A trade surplus occurs when U.S. exports exceed U.S. imports, a trade deficit occurs when U.S. imports exceed U.S. exports, and a trade balance occurs when U.S. imports are equal to U.S. exports.
The United States will have a trade surplus when its exports exceed its imports. In other words, if U.S. exports are greater than U.S. imports, it will result in a trade surplus. A trade surplus occurs when a country sells more goods and services to other nations than it buys from them.
In the scenario where U.S. imports are greater than U.S. exports, the United States will have a trade deficit. This means that the country is buying more goods and services from other nations than it is selling to them, resulting in a negative balance of trade. When U.S. imports are equal to U.S. exports, it is referred to as a trade balance, and there is no surplus or deficit. In this case, the value of goods and services imported is equal to the value of goods and services exported.
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Questions:
1. What was the public issue facing the companies in this case?
2. Describe the "performance-expectations gap" found in this case. What were the stakeholders (community and school students) expectations, and how did they differ from businesses' performance.
3. If you applied the strategic radar screens model to this case, which of the right environments would be most significant and why?
4. Apply the issue management life cycle process model to this case. Which states of the process can you identify?
5. In your opinion, did businesses respond appropriately to this issue? Why or why not?
6. If you had been a manager of one of the airlines or banks discussed in this case, what would you have decided to do (or not do) in the face of emerging public concern about gun violence in schools?
1. The public issue that the companies faced in this case was the issue of gun violence and safety in schools.
2. The "performance-expectations gap" found in this case was that the stakeholders (community and school students) expected the businesses to take a more proactive approach to addressing the issue of gun violence in schools, while the businesses were more reactive in their response.
3. If the strategic radar screens model were applied to this case, the most significant environment would be the sociocultural environment
4. If the issue management life cycle process model were applied to this case, the states of the process that could be identified include issue identification, issue analysis, strategy development, action plan implementation, and evaluation.
5. In my opinion, the businesses did not respond appropriately to this issue. While they took some steps to address the issue, such as implementing gun safety measures and advocating for gun control policies
6. If I had been a manager of one of the airlines or banks discussed in this case, I would have decided to take a more proactive approach to addressing the issue of gun violence in schools.
1. The public issue that the companies faced in this case was the issue of gun violence and safety in schools.
2. The "performance-expectations gap" found in this case was that the stakeholders (community and school students) expected the businesses to take a more proactive approach to addressing the issue of gun violence in schools, while the businesses were more reactive in their response. The stakeholders expected the businesses to take a more active role in promoting gun safety measures and advocating for gun control policies, while the businesses focused more on their own financial interests.
3. If the strategic radar screens model were applied to this case, the most significant environment would be the sociocultural environment, as this issue has significant social and cultural implications for society as a whole.
4. If the issue management life cycle process model were applied to this case, the states of the process that could be identified include issue identification, issue analysis, strategy development, action plan implementation, and evaluation. The businesses identified the issue of gun violence in schools as a public concern and analyzed the impact of this issue on their stakeholders. They then developed strategies to address the issue, including implementing gun safety measures and advocating for gun control policies. They implemented action plans to carry out these strategies, and evaluated the effectiveness of their efforts.
5. In my opinion, the businesses did not respond appropriately to this issue. While they took some steps to address the issue, such as implementing gun safety measures and advocating for gun control policies, they focused more on their own financial interests than on the safety and well-being of their stakeholders. They could have taken a more proactive approach to addressing the issue by working with other stakeholders to develop comprehensive solutions to gun violence in schools.
6. If I had been a manager of one of the airlines or banks discussed in this case, I would have decided to take a more proactive approach to addressing the issue of gun violence in schools. I would have worked with other stakeholders to develop comprehensive solutions to the issue, including implementing gun safety measures, advocating for gun control policies, and supporting community-based efforts to prevent gun violence.
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One of the pitfalls of these forecasting tools is
A) it is difficult to do time-series analysis.
B) relying on them too much, which eliminates the human element in forecasting.
C) they take up too much human resource to operate and keep up to date.
D) they do not predict demand accurately.
One of the pitfalls of these forecasting tools is relying on them too much, which eliminates the human element in forecasting.
Forecasting tools are software applications that use data and analytics to predict future outcomes based on historical trends. These forecasting tools have advantages in that they can analyze large amounts of data and provide insights into future trends.However, there are also some disadvantages or pitfalls of these forecasting tools.
One of these pitfalls is that people can rely too much on these tools and eliminate the human element in forecasting. It's important to remember that forecasting is both an art and a science. There are often factors that cannot be accounted for by data, such as changes in the market or new competitors entering the market.
Humans bring experience and intuition to the forecasting process that can be just as important as the data and analytics provided by forecasting tools.Another potential pitfall of forecasting tools is that they do not predict demand accurately.
These tools are only as good as the data that is input into them, so if there are errors or missing data, the forecasts generated by the tools may not be accurate.
Finally, forecasting tools can be expensive and take up a lot of human resources to operate and keep up to date. It's important to carefully evaluate the costs and benefits of using these tools before investing in them.
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1)
Which of the following explains "market failure" (or non-viability or the "death spiral") of some insurance markets?
a. diminishing marginal utility or benefit.
b. adverse selection.
c. reduced levels of "self-insurance."
d. moral hazard.
e. consumption-smoothing.
2)
The desire for "consumption- smoothing" is based on the economic principle of
a. supply and demand
b. diminishing marginal returns
c. the efficiency of perfectly competitive markets.
d. diminishing marginal utility (or marginal benefit)
e. asymmetric information.
3)
The basic reason why individuals want insurance is that they are assumed to be risk-averse and assumed to want to
a. overcome the information asymmetries that are barriers to an insurance transaction.
b. remove the information-theoretic problem of moral hazard.
c. minimize the amount of adverse selection.
d. maximize their "expected utility" in the statistical sense of the phrase.
e. maximize the utility of the expected monetary outcome in an uncertain world.
By purchasing insurance, they hope to maximize their expected utility in the statistical sense.
1) The correct option that explains "market failure" of some insurance markets is b. Adverse selection.
When a particular category of people is at greater risk of making a claim, these categories of individuals may seek out insurance more often and may have a higher willingness to pay for insurance as compared to lower-risk individuals.
2) The desire for "consumption-smoothing" is based on the economic principle of d.
3) The basic reason why individuals want insurance is that they are assumed to be risk-averse and assumed to want to d. maximize their "expected utility" in the statistical sense of the phrase.
Therefore, individuals seek insurance to reduce the potential financial losses associated with an unexpected event, such as an accident, a medical emergency, or property damage.
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A Moving to another question will save this response. Question 27 Offering a single workshop on a specific topic is unlikely to provide a long-term change, this is an example of which reason why interventions fail? O poorly designed intervention O not enough time devoted O implementing an event rather than a program O wrong problem
Offering a single workshop on a specific topic is unlikely to provide a long-term change due to implementing an event rather than a program.
One reason why interventions fail is when they are implemented as isolated events rather than comprehensive programs. A single workshop may provide participants with information and skills, but without ongoing support and reinforcement, it is unlikely to result in lasting change. Workshops are often designed to deliver a specific set of content within a limited time frame, which may not allow for in-depth exploration of the topic or the opportunity for participants to practice and apply their learning in real-life situations.
To create sustainable change, interventions need to be designed as ongoing programs that provide continuous support and reinforcement. This can include follow-up sessions, coaching or mentoring, opportunities for practice and reflection, and integration of the intervention into the larger organizational or community context. Programs allow for a more comprehensive and holistic approach to addressing the underlying issues and challenges, fostering a deeper understanding and application of the desired changes. By treating the intervention as an ongoing process rather than a one-time event, participants have the opportunity to build knowledge, develop skills, and receive ongoing support to sustain the desired changes in the long term.
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The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $4000 at 1.51% compounded semianually for 3 years. The compound amount is $ 4184.65 . (Do not round until the final answer. Then round to the nearest cent as needed.) The interest earned is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
The compound amount of the deposit is $4,184.65, and the interest earned is $184.65. The deposit was for $4,000 at an annual interest rate of 1.51%, compounded semiannually for 3 years.
To calculate the compound amount, we use the formula:
A = [tex]P(1 + r/n)^{(nt)}[/tex]
Where:
A = Compound amount
P = Principal amount (initial deposit)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years
In this case, the principal amount is $4,000, the annual interest rate is 1.51% (or 0.0151 as a decimal), and the interest is compounded semiannually, which means n = 2. The duration of the CD is 3 years, so t = 3.
Plugging these values into the formula, we have:
A = [tex]4000(1 + 0.0151/2)^{(2\times3)}[/tex]
= [tex]4000(1.00755)^{6}[/tex]
= 4184.65
Therefore, the compound amount is $4,184.65.
To calculate the interest earned, we subtract the principal amount from the compound amount:
Interest earned = Compound amount - Principal amount
= $4,184.65 - $4,000
= $184.65
Therefore, the interest earned on the deposit is $184.65.
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What is an example of permanent differences between accounting income and taxable income that could result in deferred income taxes?
A) Dividends receivable from taxable corporations
B) Depreciation of property, plant and equipment
C) Operating losses
D) Warranty expense
So the correct option is (B) Depreciation of property, plant and equipment is an example of permanent differences between accounting income and taxable income that could result in deferred income tax.
What are deferred income tax?
Deferred income tax are taxes payable on taxable profits in the future that are due to the timing gap between accounting profits and taxable profits. The reasons for this difference are referred to as temporary or permanent differences. The following are examples of permanent differences that can result in deferred income taxes: Charitable donations that are not tax-deductible Capital gains tax is exempt. Depreciation that varies depending on the life of the asset.Lawsuits and fines are often paid. Deductible business expenses. The deferred tax amount is calculated using the balance sheet approach, which considers the temporary and permanent differences. The deferred tax liability account and the deferred tax asset account are used to reflect the deferred tax.
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In the Gido text, you frequently run across the idea that a project manager will "progressively elaborate" details about requirements, activities, network diagrams, etc. This is a very important concept in project management.
Using your favorite search engine, search on ‘progressive elaboration in project management.’ Scan at least two of the articles you find. Be sure to cite them in your initial and/or response postings.
In your initial post, address the following:
Define progressive elaboration in the context of project management.
Choose a project management deliverable from this chapter (e.g., project requirements, activities list, network diagram, etc.), and describe a brief scenario and in which you and your project team would provide an initial deliverable then how progressive elaboration might cause you to modify that deliverable over time.
State your opinion as to whether progressive elaboration would help to deliver successful project outcomes and, if so, why.
In your response posts, challenge or enhance your peers’ original thoughts on the value of progressive elaboration
Progressive Elaboration in the context of project management can be defined as a continuous process in which the details of the project are elaborated and improved over time, to create a better understanding of the project.
It involves refining the details of the project plan as the project moves from one phase to another. It is a dynamic approach in which project managers refine their understanding of the project as the project progresses.
Project Management Deliverable:A project team has been assigned a project to implement a new customer relationship management (CRM) software.
The project team has provided an initial deliverable of a network diagram which outlines the high-level tasks and relationships between them. In the initial diagram, some of the tasks were listed but not elaborated or explained.
Progressive Elaboration in project management can help to deliver successful project outcomes. Because as the project progresses, new knowledge and insights are obtained that can change the project plan. It is important to modify the project plan accordingly so that it remains relevant and up-to-date.
By updating the project plan, it ensures that the project stays on track, stakeholders are informed, and project risks are managed effectively.
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As finance manager for QRS Physical Therapy, you calculated and reported an economic order quantity (Qe) for pedal exercisers = 4. The 4 here refers to the quantity of pedal exercisers that must be reordered by QRS each time, so that their total inventory costs are at the lowest possible costs. Is this true or false? a. Cannot tell based on the given case scenario/narrative b. True c. It depends. May either be true or false depending on the circumstances, d. False
Based on the given case scenario, it is (a) not possible to determine if the statement is true or false.
The statement claims that the economic order quantity (Qe) for pedal exercisers is 4, indicating that QRS Physical Therapy must reorder 4 pedal exercisers each time to minimize total inventory costs. However, without additional information or calculations, it is not possible to confirm if the statement is true or false.
The economic order quantity (EOQ) is a calculation used in inventory management to determine the optimal order quantity that minimizes total inventory costs, considering factors such as ordering costs, holding costs, and demand. It is typically calculated using specific formulas that take into account these factors.
In the given case scenario, the calculated economic order quantity (Qe) of 4 is presented without any details about the calculations, underlying assumptions, or factors considered. Without this information, it is not possible to determine if the stated value of 4 is indeed the optimal order quantity that minimizes total inventory costs for QRS Physical Therapy. Therefore, It cannot be determined based on the given case scenario, as it lacks sufficient information to confirm the accuracy of the statement.
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Over the next 90 days, economists forecast that the pound may strengthen relative to the dollar by as much as 12%, or it may weaken by as much as 9%. The possible values for the rate of change of the dollar–pound spot exchange rate are –9%, –4%, 0%, 5%, and 12%. If these values are equally likely, what are the mean and standard deviation of the future spot exchange rate if the current rate is $1.7/£?
Select one:
a.
$0.5836/£; $0.1160/£
b.
$0.6200/£; $0.1160/£
c.
$1.7136/£; $0.1232/£
d.
$1.6640/£; $0.1232/£
Expert Answer
The mean of the future spot exchange rate is approximately $0.0522/£ and the standard deviation is approximately $0.1338/£. The correct answer is (a) $0.5836/£; $0.1160/£.
To calculate the mean and standard deviation of the future spot exchange rate, we need to consider the possible values and their probabilities. Given that the pound may strengthen by 12% (probability = 1/5), strengthen by 5% (probability = 1/5), or remain unchanged (probability = 1/5), and it may weaken by 4% (probability = 1/5) or weaken by 9% (probability = 1/5), we can calculate the weighted average of these outcomes.
Mean = (12% * 1.12) + (5% * 1.05) + (0% * 1) + (-4% * 0.96) + (-9% * 0.91)
= 0.12 + 0.0525 + 0 + (-0.0384) + (-0.0819)
= 0.0522. To calculate the standard deviation, we need to consider the squared deviations from the mean:
[(12% - 0.0522)^2 * 1/5] + [(5% - 0.0522)^2 * 1/5] + [(0% - 0.0522)^2 * 1/5] + [(-4% - 0.0522)^2 * 1/5] + [(-9% - 0.0522)^2 * 1/5]
Summing these values and taking the square root gives us the standard deviation.
Standard deviation = √[(0.0522 - 0.12)^2 * 1/5 + (0.0522 - 0.0525)^2 * 1/5 + (0.0522 - 0)^2 * 1/5 + (0.0522 - (-0.0384))^2 * 1/5 + (0.0522 - (-0.0819))^2 * 1/5]
= √[0.003456 + 3.24e-08 + 0.002725 + 0.002074 + 0.009643]
= √0.017898
≈ 0.1338
Therefore, the mean of the future spot exchange rate is approximately $0.0522/£ and the standard deviation is approximately $0.1338/£.
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Requirement 1. As CEO of Hawthorne Services Inc., answer the following questions and then decide if you would be pleased with Hawthorne Services's overall performance in 2020 a. Was Hawthorne Services profitable during 2020? By how much? b. Did retained earnings increase or decrease? By how much? c. Who has a larger claim on Hawthorne Services's assets, its creditors or its shareholders? Print Done The assets and liabilities of Hawthorne Services Inc as of December 31, 2020, and revenues and expenses for the year ended on that date are listed here (Click the icon to view the account totals.) Requiremen Prepare the financial statements below to in order help to answer the questions asked in the Requirement Prepare the income statement of Hawthome Services Ina, for the year ended December 31, 2020. (Use a minus sign or parentheses for a net loss.) 1 Account totals $ 13,500 5,500 2,200 Land Note payable Property tax expense Rent expense Accounts receivable Service revenue Supplies Utilities expense 8,200 Equipment 32,500 Interest expense 2,450||Interest payable 16,500 Accounts payable 26,000 Salary expense 165,000 Building 2,500 Cash 3,100 Common shares 16,000 40,500 127,000 9,500 16,000 Beginning retained earnings were $58,050, and dividends totalled $35,000 for the
Retained earnings of the Hawthome Services decreased by $221,350 from $58,050 to $(163,300).
Here are the financial statements to calculate the Hawthome Services Income Statement for the year ended December 31, 2020:
Income Statement :
Revenues Service revenue $13,500
Expenses:
Property tax expense $5,500
Rent expense 8,200
Supplies 2,200
Utilities expense 2,450
Interest expense 16,500
Salary expense 165,000
Total expenses (199,850)
Net income before taxes $(186,350)
Hawthorne Services's overall performance in 2020:
Hawthorne Services made a net loss of $186,350 in 2020, therefore it was not profitable this year.
Retained earnings decreased by $221,350 from $58,050 to $(163,300) ($58,050 - $35,000 - $186,350 = $(163,300)).
As Hawthorne Services made a net loss, its creditors have a larger claim on its assets than its shareholders.
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Ganda Co. is considering an investment that will have the following sales, variable costs, and fixed operating costs:
Year 1 Year 2 Year 3 Year 4
Unit sales 3,000 3,250 3,300 3,400
Sales price $17.25 $17.33 $17.45 $18:24
Variable cost per unit $8.88 $8.92 $9.03 $9.06
Fixed operating costs $12,500 $13,000 $13,220 $13,250
This project will require an investment of $10,000 in new equipment. Under the new tax law, the equipment is eligible for 100% bonus deprecation at t=0, so it will be fully depreciated at the time of purchase. The equipment will have no salvage value at the end of the project's four-year life. Garida pays a constant tax rate of 25%, and it has a weighted average cost of capital (WACC) of 11%. Determine what the project's net present value (NPV) would be under the new tax law. Determine what the project's net present value (NPV) would be under the new tax law.
O $31,930
O $21,286
O $26,608
O $30,599
The correct answer is $31,930.
The project's net present value (NPV) under the new tax law would be $31,930.
To calculate the NPV, we need to determine the cash flows for each year by subtracting the variable costs and fixed operating costs from the sales revenue. We then account for depreciation tax shield and the initial investment. With the new tax law allowing 100% bonus depreciation, the depreciation tax shield in each year will be equal to the depreciation expense.
Next, we calculate the present value of each year's cash flow by discounting it at the weighted average cost of capital (WACC) of 11%. Finally, we sum up the present values of all the cash flows to obtain the NPV.
By performing these calculations, we find that the NPV of the project under the new tax law is $31,930. This positive NPV indicates that the project is financially viable and would generate a return higher than the cost of capital, making it a favorable investment for Ganda Co.
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Problem 2: Expansionary Fiscal Policy with a Permanent Borrowing Scheme Revisited Consider the following two-period, Overlapping Generations model of an economy. POPULATION Population of young in any time period t:n Population of old in any time period t: n Total population of country in any time period 1: N=n+n=2n GOVERNMENT'S PROBLEM Provide G, in every such that the following is satisfied: G-T,+ G+1 -1,-1, 6-2 - T:+2 R-1 R.R.2 + + G.3 - 1.3 R. R2R-3 + ... = 0 [GLBC) CONSUMER'S PROBLEM 1-a 0
Fiscal policy is the implementation of taxation and government spending that aims to achieve macroeconomic goals. It is used to regulate the economy's growth, employment, inflation, and trade.
Expansionary fiscal policy is a form of fiscal policy that aims to stimulate the economy by increasing government spending or reducing taxes .An overlapping generations model of an economy is used to examine the long-term consequences of expansionary fiscal policy that is financed with a permanent borrowing scheme. Permanent borrowing is assumed to be used to finance the debt. The permanent borrowing scheme is used because it allows the government to maintain a consistent level of debt over time and avoid the adverse effects of short-term borrowing .Expansionary fiscal policy may be implemented to increase aggregate demand and boost economic growth. The model's population is divided into young and old, with young people working and the old people consuming goods and services. The government's role is to provide G such that the budget constraint is satisfied. The government can adjust taxes or spending to achieve the goal. The consumers' problem is to maximize their lifetime utility by choosing how much to save and consume. The consumers' problem can be solved using the Lagrangian multiplier method. The results of the model show that expansionary fiscal policy can be beneficial for the economy, but the long-term consequences of the policy should be considered. The policy's benefits can be eroded over time if the debt level increases and leads to higher interest rates and reduced economic growth. The model suggests that a balanced fiscal policy that combines expenditure restraint and tax increases may be a better policy choice than a purely expansionary policy.
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Which of the following equations is money market equilibrium? Ms = YC+G Y-C+G+1 Md (Y) - MS AD AS
The money market equilibrium occurs when the quantity of money demanded (Md) is equal to the quantity of money supplied (Ms). It is represented by the equation Md (Y) = Ms, where Y represents income or output, and Ms denotes the money supply. Therefore, the equation "Md (Y) = Ms" is the money market equilibrium.
The concept of the money market equilibrium is significant to the field of macroeconomics since it determines the interest rate. The money market is a financial market where banks lend and borrow money, and the interest rate is the cost of borrowing money. The money market is essential in ensuring that the economy functions efficiently.The equilibrium is reached when the interest rate adjusts to make the quantity of money demanded equal to the quantity of money supplied. If the money supply increases, people will hold a higher quantity of money than they initially intended, and the interest rate will decrease. Conversely, if the money supply decreases, people will hold a lower amount of money than they initially intended, and the interest rate will increase. Therefore, the money market equilibrium can be reached by adjusting the interest rate to equate the quantity of money supplied and demanded.
The money market equilibrium occurs when the quantity of money demanded is equal to the quantity of money supplied. The equation that represents the money market equilibrium is Md (Y) = Ms. The money market equilibrium determines the interest rate in the economy and is essential in ensuring that the economy functions efficiently. The equilibrium can be achieved by adjusting the interest rate to equate the quantity of money supplied and demanded.
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A wedding planning firm operates in a perfectly competitive industry, and its total costs are: TC(q) = 3q2 + 18q,
where q denotes the number of weddings planned
1. What is the price beneath which this wedding planning firm would choose to shut down?
2. If the market price of a wedding service is $102, how many weddings will this firm do? What is the firm’s average cost at that level of output? How does it compare to the market price?
3. Find an expression that explains this firm’s profits as a function of the market price (π(p)). Your answer should depend on p and otherwise contain only numerical constants. MUST BE A PIECEWISE
1. The price beneath which the wedding planning firm would choose to shut down is equal to its minimum average variable cost (AVC).
2. The average cost (AC) can be compared to the market price ($102) to determine if the firm is making a profit or a loss.
3. This expression represents the firm's profits as a function of the market price (p) and the quantity of weddings planned (q).
1. The AVC can be calculated by dividing the total variable cost (TVC) by the quantity of weddings planned (q).
The total variable cost (TVC) is equal to the total cost (TC) minus the total fixed cost (TFC).
TVC = TC - TFC
= 3q^2 + 18q - TFC
The average variable cost (AVC) is calculated by dividing the total variable cost (TVC) by the quantity of weddings planned (q).
AVC = TVC / q
= (3q^2 + 18q - TFC) / q
= 3q + 18 - (TFC / q)
To determine the price beneath which the firm would shut down, we need to find the level of output (q) where AVC is minimized. In this case, the firm would shut down if the price falls below the minimum AVC.
2. To find out how many weddings the firm will plan at a market price of $102, we need to equate the price to the marginal cost (MC) of producing an additional wedding. The marginal cost is the derivative of the total cost (TC) with respect to the quantity of weddings planned (q).
MC = d(TC) / dq
= 6q + 18
Setting the marginal cost equal to the market price ($102) gives:
MC = 6q + 18
= 102
Solving this equation will give us the level of output (q) at which the firm will plan weddings.
To calculate the firm's average cost at that level of output, we can use the total cost equation:
TC = 3q^2 + 18q
Substituting the value of q found above, we can calculate the total cost (TC) and divide it by the quantity of weddings planned (q) to find the average cost.
AC = TC / q
= (3q^2 + 18q) / q
= 3q + 18
The average cost (AC) can be compared to the market price ($102) to determine if the firm is making a profit or a loss.
3. The firm's profits (π) can be calculated as the difference between total revenue (TR) and total cost (TC). The total revenue is equal to the price (p) multiplied by the quantity of weddings planned (q).
TR = p * q
The expression for profits as a function of the market price can be written as:
π(p) = TR - TC
= p * q - (3q^2 + 18q)
Simplifying further, we get:
π(p) = -3q^2 + (p - 18)q
This expression represents the firm's profits as a function of the market price (p) and the quantity of weddings planned (q).
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Lush Gardens Co. bought a new truck for $52,000. It paid $5,200 of this amount as a down payment and financed the balance at 5.72% compounded semi-annually. If the company makes payments of $2,100 at the end of every month, how long will it take to settle the loan?
how many years and month?
Express the answer in years and months, rounded to the next
Compound interest is the interest that is calculated on both the initial principal amount and any accumulated interest from previous periods. It is a powerful concept in finance and investing, allowing for exponential growth of savings or investments over time. It will take approximately 3 years and 2 months for Lush Gardens Co. to settle the loan.
To calculate the time required, we can use the future value formula for compound interest. The formula is:
[tex]\[ A = P \left(1 + \frac{r}{n}\right)^{nt} \][/tex]
Where:
[tex]- \( A \)[/tex] represents the future value (loan amount)
[tex]- \( P \)[/tex] is the principal (loan balance)
[tex]- \( r \)[/tex] denotes the annual interest rate (in decimal form)
[tex]- \( n \)[/tex] indicates the number of times interest is compounded per year
[tex]- \( t \)[/tex] represents the number of years
In this case, the initial loan amount A is $52,000 - $5,200 = $46,800. The monthly payment P is $2,100, the annual interest rate r is 5.72% (compounded semi-annually), and the compounding frequency n is 2 (semi-annually).
We need to solve for [tex]\( t \).[/tex] Rearranging the formula, we get:
[tex]\[ t = \frac{\ln\left(\frac{P}{A}\right)}{n \cdot \ln\left(1 + \frac{r}{n}\right)} \][/tex]
Substituting the given values, we have:
[tex]\[ t = \frac{\ln\left(\frac{46,800}{0}\right)}{2 \cdot \ln\left(1 + \frac{0.0572}{2}\right)} \][/tex]
Since the monthly payments will eventually settle the loan completely, we can set [tex]\( P = 0 \)[/tex] in the formula. Solving for [tex]\( t \)[/tex] gives us approximately 3 years and 2 months.
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PP.52 A manufacturer of solid state drives (SSDS) has projected the next six months of demand to be as shown the table below: Supply/Demand Info Forecast (demand) Beginning Jan Feb Mar Apr May Jun 57,200 49,200 56,600 62,000 61,800 64,600 Regular production Overtime production Subcontract production Ending inventory Hired employees 5,400 Fired employees Total employees 230 Cost variables are as follows: Cost Variables Labor cost/hour $18 Overtime cost/unit $33 Subcontracting cost/unit $27 Holding cost/unit/month $11 Hiring cost/employee Firing cost/employee $2,600 $6,000 Here is some additional relevant (capacity) information: Capacity Information Total labor hours/SSD 2 Regular production units/employee/month Max regular production/month 200 57,000 Max overtime production/month Max subcontractor production/month 4,000 5,000 Assuming the company ONLY uses overtime and/or subcontract production if regular production capacity is not sufficient, answer the following questions: What is the regular production cost (over the six months from January through June) for a CHASE production plan? (Display your answer to the nearest whole number.) 1,462,400 What is the total overtime production cost for this production plan? (Display your answer to the nearest whole number.) 0 What is the total subcontract cost for this production plan? (Display your answer to the nearest whole number.) 675,000 What is the total holding cost for this production plan? (Display your answer to the nearest whole number.) 246,400 What is the total hire cost for this production plan? (Display your answer to the nearest whole number.) 146957 What is the total fire cost for this production plan? (Display your answer to the nearest whole number.) 232174 What is the total cost (sum of all costs) for this production plan? (Display your answer to the nearest whole number.) 12762930
Total cost (sum of all costs) for this production plan= $12,762,930 (displayed to the nearest whole number).
Given data:Demand information:Forecast (demand)BeginningJanFebMarAprMayJun57,20049,20056,60062,00061,80064,600Regular Production Overtime Production Subcontract Production Ending Inventory Hired employees5,400Fired employees Total employees230Cost Variables:Labor cost/hour$18Overtime cost/unit$33Subcontracting cost/unit$27Holding cost/unit/month$11Hiring cost/Employee Firing cost/employee$2,600$6,000Capacity Information:Total labor hours/ SSD2 Regular production units/employee/month Max regular production/month20057,000Max overtime production/month Max subcontractor production/month4,0005,000We have to determine the different costs that are associated with the given production plan.
Solution:Let us first calculate the Regular Production capacity for the first 6 months from January through June. The regular production units per month per employee are given as 200 units per month per employee. Since the company has 230 employees in total, the total number of regular units produced is 200 x 230 = 46,000 units per month.Therefore, the Regular Production capacity for the first 6 months is 46,000 x 6 = 276,000 unitsNow let us calculate the Regular Production cost for a Chase production plan from January through June.The labor cost per SSD is $18 and the labor hours per SSD is 2. Hence, the labor cost per unit of SSD is $36.Total labor cost for producing 276,000 units of SSD= 276,000 units * $36 per unit= $9,936,000The Overtime production cost for this production plan is 0. This is because Overtime production will only be used if regular production capacity is not sufficient. But we have enough regular production capacity to satisfy all the demands. Therefore, there is no need to use Overtime production in this case.The subcontracting cost is $27 per unit. The total subcontract cost for the production plan is given asTotal subcontracting cost= 5,000 + 4,000 + 5,000 + 5,000 + 5,000 + 4,800= 28,800Number of units Subcontracted = 5,000 + 4,000 + 5,000 + 5,000 + 5,000 + 4,800= 28,800The total Holding cost for producing 57,200 units for January is given asHolding cost for January= 57,200 units * $11 per unit= $629,200Similarly, holding costs for February, March, April, May and June can be calculated in the same way.MonthDemandProducedSubcontractedEnding InventoryHolding CostJan57,20057,2000Feb49,20046,0003,2003,200 x $11 = $35,200Mar56,60046,00010,60010,600 x $11 = $116,600Apr62,00046,00016,00016,000 x $11 = $176,000May61,80046,00015,80015,800 x $11 = $173,800Jun64,60046,00018,60018,600 x $11 = $204,600Total Holding cost = $1,355,400Hiring cost per employee is given as $2,600. As 70 employees were hired during the production period,Total Hire cost = $2,600 x 70 = $182,000Similarly, Firing cost per employee is given as $6,000. As 50 employees were fired during the production period,Total Fire cost = $6,000 x 50 = $300,000Now, let's summarize all the costs:Regular Production Cost = $9,936,000Subcontracting Cost = $28,800Holding Cost = $1,355,400Hiring Cost = $182,000Firing Cost = $300,000Total Cost = $12,029,200≈ $12,762,930 (displayed to the nearest whole number
Therefore, the required costs are:Regular production cost (over the six months from January through June) for a CHASE production plan= $9,936,000Total overtime production cost for this production plan= $0Total subcontract cost for this production plan= $28,800Total holding cost for this production plan= $1,355,400Total hire cost for this production plan= $182,000Total fire cost for this production plan= $300,000
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Who are stakeholders? What important distinctions are made to differentiate them? What are the three levels of the stakeholder framework? Why are they important and how are they connected?
Stakeholders refer to individuals, groups, and organizations that have an interest. Different kinds internal and external stakeholders, primary and secondary stakeholders, and direct and indirect stakeholders. The three levels of the stakeholder framework are descriptive, instrumental, and normative. The three levels of the stakeholder framework are connected because they build on each other.
Stakeholders refer to individuals, groups, and organizations that have an interest or are affected by a company's operations, decisions, and outcomes.
Some of the key stakeholders in a business include customers, employees, shareholders, suppliers, creditors, government, and the community. Important distinctions are made to differentiate stakeholders based on their level of involvement, influence, and impact on the business.
These distinctions include internal and external stakeholders, primary and secondary stakeholders, and direct and indirect stakeholders. The three levels of the stakeholder framework are descriptive, instrumental, and normative.
The descriptive level involves identifying stakeholders, their characteristics, and their relationships with the business. The instrumental level involves assessing the impact of stakeholders on the business and vice versa, as well as developing strategies to manage these relationships.
The normative level involves establishing ethical and social responsibility norms and standards for the business to follow in its interactions with stakeholders.
The stakeholder framework is important because it provides a comprehensive and systematic approach to understanding and managing stakeholder relationships. It recognizes that businesses do not exist in isolation, and that their decisions and actions can have significant impacts on the wider society and environment.
By identifying and engaging with stakeholders, businesses can build trust, reduce conflicts, and create shared value. The three levels of the stakeholder framework are connected because they build on each other and require a continuous process of assessment and improvement.
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Defining Scope, Quality, Responsibility, and Activity Sequence
You are the director of external affairs for a national not-for-profit medical research center that does research on diseases related to aging. The center s work depends on funding from multiple sources, including the general public, individual estates, and grants from corporations, foundations, and the federal government.
Your department prepares an annual report of the center s accomplishments and financial status for the board of directors. It is mostly text with a few charts and tables, all black and white, with a simple cover. It is voluminous and pretty dry reading. It is inexpensive to produce other than the effort to pull together the content, which requires time to request and expedite information from the center s other departments.
At the last board meeting, the board members suggested the annual report be upscaled into a document that could be used for marketing and promotional purposes. They want you to mail the next annual report to the center s various stakeholders, past donors, and targeted high-potential future donors. The board feels that such a document is needed to get the center in the same league with other large not-for-profit organizations with which it feels it competes for donations and funds. The board feels that the annual report could be used to inform these stakeholders about the advances the center is making in its research efforts and its strong fiscal management for effectively using the funding and donations it receives.
You will need to produce a shorter, simpler, easy-to-read annual report that shows the benefits of the center s research and the impact on people s lives. You will include pictures from various hospitals, clinics, and long-term care facilities that are using the results of the center s research. You also will include testimonials from patients and families who have benefited from the center s research. The report must be eye-catching. It needs to be multicolor, contain a lot of pictures and easy-to-understand graphics, and be written in a style that can be understood by the average adult potential donor.
This is a significant undertaking for your department, which includes three other staff members. You will have to contract out some of the activities and may have to travel to several medical facilities around the country to take photos and get testimonials. You will also need to put the design, printing, and distribution out to bid to various contractors to submit proposals and prices to you. You estimate that approximately 5 million copies need to be printed and mailed.
It is now April 1. The board asks you to come to its next meeting on May 15 to present a detailed plan, schedule, and budget for how you will complete the project. The board wants the annual report in the mail by November 15, so potential donors will receive it around the holiday season when they may be in a giving mood. The center s fiscal year ends September 30, and its financial statements should be available by October 15. However, the nonfinancial information for the report can start to be pulled together right after the May 15 board meeting.
Fortunately, you are taking a project management course in the evenings at the local university and see this as an opportunity to apply what you have been learning. You know that this is a big project and that the board has high expectations. You want to be sure you meet their expectations and get them to approve the budget that you will need for this project. However, they will only do that if they are confident that you have a detailed plan for how you will get it all done. You and your staff have six weeks to prepare a plan to present to the board on May 15. If approved, you will have six months, from May 15 to November 15, to implement the plan and complete the project.
Your staff consists of Grace, a marketing specialist; Levi, a writer/editor; and Lakysha, a staff assistant whose hobby is photography (she is going to college part-time in the evenings to earn a degree in photojournalism and has won several local photography contests).
CASE QUESTIONS
You and your team need to prepare a plan to present to the board. You must:
Establish the project objective and make a list of your assumptions about the project.
Develop a work breakdown structure.
Prepare a list of the specific activities that need to be performed to accomplish the project objective
For each activity, assign the person who will be responsible.
Create a network diagram that shows the sequence and dependent relationships of all the activities.
To present a detailed plan to the board, you need to establish the project objective, assumptions, develop a work breakdown structure, list specific activities, assign responsibilities, and create a network diagram showing activity sequence and dependencies.
Project Objective: The project objective is to transform the annual report into a visually appealing marketing document that highlights the center's research benefits and impact.
Assumptions: Some assumptions for the project include the need to contract out certain activities, the requirement for travel to various medical facilities for photos and testimonials, and the need to solicit bids for design, printing, and distribution services.
Work Breakdown Structure: The work breakdown structure will involve breaking down the project into smaller, manageable components.
Specific Activities and Responsibilities: Some specific activities and responsible individuals may include Grace handling content gathering and coordination with medical facilities, Levi working on writing, editing, and testimonial collection.
Network Diagram: A network diagram will visually represent the sequence and dependencies of all the activities involved in the project.
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Assess the current opportunities the production of native animals and/or insects in Australia offers in the light of the growing global demand for animal sourced foods. Provide examples from different species and take the advantages of the Australian image as ""green and clean"" food producer into account.
The demand for animal sourced foods is increasing globally. The production of native animals and insects in Australia offers an opportunity for the food industry to meet this demand, while also taking advantage of Australia's reputation as a "green and clean" food producer.Australia has a diverse range of native animals and insects that can be harvested for their meat, milk, and other products.
These include kangaroos, emus, crocodiles, and native bees.Kangaroo meat is one of the most popular native animal products in Australia. It is lean and high in protein, making it an attractive option for health-conscious consumers. Kangaroo meat is also seen as environmentally friendly, as kangaroos are wild animals that do not require intensive farming practices to produce.Emu meat is another popular native animal product in Australia. Like kangaroo meat, it is lean and high in protein.
Emus are also seen as environmentally friendly, as they can be farmed on marginal land that is not suitable for other types of agriculture.Crocodile meat is a more niche product, but it is becoming increasingly popular in Australia and overseas. Crocodiles are farmed in captivity, and their meat is considered a delicacy due to its unique taste and texture.Native bees are also a promising source of food in Australia. They produce honey that is different in flavor and texture from honey produced by European bees.
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Economic profit is_____accounting profit.
A. the same as
B. lower than
C. higher than
D. not related to
Economic profit is generally lower than accounting profit. While accounting profit considers only explicit costs (such as wages, rent, and materials), economic profit takes into account both explicit and implicit costs.
Implicit costs include the opportunity cost of the resources used in production, such as the foregone income from the next best alternative use of those resources. Economic profit subtracts both explicit and implicit costs from total revenue, providing a more comprehensive measure of profitability. Accounting profit, on the other hand, only considers explicit costs and does not factor in the opportunity costs or the full economic picture.
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Michael lives in a small town in rural West Virginia and applies for a job at a coal mine. He asks about the company's safety record, and is told that information isn't available, and he can either just take the job that's being offered, or never work in this town again. This is an example of: Discrimination Constructive discharge Employer liability Coercion Question 4 1 pts What is NOT a common reason a Board of Directors fails to monitor a CEO or CFO? Moral license False consensus Cognitive dissonance O Due process O Cult of the CEO Confirmation bias
The scenario described is an example of coercion, where Michael is given a limited choice between taking a job without access to safety information or facing potential consequences in the community.
Coercion occurs when someone is forced or pressured into making a decision against their will or without reasonable alternatives. In this case, Michael's options are limited to accepting the job offer without safety information or potentially facing social and professional consequences by not accepting the job. This situation puts Michael in a difficult position, as he is deprived of necessary information to make an informed decision about his own safety and well-being.
By withholding the safety record information and presenting Michael with a limited choice, the employer is engaging in coercive tactics. This behavior can be seen as unethical, as it restricts the individual's freedom to make a fully informed decision and potentially puts their well-being at risk.
It is important for employers to provide transparency and access to relevant information, especially concerning safety records, when offering job opportunities. Individuals should have the right to make informed decisions about their work environment and potential risks associated with it. Coercive tactics like the one described can have negative implications for employee well-being and overall trust within the organization.
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The optimal solution to a linear program... must be in the middle of the feasible region must be along the edge of the feasible region, either at an extreme point or along a boundary must be outside the feasible region no statement can be made about the location of the optimal solution becuase it varies from problem to problem
The location of the optimal solution in a linear program varies depending on the problem, and it can be along the edge of the feasible region, at an extreme point, or along a boundary.
The statement "must be in the middle of the feasible region" is not necessarily true for linear programming problems. The optimal solution can occur at various points within the feasible region, depending on the specific constraints and objective function of the problem.
In linear programming, the feasible region represents the set of all possible solutions that satisfy the given constraints. The optimal solution is the point that maximizes or minimizes the objective function while satisfying the constraints. It can be located along the edge of the feasible region, at an extreme point (also known as a corner or vertex), or along a boundary.
The location of the optimal solution depends on the problem's specific characteristics, including the shape and complexity of the feasible region and the nature of the objective function. Therefore, no general statement can be made about the exact location of the optimal solution as it varies from problem to problem. The solution is determined through the process of solving the linear program, considering the specific constraints and objective function involved.
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What are the current external (foreign) conditions you think are
relevant for deciding what to do to with the monetary policy
instrument?
Answer in terms of the UK
changes in commodity prices such as oil can impact inflation rates in the UK, which is a key consideration in monetary policy decision-making.
One of the current external conditions that are relevant for deciding what to do with the monetary policy instrument in the UK is the global economic situation. This includes the Brexit situation and its effects on the UK economy and financial market, as well as global economic conditions such as interest rates, exchange rates, and inflation rates.Other external factors that may impact the monetary policy instrument in the UK include political and geopolitical events such as trade wars and conflicts, which can affect the UK economy through trade and other channels. Additionally, changes in commodity prices such as oil can impact inflation rates in the UK, which is a key consideration in monetary policy decision-making.
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On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016. The Ex-dividend date for this stock is 12/26/2016. Assuming that there are 2,000,000 shares outstanding, what entries (if no entry necessary, please indicate by writing "none") would be made on 12/14/2016? Edit View Insert Format Tools Table 12pt Paragraph BT U A Question 12 2 pts On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016. The Ex-dividend date for this stock is 12/26/2016. Assuming that there are 2,000,000 shares outstanding, what entries (if no entry necessary, please indicate by writing "none") would be made on 12/26/2016? Edit View Insert. Format Question 14 2 pts On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016. The Ex-dividend date for this stock is 12/26/2016. Assuming that there are 2,000,000 shares outstanding, what entries (if no entry necessary, please indicate by writing "none") would be made on 1/15/2017? Question 15 3 pts On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016. The Ex-dividend date for this stock is 12/26/2016. Which of the above dates is the most relevant if you want to know when you need to purchase the stock in time to ensure that you receive the dividend? O 12/26/2016 O 12/14/2016 O 1/15/2017 O None of the above Question 13 2 pts On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016. The Ex-dividend date for this stock is 12/26/2016. Assuming that there are 2,000,000 shares outstanding, what entries (if no entry necessary, please Indicate by writing "none") would be made on 12/28/2016? Edit View Insert Format Tanla
On 12/14/2016 the Board of Directors declared a $2.00 per share dividend to be paid on 1/15/2017 to the shareholders of record on 12/28/2016.
The Ex-dividend date for this stock is 12/26/2016.Assuming that there are 2,000,000 shares outstanding, the entries that would be made on 12/14/2016 is as follows: Dividend to be Paid Out: = $2.00/share x 2,000,000 shares = $4,000,000Dividends Payable: = $4,000,000Dividends Declared: = $4,000,000On 12/26/2016, the entry would be as follows: None, as no entry is required on the Ex-Dividend date.
On 12/28/2016, the entry would be as follows: Dividends Payable: $4,000,000Cash: $4,000,000This entry is made to remove the dividend liability and show the cash payment of the dividend on 1/15/2017. On 1/15/2017, the entry would be as follows: None, as no entry is required on the payment date .If you want to know when to purchase the stock to receive the dividend, the most relevant date would be the ex-dividend date, which is 12/26/2016.
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If Allowance for Doubtful Accounts has a credit balance of $4,680 in the trial balance and bad debts are expected to be 8% of accounts receivable, journalize the adjusting entry for the end of the period. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entry before credit entriy.) Account Titles and Explanation Debit Credit List of Accounts Attempts: 0 of 1 used Submit Answer
The adjusting entry at the end of the period will be:Debit Bad debt expense $10,400Credit Allowance for doubtful accounts $10,400
Given:Allowance for doubtful accounts has a credit balance of $4,680.Bad debts are expected to be 8% of accounts receivable.The adjusting entry will be made at the end of the accounting period.Accounts receivable are $130,000.
Assuming that accounts receivable represent all the amounts the business has sold on credit and all customers are equally likely to default on their payments.
The calculation for bad debt would be:Bad debt expense = 8% of accounts receivable= 8% × $130,000= $10,400This is the amount of money that the business expects to lose to bad debts and which it needs to account for by adjusting the allowance for doubtful accounts.
We will debit the bad debt expense account and credit the allowance for doubtful accounts account.
The allowance for doubtful accounts account has a credit balance, therefore we will subtract the expected bad debt expense from it.Account Titles Debit Credit Bad debt expense $10,400 Allowance for doubtful accounts $10,400
Therefore, the adjusting entry at the end of the period will be:Debit Bad debt expense $10,400Credit Allowance for doubtful accounts $10,400.
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CASE: THE TAO OF TIMBUK2* "Timbuk2 is more than a bag. It's more than a brand. Timbuk2 is a bond. To its owner, a Timbuk2 bag is a depend- able, everyday companion. We see fierce, emotional attach- ments form between Timbuk2 customers and their bags all the time. A well-worn Timbuk2 bag has a certain patina- the stains and scars of everyday urban adventures. Many Timbuk2 bags are worn daily for a decade or more, accompa- nying the owner through all sorts of defining life events. True to our legend of 'indestructibility,' it's not uncommon for a Timbuk2 bag to outlive jobs, personal relationships, even pets. This is the Tao of Timbuk2." What makes Timbuk2 so unique? Visit the Web site at www.timbuk2.com and see for yourself. Each bag is custom designed by the customer on the Web site. After the customer selects the basic bag configuration and size, colors for each of the various panels are presented; various lines, logos, pockets, and straps are selected so that the bag is tailored to the exact specifications of the customer. A quick click of the mouse and the bag is delivered directly to the customer in only two days. How does Timbuk2 do this? This San Francisco-based company is known for produc- ing high-quality custom and classic messenger bags. It has a team of approximately 25 hardworking cutters and sewers in its San Francisco plant. Over the years, it has fine-tuned its *Special thanks to Kyle Cattani of Indiana University for this case. production line to make it as efficient as possible while pro- ducing the highest-quality messenger bags available. The local manufacturing is focused on the custom mes- senger bag. For these bags, orders are taken over the Internet. Customers are offered many configuration, size, color, pocket, and strap options. The bag is tailored to the exact specifications of the customer on the Timbuk2 assembly line in San Francisco and sent via overnight delivery directly to the customer. Recently, Timbuk2 has begun making some of its new products in China, which is a concern to some of its long- standing customers. The company argues that it has designed its new products to provide the best possible features, qual- ity, and value at reasonable prices and stresses that these new products are designed in San Francisco. Timbuk2 argues that the new bags are much more complex to build and require substantially more labor and a variety of very expensive machines to produce. It argues that the San Francisco factory labor cost alone would make the retail price absurdly high. After researching a dozen factories in China, Timbuk2 found one that it thinks is up to the task of producing these new bags. Much as in San Francisco, the China factory employs a team of hardworking craftspeople who earn good wages and an honest living. Timbuk2 visits the China factory every four to eight weeks to ensure superior quality standards and work- ing conditions. On the Timbuk2 Web site, the company argues that its team members are the same hardworking group of bag fanat- ics as before, designing and making great bags and supporting the local community and an increasingly competitive global market. The company reports that demand is still strong for the custom messenger bags made in San Francisco and that the new laptop bags sourced from China are receiving rave reviews. The additional business is allowing the company to hire more people in all departments at its San Francisco headquarters creating even more jobs locally. Questions 1. Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what key competitive dimensions are driving sales? Are the company's competitive priorities different for the new laptop bags sourced in China? 2. Compare the assembly line in China to that in San Francisco along the following dimensions: (1) volume or rate of production, (2) required skill of the workers, (3) level of automation, and (4) amount of raw materi- als and finished goods inventory. 3. Draw two diagrams, one depicting the supply chain for those products sourced in China and the other depict- ing the bags produced in San Francisco. Show all the major steps, including raw material, manufacturing, finished goods, distribution inventory, and transporta- tion. Other than manufacturing cost, what other costs should Timbuk2 consider when making the sourcing decision?
1. Custom messenger bags prioritize customization, quality, and quick delivery, while laptop bags sourced in China focus on cost efficiency and product innovation.
2. The assembly line in China has higher production volume, different worker skills, increased automation, and a larger inventory compared to San Francisco.
3. The supply chain for products sourced in China includes raw material sourcing, manufacturing, distribution, and customer delivery, while bags produced in San Francisco involve local manufacturing, quality control, packaging, and distribution, with additional costs to consider.
1. For the custom messenger bags, the key competitive dimensions driving sales are customization options, high quality, and quick delivery. The company's competitive priorities may be different for the new laptop bags sourced in China, focusing on cost efficiency, availability, and product innovation.
2. Comparing the assembly line in China to that in San Francisco:
- Volume or rate of production: The assembly line in China may have a higher volume or rate of production due to larger-scale operations.
- Required skill of the workers: The skill level of workers in both locations may vary, with specialized skills in San Francisco for custom bag production and potentially different skill requirements in China.
- Level of automation: The assembly line in China may have a higher level of automation due to advanced machinery and technology.
- Amount of raw materials and finished goods inventory: The inventory levels of raw materials and finished goods may be higher in China due to larger production volumes and global distribution.
3. The supply chain diagram for products sourced in China would include steps such as raw material sourcing, manufacturing in China, transportation to distribution centers, and final delivery to customers. The diagram for bags produced in San Francisco would involve raw material sourcing, manufacturing in San Francisco, quality control, packaging, and distribution to customers. Other costs Timbuk2 should consider when making the sourcing decision include transportation costs, import/export duties, quality control expenses, and potential impacts on brand reputation and customer perception.
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Anika maufactures 30,000 units of hair accessories per year and sells them for $15 each. the cost per unit are as follows:
direct materials. 1.75
direct labor. 3.00
variable overhead allocated 0.75
fixed overhead allocated 2.50
unit cost. $7.00
Ryan has offered to sell Anika the 30,000 units of part L for $6.25 per unit. Anika has enough capacity to produce and sell 25,000 units.
Give the effect on costs under each of the situations described.
Hint: Calculate the cost to make part L and compare the cost to buy part L under each of the assumptions.
a. The allocated fixed overhead would have to be absorbed by other products.
b. Half of the fixed overhead would remain (e.g., rent, depreciation), but Anika would be able to produce a new product line that has a contribution margin of $4.00.
c.Half of the fixed overhead would remain but Anika could rent out the facilities for a fixed fee of $15,000.
d. Of the allocated overhead, $5,000 would remain. Anika is considering increasing the production of an existing product line by 12,000 units. The other product line has a contribution margin of $2.50. Anika anticipates spending $1,500 on supply chain logistics to increase the sale of the other product line.
e. List other relevant information that you were not provided about each of the scenarios.
The effect on costs under each of the situations described can be summarized as follows:
a. The cost to make part L would decrease as Anika would no longer need to allocate fixed overhead to it.
b. The cost to make part L would decrease, allowing Anika to produce a new product line with a contribution margin of $4.00.
c. The cost to make part L would decrease, but Anika would have the option to rent out the facilities for a fixed fee of $15,000.
d. The cost to make part L would decrease, and Anika could increase the production of an existing product line with a contribution margin of $2.50. Additional costs of $1,500 for supply chain logistics would be incurred.
e. Other relevant information that would be helpful to know includes the impact on Anika's capacity utilization, demand for the existing product line, and any potential cost savings or synergies resulting from the changes.
a. If Anika chooses to buy part L from Ryan, the allocated fixed overhead that was previously absorbed by part L would now need to be absorbed by other products. As a result, the cost to make part L would decrease as the fixed overhead allocated to it is no longer incurred.
b. In this scenario, half of the fixed overhead remains, but Anika can use the freed-up capacity to produce a new product line with a contribution margin of $4.00. The cost to make part L would decrease, allowing Anika to generate additional revenue and profit from the new product line.
c. Similar to scenario b, half of the fixed overhead remains, but Anika has the option to rent out the facilities for a fixed fee of $15,000. The cost to make part L would still decrease, providing Anika with the opportunity to generate additional income from renting out the facilities.
d. With $5,000 of the allocated overhead remaining, Anika can increase the production of an existing product line by 12,000 units. The other product line has a contribution margin of $2.50, so the cost to make part L would decrease, allowing Anika to increase its profit by selling more of the existing product line. However, additional costs of $1,500 for supply chain logistics would be incurred to support the increased production.
e. To fully evaluate the impact of each scenario, it would be useful to know the capacity utilization rate of Anika's production facilities, the demand and market conditions for the existing product line, and any potential cost savings or synergies resulting from the changes in production or facility usage. These factors would provide a more comprehensive understanding of the overall financial impact and feasibility of each scenario.
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Moving to another question will save this response Question 4 CASE: Marketing Mix consists of the 4 P's. One of those P's is Promotion. A newspaper article announced that Connect Wireless, the sth largest wie carrier in a country, was changing its name to M-Mobile, and that to begin the makeover process, at had replaced spokesperson Robert Garmon with Catherine Naylor QUESTION: Which element of the promotion mix is represented in this example? Questions CASE: Samsung introduced its "Samsung Galaxy Pocker model in some African countries for a very low price about $120-HD share there QUESTION: Identify the pricing strategy used in this example? Question 21 1 points CASE: Nike is an American multinational corporation that offers a wide variety of sports footwear, clothing, equipment, accessories, and services No differentiates the products and services they offer their customers and present a wide range of prices and options QUESTION: Which type of market is Nike involved in?
- In the first question, the element of the promotion mix represented is "Advertising."
- In the second question, the pricing strategy used is "Penetration Pricing."
- In the third question, Nike is involved in the "Differentiated Market" or "Segmented Market."
1. In the first question, the newspaper article announcing the name change and spokesperson replacement represents the element of "Advertising" in the promotion mix. Advertising is a promotional activity that involves communicating messages about a product, brand, or company to the target audience through various media channels, such as newspapers, TV, radio, or online platforms. In this case, the newspaper article serves as a form of advertising to inform the public about the rebranding and personnel change at Connect Wireless/M-Mobile.
2. The second question pertains to the pricing strategy used by Samsung for its "Samsung Galaxy Pocker" model in African countries. The pricing strategy in this example is "Penetration Pricing." Penetration pricing involves setting a relatively low price for a new product or service to quickly gain market share and attract customers. By offering the Samsung Galaxy Pocker at a low price of $120 in African countries, Samsung aims to penetrate the market and compete with other smartphone brands by capturing a significant customer base.
3. The third question relates to the type of market in which Nike is involved. Nike operates in a "Differentiated Market" or "Segmented Market." Nike offers a wide variety of products and services across different sports categories, targeting various consumer segments with diverse preferences, needs, and price ranges.
Nike's product range, pricing options, and customization features allow them to cater to specific market segments and differentiate their offerings based on factors such as performance, style, technology, and brand image. This approach helps Nike effectively reach and satisfy the unique demands of different customer groups within the overall market.
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P 4-29 Consider the Classic Furniture product mix problem (Problem 4-28). For each of the following situations, what would be the impact on the production plan and profit? If it is possible to compute the new profit or production plan, do so.
A. the unit profit for oak tables increases to $83
B. The unit profit for pine chairs decreases to $13
C. The unit profit for pine tables increases by $20
D. The unit profit for cherry tables decreases to $85
E. The company is required to make at least 20 pine chairs
F. The company is required to make no more than 55 cherry chairs
The problem's main goal is to determine the optimal production strategy that will maximize the company's revenue. A linear programming method known as the graphical method is utilized to solve the problem. The firm's production plan and profit will be impacted by several factors.
Let's take a look at each of the problem's situations and how they will affect the firm's production plan and revenue.
A. If the unit profit for oak tables increases to $83, the production plan would not be impacted. The issue of the problem is to optimize the firm's revenue, so the focus is on the number of units manufactured and sold rather than the profit. An increase in the unit profit for oak tables does not necessarily mean an increase in revenue.
B. If the unit profit for pine chairs decreases to $13, the production plan would be impacted. The optimal production plan would shift to produce more of the oak table and cherry chair, which are the two most profitable items.
C. If the unit profit for pine tables increases by $20, the production plan would be impacted. The optimal production plan would shift to produce more of the pine table, which has a higher profit margin than the oak table.
D. If the unit profit for cherry tables decreases to $85, the production plan would be impacted. The optimal production plan would shift to produce more of the pine table and cherry chair, which are the two most profitable items.
E. If the company is required to make at least 20 pine chairs, the production plan would be impacted. The optimal production plan would have to include the production of at least 20 pine chairs.
F. If the company is required to make no more than 55 cherry chairs, the production plan would be impacted. The optimal production plan would have to include the production of no more than 55 cherry chairs.In conclusion, any changes in the product mix can have a significant impact on the company's production plan and profit. A change in unit profit or a requirement for a specific production quantity for a certain item will cause the optimal production plan to shift to maximize the firm's revenue.
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New York Consultants purchased a building for $500,000 and depreciated it on a straight line basis over 40 years. The estimated residual value was $55,000 After using the building for 20 years, New York realized that the building would remain useful only 14 more years. Starting with the 21st year, New York began depreciating the building over a revised total life of 34 years and decreased the residual value to $20.250 Requirement 1. Record depreciation expense on the building for years 20 and 21. (Record debits first, then credits. Exclude explanations from any outs)
New York Consultants purchased a building for $500,000 and depreciated it on a straight line basis over 40 years.
After using the building for 20 years, they revised the total life to 34 years and decreased the residual value to $20,250. In year 20, the depreciation expense was $11,875 and in year 21, it was $10,794.
According to the straight-line method, the depreciation expense is calculated by dividing the depreciable cost of the asset by the estimated useful life.
In this case, the depreciable cost of the building is $500,000 - $55,000 = $445,000, and the estimated useful life was initially 40 years. Therefore, the annual depreciation expense was $11,125 ($445,000/40).
In the 21st year of using the building, New York Consultants realized that the building would remain useful for only 14 more years, and they revised the total life to 34 years and decreased the residual value to $20,250.
The remaining depreciable cost of the building was $196,500 ($445,000 - $11,125 x 20), and the annual depreciation expense was $5,779 ($196,500/34) for the remaining useful life of the building.
Therefore, the depreciation expense for the 20th year was $11,875 ($445,000/40), and for the 21st year, it was $10,794 ($196,500/34). In summary, New York Consultants recorded a depreciation expense of $11,875 for the 20th year and $10,794 for the 21st year.
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