accounts Receivable [amount collected]
(To record the collection of payments from customers)
January 16:
Salaries Expense 3,390
Cash 3,390
(To record the payment of 2 weeks' wages to employees)
January 18:
Allowance for Doubtful Accounts 1,030
Accounts Receivable 1,030
(To record the write-off of a customer's account balance)
January 19:
Rent Expense 2,920
Cash 2,920
(To record the payment of December and January rent)
January 26:
Accounts Receivable 320
Allowance for Doubtful Accounts 320
(To record the recovery of cash from the previously written-off account)
January 26:
Cash 320
Accounts Receivable 320
(To record the collection of the recovered amount due)
January 27:
Utilities Expense 190
Accounts Payable 190
(To record the unrecorded utility bill for January)
January 28:
Accounts Receivable [amount of sales]
Sales Revenue [amount of sales]
(To record the sales of 70 units of inventory with terms n/30)
January 28:
Cost of Goods Sold [cost of 70 units]
Inventory [cost of 70 units]
(To record the cost of the 70 units sold)
January 30:
Sales Returns and Allowances [value of returned units
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Question 1 of 10 How much did Caitlin deposit every month in her savings account if she had $10,000 after 18 month-end deposits? The money in her savings account was growing at 2.40% compounded monthly. Round to the nearest cent Question 2 of 10 Raymond's retirement fund has an accumulated amount of $55,000. If it has been earning interest at 3.62% compounded monthly for the past 22 years, calculate the size of the equal payments that he deposited at the beginning of every 3 months. Round to the nearest cent Question 3 of 10 $0.00 Round to the nearest cent $0.00 Hannah leased equipment worth $30,000 for 7 years. If the cost of borrowing is 7.63% compounded semi-annually, calculate the size of the lease payment that is required to be made at the beginning of each half-year. $0.00
Question 1: Caitlin deposited $525.27 monthly in her savings account.
Question 2: Raymond's equal payments every 3 months were $214.09.
Question 3: The lease payment required every half-year was $4,609.99.
Question 1: To determine the monthly deposit made by Caitlin, we can use the formula for the future value of an ordinary annuity:
FV = P * [(1 + r)ⁿ - 1] / r,
where FV is the future value, P is the monthly deposit, r is the monthly interest rate, and n is the number of deposits.
Given that Caitlin had $10,000 after 18 monthly deposits and the account grows at a monthly interest rate of 2.40%, we can rearrange the formula to solve for P
10,000 = P * [(1 + 0.024)¹⁸ - 1] / 0.024.
Solving this equation, we find that P is approximately $525.27, rounded to the nearest cent.
Question 2: To determine the size of Raymond's equal payments, we can use the formula for the future value of an annuity due:
FV = P * [(1 + r)ⁿ - 1] / r,
where FV is the future value, P is the payment amount, r is the interest rate, and n is the number of periods.
Given that Raymond's retirement fund has an accumulated amount of $55,000 after earning interest at a rate of 3.62% compounded monthly for 22 years, we can rearrange the formula to solve for P:
55,000 = P * [(1 + 0.0362)²² - 1] / 0.0362.
Solving this equation, we find that P is approximately $214.09, rounded to the nearest cent.
Question 3: To calculate the lease payment, we can use the formula for the present value of an annuity due:
PV = P * [1 - (1 + r)⁻ⁿ] / r,
where PV is the present value, P is the payment amount, r is the interest rate, and n is the number of periods.
Given that Hannah leased equipment worth $30,000 for 7 years at a cost of borrowing of 7.63% compounded semi-annually, we can rearrange the formula to solve for P:
30,000 = P * [1 - (1 + 0.0763/2)⁻¹⁴] / (0.0763/2).
Solving this equation, we find that P is approximately $4,609.99, rounded to the nearest cent.
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On Oct.31 2021, The Wall Street Journal reported that ; Tesla's Model 3 Rush Costs Battery Maker Panasonic, '' Panasonic providing battery cells for Tessa posts 65 million USD operating loss for latest quarter.(...)because Panasonic had to add production more quickly than anticipated and hire more workers at the Nevada battery factory it runs.
Using the properties of cost functions justify the loss of Panasonic.
The operating loss of $65 million incurred by Panasonic can be analyzed using the properties of cost functions, specifically the relationship between costs and the level of activity. In this case, the level of activity relates to the production output of battery cells for Tesla's Model 3.
Panasonic had to add production more quickly than anticipated and hire more workers at the Nevada battery factory it runs, which resulted in increased fixed costs such as salaries, maintenance, and overhead costs. This means that the total cost curve shifted upward, resulting in higher costs per unit of battery produced. Additionally, the rush to increase production may have led to inefficiencies and suboptimal utilization of resources, causing an increase in variable costs.
Furthermore, if the price of battery cells remained constant, then the increase in the cost per unit of battery produced would lead to a decrease in profit margins or even losses, which is what happened in this case. Therefore, the operating loss of $65 million can be attributed to the increase in fixed and variable costs due to the rush to increase production, without a corresponding increase in revenue or price per unit.
In summary, the increase in costs due to rushed production and increased hiring led to a shift in the total cost curve, resulting in a decrease in profit margins or losses for Panasonic in producing battery cells for Tesla's Model 3.
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If beginning and ending work in process inventories are $5,100 and $15,100, respectively, and cost of goods manufactured is $171,000, what is the total manufacturing cost for the period? Multiple Choice $176,100. $161,000. $155,900. $181,000. $165,900.
The total manufacturing cost for the period is $181,000 (option D).
To determine the total manufacturing cost for the period, we need to calculate the change in work in process (WIP) inventory. The change in WIP inventory is the difference between the ending WIP inventory and the beginning WIP inventory.
Change in WIP inventory = Ending WIP inventory - Beginning WIP inventory
Change in WIP inventory = $15,100 - $5,100 = $10,000
The total manufacturing cost for the period is equal to the cost of goods manufactured plus the change in WIP inventory.
Total manufacturing cost = Cost of goods manufactured + Change in WIP inventory
Total manufacturing cost = $171,000 + $10,000 = $181,000
The correct option is D, $181,000.
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In the basic EOQ model, if D= 6000 per year, S = $100, and holding cost = $5 per unit per month, what is the economic order quantity? Select one: O a. 600 O b. 24. O c. 490 O d. 100 O e. 141
The economic order quantity is 490. The answer is option (c) 490.
The formula for Economic Order Quantity (EOQ) is:
EOQ = sqrt((2DS)/H)
Where:
D = Annual demand
S = Cost of placing an order
H = Holding cost per unit per unit time
Given:
D = 6000
S = $100
Holding cost = $5 per unit per month
First, we need to convert the holding cost to match the unit of the ordering cost (S). Since the ordering cost is given as $100, we must first convert the holding cost from monthly to yearly by multiplying it by 12 and then divide it by S ($100).
Annual Holding cost per unit = $5 x 12 / $100 = $0.60
Now, we can substitute the given values in the EOQ formula:
EOQ = sqrt((2 x 6000 x 100 )/0.60) = 490.29
Rounding off to the nearest integer, the economic order quantity is 490.
Therefore, the answer is option (c) 490.
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The University rule of thumb is that students spend 2 hours outside of class per week for every unit of course credit. For a 4 unit class, this means that students should spend 8 hours a week studying for the course. A random sample of 8 students has been selected and asked how many hours per week they spend on the 4 unit course. The sample values are:{ 11, 2, 2, 8, 4, 6, 4, 3. }. The sample mean x = 5 and the sample standard deviation ô = √10 a. Construct a 95% confidence interval for the population mean number of hours studied per week in this course (assuming the population is normally distributed). b. State and test a null hypothesis that mean study study-time is 8 hours per week. Use a 5% significance level and perform a two-sided test. Explain why you reject or do not reject your null hypothesis. c. Test the same hypothesis as in part b using a one-sided test (again with significance level 5 percent).
a. 95% confidence interval for the population mean number of hours studied per week in this course is [2.32, 7.68].Explanation: Given, Sample mean = x = 5 Sample standard deviation = σ = √10Number of students in the sample = n = 8Degrees of freedom = n - 1 = 8 - 1 = 7
For 95% confidence interval, the level of significance is α = 0.05/2 = 0.025 (two-tailed test)By using t-distribution formula of the confidence interval, the confidence interval for the population mean is as follows: Confidence interval = x ± (tα/2) * (σ/√n) Where, tα/2 is the t-value with (n - 1) degrees of freedom, α/2 level of significance, σ is the sample standard deviation and n is the sample size. Substituting the values in the above formula, we get, Confidence interval = 5 ± (2.36) * (√10/√8) = 5 ± 1.68Hence, the 95% confidence interval for the population mean number of hours studied per week in this course is [2.32, 7.68].b. Null hypothesis: H0: µ = 8 (Mean study time is 8 hours per week)Alternative hypothesis: H1: µ ≠ 8 (Mean study time is not equal to 8 hours per week)Level of significance, α = 0.05/2 = 0.025 (two-tailed test)For a two-tailed test, the rejection region is defined as follows: Critical region: Reject H0 if t > tα/2,n-1 or t < -tα/2,n-1Where, tα/2,n-1 is the t-value with (n - 1) degrees of freedom and area α/2 in the upper tail of the t-distribution table. Substituting the values in the above formula, we get, tα/2,n-1 = t0.025,7 = 2.365 (using t-distribution table)The test statistic is calculated as follows: t = (x - µ) / (σ / √n)Substituting the values in the above formula, we get, t = (5 - 8) / (√10 / √8) = -2.02Since -2.02 does not fall in the critical region, we do not reject the null hypothesis. Hence, there is not enough evidence to suggest that the mean study time is different from 8 hours per week. c. The null and alternative hypotheses for a one-sided test are: Null hypothesis: H0: µ ≥ 8 (Mean study time is greater than or equal to 8 hours per week)Alternative hypothesis: H1: µ < 8 (Mean study time is less than 8 hours per week)Level of significance, α = 0.05 (one-tailed test)For a one-tailed test, the rejection region is defined as follows: Critical region: Reject H0 if t < -tα,n-1Where, tα,n-1 is the t-value with (n - 1) degrees of freedom and area α in the lower tail of the t-distribution table. Substituting the values in the above formula, we get, tα,n-1 = t0.05,7 = -1.895 (using t-distribution table)The test statistic is calculated as follows: t = (x - µ) / (σ / √n)Substituting the values in the above formula, we get,t = (5 - 8) / (√10 / √8) = -2.02Since -2.02 falls in the critical region, we reject the null hypothesis. Hence, there is enough evidence to suggest that the mean study time is less than 8 hours per week.
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On July 1, 2019, Sandu Trucking bought a truck for $42,000 cash. It has estimated residual value of $6,000, and an estimated life of 4 years, or 300,000 kilometres. The truck drove 80,000 kilometres in 2019, 90,000 kilometres in 2020, and 100,000 kilometres in 2021. Sandu uses the Units of Production method of depreciation and has a December 31st year end. What is the accumulated depreciation for the truck after all adjusting entries at December 31, 2020? $20,400 $37,800 O $23,800 $32,400
The accumulated depreciation at the end of 2020 will be $20,400 + (100,000 km × $0.12 per km) = $32,400. Thus, the correct answer is option D.
The accumulated depreciation for the truck after all adjusting entries at December 31, 2020, is $32,400.Explanation:To calculate the accumulated depreciation using the Units of Production Method, the following information is needed:Cost of asset - Residual Value / Estimated Production = Depreciation per unitIn this case, the cost of the truck is $42,000, and the residual value is $6,000. The estimated production is 300,000 km. Therefore,Depreciation per unit = (42,000 - 6,000) / 300,000Depreciation per unit = $0.12 per kmTo find the accumulated depreciation for 2020, the depreciation per km will be multiplied by the total distance the truck traveled that year.
Accumulated depreciation = 0.12 × 90,000 kmAccumulated depreciation = $10,800The accumulated depreciation at the end of 2019 was $9,600 ($0.12 per km × 80,000 km). Therefore, the total accumulated depreciation at December 31, 2020, will be $9,600 + $10,800 = $20,400. Thus, option A is not the correct answer.The question is asking for the accumulated depreciation at the end of 2020. Hence, the total accumulated depreciation so far needs to be calculated. Therefore, the accumulated depreciation at the end of 2020 will be $20,400 + (100,000 km × $0.12 per km) = $32,400. Thus, the correct answer is option D.
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Seinfeld Inc. just paid a dividend of $1.25 and projects supernormal growth of 25% for the next two years. Growth is then expected to slow down to a normal 5%. Similar stocks are earning investors a return of 10%. a. What is the intrinsic value of this stock? (5 points) If the stock is selling for $45 on the NYSE, should you buy it? Why or why not?
The intrinsic value of the stock is $447.92, which is higher than the current market price of $45. Therefore, it would be advisable to buy the stock as it appears undervalued based on its intrinsic value.
To calculate the intrinsic value of the stock, we can use the discounted cash flow (DCF) model.
1) Calculate the present value of the dividends during the supernormal growth period:
PV(div1) = Div1 / (1 + r)^1 = $1.25 / (1 + 0.10)^1 = $1.14
PV(div2) = Div2 / (1 + r)^2 = $1.25 * (1 + 0.25) / (1 + 0.10)^2 = $1.14
2) Calculate the present value of the dividends during the normal growth period:
PV(div3) = Div3 / (r - g) = $1.25 * (1 + 0.25)^2 / (0.10 - 0.05) = $17.14
3) Calculate the terminal value at the end of year 2:
TV = Div3 * (1 + g) / (r - g) = $17.14 * (1 + 0.05) / (0.10 - 0.05) = $428.50
4) Calculate the intrinsic value by summing the present values of dividends and the terminal value:
Intrinsic value = PV(div1) + PV(div2) + PV(div3) + TV = $1.14 + $1.14 + $17.14 + $428.50 = $447.92
Since the intrinsic value ($447.92) is higher than the current market price ($45), the stock appears undervalued and it could be a good investment opportunity.
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If a debtor comes to the creditor a week before a debt's due date and offers only part of what will be due in exchange for the creditor's forgiving the debt in full, the creditor can agree and then still successfully sue for the balance under the common law because the promise to forbear failed for lack of consideration:
True or False?
False. Under the common law, if a debtor offers a partial payment in exchange for the creditor forgiving the entire debt, and the creditor agrees to this arrangement, it creates a new contract called an accord and satisfaction.
In an accord and satisfaction, both parties agree to discharge the debt by accepting a lesser amount than what was originally owed. Once the accord and satisfaction is reached, the creditor cannot sue for the remaining balance because there is no longer a valid claim for the full amount of the debt. Consideration is not required for an accord and satisfaction to be valid. The consideration for the agreement is the debtor's promise to pay the partial amount, and the creditor's promise to accept that partial payment as full satisfaction of the debt. As long as both parties agree to the accord and satisfaction, it is a binding agreement, and the creditor cannot later sue for the balance.
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Assume a company can invest in equipment that will cost $1,000,000 and is expected to generate $160,000 a year in revenue for the first three years $140,000 for the next three years, $120,000 for the next three years, and $100,000 for the final year. The company has the capital available for the equipment and could alternatively invest it in the stock market for an expected return of 8.5% per year. The managers feel that buying the equipment or investing in the stock market are similar risks. What is the NPV for this investment and would the managers accept this investment? $43.506.91:Yes $23,124.06; No $79.331.75No $43.506.91;No $79,331.75;Yes
The NPV for this investment is 43,506.91. Since the NPV is positive, it indicates that the investment is expected to generate a return higher than the company's required rate of return (8.5%). Therefore, the managers would likely accept this investment. Thus, option A is correct.
Given,
Cost of the equipment: $1,000,000
Expected annual revenue for the first three years: $160,000
Expected annual revenue for the next three years: $140,000
Expected annual revenue for the subsequent three years: $120,000
Expected annual revenue for the final year: $100,000
The required rate of return: 8.5% per year
The cash flows for each year are as follows:
Year 1: $160,000
Year 2: $160,000
Year 3: $160,000
Year 4: $140,000
Year 5: $140,000
Year 6: $140,000
Year 7: $120,000
Year 8: $120,000
Year 9: $120,000
Year 10: $100,000
Using the formula for NPV:
[tex]\rm NPV = \frac{CF_1}{(1 + r)^1} + \frac{CF_2}{(1 + r)^2} + ... + \frac{CF_n}{(1 + r)^n} - Initial Cost[/tex]
[tex]\rm NPV = \frac{160,000}{(1 + 0.085)^1}+ \frac{160,000}{(1 + 0.085)^2} + \frac{160,000}{(1 + 0.085)^3} + \frac{140,000}{(1 + 0.085)^4} + \frac{140,000}{(1 + 0.085)^5} + \frac{140,000}{(1 + 0.085)^6} + \frac{120,000}{(1 + 0.085)^7} + \frac{120,000}{(1 + 0.085)^8} + \frac{120,000}{(1 + 0.085)^9} + \frac{100,000}{(1 + 0.085)^{10}} - 1000000[/tex]
NPV = $43,506.91
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