A business case helps organizations make informed decisions about new initiatives or investments by providing a framework for evaluating their potential benefits, costs, and risks. It also helps organizations plan and execute projects by defining their scope, objectives, and requirements, and can facilitate organizational change by outlining the current and desired future states and providing a roadmap for achieving the desired outcome.
A business case helps with all of the above - justification, project, and change.
Justification: A business case can help an organization justify a new initiative or investment by outlining the expected benefits, costs, and risks associated with the proposed project. It provides a structured approach to evaluate the business need and determine if the project is worth pursuing.
Project: A business case provides a foundation for planning and executing a project by defining its scope, objectives, and requirements. It also outlines the project's timeline, resource requirements, and expected outcomes to ensure that the project is aligned with the organization's strategic goals.
Change: A business case can facilitate organizational change by identifying the current state and outlining the desired future state. It can help identify the gaps between the two states and highlight the risks and opportunities associated with making the change. A business case can also provide a roadmap for implementing the change, including the resources required and the steps needed to achieve the desired outcome.
In summary, a business case helps organizations make informed decisions about new initiatives or investments by providing a framework for evaluating their potential benefits, costs, and risks. It also helps organizations plan and execute projects by defining their scope, objectives, and requirements, and can facilitate organizational change by outlining the current and desired future states and providing a roadmap for achieving the desired outcome.
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The MARR is 6% per year. The annual worth of company 2 cash flow estimates is closest to: Note that this three are mutually exclusive alternatives. a) $55,625 b) $164,805 c) $382,098 d) $492,098
The annual worth of company 2 cash flow estimates, considering a mutually exclusive alternative and a minimum attractive rate of return (MARR) of 6% per year, is closest to option d) $492,098.
To determine the annual worth of cash flow estimates for company 2, we need to calculate the present value of the cash flows and compare it to the MARR. The annual worth represents the annualized value of the cash flows over the project's duration.
Given that the options are mutually exclusive alternatives, we evaluate each option by calculating the present value of its cash flows at a discount rate of 6% per year. The option with the closest present value to the given options will be the closest annual worth estimate.
To provide a precise calculation, the specific cash flow estimates for company 2 are needed. Without this information, it is not possible to determine the exact annual worth.
However, based on the available options, option d) $492,098 is the closest estimate to the annual worth of company 2 cash flow estimates considering the 6% MARR.
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Summarize The Following Types Of Legal Systems In Your Wording: Common Law, Civil Law, And Theocratic Law.
Summarize the following types of legal systems in your wording: Common Law, Civil Law, and Theocratic law.
Common law relies on judicial precedents, civil law is based on comprehensive legal codes, and theocratic law is centered around religious principles.
Common law is a legal system that originated in England and is characterized by the reliance on judicial decisions and precedents. It places significant emphasis on case law, where judges interpret statutes and make rulings based on previous court decisions. Common law systems provide flexibility and adaptability, allowing laws to evolve over time.
Civil law, on the other hand, is based on comprehensive legal codes and statutes. It originated in ancient Rome and is characterized by codified laws that cover various legal issues. Civil law systems prioritize written laws over judicial decisions and rely on legal principles and doctrines established in the codes.
Theocratic law is a legal system that is based on religious principles and teachings. It is often associated with countries that have an official state religion. In theocratic legal systems, religious texts and doctrines play a central role in shaping laws and regulations, and religious authorities may have significant influence in interpreting and enforcing the law.
Each legal system has its own unique characteristics and influences how laws are created, interpreted, and applied within a particular jurisdiction.
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Please write 3 paragraphs about what happened in 1979 while Americans stewed in gas lines and congress was arguing about what to do with 150 million acres of Alaskan land. Which one did they choose between wilderness or minerals development?
In 1979, amidst gas lines and congressional debates, the decision was made to allocate a significant portion of the 150 million acres of Alaskan land for wilderness protection rather than minerals development.
In 1979, the United States faced an energy crisis, with Americans experiencing long gas lines due to shortages and rising fuel prices.
Meanwhile, Congress was engaged in discussions regarding the allocation of 150 million acres of Alaskan land. The ultimate decision was to prioritize wilderness protection over minerals development.
This decision reflected a recognition of the environmental value and conservation importance of the Alaskan land.
Preserving large areas of wilderness was seen as crucial for safeguarding ecosystems, wildlife habitats, and natural resources. It also aligned with growing concerns about environmental protection and the need to balance resource extraction with conservation efforts.
By designating the land for wilderness protection, Congress aimed to preserve its pristine nature and maintain its ecological integrity for future generations.
This decision limited the potential for extensive mineral development and emphasized the long-term benefits of conserving the natural environment.
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Alexander made periodic deposits into a savings account at the end of every month for 3 years. The investments were earning 5.70% compounded quarterly and grew to $14,125.00 at the end of 3 years.
Calculate the size of the month-end deposits.
$372.05
$360.84
$303.02
$350.24
How long will it take for the $14,125.00 to accumulate to $37,215.00 if the interest rate remained the same and he continued making the same month-end deposits throughout the term?
5 years and 1 months
7 years and 1 months
4 years and 1 months
4 years and 4 months
The size of the month-end deposits for Alexander is $350.24. It will take 4 years and 1 month for the accumulated amount to reach $37,215.00 if he continues making the same month-end deposits and the interest rate remains the same.
To calculate the size of the month-end deposits, we can use the formula for the future value of an ordinary annuity:
FV = P * [(1 + r/n)^(n*t) - 1] / (r/n),
where FV is the future value, P is the monthly deposit, r is the annual interest rate, n is the number of compounding periods per year, and t is the number of years.
Given that the future value is $14,125.00, the interest rate is 5.70% (or 0.057), and the compounding is quarterly (n = 4), we can rearrange the formula to solve for P:
$14,125.00 = P * [(1 + 0.057/4)^(4*3) - 1] / (0.057/4).
Solving this equation, we find that P is approximately $350.24.
To determine how long it will take for the accumulated amount to reach $37,215.00, we can use the same formula and solve for t:
$37,215.00 = $14,125.00 * [(1 + 0.057/4)^(4*t) - 1] / (0.057/4).
Solving this equation, we find that t is approximately 4 years and 1 month.
Therefore, the size of the month-end deposits is $350.24, and it will take 4 years and 1 month for the accumulated amount to reach $37,215.00.
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Systems development is separated from data processing activities because failure to do so:
a. results in master files being inadvertently erased.
b. weakens database access security.
c. allows programmers access to make unauthorized changes to applications during execution.
d. results in inadequate documentation.
The correct option c.allows programmers access to make unauthorized changes to applications during execution.
Systems development is separated from data processing activities because failure to do so allows programmers access to make unauthorized changes to applications during execution. This is the correct option from the given question.
Systems development is the process of designing, creating, and maintaining information systems for businesses, educational institutions, and governmental organizations. A system development project involves different steps, including research, analysis, planning, implementation, and maintenance.
Data processing activitiesData processing refers to the collection, manipulation, and storage of data. Data processing activities involve several steps like data entry, data validation, data analysis, data conversion, and data storage.
There are several reasons why systems development is separated from data processing activities, but one of the most important reasons is that it allows programmers access to make unauthorized changes to applications during execution.
It means that if systems development and data processing activities are not separated, then there is a risk that programmers will make changes to applications without proper authorization, which can have severe consequences like loss of data, system failure, and security breaches.
So, we can say that option (c) allows programmers access to make unauthorized changes to applications during execution is the correct option from the given question. Therefore, this is why systems development is separated from data processing activities.
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Suppose the interest rate is 8.9 APR with monthly compounding.
What is the Present value of an annuity that pays $110 every six
months for four years?
The present value of the annuity that pays $110 every six months for four years, with an interest rate of 8.9% APR compounded monthly, is approximately $1,126.10.
To calculate the present value of an annuity, we can use the formula:
PV = C * [(1 - (1 + r)^(-n)) / r],
where PV is the present value, C is the periodic payment, r is the interest rate per period, and n is the total number of periods.
In this case, the annuity pays $110 every six months for four years. Since the interest rate is given as an annual percentage rate (APR) with monthly compounding, we need to adjust the interest rate per period and the number of periods accordingly.
The interest rate per period can be calculated by dividing the annual rate by the number of compounding periods per year:
Interest rate per period = APR / number of compounding periods per year = 8.9% / 12 = 0.742% (0.00842 as a decimal).
The total number of periods can be calculated by multiplying the number of years by the number of compounding periods per year:
Total number of periods = number of years * number of compounding periods per year = 4 * 2 = 8.
Now we can calculate the present value of the annuity:
PV = $110 * [(1 - (1 + 0.00842)^(-8)) / 0.00842]
PV ≈ $110 * [(1 - 0.91375) / 0.00842]
PV ≈ $110 * (0.08625 / 0.00842)
PV ≈ $110 * 10.2373
PV ≈ $1,126.10
Therefore, the present value of the annuity that pays $110 every six months for four years, with an interest rate of 8.9% APR compounded monthly, is approximately $1,126.10.
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If ClearTone Company - an American producer of expensive audio systems, makes a decision to increase its sales through international markets, it can be achieved cost savings from economies of scale through all of the following except O spreading fixed costs over its global sales volume. O utilizing its production facilities more intensely. increased bargaining power with its suppliers. learning effects associated with higher volume. O improved responsiveness.
ClearTone Company can achieve cost savings from economies of scale through spreading fixed costs over its global sales volume, utilizing its production facilities more intensely, increased bargaining power with suppliers, and learning effects associated with higher volume.
When ClearTone Company decides to increase its sales through international markets, it can benefit from economies of scale, which refers to the cost advantages obtained by increasing production and sales volume. Four of the listed options directly contribute to cost savings from economies of scale.
1. Spreading fixed costs over global sales volume: By expanding its market reach, ClearTone Company can distribute fixed costs, such as research and development expenses or administrative costs, over a larger customer base, reducing the cost per unit.
2. Utilizing production facilities more intensely: With increased sales, ClearTone can make more efficient use of its production facilities, maximizing output and reducing per-unit costs.
3. Increased bargaining power with suppliers: With higher sales volume, ClearTone gains leverage in negotiations with suppliers, potentially securing better pricing or terms, leading to cost savings.
4. Learning effects associated with higher volume: As production and sales volume increase, ClearTone can benefit from improved efficiency and expertise, resulting in cost reductions over time.
However, improved responsiveness, the option mentioned in the question, is not directly related to cost savings from economies of scale. It primarily refers to the company's ability to quickly and effectively respond to customer needs or market changes. While responsiveness is important for international expansion, it is not a factor that directly contributes to cost savings associated with economies of scale.
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The data in the below table shows the production and costs of a small food packing firm. Calculate all the missing values in the below table and the wing Q P TR MR 1 TC 13.5 MC AC 2 12 3 10.5 4 09 20 24.5 37.5 5 7.5 6 06 57 a. At which level of output, the firm gets minimum revenue? b. What is the value of profit maximization output (Q) and Profit maximization price (P)? c. Does the firm get profit/loss if the firm produces Q-2 units? d. What is the amount of profit or loss at Q*? e. At which levels the firm will earn losses?
a. The firm gets minimum revenue at an output level of 2 units.
b. The value of profit maximization output (Q) is 4 units, and the profit maximization price (P) is $9.
c. If the firm produces Q-2 units (2 units in this case), it will incur a loss.
d. The amount of profit or loss at Q* (4 units) is $6.
e. The firm will earn losses at output levels below 4 units.
a. To determine the level of output at which the firm gets minimum revenue, we need to look for the lowest total revenue (TR) value in the table. From the given data, we can see that TR is 9 at output level 2. Therefore, the firm gets minimum revenue at an output level of 2 units.
b. To find the profit maximization output (Q) and price (P), we need to compare marginal revenue (MR) and marginal cost (MC). MR represents the additional revenue generated by producing one more unit, while MC represents the additional cost incurred by producing one more unit. The profit maximization output occurs where MR equals MC. From the table, at output level 4, MR is 6 and MC is 6, indicating that the firm reaches its profit maximization output at 4 units. The corresponding price can be found by looking at the average cost (AC) at Q=4, which is $9.
c. If the firm produces Q-2 units, where Q is the profit maximization output (4 units), it would produce 2 units. To determine whether the firm incurs profit or loss, we compare the total cost (TC) and total revenue (TR) at Q-2. From the table, we see that at Q-2 (2 units), TR is 9 and TC is 13.5. Since TC exceeds TR, the firm would incur a loss if it produces Q-2 units.
d. The amount of profit or loss at Q* (4 units) can be calculated by subtracting total cost (TC) from total revenue (TR) at Q*. From the table, at Q*=4, TR is 24 and TC is 18, resulting in a profit of $6 (TR - TC = 24 - 18 = 6).
e. To identify the output levels at which the firm will earn losses, we can compare TR and TC values for each level of output. From the given data, we observe that the firm incurs losses at output levels below 4 units since TC exceeds TR. Therefore, the firm will earn losses at output levels of 2 and 3 units.
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If more American citizens chose to vacation in Britain, this would cause
(a) a decrease in the demand for British pounds and an appreciation in the value of the pound relative to the dollar.
(b) an increase in the supply of American dollars and a depreciation in the value of the dollar relative to the British pound.
(c) a decrease in the supply of American dollars and a depreciation in the value of the dollar relative to the British pound.
(d) an increase in the demand for British pounds and a depreciation in the value of the pound relative to the dollar.
(e) an increase in the supply of American dollars and an appreciation of the value of the dollar relative to the British pound.
If more American citizens chose to vacation in Britain, this would cause (d) an increase in the demand for British pounds and a depreciation in the value of the pound relative to the dollar.
When more American citizens choose to vacation in Britain, they would need to exchange their US dollars for British pounds to conduct transactions in the local currency. This increased demand for British pounds would lead to an increase in the demand for the currency.
As a result of the increased demand for British pounds, the value of the pound relative to the dollar would appreciate. This means that each unit of the British pound would be worth more in terms of US dollars.
On the other hand, the increased supply of US dollars, as Americans exchange their currency for British pounds, would put downward pressure on the value of the dollar relative to the British pound. This would result in a depreciation of the dollar.
Therefore, option (d) correctly describes the impact of more American citizens vacationing in Britain on the exchange rate between the pound and the dollar.
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The question of when revenue should be recognized on the income statement is answered by O A. Business entity principle OB. Revenue recognition principle O C. Cost principle O D. Going concern principle O E. Monetary unit principle
The correct answer is option (B). Summary: The revenue should be recognized on the income statement is answered by the revenue recognition principle.
The revenue recognition principle, also known as the realization principle, is a fundamental accounting principle that guides when revenue should be recognized on the income statement. According to this principle, revenue should be recognized when it is earned and realized or realizable.
This principle ensures that revenue is recorded in the appropriate accounting period, aligning it with the associated costs and providing a clear and accurate representation of a company's financial performance. It helps in matching revenues with the expenses incurred to generate those revenues, which is essential for generating reliable financial statements.
By adhering to the revenue recognition principle, companies can provide transparency and consistency in reporting their financial results, allowing stakeholders to make informed decisions based on accurate and comparable information.
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You want to buy 150 shares of XLI using 85% margin. If XLI is selling for $52, how much money (in \$) will you borrow?
XLI stock price = $52The number of shares want to buy = 150Percentage of margin = 85%. Now we have to find the amount of money we need to borrow. The amount of money we need to borrow is $1170.
Step 1: Calculate the total cost of 150 shares of XLI.Total cost = $52 × 150 = $7800
Step 2: Calculate the percentage of the total cost of the shares required to buy it at 85% margin. Let the amount of money required to buy 150 shares be x.85% of the total cost paid by borrowing. Money paid by borrowing is 85% of $7800 = $6630Total cost = Money paid by cash + Money paid by borrowing$7800 = (100% - 85%) × $7800 + $6630$7800 - $6630 = 15% × $7800$1170 = 0.15 × $7800.
Therefore, the amount of money we need to borrow is $1170.
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Proposed change interventions related to your company's technology and operations include which of the following? Check all that apply. O Line-staff structure O Expectations O Equipment O Control systems O Overall design O Work sequences
The proposed change interventions related to the company's technology and operations include the following: Equipment, Control systems, Overall design, Work sequences.
Change interventions are planned activities that help bring about the changes in an organization. These changes are expected to result in improvement in performance. Therefore, proposed change interventions related to a company's technology and operations must be aimed at improving the technology and operations of the company. The proposed change interventions related to the company's technology and operations include the following: Equipment, Control systems, Overall design, Work sequences. These four interventions when carried out efficiently will help improve the technology and operations of a company. The Equipment intervention is aimed at updating the company's equipment while the Control systems intervention is aimed at improving the company's control systems. The Overall design intervention is aimed at improving the design of the company's technology and operations. Finally, the Work sequences intervention is aimed at improving the company's work sequences.
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Common Law Is Common To All, Not In Legislation Supreme Law, Entrenchment Of Rights Decision Is Based On Past Precedent -
That's correct! Common law refers to legal principles and rules that have been derived from court decisions and precedents, rather than from written laws or statutes.
This means that these legal principles are not codified in legislation and may vary depending on the jurisdiction and historical context.
Because common law is based on past precedent, decisions made by judges in previous cases serve as guides for future decisions in similar cases. This allows for consistency and predictability in the application of the law, while also allowing for flexibility in adapting to new circumstances and changing societal values.
It's important to note that while common law is not supreme law in the same way that legislation can be, it still carries significant weight in the legal system. In many jurisdictions, courts are required to follow established precedents unless there is a compelling reason to depart from them. Additionally, common law rights can be entrenched through constitutional provisions and other legal protections.
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Which of the following is the definition for the real supply of money?
A) the stock of money measured in terms of goods, not dollars.
B) the stock of high powered money only.
C) the real value of currency in circulation only.
D) the actual quantity of money, rather than the officially reported quantity.
E) the ratio of the real GDP to the nominal money supply.
The definition for the real supply of money is the stock of money measured in terms of goods, not dollars.
The real supply of money refers to the measurement of the stock of money in terms of goods or real economic output, rather than in terms of nominal dollar amounts. This measurement takes into account the purchasing power of money and its ability to acquire goods and services in the economy.
Option A) the stock of money measured in terms of goods, not dollars, accurately describes the concept of the real supply of money. It emphasizes that the real value of money is determined by its ability to command goods and services in the economy, rather than its nominal or face value in dollars.
Option B) the stock of high-powered money only refers to a narrower measure of money that includes only the base money supply issued by the central bank, such as currency and reserves held by commercial banks.
Option C) the real value of currency in circulation only focuses specifically on the value of physical currency in circulation, excluding other forms of money like bank deposits.
Option D) the actual quantity of money, rather than the officially reported quantity, does not capture the concept of the real supply of money.
Option E) the ratio of real GDP to the nominal money supply is not the definition of the real supply of money but rather represents the velocity of money, which measures how quickly money circulates in the economy relative to economic output.
In conclusion, the most accurate definition for the real supply of money is that it represents the stock of money measured in terms of goods, not dollars. This measurement takes into account the purchasing power and real economic value of money.
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1.Growth in Latin America in the 1970s was largely fueled by
options:
A.monetary expansion.
B.government spending.
C.export growth.
D.capital inflows.
2.Import substitution industrialization in Latin America
A. relied on increased exports.
B. provided subsidies for exports.
C. shifted the bulk of exports away from primary commodities.
D. created disincentives to export.
3.The Baker Plan for addressing the debt crisis was based on the assumption that
A.most countries would eventually default on their debt.
B.forgiveness of some of the debt was inevitable.
C.hyperinflation would eventually reduce the real value of the debt.
D.hyperinflation would eventually reduce the real value of the debt.
4.Which of the following is NOT a true statement?
A.India can easily relocate workers from the country to the city.
B.India would raise income faster if it moved workers from agriculture to manufacturing.
C.High agricultural tariffs in India protect rural workers.
D.India has low tariffs in manufacturing.
Main Answer:
Growth in Latin America in the 1970s was largely fueled by export growth.Import substitution industrialization in Latin America created disincentives to export.The Baker Plan for addressing the debt crisis was based on the assumption that forgiveness of some of the debt was inevitable.India has low tariffs in manufacturing.Explanation:
The growth experienced in Latin America during the 1970s can be primarily attributed to export growth. Latin American countries focused on expanding their exports to international markets, capitalizing on their abundant natural resources and competitive advantages in industries such as agriculture, mining, and manufacturing. This export-led growth strategy brought in foreign exchange earnings and stimulated economic development.
Import substitution industrialization (ISI) was a development strategy adopted by several Latin American countries during the mid-20th century. Contrary to the belief that ISI relied on increased exports, it actually created disincentives to export. The policy aimed at reducing reliance on imported goods by promoting domestic industries through protectionist measures such as high tariffs and subsidies. This protectionism, however, often discouraged exports as domestic industries focused on satisfying the growing domestic demand rather than pursuing international markets.
The Baker Plan, named after U.S. Treasury Secretary James Baker, was introduced in the 1980s to address the debt crisis faced by many Latin American countries. The plan operated under the assumption that forgiveness of some of the debt was inevitable. It aimed to restructure the debts of heavily indebted countries, offering them new loans to finance their debt service obligations. The plan acknowledged that the burden of the debt was unsustainable, and some level of debt forgiveness or reduction was necessary to enable these countries to recover and stabilize their economies.
The statement that India has low tariffs in manufacturing is NOT true. India, like many other countries, employs protective measures, including high tariffs, to shield its domestic industries. High agricultural tariffs in India, for instance, are put in place to protect rural workers and support the agricultural sector. However, it is important to note that reducing tariffs in manufacturing could potentially boost income and economic growth by facilitating the shift of workers from agriculture to more productive manufacturing sectors.
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"Setting up a laundry room requires a detailed analysis of the property's needs and requirements." Explain the meaning of this statement.
You are to write a paragraph using proper sentences (5 sentences)
The statement "Setting up a laundry room requires a detailed analysis of the property's needs and requirements" emphasizes the importance of thoroughly assessing the specific needs and requirements of a property before establishing a laundry room. This process involves conducting a comprehensive evaluation to determine factors such as available space, plumbing and electrical requirements, equipment specifications, and the anticipated volume of laundry. By conducting a detailed analysis, property owners or managers can ensure that the laundry room is efficiently designed and equipped to meet the demands of the property and its occupants.
When setting up a laundry room, it is crucial to conduct a detailed analysis to understand the unique needs and requirements of the property. This involves considering various factors such as the available space within the property. Assessing the dimensions and layout of the designated area for the laundry room helps determine the feasibility of fitting necessary equipment and establishing an efficient workflow.
Additionally, plumbing and electrical requirements must be evaluated to ensure proper installation and functionality of washers, dryers, and other laundry equipment. Understanding the anticipated volume of laundry is also important as it helps determine the capacity and number of machines needed to handle the load. By conducting a thorough analysis, property owners can tailor the laundry room setup to meet the specific needs of their property, optimizing efficiency and convenience for residents or users.
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Imagine you are a bank manager. Currently, your bank holds $1 million in deposits at a 4% interest rate. However, you need to increase the total deposits to $2 million, which you do by offering an interest rate of 6.91%. Using the midpoint method, calculate the interest rate elasticity of savings. If necessary, round all intermediate calculations and your final answer to two decimal places.
The interest rate elasticity of savings using the midpoint method is 1.25, indicating that a 1% increase in the interest rate leads to a 1.25% increase in deposits.
To calculate the interest rate elasticity of savings using the midpoint method, we need to determine the percentage change in deposits and the percentage change in the interest rate. The formula for elasticity is:
Elasticity = (Percentage Change in Deposits / Percentage Change in Interest Rate)
First, let's calculate the percentage change in deposits:
Initial Deposits = $1,000,000
Final Deposits = $2,000,000
Percentage Change in Deposits = ((Final Deposits - Initial Deposits) / ((Final Deposits + Initial Deposits) / 2)) * 100
Percentage Change in Deposits = ((2,000,000 - 1,000,000) / ((2,000,000 + 1,000,000) / 2)) * 100
Percentage Change in Deposits = (1,000,000 / 1,500,000) * 100
Percentage Change in Deposits = 66.67%
Next, let's calculate the percentage change in the interest rate:
Initial Interest Rate = 4%
Final Interest Rate = 6.91%
Percentage Change in Interest Rate = ((Final Interest Rate - Initial Interest Rate) / ((Final Interest Rate + Initial Interest Rate) / 2)) * 100
Percentage Change in Interest Rate = ((6.91 - 4) / ((6.91 + 4) / 2)) * 100
Percentage Change in Interest Rate = (2.91 / 5.455) * 100
Percentage Change in Interest Rate = 53.41%
Now, we can calculate the interest rate elasticity of savings:
Elasticity = (Percentage Change in Deposits / Percentage Change in Interest Rate)
Elasticity = 66.67% / 53.41%
Elasticity = 1.25
Therefore, the interest rate elasticity of savings using the midpoint method is 1.25.
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a. The continuous operation of a tollbooth on an inter-state highway is considered a project. This statement is ____________. T or F
b. If any of the tasks on the critical path take more time than their estimated durations, then it is sensible for the company to terminate (kill) the project since a chance of project success is slim. This statement is ____________.T or F
a. The continuous operation of a tollbooth on an inter-state highway is considered a project. This statement is False.
b. If any of the tasks on the critical path take more time than their estimated durations, then it is sensible for the company to terminate (kill) the project since the chance of project success is slim. This statement is False.
a. The continuous operation of a tollbooth on an inter-state highway is not a project. A project is a temporary endeavor with a specific objective, defined timeline, and unique deliverables. The operation of a tollbooth, on the other hand, is an ongoing and continuous activity that does not have a defined endpoint or a temporary nature.
b. The critical path represents the sequence of tasks that determines the overall duration of the project. If any tasks on the critical path take longer than estimated, it may delay the project completion, but it does not necessarily mean that the project should be terminated.
Project managers typically employ strategies like schedule adjustments, resource allocation, or task prioritization to address delays and bring the project back on track. Termination of a project is typically considered as a last resort, and it would depend on various factors such as the impact of the delays on project objectives, cost-benefit analysis, and the feasibility of finding alternative solutions.
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ou will graduate in a few years and start working and it's never too early to start planning for your retirement and other financial events, Let's fast forward to the beginning of your career. Here's some assumptions to help you get started. Your starting annual salary will be $78,000 You plan to work for 40 years before retiring. You expect your salary to grow at an annual average rate of 4.5%. When you retire you want a 25 -year retirement annuity that begins 40 years from today with an equal annual payment equal to 75% of your final working year salary. Assume the first retirement annuity payment would occur immediately upon retirement 40 years from today, You realize your purchasing power will decrease over time during retirement. Assume any retirement fund savings will earn an 8.5% compounded annually before retirement in 40 years and 7.5% compounded annually after retirement in 40 years. Answer the following questions to help finalize your retirement planning - 1. What is your expected final year working salary? 2. What is your desired annual retirement income? 3. How much will you need at retirement 40 years after the beginning of your career to fund your desired retirement annuity? 4. Imagine you get $40,000 in graduation gifts from your family that you deposit into your retirement savings account at the beginning of your work career. How large does your annual end of the year deposit over your working career (for 40 years) need to be in addition to the initial $40,000 to fund your desired retirement annuity from $3 ? 5. Looking at your answers in the last two questions, the annual amount, while doable, might be a bit of a financial stretch for you especially early in your career. Let's assume you will deposit $8000 at the end of each year for 40 years in addition to the initial $40,000. Please answer the following How much will you have in retirement savings at retirement after 40 years? How large of an annual retirement annuity can you withdraw at the beginning of each year for 25 years upon retirement?
calculate the expected final year working salary, we can use the given information. graduate The starting annual salary is $78,000, and we assume it will
grow at an average annual rate of 4.5% over 40 years. Therefore, the expected final year working salary can be calculated as follows The desired annual retirement income is 75% of the final working year salary. Therefore, the desired annual retirement income can be calculated as follows With a retirement savings of approximately $9,677,958.50, you can withdraw an annual retirement annuity at the beginning of each year for 25 years upon retirement. financial The amount can be calculated using the future value of an annuity formula: Annual Retirement Annuity = Retirement Savings × (0.075 / (1 - (1 + 0.075)^(-25) Annual Retirement Annuity ≈ $704,731.80 Therefore, working you can withdraw approximately $704,731.80 as an annual retirement annuity for 25 years upon retirement.
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Problem 11.11 (Capital Budgeting Criterias Mutually Exciusive Projects) Project $ requires an initial outiay at t=0 of $10,000, and its expected cash fows would be $5,000 per year for 5 years. Mutually exelusive Project L requires an inital outiay at t. - 0 of 349,000 , and its expected cash flows wauld be $14,300 per year for 5 years. Ht both projects have a wace of 16%, which project would you recommend? Select the correct answer. a. Both Projects S and L, because both projects have IRR's >0. b. Project L, because the NPVL. > NPVS. c. Both Project S and L, because the NPVs > 0.
d. Project S, because the NPV's > NPVl
e. Neither Project S nor L, because each project's NPV <0.
The correct answer is d. Project S is more favorable because it has a higher NPV than Project L.
To determine which project is more favorable, we need to calculate the NPV of each project using a discount rate of 16%.
For Project S:
NPV = -$10,000 + ($5,000/1.16) + ($5,000/1.16^2) + ($5,000/1.16^3) + ($5,000/1.16^4) + ($5,000/1.16^5)
NPV = -$10,000 + $4,310.34 + $3,716.49 + $3,198.06 + $2,738.14 + $2,330.68
NPV = $6,293.71
For Project L:
NPV = -$349,000 + ($14,300/1.16) + ($14,300/1.16^2) + ($14,300/1.16^3) + ($14,300/1.16^4) + ($14,300/1.16^5)
NPV = -$349,000 + $12,327.59 + $10,690.86 + $9,238.01 + $7,949.70 + $6,807.71
NPV = -$302,185.13
Therefore, the correct answer is d. Project S is more favorable because it has a higher NPV than Project L.
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Use the information provided below to calculate the Internal Rate of Return (expressed to two decimal places) using interpolation. A machine with a purchase price of R1 200 000 is estimated to eliminate manual operations by R400 000 per year. The machine is expected to have a useful life of four years.
The Internal Rate of Return (IRR) for this investment is approximately 2.93% (to two decimal places).
1. To calculate the Internal Rate of Return (IRR) using interpolation, we need to find the discount rate that equates the present value of the cash flows to the initial investment. In this case, the cash flows are the annual savings generated by the machine.
Given:
Purchase price: R1,200,000
Annual savings: R400,000
Useful life: 4 years
To calculate the IRR, we can set up the following equation:
R1,200,000 = R400,000 / (1 + r) + R400,000 / (1 + r)^2 + R400,000 / (1 + r)^3 + R400,000 / (1 + r)^4
Where r is the discount rate (IRR) we're trying to find.
To solve for r, we can use interpolation or trial and error. Here's a step-by-step calculation using interpolation:
Choose two discount rates to start the interpolation process. Let's choose 10% and 20%.
At 10%:
PV = R400,000 / (1 + 0.10) + R400,000 / (1 + 0.10)^2 + R400,000 / (1 + 0.10)^3 + R400,000 / (1 + 0.10)^4
PV = R363,636.36 + R330,578.51 + R300,525.01 + R273,205.46
PV = R1,267,945.34
At 20%:
PV = R400,000 / (1 + 0.20) + R400,000 / (1 + 0.20)^2 + R400,000 / (1 + 0.20)^3 + R400,000 / (1 + 0.20)^4
PV = R333,333.33 + R277,777.78 + R231,481.48 + R192,901.23
PV = R1,035,493.82
2. Use the formula for interpolation:
IRR = Lower Rate + (Higher Rate - Lower Rate) * ((Lower PV - Desired PV) / (Lower PV - Higher PV))
IRR = 10% + (20% - 10%) * ((R1,200,000 - R1,035,493.82) / (R1,035,493.82 - R1,267,945.34))
IRR = 10% + 10% * (R164,506.18 / -R232,451.52)
IRR = 10% - 10% * 0.7074
IRR = 10% - 7.074%
IRR = 2.926%
Therefore, the Internal Rate of Return (IRR) for this investment is approximately 2.93% (to two decimal places).
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From a strategic standpoint, what is the most important question that managers face in running a business? (A) What must managers do, and do well, to make a company a consistent winner in the competitive marketplace? (B) What can employees do, and do well, to ensure customer satisfaction? (C) What can shareholders do, and do well, to ensure a profitable company? (D) All of the above. (E) None of the above.
The most crucial strategic question for managers to answer while running a company is, "What must managers do, and do well, to make a company a consistent winner?"
Managers face a plethora of responsibilities when it comes to running a business. From a strategic perspective, the most critical question that managers must consider is how to make the company a consistent winner in the competitive marketplace. They must develop strategies to build a brand, manage resources, establish customer relationships, and monitor the competition while keeping up with new developments in their sector. Managers must also focus on cost control, employee retention, and the implementation of the right marketing tactics to increase revenue and attract more customers. Finally, managers must be able to adapt to the ever-changing business environment to ensure the company's long-term success.
Therefore the correct option is A.
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What do you know about current cost accounting? Why is current cos accounting criticised?
Current cost accounting is an accounting method that values assets and liabilities at their current market prices. It provides a more accurate reflection of the economic reality but is criticized for its subjectivity and potential for manipulation.
Current cost accounting involves valuing assets and liabilities based on their current market prices rather than historical costs. This approach aims to provide a more realistic representation of an entity's financial position by considering the current values of resources and obligations.
One of the main advantages of current cost accounting is its relevance. By using current market prices, it reflects the economic value of assets and liabilities at a given point in time. This can be particularly useful in industries with volatile markets or when there are significant fluctuations in the value of assets.
However, current cost accounting also faces criticism. One of the main concerns is subjectivity in determining market prices. The reliance on subjective estimates and appraisals can introduce bias and potential manipulation. Additionally, the market prices used in current cost accounting may not always be readily available or reliable, leading to challenges in applying this method consistently.
Moreover, current cost accounting may result in significant fluctuations in reported financial results. As market prices change, the values of assets and liabilities are adjusted accordingly, potentially leading to volatility in financial statements.
Overall, while current cost accounting offers benefits in terms of relevance and accuracy, its subjectivity and potential for manipulation are notable criticisms. Striking a balance between the benefits and challenges of this accounting method requires careful consideration and adherence to robust valuation practices.
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For every problem : 1. Formulate an LP model 2. Find the optimal solution by using Excel Solver and submit Excel Template with your solution results . 3. Provide an interpretation of the Sensitivity Report . A farmer in Georgia has a 100-acre farm on which to plant watermelons and cantaloupes. Every acre planted with watermelons requires 50 gallons of water per day and must be prepared for planting with 20 pounds of fertilizer. Every acre planted with cantaloupes requires 75 gallons of water per day and must be prepared for planting with 15 pounds of fertilizer. The farmer estimates that it will take 2 hours of labor to harvest each acre planted with watermelons and 2.5 hours to harvest each acre planted with cantaloupes. He believes that watermelons will sell for about $3 each, and cantaloupes will sell for about $1 each. Every acre planted with watermelons is expected to yield 90 salable units. Every acre planted with cantaloupes is expected to yield 300 salable units. The farmer can pump about 6,000 gallons of water per day for irrigation purposes from a shallow well. He can buy as much fertilizer as he needs at a cost of $10 per 50-pound bag. Finally, the farmer can hire laborers to harvest the fields at a rate of $5 per hour. If the farmer sells all the watermelons and cantaloupes he produces, how many acres of each crop should the farmer plant in order to maximize profits?
To maximize profits, the farmer needs to determine the number of acres to plant with watermelons and cantaloupes on his 100-acre farm.
The decision variables are the number of acres for each crop, and the objective is to maximize the total profit. Constraints include the availability of water for irrigation, fertilizer requirements, and labor hours for harvesting. The farmer estimates the selling prices and expected yields for each crop. Additionally, there is a cost associated with purchasing fertilizer. This problem can be formulated as a linear programming (LP) model, which can be solved using Excel Solver to find the optimal solution.
To solve the LP problem using Excel Solver, the decision variables should be defined (e.g., the number of acres for watermelons and cantaloupes). The objective function is to maximize the total profit, which can be calculated based on the selling prices and expected yields of each crop. Constraints should be set to ensure that the available resources are not exceeded, such as the water supply, fertilizer requirements, and labor hours. The LP model should be constructed in Excel with the objective function, decision variables, and constraints. By running Excel Solver, the optimal solution, which indicates the number of acres for each crop, can be obtained. The sensitivity report generated by Solver provides information on the impact of changes in resource availability or crop yields on the optimal solution.
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McCann Company has identified an investment project with the following cash flows. Year Cash Flow 1234 $750 1,080 1,300 1,160 a. If the discount rate is 11 percent, what is the present value of these cash flows? Present value at 11 percent 4 b. What is the present value at 19 percent? Present value at 19 percent e. What is the present value at 30 percent Present value at 30 percent
The present value of the cash flows at a discount rate of 11% is $3,338.51, at 19% is $2,884.22, and at 30% is $2,470.87.
To calculate the present value of the cash flows, we need to discount each cash flow based on the respective year and the given discount rate.
a. Discount rate: 11%
Year 1 Cash Flow: $750
Year 2 Cash Flow: $1,080
Year 3 Cash Flow: $1,300
Year 4 Cash Flow: $1,160
To calculate the present value of each cash flow, we divide the cash flow by (1 + discount rate)^year.
PV1 = $750 / (1 + 0.11)^1 = $675.68
PV2 = $1,080 / (1 + 0.11)^2 = $867.75
PV3 = $1,300 / (1 + 0.11)^3 = $989.95
PV4 = $1,160 / (1 + 0.11)^4 = $805.13
The present value of these cash flows at a discount rate of 11% is the sum of the individual present values:
Present Value = PV1 + PV2 + PV3 + PV4 = $675.68 + $867.75 + $989.95 + $805.13 = $3,338.51
b. Discount rate: 19%
Using the same formula, we calculate the present value of the cash flows at a discount rate of 19%:
PV1 = $750 / (1 + 0.19)^1 = $630.25
PV2 = $1,080 / (1 + 0.19)^2 = $765.33
PV3 = $1,300 / (1 + 0.19)^3 = $847.67
PV4 = $1,160 / (1 + 0.19)^4 = $640.97
Present Value = PV1 + PV2 + PV3 + PV4 = $630.25 + $765.33 + $847.67 + $640.97 = $2,884.22
c. Discount rate: 30%
Using the same formula, we calculate the present value of the cash flows at a discount rate of 30%:
PV1 = $750 / (1 + 0.30)^1 = $576.92
PV2 = $1,080 / (1 + 0.30)^2 = $664.11
PV3 = $1,300 / (1 + 0.30)^3 = $678.93
PV4 = $1,160 / (1 + 0.30)^4 = $550.91
Present Value = PV1 + PV2 + PV3 + PV4 = $576.92 + $664.11 + $678.93 + $550.91 = $2,470.87
Therefore, the present value of the cash flows at a discount rate of 11% is $3,338.51, at 19% is $2,884.22, and at 30% is $2,470.87.
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The income statement for Weatherford International Inc's year ended December 31,2020 , was prepared by an inexperienced hookkeeper. As the new accountant, your immediate pronty is to correct the statement. All amounts included in the statement are pofore tax (assume a rate of 30% ). The company had 108,000 common shares issued and outstanding throughout the year, as well as 1,600 shares of $1.20 cumulative preferred shares issued and outstanding. Retained earnings at December 31,2019 , were $332,800 Required: repare a corrected income statement including earnings per share information. (Negative onswers should be indicated by a minus ign in the other revenues and expenses section and the discontinued operations section. Round the "Earnings per Share" answers to 2 decimal places.)
Include all relevant revenue, expense, and tax figures to accurately reflect the financial performance of Weatherford International Inc for the year ended December 31, 2020.
To prepare a corrected income statement for Weatherford International Inc, we need the original income statement for the year ended December 31, 2020. Since you haven't provided the original income statement, I won't be able to correct the specific figures. However, I can guide you through the general structure and calculations needed to prepare a corrected income statement, including earnings per share (EPS) information.
Here is the general format for the income statement:
Weatherford International Inc
Income Statement
Year Ended December 31, 2020
Revenue:
- Sales Revenue
- Other Revenues
Total Revenue
Expenses:
- Cost of Goods Sold
- Selling, General, and Administrative Expenses
- Other Expenses
Total Expenses
Operating Income
Other Revenues and Expenses:
- Interest Income
- Interest Expense
- Other Revenues
- Other Expenses
Income Before Income Tax
Income Tax Expense (30% of Income Before Tax)
Net Income
EPS Calculation:
1. Calculate earnings available for common shareholders:
Net Income - Preferred Dividends
2. Determine the weighted average number of common shares outstanding throughout the year. This information is not provided, so you'll need to refer to the company's records or financial statements.
3. Calculate basic earnings per share:
Earnings Available for Common Shareholders / Weighted Average Number of Common Shares Outstanding
4. Present the earnings per share information in the income statement.
Remember to adjust the income statement for any corrections needed based on the information you have available. Include all relevant revenue, expense, and tax figures to accurately reflect the financial performance of Weatherford International Inc for the year ended December 31, 2020.
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a forecast of a cost at a particular level of activity is termed:
The forecast of a cost at a particular level of activity is termed as an estimated cost. It is a predicted amount that is derived from estimating expenses.
The cost is an expense that must be incurred in order to accomplish the objectives of the company. Costs can be classified in a variety of ways, depending on the purpose of the classification, but the most common method is by production function, as either a direct cost or an indirect cost.
The estimated cost is the anticipated expenditure for a product or service. It's a key part of the budgeting process, and it's frequently used in decision-making. Cost estimation is an important aspect of management accounting, and it's critical to have an accurate understanding of costs to make informed business decisions.
An accurate estimate can be used in the planning and control processes to make sure that the company is making a profit. Managers use the estimated cost to evaluate the viability of a project and decide whether to proceed with it or not.
In conclusion, the forecast of a cost at a particular level of activity is termed as an estimated cost. It is a key factor in decision-making and planning. The estimated cost is important for budgeting, evaluation of the viability of projects, and controlling costs.
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Suppose that the table below shows an economy's relationship between real output and the inputs needed to produce that output:LO4 Input Quantity 150.0 112.5 75.0 Real GDP $400 300 200 a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input unit is $2? c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction would the $1 increase in input price push the economy's aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output? d. Suppose that the increase in input price does not occur but, instead, that productivity increases by 100 percent. What would be the new per-unit cost of production? What effect would this change in per-unit production cost have on the economy's aggregate supply curve? What effect would this shift of aggregate supply have on the price level and the level of real output?
a. Productivity in this economy can be calculated by dividing real GDP by the total quantity of inputs:
Productivity = Real GDP / Total Quantity of Inputs
For the given data:
Productivity = $400 / (150.0 + 112.5 + 75.0)
b. The per-unit cost of production can be calculated by dividing the total cost of inputs by the total quantity of inputs:
Per-unit cost of production = Total Cost of Inputs / Total Quantity of Inputs
Assuming the price of each input unit is $2:
Per-unit cost of production = ($2 * 150.0 + $2 * 112.5 + $2 * 75.0) / (150.0 + 112.5 + 75.0)
c. If the input price increases from $2 to $3 with no change in productivity, the new per-unit cost of production would be calculated using the new input price:
New Per-unit cost of production = ($3 * 150.0 + $3 * 112.5 + $3 * 75.0) / (150.0 + 112.5 + 75.0)
The $1 increase in input price would push the economy's aggregate supply curve in the upward direction, as higher input prices lead to higher production costs, which reduces the profitability of output production. This shift of the aggregate supply curve would lead to a higher price level and a lower level of real output.
d. If productivity increases by 100 percent, the new per-unit cost of production would be calculated using the new productivity level:
New Per-unit cost of production = ($2 * 150.0 + $2 * 112.5 + $2 * 75.0) / (2 * 150.0 + 2 * 112.5 + 2 * 75.0)
The change in per-unit production cost due to the increase in productivity would lead to a shift of the aggregate supply curve in the downward direction. This shift would result in a lower price level and a higher level of real output.
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Java Source, Incorporated, (JS1) buys coffee beans from around the world and roasts, biends, and packages them for resale. Some of JS's colfees are very popular and sell in large volumes, while a few of the newee blends sell in very low volumes. JSI prices its coffees at manufacturing cost plus a markup of 25% For the coming year, JSI's budget includes estimated manufocturing overhead cost of $3,064,500. JSI assigns manufacturing overheed to products on the basis of direct labor-hours. The expected direct labor cost totals $624,000, which ropresents 52,000 hours of direct labor time. The expected costs for direct materials and direct labor for one-pound bags of two of the company's colfee prodacts appear below. JSi's controller believes that the company's traditional costing system may be providing misleading cost information. To determine whether or not this is correct, the controlfer has prepared an analysis of the year's expected manufacturing overhead costs, as shown in the following table: Data regarding the expected production and sales of Kenya Dark and Viet Select coffee are presented below Viet Select coffee. -. Determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. Complete this question by entering your answers in the tabs below. Using direct labor-houri as the manufacturing overhead cost allocation base, determine the unit product cost of one pound of Kenyo Dark coffee and one pound of Viet Select coffee. (Round your intermediate calculations and final answers to 2 decimal. piaces.) Complete this question by entering your answers in the tabs below. Using the activity-based absorption costing approach, determine the total amount of manufacturing overhead cost assigned to Kenya Dark coffee and to Viet Select coffee for the year. Complete this question by entering your answers in the tabs below. Using the activity-based absorption costing approach, compute the amount of manufacturing overnead cost per pound of Kenya Dark coffee and Viet Select coffee. (Round your answers to 2 decimal places.) Complete this question by entering your answers in the tabs below. Using the activity-based absorption costing approach, determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee. (Round your intermediate calculations and final answers to 2 decimal places.)
1. a. The plantwide predetermined overhead rate that will be used during the year will be $44 per direct labor-hour.
1. b. The unit product cost of one pound of Kenya Dark coffee is $5.72 per pound and one pound of Viet Select coffee is $4.12 per pound.
2. a. The total amount of manufacturing overhead cost assigned to Kenya Dark coffee and to Viet Select coffee for the year will be $20,992.
2. b. The amount of manufacturing overhead cost per pound of Kenya Dark coffee is $0.3055 per pound and Viet Select coffee is $5.248 per pound.
2. c. The unit product cost of one pound of Kenya Dark coffee is $5.15 and one pound of Viet Select coffee is $8.49
1. Using direct labor-hours as the manufacturing overhead cost allocation base:
a. To determine the plantwide predetermined overhead rate, divide the estimated manufacturing overhead cost by the expected direct labor-hours.
Plantwide Predetermined Overhead Rate = Estimated Manufacturing Overhead Cost / Expected Direct Labor-Hours
Plantwide Predetermined Overhead Rate = $2,200,000 / 50,000 hours = $44 per direct labor-hour
b. To calculate the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee, add the direct materials cost, direct labor cost, and the allocated manufacturing overhead cost.
Unit Product Cost = Direct Materials Cost + Direct Labor Cost + (Direct Labor-Hours * Plantwide Predetermined Overhead Rate)
For Kenya Dark coffee:
Direct Materials Cost = $4.50
Direct Labor Cost = $0.34
Direct Labor-Hours per Pound = 0.02 hours
Unit Product Cost for Kenya Dark coffee = $4.50 + $0.34 + (0.02 * $44) = $4.50 + $0.34 + $0.88 = $5.72 per pound
For Viet Select coffee:
Direct Materials Cost = $2.90
Direct Labor Cost = $0.34
Direct Labor-Hours per Pound = 0.02 hours
Unit Product Cost for Viet Select coffee = $2.90 + $0.34 + (0.02 * $44) = $2.90 + $0.34 + $0.88 = $4.12 per pound
2. Using the activity-based absorption costing approach:
a. To determine the total amount of manufacturing overhead cost assigned to Kenya Dark coffee and Viet Select coffee for the year, multiply the expected activity for each cost pool by the respective cost driver rate.
Cost Driver Rates:
Purchasing: $560,000 / 2,000 orders = $280 per order
Material Handling: $193,000 / 1,000 setups = $193 per setup
Quality Control: $90,000 / 500 batches = $180 per batch
Roasting: $1,045,000 / 95,000 roasting hours = $11 per roasting hour
Blending: $192,000 / 32,000 blending hours = $6 per blending hour
Packaging: $120,000 / 24,000 packaging hours = $5 per packaging hour
Total Manufacturing Overhead Cost Assigned:
For Kenya Dark coffee:
Purchasing: 20,000 pounds / 20,000 pounds per order * $280 per order = $280
Material Handling: 80,000 pounds / 5,000 pounds per batch * 2 setups * $193 per setup = $6,160
Quality Control: 80,000 pounds / 5,000 pounds per batch * 500 batches * $180 per batch = $1,440
Roasting: 80,000 pounds / 100 pounds per roasting * 1.5 roasting hours * $11 per roasting hour = $13,200
Blending: 80,000 pounds / 100 pounds per blending * 0.5 blending hours * $6 per blending hour = $2,400
Packaging: 80,000 pounds / 100 pounds per packaging * 0.3 packaging hours * $5 per packaging hour = $960
Total Manufacturing Overhead Cost Assigned for Kenya Dark coffee = $280 + $6,160 + $1,440 + $13,200 + $2,400 + $960 = $24,440
For Viet Select coffee:
Purchasing: 500 pounds / 500 pounds per order * $280 per order = $280
Material Handling: 4,000 pounds / 500 pounds per batch * 2 setups * $193 per setup = $3,872
Quality Control: 4,000 pounds / 500 pounds per batch * 500 batches * $180 per batch = $7,200
Roasting: 4,000 pounds / 100 pounds per roasting * 1.5 roasting hours * $11 per roasting hour = $7,920
Blending: 4,000 pounds / 100 pounds per blending * 0.5 blending hours * $6 per blending hour = $480
Packaging: 4,000 pounds / 100 pounds per packaging * 0.3 packaging hours * $5 per packaging hour = $240
Total Manufacturing Overhead Cost Assigned for Viet Select coffee = $280 + $3,872 + $7,200 + $7,920 + $480 + $240 = $20,992
b. To compute the amount of manufacturing overhead cost per pound of Kenya Dark coffee and Viet Select coffee, divide the total manufacturing overhead cost assigned by the expected sales in pounds.
Manufacturing Overhead Cost per Pound:
For Kenya Dark coffee: $24,440 / 80,000 pounds = $0.3055 per pound
For Viet Select coffee: $20,992 / 4,000 pounds = $5.248 per pound
c. To determine the unit product cost of one pound of Kenya Dark coffee and one pound of Viet Select coffee, add the direct materials cost, direct labor cost, and the manufacturing overhead cost per pound.
Unit Product Cost:
For Kenya Dark coffee: $4.50 + $0.34 + $0.3055 = $5.1455 per pound
For Viet Select coffee: $2.90 + $0.34 + $5.248 = $8.488 per pound
Therefore, the unit product cost of one pound of Kenya Dark coffee is $5.15, and the unit product cost of one pound of Viet Select coffee is $8.49 using the activity-based absorption costing approach.
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Why do inventory and supply planners sometimes fail to follow the sales and operations planning (S\&OP) process? Their roles keep them so busy that they tend to run out of time. Inventory planners are often excluded from S\&OP altogether, so they don't know the process in the first place. They are biased against the process from the outset, because it rarely works. S8.OP often takes place in meetings that are above their level in the organization; they are unsure what to do because they don't have all the needed data to decide. What is a "target inventory position"? the amount of inventory left over at the end of a period (day/week/quarter) the quantity of stock on hand + on order that will achieve a desired service level the amount of inventory we intend to sell in a period the amount of inventory on hand at the beginning of a period (day/week/quarter)
The target inventory position takes into account factors such as lead times, demand variability, and desired service levels to determine the appropriate amount of inventory to carry at any given time. By setting a target inventory position, companies can avoid stockouts and reduce excess inventory
A "target inventory position" is the quantity of stock on hand plus stock on order that will achieve a desired service level. It represents the optimal level of inventory that a company should maintain to meet customer demand while minimizing costs associated with excess inventory.
The target inventory position takes into account factors such as lead times, demand variability, and desired service levels to determine the appropriate amount of inventory to carry at any given time. By setting a target inventory position, companies can avoid stockouts and reduce excess inventory, which can help improve customer satisfaction and profitability.
a "target inventory position" is essentially the ideal amount of inventory a company should aim to have on hand at any given time in order to meet customer demand while minimizing overall costs. This target level takes into account a number of different factors such as:
Lead times: The amount of time it takes for a supplier to deliver new inventory.
Demand variability: How much customer demand fluctuates over time.
Desired service levels: How often a company wants to be able to fulfill customer orders.
By considering these and other variables, companies can determine the optimal balance between carrying enough inventory to meet customer demand efficiently while avoiding excess stock that would be costly to store and manage. This target inventory position helps guide decisions around when to order new inventory, how much to order, and how often to order it. Ultimately, setting and managing this target inventory position can help businesses keep their supply chains running smoothly and ensure they are meeting customer needs with minimal waste or inefficiency.
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