The theory of international production suggests that for a firm to invest in facilities overseas, it must have three kinds of advantages: ownership-specific, location-specific, and internalization.
Ownership-specific advantages refer to the unique resources or capabilities a firm possesses, such as proprietary technology, brand reputation, or management expertise, which give it a competitive edge over others in the global market.
Location-specific advantages are the benefits a firm can gain by operating in a particular foreign country or region. These advantages may include lower production costs, access to skilled labor, favorable government policies, or proximity to target markets.
Internalization advantages occur when a firm can better manage and coordinate its international production activities internally, rather than relying on external partners or market arrangements. This can help the firm reduce transaction costs, maintain control over its intellectual property, and ensure quality standards are met.
In summary, the theory of international production posits that a firm should invest in facilities overseas when it has ownership-specific, location-specific, and internalization advantages that outweigh the costs and risks associated with operating abroad.
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Make or Buy
Walsh Corporation currently makes the nylon mooring cover for its main product, a fiberglass boat designed for tournament bass fishing. The costs of producing the 2,000 covers needed each year follow:
Nylon fabric $330,000
Wood battens 64,000
Brass fittings 32,000
Direct labor 128,000
Variable manufacturing overhead 96,000
Fixed manufacturing overhead 160,000
Calvin Company, a specialty fabricator of synthetic materials, can make the needed covers of comparable quality for $330 each, F.O.B. shipping point. Walsh would furnish its own trademark insignia at a unit cost of $20. Transportation in would be $16 per unit, paid by Walsh Corporation.
Walsh's chief accountant has prepared a cost analysis that shows that only 30% of fixed overhead could be avoided if the covers are purchased. The covers have been made in a remote section of Walsh's factory building, using equipment for which no alternate use is apparent in the foreseeable future.
a. Prepare a differential analysis showing whether or not you would recommend that the mooring covers be purchased from Calvin Company.
If appropriate, use a negative sign with your answer to represent a net disadvantage answer. Do not use negative signs with any other answers.
Make or Buy Differential Analysis
Cost to purchase covers: $Answer
Costs avoided by purchasing covers: Direct materials $Answer Direct labor Answer Variable manufacturing overhead Answer Fixed manufacturing overhead Answer Answer
Net advantage (disadvantage) to purchase alternative $Answer
b. Assuming that the production capacity released by purchasing the covers could be devoted to a subcontracting job for another company that netted a contribution margin of $66,000, what maximum purchase price could Walsh pay for the covers?
Round answer to two decimal places, if applicable.
Walsh could pay up to $414.20 per cover and still achieve a net advantage by purchasing the covers from Calvin Company in case b.
a. Cost to purchase covers: $330 per cover + $20 for trademark insignia + $16 transportation in = $366 per cover
Costs avoided by purchasing covers:
Direct materials: $330,000 / 2,000 = $165 per cover
Direct labor: $128,000 / 2,000 = $64 per cover
Variable manufacturing overhead: $96,000 / 2,000 = $48 per cover
Fixed manufacturing overhead: $160,000 x 30% / 2,000 = $2.40 per cover
Net advantage (disadvantage) to purchase alternative:
($366) - ($165 + $64 + $48 + $2.40) = ($215.40)
Therefore, it would be a net disadvantage to purchase the covers from Calvin Company.
b. If the production capacity released by purchasing the covers could be devoted to a subcontracting job for another company that netted a contribution margin of $66,000, then the maximum purchase price Walsh could pay for the covers would be:
($165 + $64 + $48 + $2.40 + $66,000 / 2,000) = $414.20
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The "breakdown pressure" for hydraulic fracturing is about 50 MPa — this is the fluid pressure you need to get the fractures to propagate. For the fractures to continue to grow, the fluid must be able to advance into the new crack as fast as the crack tip is advancing - about 300 m/s. This means that the viscosity of the fluid has to be low enough to permit the fluid to flow fast enough in the crack. We can model this situation as viscous flow within a channel, where the channel height is the width of these cracks during fracking - typically about 6e-4 m. The pressure gradient in this case is the breakdown pressure. Show how you set up this problem, and then solve for the viscosity that will provide a maximum velocity of 300 m/s
To set up this problem, we can use the Hagen-Poiseuille equation, which describes the flow of an incompressible fluid through a cylindrical channel:
Q = (π [tex]r^4[/tex]ΔP) / (8 η L)
where Q is the volumetric flow rate, r is the radius of the channel (which is half the width of the crack), ΔP is the pressure gradient (in Pa/m), η is the viscosity of the fluid, and L is the length of the channel.
In this case, we are given the pressure gradient ΔP = 50 MPa = 5e7 Pa/m, the width of the crack (channel height) h = 6e-4 m, and we want to find the viscosity η that will allow for a maximum velocity of 300 m/s.
The volumetric flow rate Q can be expressed in terms of the maximum velocity v as:
Q = A v
where A is the cross-sectional area of the channel (which is π[tex]r^2[/tex], where r = h/2). Substituting this into the Hagen-Poiseuille equation, we get:
A v = (π[tex]r^4[/tex] ΔP) / (8 η L)
π (h/2[tex])^2[/tex] v = (π (h/2[tex])^4[/tex] ΔP) / (8 η L)
Simplifying and solving for η, we get:
η = (π (h/2[tex])^4[/tex] ΔP) / (8 A v L)
Substituting the given values, we get:
η = (π (6e-4 m / 2[tex])^4[/tex](5e7 Pa/m)) / (8 π (6e-4 m / 2[tex])^2[/tex] (300 m/s) L)
Simplifying and canceling terms, we get:
η = (3.375e-5 Pa s) / L
So the viscosity that will allow for a maximum velocity of 300 m/s depends on the length of the crack. We would need to know the length of the crack to calculate the viscosity.
Note that in practice, the viscosity of the fluid used for fracking is typically reduced by adding chemicals known as "friction reducers" or "slickwater additives" to the water. These chemicals help to reduce the friction between the fluid and the rock, allowing the fluid to flow more easily through the cracks.
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cba incorporated has 800,000 shares outstanding with a $5 par value. the shares were issued for $11. the stock is currently selling for $36. cba has $6,000,000 in retained earnings and has declared a stock dividend that will increase the number of outstanding shares by 5%. how many shares will be outstanding after the stock dividend?
CBA Incorporated currently has 800,000 outstanding shares with a par value of $5 and were issued for $11 each.
The stock is currently selling for $36, which means the company's market capitalization is 800,000 x $36 = $28,800,000.
The company has $6,000,000 in retained earnings and declared a stock dividend of 5%. This means that the number of outstanding shares will increase by 5% or 800,000 x 5% = 40,000 shares.
Therefore, the total number of outstanding shares after the stock dividend will be 800,000 + 40,000 = 840,000 shares.
It's important to note that the par value of the shares remains the same at $5, but the company's market capitalization will increase due to the additional shares issued.
This may have an impact on the company's earnings per share and other financial metrics that investors consider when making investment decisions.
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T/F-----When an advance by a coworker is unwelcome, the recipient should respond with an outright, clear, and concise rejection.
True. When an advance by a coworker is unwelcome, it is important for the recipient to respond with an outright, clear, and concise rejection. This not only sets boundaries but also helps prevent any future unwanted advances.
It is important for both parties to respect each other's boundaries and communicate effectively in the workplace.
True. When an advance by a coworker is unwelcome, the recipient should respond with an outright, clear, and concise rejection to effectively communicate their disinterest and maintain a professional environment.
A coworker is a person who works with you in the same organization, department, or team. They may have similar job responsibilities, work in the same office or location, and collaborate on projects or tasks together. Coworkers can provide support, feedback, and assistance with work-related issues, and may also socialize and form friendships outside of work.
Interactions with coworkers can greatly influence job satisfaction, productivity, and overall well-being in the workplace. Building positive relationships with coworkers can lead to a more enjoyable and supportive work environment, while conflicts or negative interactions with coworkers can lead to stress, tension, and reduced job satisfaction. It is important to maintain professional relationships with coworkers, communicate effectively, and work collaboratively to achieve shared goals and objectives.
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. What is the impact of increasing the time for completion of a project?
a. Increasing cost
b. Decreasing cost
c. Increasing errors
d. Increasing customer satisfaction.
The impact of increasing the time for completion of a project is generally associated with Increasing cost. Option a is correct
This is because longer project durations often lead to higher labor costs, resource utilization, and potential opportunity costs. However, the impact on other factors, such as errors and customer satisfaction, can vary depending on the specific project and its requirements. Increasing the time for completion of a project can have a variety of impacts, depending on the specific project and the reasons for the increased timeline. Generally, however, an increase in project completion time is likely to result in an increase in cost . This is because longer projects require more resources, such as labor, materials, and equipment, which can drive up overall expenses.
However, there are also some situations where increasing project completion time could result in a decrease in cost . For example, if rushing a project results in mistakes or rework that requires additional time and expense to fix, taking more time upfront could ultimately save money in the long run. Increasing project completion time may also increase errors if the project team becomes fatigued or complacent. It is important to maintain quality control measures and keep the team motivated throughout the project timeline to minimize the risk of errors. On the other hand, increasing project completion time could also lead to an increase in customer satisfaction if the extra time is used to deliver a higher quality product or service. Taking the time to fully meet customer needs and expectations can improve overall satisfaction and increase the likelihood of future business.
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Two components, A and B are used as follows: Normal usage 50 per week each Maximum usage 75 per week each Minimum usage 25 per week each Re-order quantity A: 300; B: 500 Re-order period A: 4 to 6 weeks B: 2 to 4 weeks CALCULATE for each component (a) Re-ordering level, (b) Minimum level, (c) Maximum level, (d) Average stock level.
For component A, the re-ordering level is 450 units, the minimum level is 150 units, the maximum level is 650 units, and the average stock level is 400 units. For component B, the re-ordering level is 300 units, the minimum level is 100 units, the maximum level is 750 units, and the average stock level is 425 units.
Component A:
(a) Re-ordering level: (Maximum usage * Maximum lead time) = (75 * 6) = 450 units
(b) Minimum level: (Re-ordering level - (Normal usage * Maximum lead time)) = (450 - (50 * 6)) = 150 units
(c) Maximum level: (Re-order quantity + Re-ordering level - (Minimum usage * Minimum lead time)) = (300 + 450 - (25 * 4)) = 650 units
(d) Average stock level: (Minimum level + Maximum level) / 2 = (150 + 650) / 2 = 400 units
Component B:
(a) Re-ordering level: (Maximum usage * Maximum lead time) = (75 * 4) = 300 units
(b) Minimum level: (Re-ordering level - (Normal usage * Maximum lead time)) = (300 - (50 * 4)) = 100 units
(c) Maximum level: (Re-order quantity + Re-ordering level - (Minimum usage * Minimum lead time)) = (500 + 300 - (25 * 2)) = 750 units
(d) Average stock level: (Minimum level + Maximum level) / 2 = (100 + 750) / 2 = 425 units
In summary, These calculations help manage inventory levels and ensure that stock is available when needed, while minimizing excess stock and storage costs.
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Họ: > 15.7 H1 :μ < 15.7 Your sample consists of 32 values, with a sample mean of 14.7. Suppose the population standard deviation is known to be 2.97. a) Calculate the value of the test statistic, rounded to 4 decimal places. z = __________
b) At a = 0.07, the rejection region is O z > 1.8119 O z > 1.4758 O Z< -1.8119 or 2 > 1.8119 O z < -1.4758 or 2 > 1.4758 O Z< -1.8119 O Z< -1.4758 c) The decision is to Fail to reject the null hypothesis Accept the alternative hypotheis Accept the null hypothesis Reject the null hypothesis d) Suppose you mistakenly rejected the null hypothesis in this problem, what type of error is that?
a) To calculate the value of the test statistic, we use the formula:
z = (sample mean - population mean) / (population standard deviation / square root of sample size)
Substituting the given values, we get:
z = (14.7 - 15.7) / (2.97 / sqrt(32))
z = -2.8284
Rounding to 4 decimal places, we get:
z = -2.8284
b) The rejection region is given as z > 1.8119 at a significance level of 0.07. Since our calculated value of z is -2.8284, it falls in the rejection region. Therefore, we can reject the null hypothesis.
c) The decision is to Reject the null hypothesis.
d) If we mistakenly rejected the null hypothesis, that would be a Type I error.
Trainee auditors are more likely to report wrongdoing internally when a firm has a system of _____ _____ to report internally. (Enter one word per blank)
Trainee auditors are more likely to report wrongdoing internally when a firm has a system of "clear channels" to report internally.
Trainee auditors are more likely to report wrongdoing internally when a firm has a system of "whistleblowing" in place to report internally. Whistleblowing is a process where employees can report any unethical or illegal practices in their company to the authorities or senior management. Trainee auditors are often the first line of defense against fraud and financial mismanagement in a company. They have a crucial role to play in maintaining the integrity of financial statements and ensuring compliance with regulations. However, reporting misconduct can be daunting, especially for inexperienced auditors. A well-established whistleblowing system can provide them with the necessary protection and support to report any irregularities without fear of retaliation. It also helps in creating a culture of transparency and accountability in the organization. Therefore, firms should prioritize the implementation of an effective whistleblowing system to encourage trainee auditors and other employees to report any wrongdoing internally.This ensures that any concerns or issues identified can be promptly addressed, and employees feel confident in the reporting process.
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Difend Cleaners has been considering the purchase of an industrial dry-cleaning machine. The existing machine is operable for three more years and will have a zero disposal price. If the machine is disposed now, it may be sold for $100,000. The new machine will cost $350,000 and an additional cash investment in working capital of $100,000 will be required. The new machine will reduce the average amount of time required to wash clothing and will decrease labor costs. The investment is expected to net $110,000 in additional cash inflows during the first year of acquisition and $250,000 each additional year of use. The new machine has a three-year life, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of the asset's life.
What is the net present value of the investment, assuming the required rate of return is 10%? Would the company want to purchase the new machine?
A) $144,240 ; yes
B) $180,000 ; yes
C) $(180,000); no
D) $(144,240); no
The net present value of the investment in the new machine, considering the cash flows and required rate of return of 10%, is A) $144,240 ; yes
To calculate the net present value (NPV), we need to find the present value of all cash inflows and outflows.
Initial cash outflow:
Purchase price of new machine = -$350,000
Additional working capital investment = -$100,000
Total initial cash outflow = -$450,000
Cash inflows:
Year 1 = $110,000
Year 2 = $250,000
Year 3 = $250,000
Total cash inflows = $610,000
Using a financial calculator or Excel, we can calculate the present value of these cash flows at a discount rate of 10%:
NPV = -$450,000 + $110,000/(1+0.1) + $250,000/(1+0.1)^2 + $250,000/(1+0.1)^3
NPV = $144,240
Since the NPV is positive, the investment is expected to generate a return greater than the required rate of return of 10%. Therefore, the company should purchase the new machine.
The correct answer is A) $144,240 ; yes.
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which of the following is the correct order in the consumer decision process?(i) i have a hole in my tennis shoe. i need a new pair.(ii) i think i will spend more money and purchase the new balance, even though i have always purchased nikes.(iii) these new balance say they are better than my nikes, but they are more expensive. my nikes are less expensive but are boring.(iv) these new balance wear just like my nikes. did i make the right decision?(v) i usually wear nikes, but i would like to try another brand. i will check the local shoe store.
The correct order in the consumer decision process for the given scenarios is problem recognition, information search, evaluation of alternatives, purchase decision, post-purchase evaluation, and brand loyalty/repeat purchase.
The correct order in the consumer decision process for the given scenarios is as follows:
Step 1: Problem recognition - This is when the consumer realizes they have a problem or a need. In this case, it is the hole in the tennis shoe that needs to be replaced.
Step 2: Information search - This step involves searching for information to solve the problem. In the given scenarios, the consumer looks for options and information about the available shoes, their brands, quality, and prices.
Step 3: Evaluation of alternatives - This step is when the consumer evaluates the available options based on their needs, preferences, and budget. In the given scenarios, the consumer evaluates the new balance and Nike shoes based on their quality, price, and design.
Step 4: Purchase decision - After evaluating the alternatives, the consumer makes a decision to purchase the chosen product. In the given scenarios, the consumer decides to purchase the new balance shoes.
Step 5: Post-purchase evaluation - This is when the consumer evaluates the purchase decision and product performance. In the given scenarios, the consumer compares the new balance shoes to the Nike shoes and evaluates if the purchase decision was the right one.
Step 6: Brand loyalty and repeat purchase - This step involves the consumer's loyalty to the brand and their likelihood to make repeat purchases. In the given scenarios, the consumer may become loyal to the new balance brand if they are satisfied with the product performance and may consider making repeat purchases.
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Consider the following table that shows the number of trucks owned by a delivery firm and the corresponding number of deliveries made. Use the table to answer the following questions. Number of Number of Trucks Deliveries 0 1
1 20 2 30
3 36
4 38 5 38 When the firm bought their last truck, they found that the number of deliveries increased by 10. In this case, they must have just bought truck number a. two. b. four c. five. d. one.
The delivery firm must have just bought truck number a. two. This is because when they increased their number of trucks from 1 to 2, the number of deliveries increased by 10 (from 20 to 30).
The firm saw an increase of 10 deliveries when they bought their last truck, so we need to find the row in the table where the difference between the number of deliveries for a given number of trucks and the number of deliveries for the next higher number of trucks is 10.
Looking at the table, we see that the difference between the number of deliveries for 4 trucks and 5 trucks is 0, so it can't be truck number five. The difference between the number of deliveries for 3 trucks and 4 trucks is only 2, so it can't be truck number four either.
However, the difference between the number of deliveries for 1 truck and 2 trucks is 10, which means that buying the second truck resulted in a 10-delivery increase. Therefore, the answer is a. two.
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If there is no dispute about the fact that money is owed and the amount of money owed in a contract, this is considered a(n) ____________ debt.
If there is no dispute about the fact that money is owed and the amount of money owed in a contract, this is considered a(n) liquidated debt.
Liquidated debt refers to a debt that is fixed and certain in amount and is therefore easily calculable or determinable. This is in contrast to unliquidated debt, which is a debt that is not fixed or determined, or is subject to dispute or uncertainty.
A liquidated debt usually arises from a contract or other legal agreement that specifies the amount owed, such as a promissory note or a credit card balance. In such cases, the amount owed is clear and unambiguous, and the creditor can take legal action to recover the debt if it is not repaid.
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the late majority tends to adopt products during the blank stage of the product life cycle. a. introduction b. production c. declined. growth maturity
The late majority is a group of consumers who tend to be skeptical and cautious when it comes to adopting new products. They are known for waiting until a product has proven itself before making a purchase.
Typically, the late majority tends to adopt products during the maturity stage of the product life cycle. During this stage, the product has already been introduced to the market, and early adopters and early majority have already made their purchases.
The product is now widely available and its benefits and drawbacks are well-known. The late majority feels comfortable enough to buy the product because they see that it has a stable market and a proven track record.
They want to make sure that they are investing in a product that has staying power and will be worth their money in the long run.
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Among the advantages of farm cooperatives for their members is that they:
Farm cooperatives are associations of farmers that pool their resources to engage in agricultural production or marketing.
These cooperatives offer numerous advantages to their members, including:
Increased Bargaining Power: By joining forces, farmers in cooperatives have greater bargaining power when it comes to negotiating prices for their products. This means they are more likely to receive fair prices for their goods.Economies of Scale: By pooling resources and working together, cooperatives can take advantage of economies of scale, which means they can access cheaper inputs, such as seeds and fertilizers, and can also reduce the costs of production.Access to Credit: Cooperatives can provide their members with access to credit, which can be difficult for individual farmers to obtain. This can be particularly important for small-scale farmers who may struggle to access credit from traditional lenders.Shared Risk: By working together, farmers in cooperatives can share the risks associated with agricultural production. This can be especially important in situations where the weather or other external factors can affect yields.Overall, farm cooperatives can provide their members with numerous benefits, making it easier for them to make a living from agriculture.
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79. An employee handbook is a common tool for explaining benefits, policies, and general information about the organization to the new employee. True False
True, An employee handbook is an essential tool for any organization to provide important information to new employees. The handbook includes all the company policies, procedures, benefits, and expectations that an employee needs to know when starting a new job.
The handbook is a way to communicate the company's culture and values, along with providing guidelines for employees to follow.
A comprehensive employee handbook should cover all aspects of the organization, from work hours and vacation policies to anti-discrimination and harassment policies. It should also provide guidance on safety procedures and emergency protocols.
The employee handbook is an essential tool for HR managers and employers as it sets expectations and provides a clear understanding of the organization's policies and procedures. It also serves as a reference guide for employees throughout their employment.
In conclusion, an employee handbook is a crucial document that helps employees understand their rights and responsibilities in the organization. It ensures consistency in the application of company policies and provides clarity on how to handle various situations.
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Research shows that a __________ is the most effective means of ensuring that employees comply with the firm's ethical standards.
a.speech on ethics by the CEO of the company
b.statement in the firm's mission statement
c.written code of ethics
d.value-based culture
Research shows that a value-based culture is the most effective means of ensuring that employees comply with the firm's ethical standards.
A value-based culture is one where employees are encouraged to act in accordance with the company's core values and principles, and where ethical behavior is seen as an integral part of the organization's overall success.
This type of culture promotes transparency, accountability, and a sense of ownership among employees, all of which contribute to a strong ethical framework. By promoting a value-based culture, firms can create a workplace environment where employees are motivated to act ethically and where unethical behavior is not tolerated.
Ultimately, this helps to build trust with customers, partners, and other stakeholders, which is essential for long-term success.,
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Provide 2 examples of factors that might increase the risk of material misstatements at the overall financial statement level.
The lack of an effective internal control system could lead to errors or fraud, which could result in material misstatements in the financial statements. Therefore, companies must ensure that they have a robust internal control system in place to reduce the risk of material misstatements in the overall financial statement.
There are various factors that may increase the risk of material misstatements in the overall financial statement. Two such examples are:
1. Complexity of the accounting standards and transactions: As the accounting standards become more complex, there is an increased risk of material misstatements in the financial statements. Additionally, if there are complex transactions, such as mergers and acquisitions, complex revenue recognition, or complex derivatives, there is an increased risk of material misstatements in the financial statements.
2. Weaknesses in the internal control system: If there are weaknesses in the internal control system, such as a lack of segregation of duties, inadequate monitoring of financial reporting, or ineffective oversight of the financial reporting process, then there is an increased risk of material misstatements in the financial statements.
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When two or more brands are reviewed against each other on certain attributes, it is considered ________ advertising.
Select one:
a. institutional
b. covert
c. pioneering
d. comparative
e. competitive
The answer is d. comparative advertising. This type of advertising involves comparing two or more brands on specific attributes in order to highlight the strengths of one brand over the others.
It is a common strategy used by companies to differentiate their product from competitors and to convince consumers to choose their brand over others. comparative advertising can be effective in persuading consumers to switch brands or to try a new product, but it can also lead to legal challenges and negative reactions from competitors. Therefore, companies must be careful to ensure that their comparative advertising is truthful and not misleading, and they must also be prepared to defend their claims in court if necessary. Overall, comparative advertising can be a useful tool for brands to gain a competitive advantage and attract new customers.
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Diana Company, a sole proprietorship, sells only one product. The regular price is $160. Variable costs are 55% of this selling price, and fixed costs are $8,400 a month. Management decides to decrease the selling price from $160 to $145 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. (a) At the original selling price of $160 a unit, what is the contribution margin ratio? (b) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to break-even? (c) At the original selling price of $160 a unit, what dollar volume of sales per month is required for Diana Company to earn a monthly operating income of $6,500? (d) At the reduced selling price of $145 a unit, what is the contribution margin ratio? (e) At the reduced selling price of $145 a unit, what dollar volume of sales per month is required to break-even?
Diana Company sells one product at a regular price of $160 with variable costs of 55% and fixed costs of $8,400 per month.
Management decides to decrease the selling price to $145 per unit, without any change in variable costs or fixed operating expenses. At the original selling price of $160 per unit, the contribution margin ratio is 45% and the company needs to sell $18,667 worth of units per month to break-even. To earn a monthly operating income of $6,500, the company needs to sell $35,778 worth of units per month.
At the reduced selling price of $145 per unit, the contribution margin ratio drops to 35% and the company needs to sell $24,000 worth of units per month to break-even.
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A business person concerned about high______ costs should not invest in a franchise which is associated with this disadvantage
A business person concerned about high operating costs should not invest in a franchise associated with this disadvantage. High operating costs can significantly impact the profitability and sustainability of a business.
In a franchise model, these costs typically include royalties, advertising fees, inventory, rent, wages, and other expenses required to run the franchise effectively.
Franchises often come with certain advantages, such as brand recognition, training, and support from the franchisor. However, some franchises are notorious for high operating costs, which can hinder the franchisee's ability to make a profit. It is crucial for potential investors to carefully evaluate the franchise opportunity and weigh the potential benefits against the associated costs.
Before investing in a franchise, a business person should conduct thorough research and due diligence to determine if the costs associated with that specific franchise align with their financial goals and risk tolerance. Consulting with existing franchisees and reviewing financial disclosure documents can provide valuable insights into the franchise's operating costs.
In conclusion, a business person concerned about high operating costs should be cautious when considering investing in a franchise associated with such disadvantage. Thorough research, consultation with existing franchisees, and assessment of the franchise's financials can help identify franchises with more manageable costs, ultimately leading to a more successful and profitable investment.
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reverse stock splits take place in many cases grupp av svarsalternativ to decrease the market price of the common stock. because there may be simply too many shares outstanding from previous stock splits. to avoid delisting by the stock exchanges and nasdaq. all of these options are correct.
Reverse stock splits take place in many cases, such as: To avoid delisting by the stock exchanges, To raise the price of the common stock, Because there were simply too many shares outstanding. The correct answer is A, B, and C.
A) To avoid delisting by the stock exchanges and NASDAQ: When a stock's price falls below the minimum threshold set by stock exchanges, it risks being delisted. A reverse stock split reduces the number of shares outstanding and increases the price per share, helping the company maintain its listing.
B) To raise the price of the common stock from the individual investor price range to the institutional investor price range: Institutional investors may be more likely to invest in stocks with a higher price per share. By conducting a reverse stock split, a company can attract institutional investors and potentially increase demand for its shares.
C) Because there were simply too many shares outstanding from previous stock splits: If a company has issued too many shares due to previous stock splits, a reverse stock split can help reduce the number of shares outstanding and improve the company's financial ratios, making it more appealing to investors.
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Complete question:
Reverse stock splits take place in many cases:
A) to avoid delisting by the stock exchanges and NASDAQ
B) to raise the price of the common stock from the individual investor price range to the institutional investor price range
C) because there were simply too many shares outstanding from previous stock splits.
D) none of these
which of the following is not an example of a general principle or characteristic of nonverbal communication?
a. linguistic in nature
b. single channeled
c. less ambiguous than verbal communication
d. continuous
Linguistic in nature is not an example of a general principle or characteristic of nonverbal communication.
Nonverbal communication refers to the transmission of information without the use of words, and it typically involves facial expressions, gestures, body language, and tone of voice.
Here's an explanation of each option:
a. Linguistic in nature: This is not a characteristic of nonverbal communication because it involves language and words, while nonverbal communication does not rely on spoken or written language.
b. Single channeled: This could be considered a characteristic of nonverbal communication because it often focuses on one channel, such as facial expressions or body language, but can also involve multiple channels at once.
c. Less ambiguous than verbal communication: Nonverbal communication can sometimes be less ambiguous because it provides additional cues and context to the message being conveyed, helping to clarify the meaning.
d. Continuous: Nonverbal communication is often continuous as it takes place alongside verbal communication or even when no words are being exchanged, such as maintaining eye contact or using gestures.
In summary, the option "linguistic in nature" is not a general principle or characteristic of nonverbal communication because it pertains to language and words, whereas nonverbal communication does not rely on spoken or written language.
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The benefits associated with strategic alliances is that they provide broad access to:
Strategic alliances provide broad access to a range of benefits, including resources, knowledge, skills, technologies, and markets.
By forming strategic alliances with other companies, firms can leverage each other's resources, capabilities, and strengths to achieve their goals. For example, a strategic alliance with a company that has expertise in a particular market can help a firm enter that market more easily and quickly than if it were to go it alone. Similarly, an alliance with a company that has expertise in a particular technology or process can help a firm improve its operations and increase efficiency. Strategic alliances can also help companies reduce costs, share risks, and gain competitive advantage.
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Discuss about Pertinent laws relating to credit and collectionOperation
Compliance with these laws is crucial for credit and collection operations to maintain their reputation and avoid legal repercussions.
Petinent laws relating to credit and collection operations typically vary depending on the jurisdiction. However, some common laws and regulations include:
1. Fair Credit Reporting Act (FCRA): This law governs the collection, dissemination, and use of consumer credit information. It ensures accuracy, fairness, and privacy of personal information held by credit reporting agencies.
2. Fair Debt Collection Practices Act (FDCPA): This law regulates the conduct of debt collectors, preventing them from using abusive, unfair, or deceptive practices while attempting to collect debts from consumers.
3. Truth in Lending Act (TILA): This law requires lenders to provide borrowers with clear and accurate information about the terms and costs of credit, including interest rates, finance charges, and payment schedules.
4. Equal Credit Opportunity Act (ECOA): This law prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance. Lenders must evaluate credit applications based on objective criteria and not on any of these prohibited factors.
5. Fair Credit Billing Act (FCBA): This law provides guidelines for addressing billing errors on credit accounts, such as unauthorized charges, duplicate billing, or incorrect amounts charged. Consumers have the right to dispute such errors and have them corrected in a timely manner.
6. Consumer Financial Protection Bureau (CFPB) Regulations: The CFPB enforces consumer financial protection laws and issues regulations to promote transparency, fairness, and accountability in financial products and services, including credit and collection operations.
These laws and regulations aim to protect consumers' rights, ensure transparent and fair lending practices, and prevent abusive collection tactics.
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4. Required production during a planning period will depend on the:
A. cost of beginning inventory of products.
B. credit sales during the period.
C. desired level of beginning inventory.
D. desired level of ending inventory.
Required production during a planning period will depend on the desired level of ending inventory (D).
In the context of production planning, it is essential to consider the ending inventory levels to ensure that sufficient products are available to meet the demand while avoiding excessive stock, which can lead to additional costs. The desired level of ending inventory will directly impact the production quantity necessary to maintain a balanced inventory that satisfies customer needs and optimizes resource utilization. The other factors mentioned, such as beginning inventory, credit sales, or cost, do not directly determine the required production during a planning period.
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on january 1, yves company issues $500,000 bonds at 98. the bonds mature in 5 years and pay 6% interest semi-annually on june 30 and december 31. yves decides to utilize the straight-line method of amortization. on december 31, year 1, yves should debit interest expense for
The total interest expense that Yves Company should debit on December 31 of year 1 is $4,000 ($3,000 interest expense + $1,000 amortization expense).
To calculate the interest expense that Yves Company should debit on December 31 of year 1, we first need to calculate the bond discount and the total interest expense over the life of the bonds.
Bond discount: Yves Company issued the $500,000 bonds at 98, which means that the company received $490,000 ($500,000 x 0.98) in cash from the bond issuance.
The bond discount is the difference between the cash received and the face value of the bonds, which is $10,000 ($500,000 face value - $490,000 cash received).
Total interest expense: The bonds have a 6% annual interest rate, which is paid semi-annually on June 30 and December 31.
Therefore, the semi-annual interest payment is $15,000 ($500,000 face value x 6% annual interest rate x 1/2 year). Over the life of the bonds (5 years), there will be 10 interest payments, for a total interest expense of $150,000 ($15,000 x 10).
Amortization: Yves Company has decided to use the straight-line method of amortization, which means that the bond discount will be amortized evenly over the life of the bonds.
Therefore, the annual amortization expense is $2,000 ($10,000 bond discount / 5 years). The semi-annual amortization expense is $1,000 ($2,000 / 2).
Now we can calculate the interest expense that Yves Company should debit on December 31 of year 1:
Yves Company issued the bonds on January 1 of year 1, so there were no interest payments made before June 30 of year 1.
The first interest payment of $15,000 was made on June 30 of year 1.
From January 1 to December 31 of year 1, there are 12 months, which is half of a year.
Therefore, the interest expense for the period from January 1 to December 31 of year 1 is $3,000 ($15,000 x 6 months / 12 months).
In addition, the semi-annual amortization expense of $1,000 should also be debited on December 31 of year 1.
Therefore, the total interest expense that Yves Company should debit on December 31 of year 1 is $4,000 ($3,000 interest expense + $1,000 amortization expense).
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a customer asks you a question that can be best answered by connecting her with an online banking specialist. she becomes frustrated because she has already been transferred several times.
I apologize for any frustration caused by the multiple transfers. Connecting with an online banking specialist would be the best way to address customer question.
To expedite the process, I can personally connect you with a specialist or provide you with their direct contact information. Our goal is to provide the best possible customer experience, and I hope this solution will assist you in resolving customer concern.
Opening an online bank account is simple. You can use them for a variety of things, including as paying your bills and transferring money between different accounts. They are quite easy to use.
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The best way to handle the customer's frustration would be to affirm her feelings, assure her, and then connect her to an online banking specialist who is most equipped to help. A professional and empathetic tone should be utilized, and trying to ensure a warm transfer or staying on the line with her while the new connection is made can lessen further frustration.
Explanation:In this case, the best approach would be to affirm the customer's frustration and assure her that you will do your best to help. It's imperative to explain that although she might have been transferred earlier, the online banking specialist is the most equipped to handle her query.
Telling her that the specialist has deeper knowledge in the specific area and directly connecting her would save further frustration. Maintaining a professional and empathetic tone is key in this situation. Also, it would be best if possible to stay on the line with the customer while the new connection is made or ensure a warm transfer, where you introduce the customer and her query to the next representative, so she won't need to repeat herself.
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There are certain patterns we should expect to see on a bond amortization table. Complete the following statements regarding these patterns. a.Assuming a bond is issued at either a premium or a discount, the carrying value on the issuance date should be equal to the bond's. b.Assuming a bond is issued at a discount, the cash interest payment calculated every period should:. c.Assuming a bond is issued at a discount, the carrying value over time should be. d.Assuming a bond is issued at a discount, the interest expense amount calculated every period using the effective interest method should be. e.Assuming a bond is issued at a premium, the carrying value over time should be. f.Assuming a bond is issued at either a premium or a discount, the carrying value on the bond s maturity date, right before the final cash payment, should be equal to the bond's. g.Assuming a bond is issued at a premium, the interest expense amount calculated every period using the effective interest method should be
Assuming a bond is issued at either a premium or a discount, the carrying value on the issuance date should be equal to the bond's face value. Assuming a bond is issued at a discount, the cash interest payment calculated every period should be less than the stated interest rate.
Assuming a bond is issued at a discount, the carrying value over time should be increasing, approaching the bond's face value at maturity. Assuming a bond is issued at a discount, the interest expense amount calculated every period using the effective interest method should be increasing.
Assuming a bond is issued at a premium, the carrying value over time should be decreasing, approaching the bond's face value at maturity. Assuming a bond is issued at either a premium or a discount, the carrying value on the bond's maturity date, right before the final cash payment, should be equal to the bond's face value.
Assuming a bond is issued at a premium, the interest expense amount calculated every period using the effective interest method should be decreasing.
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Carlton Company uses the percent of sales method to estimate its bad debt expense. Based on past experience, the company estimates 2 percent of credit sales to be uncollectible. At the end of the current year, the company's unadjusted trial balance shows Accounts Receivable of $245,000 and Credit Sales of $900,000 Prepare the necessary December 31 adjusting entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction ist Journal entry worksheet Carlton Company uses the percent of sales method to estimate its bad debt expense.
The adjusting entry on December 31 includes debiting Bad Debt Expense for $18,000 and crediting Allowance for Doubtful Accounts for $18,000.
To prepare the necessary December 31 adjusting entry for Carlton Company using the percent of sales method to estimate its bad debt expense, follow these steps:
1. Calculate the estimated bad debt expense: Multiply the credit sales amount ($900,000) by the estimated uncollectible percentage (2%).
$900,000 x 0.02 = $18,000
2. Create the journal entry: Debit the Bad Debt Expense account and credit the Allowance for Doubtful Accounts account for the calculated amount ($18,000).
Journal entry worksheet: Date: December 31
Account Name: Bad Debt Expense (Debit) , Amount: $18,000Account Name: Allowance for Doubtful Accounts (Credit) , Amount: $18,000
In summary, Carlton Company estimates its bad debt expense to be $18,000 based on the percent of expense method.
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the growth rate is stated to be around 10% - please help with DCF, WACC and company valuationJetBlue IPO Executive Summary1. Your main job is to estimate a two-stage DCF model. First, calculate the first stage series of unlevered cash flows (UCFS) based on information provided in the case (2002-2010). The second stage is the "steady state" where the UCFs grow at a constant growth rate thereafter.2. Determine the appropriate discount rate (WACC).3. Determine value of the company based on Steps 1-2.4. Calculate the total value of equity by subtracting out debt and preferred stock from total company value.
We can calculate the total value of equity by subtracting the debt and preferred stock from the total company value.
To estimate the value of JetBlue, we need to first calculate the unlevered cash flows for the first stage from 2002-2010. Once we have that, we can assume a steady-state growth rate of around 10% and use a two-stage DCF model to estimate the company's value.
In order to determine the appropriate discount rate or WACC, we need to take into account the risk of investing in JetBlue, which includes factors such as the airline industry's volatility, the company's financial performance, and macroeconomic factors.
Once we have the WACC, we can calculate the value of the company based on the cash flows we estimated. Finally, we can calculate the total value of equity by subtracting the debt and preferred stock from the total company value.
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