The segmented pricing strategy being used in this example is "Student Discount Pricing."
The segmented pricing strategy being used in this example is "Student Discount Pricing" or "Segmented Pricing based on customer characteristics." This strategy involves offering different prices to different customer segments based on specific characteristics or attributes.
In the given case, the airline company is implementing a segmented pricing strategy by offering university students the benefit of bringing one extra bag free of charge.
This is a form of differential pricing based on the customer segment of university students. The airline recognizes that students, as a specific segment, have different needs and preferences compared to other passengers.
By providing a student discount in the form of an extra bag allowance, the airline aims to attract and retain student customers. This strategy acknowledges that students may have unique travel requirements, such as carrying additional luggage due to longer stays or academic purposes.
Segmented pricing based on customer characteristics allows companies to tailor their pricing and offerings to different customer segments, taking into account their willingness to pay, preferences, and specific needs. It helps companies attract and retain customers within each segment by providing customized value propositions.
Implementing such a strategy benefits both the airline and the students. The airline can increase its market share among the student segment by offering an attractive pricing advantage, while students can enjoy the convenience and cost savings associated with the extra bag allowance.
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Which of the following statements is false? O a. I use a shark as a metaphor for strategy because a cut-throat firm is able to beat its rivals. O b. Both new and established organizations can benefit from having a mission statement. O c. An organization's mission reflects its values and philosophy. O d. A firm's strategy involves decisions that relate to the firm's ability to compete and succeed in the marketplace. O e. none of the above
The false statement is: a. I use a shark as a metaphor for strategy because a cut-throat firm is able to beat its rivals. The false statement is that using a shark as a metaphor for strategy implies that a cut-throat firm is able to beat its rivals.
The use of a shark as a metaphor for strategy does not necessarily imply that a cut-throat firm is able to beat its rivals. While the metaphor of a shark can convey the idea of aggressiveness and competitiveness in business, strategy itself is not solely focused on cut-throat tactics. A successful strategy considers various factors such as market dynamics, customer needs, competitive advantage, and long-term sustainability. A well-developed strategy takes into account both the internal capabilities of the organization and the external environment in order to achieve its goals. Therefore, the use of a shark metaphor for strategy does not imply that a cut-throat firm is the only way to succeed.
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Istisna'a is an investment on the customer's behalf by a bank. True False
False. Istisna'a is not an investment on the customer's behalf by a bank.
Istisna'a is a term used in Islamic finance to refer to a specific type of contract. It is a form of contract manufacturing or construction where a buyer places an order for a specific product or asset to be manufactured or constructed by the seller according to the buyer's specifications. The seller agrees to deliver the product or asset at a future date.
In Istisna'a, the customer (buyer) is typically an individual or a company seeking a specific product or asset, while the bank or financial institution acts as a facilitator or intermediary in arranging the contract. The bank may provide financing or assist in structuring the transaction, but it does not make an investment on the customer's behalf.
Istisna'a can be used in various sectors such as real estate, infrastructure development, or manufacturing. It allows individuals or businesses to obtain goods or assets that are tailored to their needs. The bank's role is to ensure compliance with Islamic principles and facilitate the transaction rather than making an investment on behalf of the customer. Therefore, the statement that Istisna'a is an investment on the customer's behalf by a bank is false.
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A firm is following level production strategy at minimum level of 45 units per day and cover the remainder by subcontracting. Over the next twelve months (its Intermediate period), the firm estimated its demand to be 13500 units. If the cost of subcontracting is 7815 per unit and the firm has 250 production days per year, what is the total cost of subcontracting $3750 $202500 $11500 $30000
The total cost of subcontracting is $17,585,250.The firm is implementing a level production strategy with a minimum production level of 45 units per day. Any additional demand beyond this level is subcontracted.
Over the next twelve months, the firm estimates a total demand of 13,500 units.
The cost of subcontracting is given as $7,815 per unit, and the firm has 250 production days per year. We need to calculate the total cost of subcontracting.
To calculate the total cost of subcontracting, we need to determine the number of units that will be subcontracted and then multiply it by the cost per unit.
The firm's production strategy maintains a minimum level of 45 units per day. Therefore, the total production for the year would be 45 units per day multiplied by 250 production days, resulting in 11,250 units produced internally.
To fulfill the remaining demand of 13,500 units, we subtract the internally produced units from the total demand: 13,500 - 11,250 = 2,250 units that need to be subcontracted.
Now, we can calculate the total cost of subcontracting by multiplying the number of subcontracted units by the cost per unit: 2,250 units * $7,815 per unit = $17,585,250.
Therefore, the total cost of subcontracting is $17,585,250.
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A subsidy transfers surplus from the consumer to the producer. The statement is :
Select one:
True
False
The statement is false. A subsidy is a financial assistance or support provided by the government to producers or consumers to encourage the production or consumption of a particular good or service. It is typically given to reduce the cost of production or consumption and can have various effects on both producers and consumers.
In the case of a subsidy to producers, it is true that it can benefit them by reducing their costs of production. This can lead to an increase in their profits and incentivize them to produce more. However, it is not accurate to say that the surplus is transferred from the consumer to the producer.
When a subsidy is provided, it effectively lowers the price that the consumer pays for the subsidized good or service. As a result, consumers can purchase the product at a lower price than they would have paid without the subsidy. This leads to an increase in consumer surplus, which is the difference between the price consumers are willing to pay and the actual price they pay.
Therefore, it is incorrect to say that a subsidy transfers surplus from the consumer to the producer. Instead, a subsidy can benefit both producers and consumers by reducing costs for producers and allowing consumers to purchase the product at a lower price. It can be seen as a mechanism to redistribute resources and encourage specific economic activities.
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The hypothetical country Adestria has a larger supply of labor than another hypothetical country Elementia. Suppose the labor supply in both countries increases by the same amount while their physical capital stocks remain unchanged. Under this scenario, the increase in Elementia's output will be more than the increase in Adestria's output the increase in Adestria's output will be more than the increase in Elementia's output Adestria's and Elementia's income per capita will decrease Adestria's and Elementia's income per worker will decrease MacBook Pro
The correct answer is: The increase in Elementia's output will be more than the increase in Adestria's output. On the other hand, Adestria, with its larger supply of labor, will experience a relatively smaller increase in output due to the same increase in labor supply.
In the given scenario, it is stated that both countries experience an increase in labor supply by the same amount while their physical capital stocks remain unchanged. This means that the only factor that changes is the labor input in production.
Since Elementia has a smaller supply of labor compared to Adestria, the increase in labor supply will have a relatively larger impact on Elementia's output. This is because Elementia's production is more labor-intensive, and any increase in the labor input will lead to a proportionately higher increase in output.
On the other hand, Adestria, with its larger supply of labor, will experience a relatively smaller increase in output due to the same increase in labor supply. This is because Adestria's production is already more heavily reliant on labor, and the additional labor input has a diminishing marginal impact on output.
Therefore, the correct answer is that the increase in Elementia's output will be more than the increase in Adestria's output.
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Which of the following is NOT a step performed by the salesperson during the selling process? demonstrating the product prospecting and qualifying following up on the sale handling objections conducting market research
The step that is NOT typically performed by the salesperson during the selling process is:
conducting market research.
While market research is an essential activity for businesses, it is typically conducted by marketing teams or researchers who gather and analyze market data to inform sales and marketing strategies. Salespeople primarily focus on tasks such as prospecting and qualifying leads, demonstrating the product, following up on sales, and handling objections. Market research falls more within the purview of marketing professionals rather than salespeople.
Sales roles can vary widely depending on the industry, company size, and type of sales (e.g., retail, inside sales, field sales, account management). The specific tasks and responsibilities may vary, but the overall objective remains the same—to effectively promote and sell products or services while building positive customer relationships.
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Calculate payroll OBJ. 2 An employee earns $25 per hour and 2 times that rate for all hours in excess of 40 hours per week. Assume that the employee worked 48 hours during the week. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and federal income tax to be withheld was $239.15. a. Determine the gross pay for the week. b. Determine the net pay for the week.
The employee earns $25 per hour and worked 48 hours for the week; therefore, the gross pay for the week would be 25 x 40 = $1,000 for the first 40 hours.
The employee worked 8 hours in excess of 40 hours; therefore, the employee will be paid 2 times that rate for all hours in excess of 40 hours per week, which would be 2 x 25 = $50. So, the employee will be paid an additional $50 x 8 = $400 for the 8 hours worked in excess of 40 hours for the week. Gross pay for the week would be the total pay the employee has earned before any deductions have been made.
Hence, the gross pay for the week would be $1,000 + $400 = $1,400.b. The net pay for the week would be $983.10. The total amount of tax deductions that would be made from the gross pay for the week would be: Social security tax rate = 6.0% x 1,400 = $84.00Medicare tax rate = 1.5% x 1,400 = $21. 00Federal income tax to be withheld = $239.15Total amount of tax deductions = $84.00 + $21.00 + $239.15 = $344.15Net pay for the week would be the total pay the employee has earned after all the deductions have been made.
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expenses 12 EBITDA 13 Depreciation and amorization 14 EBIT 15 Interest expense 16 Pretax income 17 Income taxes 18 Net income 19 Shares outstanding 20 EPS 21 22 Exhibit 2. Lagorge Systems, Inc Balance Sheet 23 in millions) 24 2017 25 Current Assets 26 Cash and equivalents 210.00 $ 27 Receivables $ 474.00 $ 28 Inventories 5 520.00 $ 29 Total current assets 1,204.00 $ 30 31 Noncurrent Assets 32 Property, plant, and equipment 2,501.00 $ 33 Less. Accumulated depreciation 604005 34 Net property, plant, and equipment 1,897.00 $ 35 Other noncurrent assets 100005 36 Total noncurrent assets 199700 37 Total assets 3,201 005 38 39 Current Liabilities 2018 248.00 513.00 564.00 1,325.00 2,850.00 784.00 2,066.00 100 00 2.166.00 3.491.00
Depreciation and amortizationNoncurrent Assets 32 Property, plant, and equipment Net property, plant, and equipment. Depreciation and amortization are the charges made against a non-current asset over its useful life.
Noncurrent Assets 32 Property, plant, and equipment is an account that represents the property, plant, and equipment that a company owns and uses in its daily operations. Net property, plant, and equipment is a measure of a company's fixed assets less accumulated depreciation. Given that there is no question prompt in the question, it is difficult to determine what specifically needs to be answered, but based on the information provided, here is a possible response. The lagorge systems have a total non-current asset of 199700, and from this, the property, plant, and equipment is 2,501.00$ while the accumulated depreciation is 604005 and net property, plant, and equipment is 1,897.00$. Depreciation and amortization expenses are deducted from the company's total revenue, resulting in EBITDA. EBITDA is then adjusted for depreciation and amortization, resulting in EBIT. Interest expenses are then deducted from EBIT to arrive at pretax income. Income taxes are calculated and deducted to arrive at net income. Shares outstanding and EPS are measures of the company's profitability that are based on the number of shares it has issued and outstanding. The exhibit provided shows the company's balance sheet as of 2017. It indicates that the company has a total asset of 3,201.005 million dollars, including both current and non-current assets. The current assets of the company are 1,204.00 million dollars, while the current liabilities are 2,850.00 million dollars. Therefore, the company has a negative working capital of -1,646.00 million dollars.
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Variance Drill #4 Hughley Company produces a product requiring 5 pounds of material costing $3.00 per pound. During January, Hughley purchased 5,200 pounds of material for $15,000 and used the material to produce 900 products. What was the total materials variance for January?
To calculate the total materials variance, we need to find the difference between the actual cost and the standard cost of materials. Standard cost = 900 * 5 * $3.00 = $13,500
The actual cost of the material purchased was $15,000.
Total materials variance = Actual cost - Standard cost
= $15,000 - $13,500
= $1,500
Standard cost refers to the predetermined cost that a company expects to incur for producing a unit of product or providing a service. It is an estimated cost that serves as a benchmark or standard against which the actual costs can be compared. The standard cost includes factors such as direct materials, direct labor, and overhead, and is typically based on historical data, industry standards, and management's expectations. By comparing actual costs to standard costs, companies can assess their performance and identify any variances or deviations that may require attention.
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When there are omitted variables in the regression, which are determinants of the dependent variable, then L (10)
you cannot measure the effect of the omitted variable, but the estimator of your included variable(s) is (are) unaffected.
this has no effect on the estimator of your included variable because the other variable is not included.
this will always bias the OLS estimator of the included variable. the OLS estimator is biased if the omitted variable is correlated with the included variable.
When there are omitted variables in a regression model that are determinants of the dependent variable, the effect of the omitted variable cannot be directly measured. However, the estimator of the included variable(s) is unaffected by the omission. The omission of a variable does not necessarily have an effect on the estimator of the included variable because the omitted variable is not included in the model. The bias in the Ordinary Least Squares (OLS) estimator occurs when the omitted variable is correlated with the included variable, which can lead to biased estimates.
When conducting regression analysis, it is important to include all relevant variables that influence the dependent variable. Omitting variables that are determinants of the dependent variable can lead to biased estimates. In such cases, the effect of the omitted variable cannot be directly measured because it is not included in the model.
However, the estimator of the included variable(s) remains unaffected by the omission of variables. This means that the estimates for the included variable(s) are still reliable and unbiased, as long as the omitted variable is not correlated with the included variable.
On the other hand, if the omitted variable is correlated with the included variable, it can lead to biased estimates in the OLS regression. This bias occurs because the omitted variable influences the dependent variable and is not accounted for in the regression model. In such cases, the estimated relationship between the included variable and the dependent variable will be distorted.
Therefore, it is crucial to carefully consider and include all relevant variables in a regression model to avoid omitted variable bias and obtain accurate estimates of the relationships between variables.
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Management is reviewing capital investment calculations for a current proposal. Which of the following will increase the net present value of the proposal?
Group of answer choices
An increase in the discount rate
An increase in the initial investment
A decrease in the discount rate
A decrease in annual cash inflows
An increase in the discount rate will increase the net present value of the proposal, while an increase in the initial investment or a decrease in annual cash inflows will have the opposite effect.
The net present value (NPV) of a capital investment proposal is a measure of its profitability and value. It represents the difference between the present value of cash inflows and the present value of cash outflows over the investment's lifetime. A positive NPV indicates that the investment is expected to generate more cash inflows than outflows and is considered financially favorable.
When considering factors that can affect the NPV, an increase in the discount rate will increase the NPV of the proposal. The discount rate represents the required rate of return or the cost of capital for the investment. As the discount rate increases, the present value of future cash flows decreases. This means that cash flows further in the future are less valuable in today's terms. Consequently, an increase in the discount rate will decrease the present value of cash outflows and cash inflows, thereby increasing the overall NPV.
On the other hand, an increase in the initial investment or a decrease in annual cash inflows would have a negative impact on the NPV as they would decrease the present value of cash inflows and increase the present value of cash outflows. Therefore, among the given options, only an increase in the discount rate will increase the net present value of the proposal.
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(a) A firm's production function is given by Q=K² +L² where Q, L and K denote the number of units of output, labour and capital, respectively. Labour costs are $2 per unit, capital costs are $1 per unit. If the firm is prepared to spend $10 on input costs, then (i) Find the stationary values of K and L. Show optimum points of K and L by drawing Isoquant and Isocost curves. (ii) Evaluate second-order conditions of the objective function at the stationary values of K and L and comment on it. (b) A monopolist firm sells two products Q, and Q, for which the demand functions are Q=25-0.5PP, is the price of good 1 Q₁ =30-P₂; P, is the price of good 2 and the combined total cost (TC) function is TC=Q+20, 0, +0+20 (i) Find the profit-maximizing level of price and outputs for each product. (ii) Show that the second-order conditions (show all three conditions) for a maximum profit are satisfied.
(a) (i) K=2, L=4 for Isoquant a circle and Isocost a circle.
(ii) Second-order condition is not satisfied.
(b) (i) P₁=15, Q₁=10, P₂=15, Q₂=15.
(ii) Second-order conditions are not satisfied.
(a)
(i) To find the stationary values of K and L, we need to minimize the cost function subject to the production function constraint.
The cost function (C) is given by:
C = 2L + K
The production function (Q) is given by:
Q = K² + L²
The budget constraint is:
C = 10
We can rewrite the cost function as:
C = 2L + K = 10
Rearranging the cost function, we get:
K = 10 - 2L
Substituting this value of K into the production function, we have:
Q = (10 - 2L)² + L²
Q = 100 - 40L + 4L² + L²
Q = 5L² - 40L + 100
To find the stationary values of K and L, we need to take the first derivative of the production function with respect to L and set it equal to zero:
dQ/dL = 10L - 40 = 0
Solving this equation, we find L = 4.
Substituting the value of L back into the cost function, we can find the corresponding value of K:
K = 10 - 2L = 10 - 2(4) = 2
Therefore, the stationary values of K and L are K = 2 and L = 4.
To show the optimum points of K and L, we can plot the isoquant and isocost curves:
Isoquant curve: A curve representing different combinations of capital (K) and labor (L) that produce the same level of output (Q). In this case, the production function is Q = K² + L², so we have Q = 2² + 4² = 4 + 16 = 20. Thus, the isoquant curve is Q = 20.
Isocost curve: A curve representing different combinations of K and L that result in the same total cost (C). The cost function is C = 2L + K = 10, so we can rewrite it as L = (10 - K) / 2. Plotting the isocost curve, we can choose some values of K and calculate the corresponding L values:
K = 0, L = (10 - 0) / 2 = 5
K = 2, L = (10 - 2) / 2 = 4
K = 4, L = (10 - 4) / 2 = 3
K = 6, L = (10 - 6) / 2 = 2
K = 8, L = (10 - 8) / 2 = 1
We can now plot the isoquant curve Q = 20 and the isocost curve L = (10 - K) / 2 on a graph to determine the optimum points of K and L.
(ii) To evaluate the second-order conditions, we need to calculate the second partial derivatives of the production function with respect to K and L:
d²Q/dK² = 0 (second partial derivative with respect to K)
d²Q/dL² = 10 (second partial derivative with respect to L)
d²Q/dKdL = 0 (second partial derivative with respect to K and L)
The second-order conditions for a maximum require that:
d²Q/dK² < 0 (concave function in the K direction)
d²Q/dL² < 0 (concave function in the L direction)
(d²Q/dK²)(d²Q/dL²) - (d²Q/dKdL)² > 0 (negative determinant of the Hessian matrix)
In this case, d²Q/dK² = 0, d²Q/dL² = 10, and d²Q/dKdL = 0, so the second-order conditions are not satisfied. The Hessian determinant is equal to zero, which means we cannot determine whether the stationary values of K and L correspond to a maximum or a minimum without further analysis.
(b)
(i) To find the profit-maximizing level of price and outputs for each product, we need to maximize the profit function.
The profit function (π) is given by:
π = (P₁ - TC₁) * Q₁ + (P₂ - TC₂) * Q₂
The demand functions are:
Q₁ = 25 - 0.5P₁
Q₂ = 30 - P₂
The total cost function is:
TC = Q + 20Q₁ + 20Q₂
Substituting the demand and cost functions into the profit function, we have:
π = (P₁ - (Q + 20Q₁ + 20Q₂)) * (25 - 0.5P₁) + (P₂ - (Q + 20Q₁ + 20Q₂)) * (30 - P₂)
To find the profit-maximizing level of price and outputs, we need to take the first derivative of the profit function with respect to P₁, P₂, Q₁, and Q₂ and set them equal to zero:
∂π/∂P₁ = 25 - Q - 20Q₂ - 1.5P₁ = 0
∂π/∂P₂ = 30 - Q - 20Q₁ - 2P₂ = 0
∂π/∂Q₁ = P₁ - 25 + 0.5P₁ = 0
∂π/∂Q₂ = P₂ - 30 + P₂ = 0
Solving these equations simultaneously will give us the profit-maximizing level of price and outputs for each product.
(ii) To show that the second-order conditions for maximum profit are satisfied, we need to calculate the second partial derivatives of the profit function with respect to P₁, P₂, Q₁, and Q₂:
∂²π/∂P₁² = -1.5 (second partial derivative with respect to P₁)
∂²π/∂P₂² = -2 (second partial derivative with respect to P₂)
∂²π/∂Q₁² = 0 (second partial derivative with respect to Q₁)
∂²π/∂Q₂² = 0 (second partial derivative with respect to Q₂)
The second-order conditions for maximum profit require that:
∂²π/∂P₁² < 0 (concave function in the P₁ direction)
∂²π/∂P₂² < 0 (concave function in the P₂ direction)
∂²π/∂Q₁² > 0 (convex function in the Q₁ direction)
∂²π/∂Q₂² > 0 (convex function in the Q₂ direction)
In this case, ∂²π/∂P₁² = -1.5, ∂²π/∂P₂² = -2, ∂²π/∂Q₁² = 0, and ∂²π/∂Q₂² = 0. Therefore, the second-order conditions for maximum profit are not satisfied.
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Choose the situation where the employer is not violating Title VII's prohibition against discrimination on the basis of religion.
Question 23 options:
1) Charles, the president of a company that owns several gas stations, needs managers for the new convenience stores he has decided to add to the stations. He posts a job announcement at the Hindu Temple he attends and asks other members of the temple to refer only Hindu friends or family members who may be interested in the position. He does no other recruitment.
2) Mary is a human resources officer who is filling a vacant administrative position at her company. During the application process, she performs an Internet search on the candidates and learns that one applicant, Jonathan, has written an article for the local chapter of the Ethical Society setting forth his view that religion has been historically divisive and explaining why he subscribes to no religious beliefs or practices. Although Mary believes he is the most qualified candidate, she does not hire him because she knows that many current company employees are observant Christians like her, and she believes they would be more comfortable working with someone like-minded.
3) Joanne, a family-owned retail store clerk, is frequently 30-45 minutes late for her shift several days per week when she attends Mass at a Catholic Church across town. Her employer, Donald, who has budget restrictions and is unable to hire another employee during that shift, has spoken with Joanne regarding a shift change, but that is not a viable option for Joanne. On most days when Joanne is late, Donald has found himself overwhelmed tending to customers and the cash register at the same time. He is determined to fire Joanne the next time she is late.
4) Darpak, who practices Buddhism, holds a Ph.D. degree in engineering and applied for a managerial position at the research firm where he has worked for 10 years. He was rejected in favor of a non-Buddhist candidate who was less qualified.
The employer is not violating Title VII's prohibition against discrimination on the basis of religion in the following situation: Charles, the president of a company that owns several gas stations, needs managers for the new convenience stores he has decided to add to the stations.
He posts a job announcement at the Hindu Temple he attends and asks other members of the temple to refer only Hindu friends or family members who may be interested in the position. He does no other recruitment.
Charles is not violating Title VII's prohibition against discrimination on the basis of religion in this situation because he has only asked members of his own religious community to refer candidates, not limited the hiring only to people of his own religion.
Title VII of the Civil Rights Act of 1964 is the federal law that prohibits employment discrimination based on race, color, religion, sex, and national origin.
Discrimination in the form of "treating someone (an applicant or employee) unfavorably because he/she is of a certain religion, has a particular religious belief or practice, or because he/she is married to or associated with someone of a particular religion" is prohibited by Title VII.So, Charles is not violating the law in the given situation.
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40
d A price ceiling that is set below the equilibrium price will cause Multiple Choice producer surplus to fall. total economic surplus to rise. quantity supplied to exceed quantity demanded. an increas
A price ceiling that is set below the equilibrium price will cause producer surplus to fall.
A price ceiling that is set below the equilibrium price will cause producer surplus to fall. When a price ceiling is imposed below the equilibrium price, it restricts the price at which a good or service can be sold. This results in a situation where the price is lower than what suppliers are willing to sell the product for. As a result, producers receive less revenue, leading to a decrease in producer surplus.
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Consider the following information: Demand rate (D) = 1,500 units per hour Lead time (T) = 8 hours Container capacity (C) = 230 units Safety factor (x) = 15% a. The number of kanban production cards is number.) (Enter your response rounded up to the next whole
We cannot have partial kanban cards, so we need to round it up to the next whole number, which is 13. So, the number of kanban production cards is 13.
What is done?In a production system, kanban is an inventory-control system that governs the flow of production as well as the consumption of parts. A single kanban card indicates that the right to manufacture or consume a certain amount of product has been granted.
It's important to understand the concepts of kanban to answer this question. Let's try to understand the formula for calculating the number of kanban production cards from the given information, Demand rate (D) = 1,500 units per hour Lead time (T) = 8 hours Container capacity (C) = 230 units Safety factor (x) = 15%.
Here, we can use the below-given formula to calculate the number of kanban cards;N = (DT + xC) / C.Where, N is the number of kanban production cards D is the demand rate T is the lead time C is the container capacity x is the safety factor, So, we get N = (1,500 x 8 + 0.15 x 230) / 230= 12.35.
We cannot have partial kanban cards, so we need to round it up to the next whole number, which is 13. So, the number of kanban production cards is 13.
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. In a certain economy, the components of planned spending are given by C= 640+0.8(Y-T)-400r, |= = 250-600r+ G=300, NX=20, T-250. Find the short-run equilibrium output setting r=0.05.+ 16. For the economy in the Question above, suppose the Fed sets the real interest rate at 3 percent. Find short-run equilibrium output.
The components of planned spending are given by: C = 640 + 0.8(Y - T) - 400rI = 250 - 600rG = 300NX = 20T = 250
Now that the given components have been provided above, find the short-run equilibrium output by setting r=0.05:
Given that r = 0.05, then: Y = C + I + G + NXY = 640 + 0.8(Y - T) - 400r + 250 - 600r + 300 + 20 + 250
Using algebra, solve for Y:Y = 640 + 0.8Y - 0.8T - 400r + 250 - 600r + 300 + 20 + 250Y - 0.8Y = 640 - 0.8T - 400r + 250 - 600r + 300 + 20 + 2500.2Y = 2,000 - 400r - 600r - 0.8TY = 10,000 - 2,000r - 4TIf T = 250, then: Y = 10,000 - 2,000r - 4(250)Y = 10,000 - 2,000r - 1,000Y = 9,000 - 2,000r
When r = 0.05, then: Y = 9,000 - 2,000(0.05)Y = 9,000 - 100Y = 8,900
Thus, the short-run equilibrium output is 8,900 when r = 0.05.
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There is one period. Assume a representative agent with utility function U(ct) = 1 - exp(nct). In parts b) through h) assume the following: • n = .01. • Consumption at t = 0 is Co = 25. • At t = 1 one of two states 0₁ and 2 eventuate with probability #₁ = .5, and 72 = .5, respectively. • There are two complex securities s¹ and s². s¹ has a payoff of 23 in 0₁ and 27 in 02. • s² has a payoff of 21 in 0₁ and 31 in 02. Answer the following: (a) Derive an expression for the stochastic discount factor mt+1? (b) What are the prices q¹ and q² of complex securities s¹ and s² at t = 0?
The stochastic discount factor (SDF) in this scenario can be derived using utility function & probabilities of two states. The prices of complex securities s¹ & s² at time t=0, denoted as q¹ and q², can be calculated by
Let's start with the expression for mt+1. Since there are two possible states at t=1, we can calculate the expected utility as follows:
[tex]EU(t=1) = p₁ * U(c₁) + p₂ * U(c₂[/tex],
For s¹: [tex]c1 = Co - 23 = 25 - 23[/tex] ,[tex]c2 = Co - 27 = 25 - 27[/tex].
For s²:[tex]c1 = Co - 21 = 25 - 21[/tex], [tex]c2 = Co - 31 = 25 - 31[/tex].
Finally, to calculate the prices q¹ and q² of the complex securities at t=0, we divide the expected utilities at t=1 by the respective SDFs and sum them up:[tex]q^{1} = EU^{1} (t=1) / mt+1[/tex], [tex]q^{2}= EU^{2} (t=1) / mt+1[/tex].
By plugging in the calculated values, you can find the prices of the complex securities s¹ and s² at t=0.
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Zahari runs fitness centers in Penang and Kangar, each center generating its own cash inflows and is accounted as a cash generating unit. As at 31 October 2012, the value in use and its fair value less selling costs of the Kangar center were determined to be RM9,000,000 and RM10,500,000 respectively. The recoverable amount of the building was RM5,000,000. On the same date, the net identifiable assets of the center in Kangar comprise of the following:
Building RM
Furniture and 4,800,000
fittings 2,000,000
Goodwill 900,000
Equipment 6,200,000
Trade receivables 300,000
Bank overdraft (75,000)
Required:
a. Discuss whether there will be impairment loss for the building.
b. Determine the impairment loss and the new carrying amount of the assets in the cash generating unit. Show all workings. Round up your answers to the nearest RM.
c. Discuss how the reversal of impairment loss should be treated if any.
a. Yes, there will be an impairment loss for the building. This is because the recoverable amount of the building (RM5,000,000) is lower than its carrying amount (RM9,000,000).
b. To determine the impairment loss and new carrying amount of the assets in the cash generating unit, we compare the recoverable amount (RM5,000,000) with the carrying amount of the assets. The carrying amount of the assets is the sum of their individual carrying amounts, which are:
Building: RM9,000,000
Furniture and fittings: RM4,800,000
Goodwill: RM900,000
Equipment: RM6,200,000
Trade receivables: RM300,000
Bank overdraft: RM75,000 (since it is a liability, it is subtracted)
The total carrying amount is RM21,225,000 (9,000,000 + 4,800,000 + 900,000 + 6,200,000 + 300,000 - 75,000).
Since the recoverable amount (RM5,000,000) is lower than the carrying amount (RM21,225,000), there is an impairment loss. The impairment loss is the excess of the carrying amount over the recoverable amount, which is RM16,225,000 (21,225,000 - 5,000,000). The new carrying amount of the assets in the cash generating unit would be RM5,000,000 (the recoverable amount).
c. The reversal of impairment loss should be treated in the following manner: If there is an indication that the impairment loss has reversed, the carrying amount of the cash generating unit's assets should be increased to their recoverable amount, up to the amount that would have been determined if no impairment loss had been recognized in prior years. Any reversal of impairment loss should be recognized as income in the profit and loss statement, up to the amount of the original impairment loss. However, the reversal should not exceed the carrying amount of the asset that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.
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JB Ltd. a construction business, currently owned by XYZ Plc., operates a standard marginal cost accounting system. Information relating to Product J, which is made in one of the company departments is given below: Product J Direct Material 6 kilograms at £4 per kg Direct Labour 1 hour at £12 per hour Variable Production Overhead Total *Variable production overhead varies with units produced. Budgeted fixed production overhead, per month: £100,000. Budgeted production for Product J: 20,000 units per month. Actual production and costs for month 6 are as follows: Units of J Produced Direct materials purchased and used: 113,500kg Direct labour: 17,800 hours Variable production overhead incurred Fixed production overhead incurred Standard Marginal Product Cost Unit (£) (iii) (iv) 24 12 3 39 18,500 Unit 442,650 223,000 58,800 104,000 Requirement 3.1 Prepare a columnar statement showing, by element of cost, the: Original Budget; (ii) Flexible Budget; Deia het and Actual; Total Variances 1 -The end-- ^ Lan statemen dạng bảng beang 3.2 Subdivide the variances for direct material and direct labour shown in your answers to (a) (i) - (iv) above to be more informative for managerial purposes. 3.3 Critically identify the possible causes of the labour and material variances calculated in the above (3 causes for each variance).
Statement showing, by element of cost, the:Original Budget, Flexible Budget, and Actual; Total Variances:Elements of cost Original Budget Flexible Budget Actual Variance Units produced (A) 20,000 20,000 18,500 1,500 Direct materials ($6 per kg) (B) $480,000 $480,000 $453,400 $(26,600) Direct labour ($12 per hour)
(iii) Original budget: The cost of production for product J for the original budget can be calculated using the given information:Direct Material cost:6kg x £4 per kg = £24 per unitDirect Labor cost:1 hour x £12 per hour = £12 per unitVariable production overhead: £3 per unitFixed production overhead: £100,000/20,000 units = £5 per unitStandard Marginal Product Cost Unit = £24 + £12 + £3 + £5 = £44 per unitTotal cost for 20,000 units = £880,000 (20,000 x £44)Flexible budget:Flexible budget calculations are based on the actual production and not on the budgeted production. The budgeted production for product J is 20,000 units per month.
Material price variance: This variance is caused by the differences in the actual purchase price and the budgeted purchase price for direct materials.Material usage variance: This variance is caused by the differences between the actual direct materials used and the standard quantity of direct materials expected to be used. The variance may be due to overproduction or waste.Labour efficiency variance: This variance is caused by differences between the actual labor hours worked and the standard labor hours expected to be worked. It may be caused by an inefficient labor force, inadequate training, or poor supervision.Labor rate variance: This variance is caused by the differences between the actual labor rate and the standard labor rate expected. It may be caused by changes in wage rates, changes in the workforce, or changes in the working environment.
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LaPlace Power and Light Co. The southeastern Division of LaPlace Power and Light Company is responsible for providing dependable electric service to customers in and around the area of Metairie, Kenner, Destrehan, LaPlace, Lutcher, Hammond, Pontchatoula, Amite, and Bogalusa, Louisiana. One material used extensively to provide this service is the 1/0 AWG aluminum triplex cable, which delivers the electricity from the distribution pole to the meter loop on the house. The Southeastern Division Storeroom purchases the cable that this division will use. For the coming year, this division will need 499,500 feet of this service cable. Because this cable is used only on routine service work, practically all of it is installed during the 5 normal workdays. The current cost of this cable is 41.4 cents per foot. Under the present arrangement with the supplier, the Southeastern Storeroom must take one twelfth of its annual need every month. This agreement was reached in order to reduce lead time by assuring Laplace a regular spot on the supplier's production schedule. Without this agreement, the lead time would be about 12 weeks. No quantity discounts are offered on this cable; however, the supplier requires that a minimum of 15,000 feet be on an order. The Southeastern Storeroom has the space to store a maximum of 300,000 feet of 1/0 AWG aluminum service cable. Associated with each shipment are ordering costs of $50, which include all the costs from making the purchase requisitions to issuing a check for payment. In addition, inventory carrying costs (including taxes) on all items are considered to be 10% of the purchase price per unit per year. Because the company is a government-regulated, investor-owned utility, both the Louisiana Public Service Commission and its stockholders watch closely how effectively the company, including inventory management, is managed. DISCUSSION QUESTIONS 1. Evaluate the effectiveness of the current ordering system. 2. Can the current system be improved?
1. Evaluate the effectiveness of the current ordering systemThe effectiveness of the current ordering system can be analyzed through the computation of the ordering cost, inventory carrying cost, and lead time.
Here is the analysis:Ordering Cost = $50 per orderAnnual Demand = 499,500 feetOrdering Frequency = 499,500 feet ÷ 12 months = 41,625 feet per monthNumber of Orders = 499,500 feet ÷ 15,000 feet = 33.3 ordersAnnual Ordering Cost = 33.3 orders × $50 per order = $1,665 per yearInventory Carrying Cost = 10% of the purchase price per unit per yearPurchase Price = 41.4 cents per foot or $0.414 per footInventory Carrying Cost = 10% × $0.414 per foot = $0.0414 per foot per yearAnnual Inventory Carrying Cost = 499,500 feet × $0.0414 per foot per year = $20,691 per yearLead Time = 12 weeks or 3 monthsAverage Inventory Level = (Annual Demand ÷ 12) × Lead Time = (499,500 feet ÷ 12) × 3 = 124,875 feetMaximum Inventory Level = 300,000 feetBased on the analysis, the current ordering system is quite effective as the annual ordering cost and the annual inventory carrying cost are reasonable. The ordering cost is only $50 per order, which is minimal. The inventory carrying cost is also reasonable at $0.0414 per foot per year. The lead time is a bit long at 12 weeks, but the average inventory level and the maximum inventory level are within the company's storage capacity.2. Can the current system be improved?The current system can be improved by reducing the lead time and the inventory carrying cost. The long lead time can be reduced by ordering the entire annual demand in a single order. The supplier requires that a minimum of 15,000 feet be on an order, and the Southeastern Storeroom needs 499,500 feet per year. Thus, the annual demand can be ordered in 34 orders of 15,000 feet and one order of 9,500 feet. This will reduce the lead time to just one delivery, which is about 5 workdays.The inventory carrying cost can also be reduced by ordering the entire annual demand in a single order. The annual demand will be 499,500 feet, which is within the maximum storage capacity of 300,000 feet. Ordering the entire annual demand will also eliminate the need for monthly orders and will reduce the ordering cost to just one order per year. This will also reduce the annual inventory carrying cost to just $12,411 (i.e., 300,000 feet × $0.0414 per foot per year).Therefore, the current system can be improved by ordering the entire annual demand in a single order. This will reduce the lead time and the inventory carrying cost, and will also reduce the ordering cost to just one order per year.
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Which of the following statements about the putting-out system is true?
• The putting-out system was proposed as an alternative to slave labor and indentured servitude.
• The putting-out system was instituted by the federal government to gain economic dominance abroad.
• The putting-out system was burdensome on workers, who had to go through apprenticeships to become journeymen.
• The putting-out system allowed merchants to rely on unskilled labor, which cut production costs.
The statement "The putting-out system allowed merchants to rely on unskilled labor, which cut production costs" is true. The putting-out system, also known as the domestic system, involved merchants subcontracting work to individuals or households who would produce goods in their own homes. This system allowed merchants to take advantage of unskilled labor, often at lower wages, resulting in reduced production costs.
The putting-out system emerged during the 17th and 18th centuries as a form of decentralized production. Merchants would provide raw materials and equipment to rural workers, who would then carry out the production process in their homes. This system allowed merchants to avoid the costs and responsibilities associated with maintaining a centralized production facility. By relying on unskilled labor, merchants could pay lower wages compared to skilled workers, resulting in cost savings.
While the putting-out system provided economic opportunities for workers who could work from home and set their own hours, it also had drawbacks. Workers often faced low wages, long hours, and limited job security. Additionally, the system relied on apprenticeships and the passing down of skills from masters to journeymen, which meant that workers had to undergo training and gain experience to become proficient.
In conclusion, the putting-out system allowed merchants to take advantage of unskilled labor, leading to reduced production costs. However, this system also had negative consequences for workers who faced low wages and limited job security.
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. Suppose that the current exchange rate is 1.00 $1.60. The indirect quote from the U.S. perspective is A. 1.00 $1.60. €0.6250 = $1.00. C. 1.60 $1.00 D. None of the above
An indirect quote is a currency quote in which the domestic currency is the quoted currency.
The indirect quote is also known as the price quotation, which refers to the amount of foreign currency per unit of domestic currency. For instance, an indirect quotation of the euro vs. the US dollar (USD) might be EUR/USD 0.85, indicating that one euro can purchase 0.85 US dollars.
Therefore, the currency in the numerator (the euro in this case) is expressed indirectly while the currency in the denominator (the US dollar) is expressed directly. Suppose that the current exchange rate is 1.00 $1.60. Therefore, 1 US dollar can buy 0.6250 euros. It means that 0.6250 euros are equal to $1. Hence, from the US perspective, the indirect quote will be €0.6250 = $1.00.Hence, is B. €0.6250 = $1.00.
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A local furniture store is advertising a deal in which you buy a $5,300 living room set with three years before you need to make any payments (no interest cost is incurred). How much money would you have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $5,300 bill in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Present value How much would you have to deposit in the savings account each month 4 percent APR to be able to pay the bill? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Annuity payment
The amount of money that you would have to deposit now in a savings account earning 4 percent APR, compounded monthly, to pay the $5,300 bill in three years is $4,471.89 (rounded to 2 decimal places).
Explanation: Present value (PV) can be defined as the amount of money you need to deposit now to have a desired amount of money in the future. If you know the future value, the interest rate, and the number of periods, then you can compute the present value. The formula to calculate the present value is:
PV = FV / (1 + r)n
Where:FV = future valuer = interest raten = number of periods
Therefore, the PV of the living room set is:
$5,300 / (1 + 0.04/12)^(3*12)= $4,471.89
(rounded to 2 decimal places)An annuity payment is a fixed payment that is made at regular intervals of time. If you know the interest rate, the number of periods, and the future value, then you can calculate the annuity payment. The formula to calculate the annuity payment is:
PMT = (r * FV) / (1 - (1 + r)^-n)
Where:r = interest rateFV = future valuen = number of periodsTherefore, the annuity payment that you would have to deposit in the savings account each month 4 percent APR to be able to pay the bill is:
$4,471.89 / [ (1 - (1 + 0.04/12)^(-3*12)) / (0.04/12) ]= $137.44
(rounded to 2 decimal places)Therefore, you would have to deposit $4,471.89 now in a savings account earning 4 percent APR, compounded monthly, to pay the $5,300 bill in three years and deposit $137.44 in the savings account each month with 4 percent APR to be able to pay the bill.
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StudentServ is a company established to provide student-focused services and products to university students in Ghana, and will operate in Accra, Tamale and Takoradi, hoping to expand to all regions. Tim, the Manager of StudentServ says the Company will provide cutting- edge services in typing, editing and proof reading, as well as project work and thesis writing and research support for Accounting, Management and IT students. Expert research services are provided on line. A team of IT specialists are available to provide technical support services for students both online and in student hostels.
StudentServ will also sell affordable products: laptops, scanners, and internet modems for easy browsing. In addition, StudentServ will sell baked beans pies that students will find nutritious.
Q1 (a) what three factors should be considered in the organizational design of Studentserv? (10 marks)
Q1 (b) Explain what type of design fits StudentServ since it desires to perform all the functions and provide the services and products as outlined above? (10 marks)
Q1 ( c ). Should StudentServ manage the operations in the different regions in the same way based on your understanding of the contingency theory?
Studentserv should consider three factors in the organizational design: goals and objectives, resource availability, and organizational structure. Since the company aims to provide various products and services, a matrix structure fits it.
(a) Three factors that should be considered in the organizational design of Studentserv are:
Goals and objectives: The business's goals and objectives must be well-defined and achievable. The structure of an organization must align with its objectives.
Resource availability: An organization's structure must reflect its resource availability. This means that resources, including human and financial, are aligned with the structure of the organization. Organizational structure: The structure of the organization is key in determining how communication and coordination will be done between employees.
(b) The type of design that fits StudentServ since it desires to perform all the functions and provide the services and products as outlined above is a matrix structure.The matrix structure is suited for businesses with complex or multiple functions and products that need to work in conjunction to accomplish a particular goal. It creates a balance between function and product to ensure that both areas of the business are effectively catered to. In this case, StudentServ's products and services will all be catered to effectively.
(c) Yes, StudentServ should manage the operations in the different regions differently based on the contingency theory. The contingency theory is about adapting to the environment. Different regions have different cultures, values, norms, and resources available. Therefore, it's vital for StudentServ to adapt to the specific regional differences. This will enable the company to operate more effectively and efficiently. By adapting, StudentServ will build a stronger reputation and better relationships with the students it serves.
Hence it should manage operations in different regions differently, according to the contingency theory.
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If you are a future business leader, how will analyzing competitor data help drive your business strategies?
If you are a future business leader, analyzing competitor data will help drive your business strategies in the following ways: By analyzing competitor data, you can determine what your business needs to do in order to compete effectively in the market.
Knowing what your competitors are doing well, what they are not doing well, and what they are likely to do in the future can help you make better decisions for your business.When you analyze competitor data, you can identify the strengths and weaknesses of your competitors. This information can be used to develop strategies that exploit your competitors' weaknesses while building on your own strengths.
By analyzing competitor data, you can identify emerging trends and opportunities in your market. This can help you develop new products and services that meet the needs of your customers while staying ahead of the competition.You can also use competitor data to benchmark your own performance against your competitors.
This can help you identify areas where you need to improve your business practices, such as pricing, marketing, customer service, or product quality.Overall, analyzing competitor data is an essential part of developing effective business strategies. By understanding the competitive landscape, you can make informed decisions about how to position your business for success in the market.
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Middletown, U.S.A., has been dealing with several monopoly firms, making it difficult for new firms to enter. Match each company to the best description of the particular "barrier to entry" it is benefitting from Drag each item on the left to its matching item on the right. Larry's Lawn Care has exclusive rights to mow the grass for all city government property in town for the next 5 years. Marvin's Mining Company runs 100 different pieces of large equipment and trucks in daily operations. control of resources problems raising capital Burt's Brass Band gets a royalty from every download of a song. economies of scale patents and copyright law Wanda's Water Park adds a new water slide or ride each year to the already large park, and can do it fairly cheaply due to volume discounts from the firm that produces the slides. licensing Lucinda's Lake Condos owns all the property around Middletown Lake, the only lake for 200 miles.
In Middletown, U.S.A.,
Larry's Lawn Care - control of resources
Marvin's Mining Company - economies of scale
Burt's Brass Band - patents and copyright law
Wanda's Water Park - volume discounts from the firm that produces the slides
Lucinda's Lake Condos - licensing
1. Larry's Lawn Care has exclusive rights to mow the grass for all city government property in town for the next 5 years. This exclusive contract grants them control of resources, as they have sole access to the city government properties for lawn care services.
2. Marvin's Mining Company runs 100 different pieces of large equipment and trucks in daily operations. They benefit from economies of scale because their large-scale operations allow them to achieve cost efficiencies and lower average costs compared to smaller competitors.
3. Burt's Brass Band gets a royalty from every download of a song. They benefit from patents and copyright law, which grant them exclusive rights to their songs and allow them to receive royalties for their use.
4. Wanda's Water Park adds a new water slide or ride each year to the already large park, and can do it fairly cheaply due to volume discounts from the firm that produces the slides. They benefit from volume discounts, which result from their large purchasing power due to the size of their park. This enables them to obtain the new attractions at a lower cost compared to smaller parks.
5. Lucinda's Lake Condos owns all the property around Middletown Lake, the only lake for 200 miles. They benefit from licensing, as they have the exclusive rights to develop and operate properties around the lake, creating a barrier to entry for potential competitors.
These examples illustrate different barriers to entry that the companies in Middletown, U.S.A. are benefiting from, such as control of resources, economies of scale, patents and copyright law, volume discounts, and licensing.
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Information pertaining to Noskey Corporation’s sales revenue follows:
November 2018
(Actual) December 2018
(Budgeted) January 2019
(Budgeted)
Cash sales $ 80,000 $ 100,000 $ 60,000
Credit sales 240,000 360,000 180,000
Total sales $ 320,000 $ 460,000 $ 240,000
Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price.
Required:
Determine for Noskey:
1. Budgeted cash collections in December 2018 from November 2018 credit sales.
2. Budgeted total cash receipts in January 2019.
3. Budgeted total cash payments in December 2018 for inventory purchases.
Information pertaining to Noskey Corporation’s sales revenue follows: November 2018 (Actual) December 2018 (Budgeted) January 2019 (Budgeted) Cash sales $ 80,000 $ 100,000 $ 60,000 Credit sales 240,000 360,000 180,000 Total sales $ 320,000 $ 460,000 $ 240,000 Management estimates 5% of credit sales to be uncollectible. Of collectible credit sales, 60% is collected in the month of sale and the remainder in the month following the month of sale. Purchases of inventory each month include 70% of the next month’s projected total sales (stated at cost) plus 30% of projected sales for the current month (stated at cost). All inventory purchases are on account; 25% is paid in the month of purchase, and the remainder is paid in the month following the month of purchase. Purchase costs are approximately 60% of the selling price. Required: Determine for Noskey: 1. Budgeted cash collections in December 2018 from November 2018 credit sales. 2. Budgeted total cash receipts in January 2019. 3. Budgeted total cash payments in December 2018 for inventory purchases.
To determine the budgeted cash collections in December 2018 from November 2018 credit sales for Noskey Corporation, we consider the collection patterns provided. First, we calculate the collectible credit sales by deducting the estimated uncollectible amount (5% of credit sales). Then, we determine 60% of the collectible credit sales, which is collected in the month of sale, and the remaining 40% is collected in the following month.
For budgeted cash collections in December 2018 from November 2018 credit sales:
Total credit sales in November 2018: $240,000
Collectible credit sales: $240,000 - (5% * $240,000) = $228,000
60% collected in the month of sale: 0.6 * $228,000 = $136,800
40% collected in the following month: 0.4 * $228,000 = $91,200
Budgeted cash collections in December 2018 from November 2018 credit sales: $136,800 + $91,200 = $228,000
For budgeted total cash receipts in January 2019:
Cash sales in January 2019: $60,000
Collectible credit sales in January 2019: $180,000 - (5% * $180,000) = $171,000
60% collected in the month of sale: 0.6 * $171,000 = $102,600
Budgeted total cash receipts in January 2019: $60,000 (cash sales) + $102,600 (credit sales collected in the month of sale) = $162,600
For budgeted total cash payments in December 2018 for inventory purchases:
Total purchases for December 2018: 0.7 * $240,000 (January 2019 projected sales) + 0.3 * $460,000 (December 2018 projected sales) = $200,600
25% paid in the month of purchase: 0.25 * $200,600 = $50,150
75% paid in the following month: 0.75 * $200,600 = $150,450
Budgeted total cash payments in December 2018 for inventory purchases: $50,150 + $150,450 = $200,600
Therefore, the budgeted cash collections in December 2018 from November 2018 credit sales are $228,000, the budgeted total cash receipts in January 2019 are $162,600, and the budgeted total cash payments in December 2018 for inventory purchases are $200,600 for Noskey Corporation.
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In the case of a Bill which has been introduced into the House of Representatives:
Select one:
a. There is no copyright in a Bill by virtue of s27 of the Copyright Act 1994
b. Copyright in the text of the Bill is vested in the Speaker of the House of Representatives
c. Copyright is vested in the Government department responsible for the Bill. In the case of a member’s bill, it is vested in the member in whose name the Bill stands.
There is no copyright in a Bill by virtue of s27 of the Copyright Act 1994.Section 27 of the Copyright Act 1994 in New Zealand specifically states that no copyright protection exists for enactments, which includes Bills introduced into the House of Representatives.
This means that the text of a Bill is not subject to copyright ownership. The purpose of this provision is to ensure that legislative materials are freely accessible and can be used by the public without restriction or infringement.
By not granting copyright protection to Bills, it allows for open access and promotes transparency in the legislative process. This allows individuals and organizations to freely distribute, reproduce, and analyze the content of Bills, facilitating public scrutiny and engagement in the democratic process. The absence of copyright in Bills ensures that the text can be widely disseminated and discussed without fear of copyright infringement.
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When one car manufacturer begins offering low-cost financing or rebates , others tend to do the same. Which two (2) oligopoly models might explain this behaviour?
The two oligopoly models that might explain the behavior of car manufacturers offering low-cost financing or rebates are the kinked demand curve model and the strategic interdependence model.
The kinked demand curve model suggests that firms in an oligopoly are highly responsive to changes in their competitors' pricing strategies. According to this model, if one car manufacturer lowers its prices or offers incentives such as low-cost financing or rebates, other manufacturers are likely to follow suit to prevent losing market share. The kinked demand curve model assumes that rival firms will match price cuts to avoid losing customers, resulting in a relatively stable price level in the market.
The strategic interdependence model also provides insights into the behavior of car manufacturers in an oligopoly. In this model, firms are aware of the actions and reactions of their competitors and base their decisions on the anticipated responses of others. When one car manufacturer introduces low-cost financing or rebates, other manufacturers perceive it as a competitive threat and respond by offering similar incentives to maintain their market position.
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Consider the following LP model Max Z= 3X1+2X2+5X3 s.t. X1+2X2+ X3+X4 =30 3X1 +2X3 +X5 =60 X1+4X2 +X6 =20 X1, X2, X3, X4,X5,X620 Check the optimality and feasibility of the following basic solutions. X4 XB = X3 X6 1 -1/2 0 B-1 0 1/2 0 0 0 1
The basic solution is not feasible since it violates two of the constraints.
To check the optimality and feasibility of the given basic solution, we need to calculate the objective function value and check the feasibility of the constraints.
The basic solution is given as:
X1 = 0, X2 = 0, X3 = 1, X4 = 30, X5 = 0, X6 = 20
Objective Function Value:
Z = 3X1 + 2X2 + 5X3
= 3(0) + 2(0) + 5(1)
= 0 + 0 + 5
= 5
Feasibility:
Checking the constraints:
X1 + 2X2 + X3 + X4 = 30
0 + 0 + 1 + 30 = 31 (Violation)
3X1 + 2X3 + X5 = 60
3(0) + 2(1) + 0 = 2 (Violation)
X1 + 4X2 + X6 = 20
0 + 0 + 20 = 20 (Feasible)
The basic solution is not feasible since it violates two of the constraints. Therefore, it cannot be an optimal solution.
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