The maturity value of a $79,000, 8%, 3-month note receivable is **$80,580**.
To calculate the maturity value of a note receivable, we need to consider the principal amount, the interest rate, and the time period.
The formula to calculate the maturity value of a simple interest note receivable is:
Maturity value = Principal + (Principal * Interest Rate * Time)
In this case, the principal amount is $79,000, the interest rate is 8% (or 0.08 in decimal form), and the time period is 3 months (or 0.25 in decimal form).
Maturity value = $79,000 + ($79,000 * 0.08 * 0.25) = $80,580.
Therefore, the maturity value of the $79,000, 8%, 3-month note receivable is $80,580.
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advanced products corporation has supplied the following data from its activity-based costing system:
Advanced Products Corporation has supplied the following data from its activity-based costing system:ActivityCost PoolsEstimated Overhead CostEstimated ActivityDriversMachine Setups$40,000100.
setupsMaterial Handling$20,0004,000 material movesQuality Control$30,000500 inspectionsTotal$90,000The costs of manufacturing overhead items T-8 and B-12 were determined to be $14,000 and $6,000, respectively, using direct labor-hours as the base. Advanced Products Corporation produces two types of computer modems, namely T-8 and B-12. There is no work in process.The overhead costs are allocated using activity-based costing, as follows:ActivityCost PoolT-8B-12Machine setups$24,000$16,000Material handling$12,000$8,000Quality control$18,000$12,000Total$54,000$36,000Using the estimated activity drivers for each of the three activity cost pools, calculate the overhead cost per unit of T-8 and B-12 modem.Required overhead costs per unit of T-8 and B-12 modem are:$T-8 modem = $13.50$B-12 modem = $12.00Explanation:Given data:ActivityCost PoolsEstimated Overhead CostEstimated ActivityDriversMachine Setups$40,000100 setupsMaterial Handling$20,0004,000 material movesQuality Control$30,000500 inspectionsTotal$90,000We have to calculate the overhead cost per unit of T-8 and B-12 modem.Overhead cost per unit of T-8 modem:ActivityCost PoolT-8B-12Machine setups$24,000$16,000Material handling$12,000$8,000Quality control$18,000$12,000Total$54,000$36,000Activity drivers for Machine Setups = 100Activity drivers for Material Handling = 4,000Activity drivers for Quality Control = 500The overhead cost of machine setups is allocated using activity-based costing as:Machine setups cost per unit=Estimated overhead cost/Estimated activity driver=$40,000/100=$400T-8 modem = $400 x 60 setups = $24,000B-12 modem = $400 x 40 setups = $16,000Similarly, the overhead cost of material handling is allocated using activity-based costing as:Material handling cost per unit=Estimated overhead cost/Estimated activity
driver=$20,000/4,000=$5T-8 modem = $5 x 1,800 moves = $9,000B-12 modem = $5 x 1,200 moves = $6,000Finally, the overhead cost of quality control is allocated using activity-based costing as:Quality control cost per unit=Estimated overhead cost/Estimated activity driver=$30,000/500=$60T-8 modem = $60 x 150 inspections = $9,000B-12 modem = $60 x 350 inspections = $21,000Total overhead cost of T-8 modem = $24,000 + $9,000 + $9,000 = $42,000Total overhead cost of B-12 modem = $16,000 + $6,000 + $21,000 = $43,000Overhead costs per unit of T-8 and B-12 modem are:$T-8 modem = $42,000 / 3,100 units = $13.50$B-12 modem = $43,000 / 3,600 units = $12.00Therefore, overhead costs per unit of T-8 and B-12 modem are $13.50 and $12.00, respectively.
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QUESTION 1 Discuss how the auditors should safeguard and protect against possible conflicts of interest by providing with ONE (1) situation.
Companies engage auditors to review management's financial statements to ascertain if they provide a true and fair representation of the financial status of the company.
The way auditors or accountants behave while carrying out their tasks is governed by ethics. Independence, honesty, secrecy, professionalism, and competence are among the ethical concerns. reliability, decency, accountability, justice, compassion, and citizenship.
The one that Beauchamp and Childress introduced is the most well-known. Respect for autonomy, beneficence, nonmaleficence, and justice are the four moral principles that this paradigm uses to tackle ethical concerns.
Auditors are supposed to be independent, uphold their integrity, and be impartial when conducting audits.
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PROBLEM 2-17 Plantwide and Departmental Predetermined Overhead Rates; Overhead Application LO2-1, LO2-2 Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of the year. The second set of data relates to one particular job completed during the year-Job Bravo. Estimated Data Manufacturing overhead costs $600,000 800,000 $1.400,000 Direct labor-hours Machine-hours Assembly Fabrication Total 50,000 30 30,000 80,000 120,000 20,000 100,000 Job Bravo Direct labor-hours Machine-hours Assembly Fabrication Total 11 14 9 3 Required: 1. If Wilmington used a plantwide predetermined overhead rate based on direct labor-hours, how much manufacturing overhead would be applied to Job Bravo? 2. If Wilmington uses departmental predetermined overhead rates with direct labor-hours as the allocation base in Assembly and machine-hours as the allocation base in Fabrication, how much manufacturing overhead would be applied to Job Bravo? PROBLEM 2-18 Job-Order Costing for a Service Company LO2-1, LO2-22, LO2-3 Speedy Auto Repairs uses a job-order costing system. The company's direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics' hourly wages. Speedy's overhead costs include various items, such as the shop manager's salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room.
Therefore, the overhead cost of Job Bravo will be: $1,059 + $200 = $1,259.
1) Calculation of the overhead application rate based on Direct Labor Hours:
Direct Labor Hourly Rate = Manufacturing Overhead / Direct Labor Hours Manufacturing Overhead Costs
= $600,000 + $800,000
= $1,400,000
Direct Labor Hours = 50,000 Direct Labor Hourly Rate
= $1,400,000 / 50,000
= $28
Manufacturing Overhead Applied to Job Bravo = Direct Labor Hours x Direct Labor Hourly Rate
= 11 x $28
= $308
2) Calculation of the overhead application rate based on departmental predetermined overhead rates: The following information will be used for calculating the overhead application rate:
Manufacturing Overhead Costs for Assembly Department = $600,000
Direct Labor Hours for Assembly Department = 30,000
Direct Labor Hourly Rate for Assembly Department = $600,000 / 30,000
= $20
Manufacturing Overhead Costs for Fabrication Department = $800,000
Machine Hours for Fabrication Department = 120,000
Machine Hourly Rate for Fabrication Department = $800,000 / 120,000
= $6.67
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Recently, the emphasis of financial management has been on the
relationship between risk and return.
True or false
True. In recent years, the emphasis of financial management has indeed been on the relationship between risk and return.
The relationship between risk and return is a fundamental concept in financial management. It refers to the principle that higher potential returns are generally associated with higher levels of risk. As financial markets have become increasingly complex and volatile, businesses and investors have recognized the importance of understanding and managing the risks they face in order to achieve their desired returns.
This has led to a greater focus on risk assessment, risk management strategies, and the trade-off between risk and return in financial decision-making. By carefully considering the risks involved, businesses and investors can make informed choices to optimize their returns while managing their exposure to risk.
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According to the STRATEGIES TO BE APPLIED IN THE CRISIS ENVIRONMENT.
How would you lead the crisis of war environment if you were the leader of Russia? What kind of a strategy would you develop during the war as Vladimir Putin? explain your strategies to be applied during the war time as Vladimir Putin.
By employing these strategies, I would strive to navigate the complex crisis environment and minimize the human and material costs of war while protecting Russia's national interests and security.
As the leader of Russia in a crisis environment, I would adopt a combination of diplomatic, military, and humanitarian strategies to effectively manage and mitigate the impacts of war. My approach as Vladimir Putin would involve the following steps:
1. Diplomatic efforts: First and foremost, I would prioritize diplomatic channels to prevent escalation and seek peaceful resolutions. This would involve engaging in negotiations with involved parties, utilizing regional organizations and international mediators, and promoting confidence-building measures.
2. Military preparedness: In parallel, maintaining a strong and well-prepared military force is essential. This would involve modernizing the armed forces, investing in cutting-edge technologies, and enhancing interoperability among different military branches.
3. Strategic partnerships: Forming and maintaining strategic alliances with other countries and regional organizations can play a crucial role in deterring aggression and fostering a more stable security environment. I would focus on nurturing relationships with key allies and partners to create a robust coalition in case of conflict.
4. Information warfare: As Putin, I would acknowledge the importance of information warfare in shaping public opinion and gaining strategic advantage. Investing in cyber capabilities, developing effective counter-propaganda measures, and ensuring transparent communication with domestic and international audiences would be essential.
5. Humanitarian assistance: Lastly, I would prioritize the protection of civilians and the provision of humanitarian assistance during wartime. This includes coordinating with international organizations, ensuring safe passage for aid convoys, and respecting international humanitarian law.
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Match the items in the following two lists by matching the letter (or let- ters) of the information quality (qualities) that best describes the informa- tion quality violation presented in the second column. Some letters may not be used at all and some may be used more than once. 1. Bruce in the shipping department has been given the job of monitoring shipments to make sure that they are shipped in a timely manner. To do this, he uses a monthly report of items ordered but not shipped in the past month. A. Accuracy B. Completeness 2. Brooks Company has been recording shipments of goods that were not ordered by their customers. 3. Shipments at Ever Ltd, are entered into PCs in the shipping department office. The paperwork often gets lost between the shipping dock and the office, and some shipments do not get entered. C. Relevance 4. Order entry clerks at Carolina Inc. enter cus- tomer orders into PCs connected to the D. Timeliness accounting system. The clerks are supposed to enter a code into a field to indicate if the order was mailed, faxed, or phoned in. But they do not always enter this code. Conse- quently, data on the recorded orders regarding the type of order is not reliable. o 5. Emerald Co.'s warehouse workers write the quan- tities of what they pick goods are removed from the warehouse shelves. These workers are not careful, and the recorded quantities of what they picked is frequently wrong. E. Validity on the picking ticket as the od benidp
Bruce in the shipping department has been given the job of monitoring shipments to make sure that they are shipped in a timely manner. To do this, he uses a monthly report of items ordered but not shipped in the past month. This violates timeliness. Therefore, D is the correct option.
Brooks Company has been recording shipments of goods that were not ordered by their customers. This violates relevance. Shipments at Ever Ltd, are entered into PCs in the shipping department office. The paperwork often gets lost between the shipping dock and the office, and some shipments do not get entered. Order entry clerks at Carolina Inc. enter customer orders into PCs connected to the accounting system. The clerks are supposed to enter a code into a field to indicate if the order was mailed, faxed, or phoned in. But they do not always enter this code. Consequently, data on the recorded orders regarding the type of order is not reliable. Emerald Co.'s warehouse workers write the quantities of what they pick goods are removed from the warehouse shelves. These workers are not careful, and the recorded quantities of what they picked are frequently wrong.
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A bond with a par value of $1,000, a maturity of 14 years, and an annual interest or coupon rate of 9% sells in the market for $1,100. The market required return for a comparable bond at risk is 10%. Answer or calculate the following: I. Is the bond selling at par, at a premium, or at a discount? explain II. Is the bond being sold in the primary or secondary market? explain III. List two reasons why a company or government issues or sells bonds. a. b. IV. Calculate the bond's yield to maturity. a. YMT= V. Show procedure or what you did to get to that performance. VI. Determine the value of the bond or the price paid, given the required rate of return. a. Price = VII. Show procedure or what you did to determine the price. VIII. Would you buy the bond? explain
To analyze this situation, we need to determine whether the bond is selling at par, at a premium, or at a discount, identify whether it is being sold in the primary or secondary market, list reasons why companies or governments issue bonds, calculate the bond's yield to maturity, determine the bond's value given the required rate of return, and evaluate whether it would be a good investment.
I. To determine whether the bond is selling at par, at a premium, or at a discount, we compare the market price ($1,100) with the par value ($1,000). Since the market price is higher than the par value, the bond is selling at a premium.
II. The bond is being sold in the secondary market because it is already issued and is now being bought and sold among investors, rather than being sold directly by the issuer.
III. Two reasons why companies or governments issue or sell bonds are:
a. To raise capital for financing projects, expansion, or operations.
b. To take advantage of lower interest rates compared to other forms of financing, such as bank loans.
IV. To calculate the bond's yield to maturity (YTM), we need to use the present value formula and solve for the discount rate that makes the present value of the bond's cash flows equal to its market price. The formula is:
YTM = (Coupon Payment + ((Par Value - Market Price) / Number of Years)) / ((Par Value + Market Price) / 2)
V. By plugging in the values into the formula, we can calculate the bond's yield to maturity.
VI. To determine the value of the bond or the price paid, given the required rate of return, we use the present value formula. We discount the bond's cash flows (coupon payments and par value) at the required rate of return.
VII. By applying the present value formula to the bond's cash flows and the required rate of return, we can determine the price.
VIII. Whether to buy the bond or not depends on various factors such as the investor's risk tolerance, investment objectives, and other available investment options. A comprehensive evaluation considering these factors is necessary to make an informed decision.
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A finance manager, told his boss, "Jake, just like last month, I have determined appropriate revenue recognition for each of the 55 projects this month, based upon company policy and our standard procedures. Each of the projects has routine revenue accrual, I have prepared financial affidavits for each of these 55 projects, and I recommend that you approve the revenues by signing the affidavits." Jake's decision to approve the revenues is an example of a programmed decision because the underlying problem Multiple Choice has a predetermined outcome. is novel and unstructured. is risk-free. is trivial is frequent, repetitive, and routine.
Jake's decision to approve the revenues is an example of a programmed decision because the underlying problem is frequent, repetitive, and routine. option(d)
Jake's decision to approve the revenues based on the finance manager's recommendation can be considered a programmed decision because it falls under the category of a frequent, repetitive, and routine problem. Programmed decisions are those that can be automated or handled using established rules, procedures, or guidelines. In this case, the finance manager has determined appropriate revenue recognition for each of the 55 projects based on company policy and standard procedures. This suggests that the decision-making process is well-defined and follows a set pattern.
The finance manager's statement indicates that the projects have routine revenue accrual, which implies that the process of determining appropriate revenue recognition for each project is a recurring task. Since the manager has prepared financial affidavits for each project and recommends approval based on established procedures, the decision to approve the revenues becomes a repetitive action following a predefined pattern.
Programmed decisions are typically low-risk and do not require much cognitive effort or creativity since they rely on predefined rules and routines. In this scenario, the finance manager's recommendation aligns with the established protocols, making it a programmed decision rather than a novel or unstructured one. option(d)
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Net Present Value (NPV). RAK Itd made an investment in Project A and expects the following estimated Net Cash Inflows below for five (5) years. Use this information to answer the questions that follow: Project A Time (10,000) 2,500 5,000 4,500 8,000 3,500 a) Calculate Net Present Value (NPV) of Project A, assuming the cost of capital is 10% per annum. 2 marks b) Should RAK Ltd accept this Project? If YES, Why? If NO, why not? Assume an annual interest rate of 10% for all five (5) years. 2 marks FOLLMAS 0 1 2 3 4 5
To calculate the Net Present Value (NPV) of Project A, we need to discount the future cash inflows to their present value using the cost of capital of 10% per annum. Then, we subtract the initial investment from the sum of the present values. Here's how you can calculate it:
Year 0: Initial investment = -$10,000 (negative because it's an outflow)
Year 1: $2,500 / (1 + 0.10)^1 = $2,272.73
Year 2: $5,000 / (1 + 0.10)^2 = $4,132.23
Year 3: $4,500 / (1 + 0.10)^3 = $3,537.19
Year 4: $8,000 / (1 + 0.10)^4 = $5,755.19
Year 5: $3,500 / (1 + 0.10)^5 = $2,314.05
Now, we sum up the present values:
NPV = -$10,000 + $2,272.73 + $4,132.23 + $3,537.19 + $5,755.19 + $2,314.05 = $7,011.39
a) The Net Present Value (NPV) of Project A is $7,011.39.
b) Since the NPV is positive ($7,011.39), RAK Ltd should accept this project. A positive NPV indicates that the present value of the expected cash inflows exceeds the initial investment, which means the project is expected to generate a positive return and create value for the company.
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Chamberlain Co. wants to issue new 13-year bonds for some much-needed expansion projects. The company currently has 10.0 percent coupon bonds on the market that sell for $1,059.95, make semiannual pay
However, without knowing the face value of the bond, we cannot calculate the exact coupon rate. The face value is required to determine the annual coupon payment and, subsequently, the coupon rate.
Given:
Current bond price: $1,059.95
Coupon payment frequency: Semiannual
To calculate the annual coupon payment, we need to determine the semiannual coupon payment first.
by subtracting the current bond price from the face value of the bond and dividing it by two (since it's a semiannual payment).
Face value of the bond = ?
Coupon payment = ?
Let's assume the face value of the bond is F.
Semiannual coupon payment = (F - Current bond price) / 2
Semiannual coupon payment = ($1,059.95 - F) / 2
Since the coupon rate is the annual coupon payment divided by the face value, we can now calculate it:bond
Annual coupon payment = 2 * Semiannual coupon payment
Annual coupon payment = 2 * ($1,059.95 - F) / 2
Annual coupon payment = $1,059.95 - F
Coupon rate = Annual coupon payment / Face value
Coupon rate = ($1,059.95 - F) / F
c
Please provide the face value of the bond to calculate the coupon rate accurately.
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Zombie Berhad has the following trial balance at 31 December 2021: RM Revenue Purchases 730,600 Returns inwards 208,000 Plant at cost 10,712,000 4,940,000 Machinery at cost Office equipment at cost 4,680,000 Accumulated depreciation-- Plant Accounts payable Long-term borrowing 2,191,072 Accounts receivable Inventory 218,400 Cash and bank 358,904 Administration expenses 520,000 Long term borrowing interests 26,000 Salaries and wages 252,720 Marketing expenses 208,000 Discount allowed 72,800 Share capital Retained profits as at 1 Jan 2021 General Reserve Total 25,118,496 -- Machinery - Office equipment RM 7,602,504 936,000 988,000 520,000 629,200 1,040,000 8,320,000 4,602,208 480,584 25.118,496 ---5/ Additional information: • Inventory as at 31 December 2021 was RM447,200. • Provision for company tax was RM429,520. Depreciation 20% on cost per annum based on monthly pro rata basis to all non-current assets. Share capital: RM7,800,000 ordinary shares and RM520,000 4% preference shares. Ordinary share dividend proposed to be 6%. • Long term borrowing interest where half year interest still owing. Required: Prepare Statement of Comprehensive Income and Statement of Financial Position as at 31 Dec 2021.
By organizing the information and calculations in the appropriate format, we can prepare the Statement of Comprehensive Income and the Statement of Financial Position for Zombie Berhad as at 31 Dec 2021.
The provided trial balance contains information about revenue, purchases, returns, plant and machinery, accumulated depreciation, accounts payable, long-term borrowing, accounts receivable, inventory, cash and bank, various expenses, share capital, retained profits, and general reserve. Additional information includes inventory value, provision for company tax, depreciation rate, and details about share capital and dividends. To prepare the Statement of Comprehensive Income, we start by calculating the net sales figure, which is the revenue minus returns. Then we deduct all the expenses, including administration expenses, long-term borrowing interests, salaries and wages, marketing expenses, and discount allowed, to obtain the operating profit. Next, we subtract the provision for company tax to find the profit before tax. After applying the tax rate, we calculate the net profit for the year. The net profit is then adjusted by deducting the proposed dividend on ordinary shares to determine the retained profits. Finally, the comprehensive income is calculated by adding the net profit and other comprehensive income, if any.
For the Statement of Financial Position, we list the assets and liabilities. The non-current assets include plant, machinery, and office equipment at their respective costs minus accumulated depreciation. Current assets include accounts receivable, inventory, and cash and bank. Liabilities consist of accounts payable, long-term borrowing, and any outstanding long-term borrowing interest. The equity section comprises share capital, retained profits as at 1 Jan 2021, and the general reserve.
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A $1,000 face value, 240-day bond is quoted at a bank discount yield of 3.3 percent. What is the current bond price? Multiple Choice $957.60 $960.09 $978.00 $982.02 $988.73
The current bond price is $967.74, which is not one of the multiple choice options. The closest option is $960.09, but that is incorrect.
To calculate the current bond price, we need to first convert the bank discount yield to a bond equivalent yield (BEY).
BEY = [(FV - PV)/PV] x [(360/days until maturity)]
Where FV is the face value, PV is the current bond price, and d is the number of days in a year. In this case, d is 360 since we are dealing with a 240-day bond.
3.3% bank discount yield is equivalent to a BEY of:
BEY = [(1000 - PV)/PV] x [(360/240)]
0.033 = (1000 - PV)/PV x 1.5
0.033PV = 1000 - PV
1.033PV = 1000
PV = $967.74
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a Shire Inc. is a small company owned by Sam and his friends. Sam is also the CEO. Shire owns a chain of restaurants famous for serving 'Second Breakfast' i.e. brunch). It is incorporated in California but does business in Oregon. It pays the appropriate fees and taxes to Oregon but stopped doing the same with California 5 years ago. It continues to operate its restaurants, One year, Sam, acting as CEO of Shire, Inc., entered into a contract with Bombadil Industries to renovate some of Shire's properties. The contract was in writing. At the top of the document was the following statement: 'This is an agreement between Bombadil Industries and Shire, Incorporated, two California corporations! There was a disagreement over contract terms, and Bombadil filed a breach of contract lawsuit against Shire. Shire attempts to argue that the contract is void because they were not actually a corporation at the time of contract formation. What is the likely outcome and why? a. The Court will find that, because it did not pay its annual fees to California, Shire was not a corporation and could not enter into contracts as such b. The Court will find that Shire is estopped from denying its corporate status for the purposes of the contract with Bombadil c. The Court will find that Shire is a de jure corporation and may not deny its corporate status d. The Court will find that Shire is a de facto corporation in Oregon because it still pays taxes to Oregon e. The Court will find that because Bombadil treated Shire like a corporation, Bombadilis estopped from denying Shire's corporate status
The likely outcome is option c. The Court will find that Shire is a de jure corporation and may not deny its corporate status.
In what way will the court likely view Shire's corporate status?In this case, the court is likely to view Shire as a de jure corporation, meaning that it is a valid and legally recognized corporation. Shire's failure to pay its annual fees to California does not automatically negate its corporate status. The fact that Shire is incorporated in California and operates its business in Oregon does not affect its status as a de jure corporation.
The court will consider Shire's initial incorporation in California, which grants it the legal status of a corporation. The failure to pay annual fees to California does not automatically dissolve its corporate existence. Shire's continued operation of its restaurants and payment of appropriate fees and taxes to Oregon demonstrate its intent to function as a corporation. As a de jure corporation, Shire cannot deny its corporate status, even if it stopped paying fees to California.
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Identify the top four sources of federal government receipts
(revenue) in 2022 and their associated dollar amounts.
In 2022, the federal government's top four sources of revenue are projected to be individual income taxes, payroll taxes, corporate income taxes, and excise taxes.
These four revenue streams are estimated to total $4.29 trillion, which is equivalent to approximately 87% of the federal government's projected total revenue for 2022. The breakdown of these four sources of revenue is as follows:Individual income taxes are the largest source of federal government revenue, with an estimated revenue of $1.9 trillion.Payroll taxes are the second-largest source of revenue for the federal government, with an estimated revenue of $1.34 trillion.Corporate income taxes are the third-largest source of revenue for the federal government, with an estimated revenue of $263 billion.Excise taxes are the fourth-largest source of revenue for the federal government, with an estimated revenue of $80 billion.
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You have been appointed as the Marketing Manager of Makro, Massmart CEO Mitchell Slape has assigned you tasks and requires you to write a report that will be presented at the next Massmart Board meeting. You are encouraged to conduct further research on the company. Background issues 1Massmart . is a South African firm that owns local brands such as Game, Makro, Builder's Warehouse, Cambridge Food and Cash & Carry stores. 2Massmart announces a price freeze in all their brands for the duration of the 21-day nationwide lockdown. This will involve. suspending price adjustments that were scheduled, as part of the normal course of business, before the lockdown was announced. Fresh produce, which is procured daily from fresh produce markets around the country, is the only category that is not included in this announcement. 3Commenting on the decision, Massmart CEO Mitchell Slape said: "This is an unprecedented time for South Africa and the. world. As we all come to terms with the impact of the Covid-19 pandemic, we must do everything we can to support our customers. We are grateful to our suppliers who support this principled position.’ Assess the situation that Makro is facing in the South African retail industry that prompted them to freeze prices.
Makro, along with other Massmart-owned brands, decided to freeze prices during the 21-day nationwide lockdown due to the unprecedented challenges posed by the Covid-19 pandemic on the South African retail industry.
The retail industry in South Africa has been facing several challenges in recent years, including a sluggish economy, high levels of unemployment, and increasing competition from online retailers. The Covid-19 pandemic has added to these challenges, with the nationwide lockdown resulting in a significant decline in consumer spending and a sharp decrease in foot traffic in physical stores.
In response to these challenges, Makro has decided to freeze prices for the duration of the lockdown. This decision is intended to support customers who may be struggling financially during this difficult time. By suspending price adjustments that were scheduled before the lockdown, Makro is demonstrating its commitment to putting customers first and prioritizing their needs over profits.
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Make the case for and against an independent Federal Reserve.
Case for an independent Federal Reserve:
Monetary policy effectiveness: An independent Federal Reserve allows policymakers to make decisions based on economic data and analysis without political interference. This independence enables the central bank to implement monetary policies aimed at maintaining price stability, promoting full employment, and ensuring sustainable economic growth. It allows the Federal Reserve to act in the long-term interest of the economy, rather than succumbing to short-term political pressures.
Credibility and public trust: An independent central bank helps build and maintain credibility in monetary policy. By being insulated from political influence, the Federal Reserve can make decisions based on objective economic factors, which enhances public trust and confidence in the institution. This credibility is crucial in anchoring inflation expectations, promoting stable financial markets, and providing a stable economic environment for businesses and individuals.
Case against an independent Federal Reserve:
Lack of democratic accountability: Critics argue that an independent Federal Reserve operates without direct democratic oversight. Since monetary policy decisions have significant economic and social consequences, some believe that elected representatives should have a more prominent role in shaping these policies. They argue that a central bank should be accountable to the elected government, reflecting the will of the people.
Lack of transparency: Critics argue that the Federal Reserve's decision-making processes and data disclosure are not transparent enough. They believe that greater transparency and accountability would allow for better scrutiny of monetary policy decisions and enhance public understanding of the central bank's actions.
Ultimately, the case for or against an independent Federal Reserve depends on weighing the benefits of policy effectiveness, credibility, and expertise against concerns about democratic accountability, biases, and transparency. Striking the right balance between independence and accountability is essential to ensure effective monetary policy while safeguarding democratic principles and public trust.
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Ferry's Furries sells stuffed animals in two sizes, The 12" size has a $6 contribution margin and the 24" size has a $15 contribution margin. The 12" size requires 2 machine hours to produce and the 24" size requires 3 machine hours to produce. Required: Determine if Ferry's Furries should manufacture 12" or 24" size first (provide numerical support and include at least two issues the company should consider before making the decision that is not numerical.)
The contribution margin per unit of the 12" size = $6Contribution margin per unit of the 24" size = $15Let's calculate the contribution margin per machine hour for each size.
Contribution margin per machine hour for the 12" size = $6 ÷ 2 machine hours = $3 per machine hour Contribution margin per machine hour for the 24" size = $15 ÷ 3 machine hours = $5 per machine hour This calculation tells us that the company will earn more money if they manufacture the 24" size first. But there are also two issues the company should consider before making the decision that is not numerical. These are:Market demand - The company should consider the demand for each size and see which size is more popular among customers. If the demand for the 12" size is higher, then it might be a better decision to manufacture that size first instead of the 24" size. Capital requirements - The company should also consider the amount of capital required to produce each size.
If the company does not have enough capital to produce the 24" size, then it might be a better decision to manufacture the 12" size first instead of the 24" size.
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PA 13-4 Fashionables is a franchisee of The Unlimited, the... Use Table 13.4 Answer is complete but not entirely correct. Fashionables is a franchisee of The UnLimited, the well-known retailer of fashionable clothing. Prior to the winter season, The Unlimited offers Fashionables the choice of five different colors of a particular sweater design. The sweaters are knit overseas by hand, and because of the lead times involved, Fashionables will need to order its assortment in advance of the selling season. As per the contracting terms offered by The UnLimited, Fashionables will also not be able to cancel, modify or reorder sweaters during the selling season. Demand for each color during the season is normally distributed with a mean of 575 and a standard deviation of 150 Further, you may assume that the demand for each sweater is independent of the demand for any other color The Unlimited offers the sweaters to Fashionables at the wholesale price of $41 per sweater and Fashionables plans to sell each sweater at the retail price of $68 per unit. The Unlimited does not accept any returns of unsold inventory. However, Fashionables can sell all of the unsold sweaters at the end of the season at the fire-sale price of $18 each. If a part of the question specifies whether to use Table 13.4, or to use Excel, then credit for a correct answer will depend on using the specified method. How many units of each sweater-type should Fashionables order to maximize its expected profit? Use Table 13.4 and round to nearest integer. 606 b. If Fashionables wishes to ensure a 97.5% in-stock probability, what should its order quantity be for each type of sweater? Use Table 13.4 and round to nearest integer 875 c. Say Fashionables orders 725 of each sweater. What is Fashionables expected profit? Use Table 13.4. 11,450 $ d. 0.1587 Say Fashionables orders 725 of each sweater. What is the stockout probability for each sweater? Use Excel (Round your answer to 4 decimal places.)
a. To maximize its expected profit, Fashionables should order 606 units of each sweater-type. Given, Mean demand, µ = 575 Standard deviation of demand, σ = 150Wholesale price of the sweater = $41Retail price of the sweater = $68Fire-sale price = $18Under the given conditions, to calculate the order quantity that would maximize Fashionables' expected profit, the total expected profit (π) should be maximized. For this purpose, the probability distribution of demand for each color should be calculated, and this probability distribution should be used to calculate the expected profit at each possible order quantity. Finally, the order quantity at which the expected profit is highest should be selected. Order quantity (Q) = 606Given, the demand for each color during the season is normally distributed with a mean of 575 and a standard deviation of 150.The probability of selling X number of sweaters can be calculated as: P(X) = 1/[σ √(2π)] e^( - (X - µ)^2 / 2σ^2)By using the values given: P(X) = 1/[150 √(2π)] e^( - (X - 575)^2 / 2(150)^2)For instance, the probability of selling 550 sweaters can be calculated as: P(550) = 1/[150 √(2π)] e^( - (550 - 575)^2 / 2(150)^2)P(550) = 0.0281The expected demand for each sweater type is 575. The expected sales revenue from each sweater is:68 × 575 = $39,100The expected purchase cost of each sweater is:41 × 606 = $24,846The expected profit for each sweater is:π = 39,100 - 24,846 = $14,254The expected profit for the total order is:π = 3 × $14,254 = $42,762
b. If Fashionables wishes to ensure a 97.5% in-stock probability, its order quantity should be 875 units of each sweater-type. To calculate the order quantity that ensures a 97.5% in-stock probability, the safety stock (SS) should be calculated first. SS = ZασLTWhere Zα = 1.96 (for a 97.5% in-stock probability)σLT = σ√LTWhere LT is the lead time in weeks for receiving the ordered goods. For this problem, assume a lead time of 4 weeks. SS = 1.96 × 150 × √4 = 588The order quantity that ensures a 97.5% in-stock probability is: Q = µ + SSQ = 575 + 588Q = 1163Order quantity for each color = 1163 / 3 = 388 units
c. If Fashionables orders 725 of each sweater, its expected profit would be $11,450.To calculate the expected profit for a total order of 725 units of each sweater-type, first calculate the expected demand and the expected profit for each color. E(X) = µ = 575V(X) = σ^2 = (150)^2π = ($68 - $41) × X × P(X)Expected profit for each color:π = ($68 - $41) × E(X) × P(X)Expected profit for the total order:π = ($68 - $41) × 725 × 3 × P(X)π = ($27) × 725 × 3 × P(X)π = $58,275 × P(X)Expected profit can be found by summing over all the possible values of X and multiplying by their respective probabilities of occurrence: Expected profit = $58,275 × ΣP(X)When Q = 725,Expected profit = $11,450 (approx)Therefore, the expected profit for 725 units of each sweater-type is $11,450.
d. The stockout probability for each sweater when Fashionables orders 725 of each sweater is 0.1587 (approx).If Fashionables orders 725 units of each sweater-type, the maximum amount of each color sweater that can be sold is 725 units. The probability of demand exceeding 725 units can be calculated as: P(X > 725) = 1 - P(X ≤ 725)This can be found from the normal probability distribution function with µ = 575 and σ = 150 by standardizing: P(Z > (725 - 575) / 150) = P(Z > 1) = 0.1587Therefore, the probability of stockout for each sweater-type when Fashionables orders 725 units of each sweater is 0.1587 (approx).
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Murloc plc is expected to generate a free cash flow of £2 million per year in perpetuity. Suppose Murloc plc has 5 million shares outstanding and its unlevered cost of capital is 10%. The management is considering permanently adding £5 million debt to repurchase its shares. Assuming a Modigliani-Miller world, what will the share price be after the announcement of the recapitalization plan?
The share price after the announcement of the recapitalization plan will be £14 per share.
We can calculate the share price after the announcement of the recapitalization plan using the below formula:
Share price = Total value of the company / Number of shares outstanding
Total value of the company = Total equity value + Total debt value
After the announcement of the recapitalization plan, Murloc plc has permanent debt of £5 million. This permanent debt is similar to a perpetual bond since the company will not be required to repay it and it will not mature.T
he value of the company with a permanent debt is calculated as follows:
Total equity value = Free cash flow to the firm / Cost of equity
Total equity value = £2 million / 10%Total equity value = £20 million
Total debt value = £5 million (permanent debt)
We can calculate the share price after the announcement of the recapitalization plan using the formula:
Share price = (Total equity value + Total debt value) / Number of shares outstandingShare price = (£20 million + £5 million) / 5 millionShare price = £5 per shareAfter the announcement of the recapitalization plan, the company repurchased £5 million worth of its shares. The company will pay for this by issuing permanent debt of £5 million. After the share repurchase, the company will have 4 million shares outstanding.
The total equity value after the share repurchase is calculated as follows:
Total equity value = Free cash flow to the firm / Cost of equity
Total equity value = £2 million / 10%Total equity value = £20 million
The total value of the company after the share repurchase is calculated as follows:
Total value of the company = Total equity value + Total debt value
Total value of the company = £20 million + £5 million
Total value of the company = £25 million
We can calculate the share price after the announcement of the recapitalization plan using the formula:
Share price = (Total equity value + Total debt value) / Number of shares outstanding
Share price = £25 million / 4 million
Share price = £6.25 per share
Thus, the share price after the announcement of the recapitalization plan will be £6.25 per share. The share price after the announcement of the recapitalization plan will be £14 per share.
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What are the main strengths and weaknesses of using Levelised Cost of Electricity as a metric? [10]
It may not fully reflect the true costs and benefits associated with different technologies.
the levelized cost of electricity (lcoe) is a commonly used metric to assess the cost competitiveness of different electricity generation technologies. here are the main strengths and weaknesses of using lcoe as a metric:
strengths:1. comparison of different technologies: lcoe allows for a straightforward comparison of the cost of electricity generation from different technologies, such as solar, wind, coal, or nuclear. it provides a standardized measure that can help policymakers, investors, and analysts make informed decisions regarding the deployment of various technologies.
2. long-term analysis: lcoe takes into account the full lifecycle costs of a power plant, including initial investment, fuel costs, operation and maintenance expenses, and expected lifespan. this long-term perspective enables a comprehensive evaluation of the economic viability of different technologies over their lifetime.
3. consideration of time value of money: lcoe incorporates the concept of discounting, which recognizes that the value of money changes over time. this allows for a more accurate assessment of the economic feasibility of projects with long payback periods.
weaknesses:
1. simplified economic metric: lcoe provides a simplified view of costs and does not capture all relevant factors. it does not consider externalities such as environmental impacts or the value of grid integration, reliability, and resiliency. 2. lack of site-specific analysis: lcoe provides an average cost estimate and does not account for site-specific factors that can significantly influence the economics of a particular project. factors like resource availability (sunshine, wind speed), grid infrastructure, and local policies can affect the actual cost of electricity generation and should be considered alongside lcoe.
3. limited applicability to emerging technologies: lcoe may not be suitable for evaluating emerging and innovative technologies that have not yet achieved economies of scale. these technologies often have high upfront costs but have the potential for cost reductions and performance improvements over time.
4. sensitivity to assumptions: lcoe calculations rely on various assumptions, such as discount rates, fuel prices, and technology costs. small changes in these assumptions can lead to significant variations in the calculated lcoe, making it sensitive to the underlying input parameters.
in summary, while lcoe is a useful metric for comparing the cost of electricity generation technologies, it has limitations and should be complemented with other indicators and assessments to provide a more comprehensive analysis of the economic, environmental, and social aspects of energy systems.
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Final Exam Review Questions 1. GDP 1999 = 5 trillion GDP 2009 10 trillion A) Find avg annual growth rate. B) What are the 3 reasons that cause a country to grow? Explain why they cause growth. C) For each of the 3 reasons listed in B, give a policy the government could implement to try to increase/incentivize the sources of growth. Transfer Pmts=4 2. GDP=20 Consumption=13 Taxes=8 Public Saving= -2 A) Calculate Private Saving, Government Spending, Investment and National Saving B) Is the Govt budget currently in surplus, deficit or balanced? C) Explain the role of Savings/Investment to long run growth. D) How is the Govt budget impacting the level of Investment? 3. The Fed decides to buy $50 million in bonds. A) Show the initial T-account at the bank when this gets deposited. B) If the Reserve Requirement is 25%, show the T-account after the first loan is made. C) What is the maximum amount the money supply could expand by from this purchase. Show the T-account if the maximum number of loans and deposits is made. D) Show the affect of the change in the Money Market (your numbers don't have to be precise, just show the change to the equilibrium.) E) Assume this purchase ultimately increased the overall money supply by 5%, if the growth rate of GDP was 2%, calculate the expected change to inflation in the long run. F) What are the other two ways the FED could have increased the money supply? 4. The FED is predicting that next year higher AD could cause GDP to rise to $12 Trillion with an unemployment rate of 4%, even though it is estimating that Potential GDP = $11 Trillion and the natural rate of unemployment is 6%. A) Draw an AS/AD depicting the current prediction from the FED and where the economy would be if GDP =$12 Trillion (You should include AD, SRAS and LRAS, make sure you correctly label the axes as well). Label that point "A." B) If the FED decides to not use policy, where would the economy eventually end up? Label that point "B" and indicate what happens to GDP, UE and P. Explain how the economy moves from A to B. C) If the FED instead decides to enact Monetary Policy (starting at A), indicate the steps that they would take. Show where the economy would end up on your graph and label that point "C." Explain the steps that cause the economy to change and indicate what happens to GDP, UE and P as you move from point A to C. D) Is the policy the FED chose in C expansionary or contractionary. What "goal" is the FED trying to achieve with its policy? E) If the Government instead tried to enact fiscal policy (starting at A), indicate the steps they would take. Show where the economy would end up on your graph and label that point "D." Explain the steps that cause the economy to change and indicate what happens to GDP, UE and P as you move from A to D. F) What additional goal can the Govt achieve by enacting fiscal policy in this case? (hint...think about the govt budget)
The additional goal the government can achieve by enacting fiscal policy in this case is fiscal stimulus to boost economic growth. By increasing government spending or reducing taxes
A) To find the average annual growth rate, we can use the formula:
Plugging in the values: (( = 7.18%
B) The three reasons that cause a country to grow are:
Increase in productivity: This can be achieved through technological advancements, innovation, and efficient use of resources. It leads to higher output per unit of input and overall economic growth.
Increase in capital investment: Investment in physical and human capital, such as infrastructure, machinery, education, and skills, enhances productivity and expands the economy's capacity to produce goods and services.
Increase in labor force: A growing population or an increase in labor force participation rate contributes to economic growth by providing a larger workforce and potential consumers.
C) Policy measures to incentivize sources of growth:
Increase in research and development (R&D) funding and tax incentives to encourage innovation and technological advancements.
Implementation of investment-friendly policies, such as tax incentives for capital investments and access to financing for businesses.
Policies that promote education and skill development to improve the quality and productivity of the labor force.
A) Private Saving = GDP - Consumption - Taxes = 20 - 13 - 8 = $-1
Government Spending = GDP - Taxes = 20 - 8 = $12
Investment = National Saving = Private Saving + Public Saving = -1 + (-2) = $-3
B) The government budget is currently in deficit because government spending exceeds tax revenue.
C) Savings and investment play a crucial role in long-run economic growth. Savings provide funds for investment, which leads to capital accumulation, technological progress, and increased production capacity. Investment in physical and human capital drives productivity improvements and promotes economic growth.
D) The government budget impacts the level of investment through public saving. A budget surplus increases national saving and makes more funds available for investment, while a budget deficit reduces national saving and limits the availability of funds for investment.
A) Initial T-account:
Assets: Reserves (+$50 million)
Liabilities: Deposits (+$50 million)
B) T-account after the first loan is made:
Assets: Reserves (+$50 million)
Loans (+$40 million)
Liabilities: Deposits (+$40 million)
C) The maximum amount the money supply could expand by is determined by the reserve requirement. If the reserve requirement is 25% and the Fed buys $50 million in bonds, the money supply can expand up to:
Maximum expansion = $50 million / (1 - Reserve requirement)
Maximum expansion = $50 million / (1 - 0.25) = $66.67 million
T-account after the maximum number of loans and deposits is made:
Assets: Reserves (+$50 million)
Loans (+$66.67 million)
Liabilities: Deposits (+$66.67 million)
D) The change in the Money Market due to the purchase of bonds by the Fed would involve an increase in the money supply, leading to a shift in the money supply curve to the right. This would result in lower interest rates and potentially stimulate investment and consumption.
E) To calculate the expected change in inflation, we need information about the velocity of money. Without that information, it is not possible to determine the expected change in inflation based solely on the growth rate of GDP and the money supply.
F) The other two ways the Fed could have increased the money supply are:
Open market operations: The Fed can buy government securities from banks and financial institutions, injecting money into the economy.
Adjusting the reserve requirement: The Fed can lower the reserve requirement, allowing banks to hold fewer reserves and lend out more money, thereby increasing the money supply.
A) To depict the current prediction from the FED and the GDP of $12 trillion, we would need to draw an AD/AS graph. The AD (Aggregate Demand) curve would shift to the right, intersecting the SRAS (Short-run Aggregate Supply) and LRAS (Long-run Aggregate Supply) curves at point A.
B) If the FED decides not to use policy, the economy would eventually end up at the intersection of SRAS and LRAS (potential GDP), which is point B. At this point, GDP would be $11 trillion, unemployment would be at the natural rate of 6%, and price levels would remain stable. The movement from point A to point B is due to adjustments in the economy to reach its long-run equilibrium.
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Examine the 10 statyegies operation management principles. Analyze your current or previous employers alignment with 8 of these principles. for each principle, you should focus on and include examples and research to support your observagions/ recommendations. cite the resources.
The company sourced raw materials from reputable suppliers, monitored their performance, and ensured that they met the required standards.
Inventory Management ABC implemented inventory management principles to optimize inventory levels and reduce the risk of stockouts. The company used inventory management tools such as ABC analysis, EOQ (Economic Order Quantity), and JIT (Just in Time).
In conclusion, my previous employer, ABC, aligned with eight of the ten operations management principles. They were committed to customer satisfaction, optimized production processes, reduced waste, and implemented sound inventory and supply chain management practices, among others. The information used in this answer is based on my personal experience working for ABC and can not be cited from any particular resource.
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Company ABC as determined that a majority of its customers are located in a big metro area. Therefore, it is considering using a lockbox system offered by a bank located in the city center. The bank has estimated that use of the system will reduce collection time by 5 days. Average number of payments per day Average value of payment 820 $550 Variable lockbox fee (per transaction) $ 0.4 Daily interest rate on money market securities What is the NPV of the new lockbox system?
The NPV of the new lockbox system is $10,445.
The annual savings from the lockbox system are calculated as follows:
How to solveAverage number of payments per day * Average value of payment * Reduction in collection time = 820 * $550 * 5 days = $227,000
The annual cost of the lockbox system is calculated as follows:
Number of payments per day * Variable lockbox fee = 820 * $0.4 = $328
The NPV of the lockbox system is calculated as follows:
Annual savings - Annual cost = $227,000 - $328 = $226,672
The NPV is discounted at the daily interest rate on money market securities, which is 0.015%. The NPV of the lockbox system is therefore:
[tex]226,672 * (1 + 0.015)^{365 }= 10,445[/tex]
The NPV of the lockbox system is positive, so the system should be implemented.
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Labor force participation rate Total population 16 years of age and older Unemployment rate 75% 200 million 10% Refer to Table 7.2. The labor force A) equals 130 million. B) equals 150 million. C) equals 170 million D) cannot be determined from this information. 11. Refer to Table 7.2. The total number of people unemployed is A) 13 million. B) 15 million. C) 17 million. D) 20 million.
Labor force participation rate Total population is equals 150 million. The percentage of the population that is employed or actively seeking employment is known as the participation rate. (Labour Force Civilian Noninstitutional Population) x 100 equals the labour force participation rate.
The percentage of Americans who are employed is measured by the participation rate. The percentage of the labour force that is unemployed at the moment is represented by the unemployment rate. A healthy job market is demonstrated by a high participation rate and a low unemployment rate.
The labour force participation rate displays the proportion of the working-age population, or the number of civilian, non-institutionalized adults aged 16 and over, who are employed or unemployed, as a share of the overall population.
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The question is incomplete complete question is given below
Refer to Table 7.2. The labor force (Total pop: 200 million, participation rate is 75%, unemployment rate is 10%)
A) equals 130 million.
B) equals 150 million.
C) equals 170 million
D) cannot be determined from this information.
Mike is CFO of a fast-growing corporation in the hospitality space, and about three years ago when the company was much smaller in size, purchased an ERP system. However, the company has grown quite rapidly over the last three years and is now a major player in the industry. For this reason, Mike believes that the ERP system needs an additional set of capabilities for SCM. What would be efficient way for the company to acquire these capabilities. Explain.
The most efficient way for Mike's company to acquire additional capabilities for SCM in its ERP system is to purchase a third-party add-on solution.
This is because it would be the quickest and most cost-effective way to get the new capabilities that the company needs.
There are a number of different third-party add-on solutions available that can provide the additional capabilities that Mike's company needs for SCM. These solutions are typically designed to integrate seamlessly with existing ERP systems, so there would be minimal disruption to the company's operations. In addition, purchasing a third-party add-on solution would be much less expensive than replacing the entire ERP system.
Another option would be to develop the additional capabilities in-house. However, this would be a much more time-consuming and expensive process. In addition, it would be difficult to ensure that the new capabilities would be integrated seamlessly with the existing ERP system.
Therefore, the most efficient way for Mike's company to acquire additional capabilities for SCM in its ERP system is to purchase a third-party add-on solution.
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Consider a company that purchases one component from its supplier. The demand for the component is fairly stable. However, due to the global pandemic, the lead time is increased from 5 days to 10 days. In this case, EOQ will Double Increase by a factor of 4 Increase by a factor that cannot be determined Increase by a factor of √2
EOQ stands for Economic Order Quantity. It is a type of inventory management method that identifies the optimal number of items a company should order from a supplier to minimize the total cost of inventory.
The EOQ model determines the number of items a company should order to minimize its total inventory costs, including carrying costs, ordering costs, and stockout costs. Thus, the company needs to maintain a balance between the carrying and ordering costs. Let's consider a company that purchases one component from its supplier.
The demand for the component is stable, but the lead time is increased from 5 days to 10 days due to the global pandemic. In this case, the EOQ will increase by a factor that cannot be determined. The reason is that the EOQ formula considers the carrying cost, ordering cost, and lead time.
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This is a subjective question, hence you have to write your answer in the Text-Field given below. 76693 Calculate the centre line and control limits of U chart considering following detail [6] Sample Size=1000 Sample S Class of defects A B C D Number of defects 1 5 10 15
the control limits for the U chart can be calculated as:UCL = 91/1000 + 3√(91/1000)= 91/1000 + 3 x 0.024= 0.100LCL = 91/1000 - 3√(91/1000)= 91/1000 - 3 x 0.024= 0.082Therefore, the Centre line for U chart is 91/1000 and the upper and lower control limits are 0.100 and 0.082, respectively.
As mentioned in the question, this is a subjective question, so the answer is given below: Given Sample size=1000S Class of defects A B C D. Number of defects 1 5 10 15. As we know that the U chart has fixed control limits, and the centre line is the average value of all samples taken. The centre line of U chart is the sum of all defects divided by the sample size. To calculate the centre line and control limits of U chart, the following formulae are used;Centre line:CL=ΣU/nWhere, ΣU = Sum of the U values in the sample; n = Sample size. In this case,CL = (1A + 5B + 10C + 15D) / Sample size= (1 x 1 + 5 x 2 + 10 x 3 + 15 x 4) / 1000= 91/1000. Control Limits:UCL = CL + 3√CL = Centre Line value of the chart+ 3 x Square root of Centre line value of the chart LCL = CL - 3√CL = Centre Line value of the chart- 3 x Square root of Centre line value of the chart. Thus, the control limits for the U chart can be calculated as:UCL = 91/1000 + 3√(91/1000)= 91/1000 + 3 x 0.024= 0.100LCL = 91/1000 - 3√(91/1000)= 91/1000 - 3 x 0.024= 0.082Therefore, the Centre line for U chart is 91/1000 and the upper and lower control limits are 0.100 and 0.082, respectively.
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[10 MARKS] Consider a standard Cournot model with 26 firms. The inverse demand is P = 400 - 2Q and every firm's cost of producing a quantity q is 40q. (a) [5 MARKS] What is the minimum number of firms that need to merge for the merger to be profitable? (b) [5 MARKS] Suppose that a number of firms equal to what you found in (a) merge. How much profit does the merger generate for the firms involved? Note: If you did not find an answer in (a), use 24.
Price becomes a function of quantity demanded in the case of an inverse demand curve. The inverse of a demand curve, this indicates that variations in the amount required cause changes in price levels.
An inverse demand function in economics is the opposite of a demand function. Price is seen as a function of quantity according to the inverse demand function.
The quantity demanded, Q, is a function of price (the demand function), while the inverse demand function, which also goes by the name price function, treats price as a function of quantity demanded: The demand function that may be seen in the well-known Marshallian Scissors diagram is known as the inverse demand function.
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Cost Structure for nike What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? IS YOUR BUSINESS MORE: Cost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing), Value Driven (focused on value creation, premium value proposition). SAMPLE CHARACTERISTICS Fixed Costs (salaries, rents, utilities). Variable costs, Economies of scale, Economies of scope
Nike is a business whose cost structure is influenced by the materials it uses to manufacture its products, production costs, labor costs, and fixed and variable costs. The cost structure also relies on the business model the firm is using.
The most important costs that are inherent in Nike's business model are the material costs which are incurred during the manufacturing process, as well as the marketing and advertising costs associated with promoting its products. The cost structure is greatly influenced by the business model that Nike is using.
The Key resources that are most expensive include its intellectual property, such as its patents and trademarks, and its manufacturing facilities and equipment.
The Key activities that are most expensive are research and development (R&D), the manufacturing process, marketing, and advertising. Nike’s business is focused on value creation, which is why the company has a premium value proposition. The company spends a considerable amount on R&D and marketing in order to produce high-quality products that meet customer needs and preferences.The fixed costs of Nike include salaries, rents, and utilities, while the variable costs include raw materials, labor, and production costs.
Nike takes advantage of economies of scale by purchasing large quantities of raw materials at a discounted price. The company also takes advantage of economies of scope by using its existing infrastructure to produce new products that complement its existing line of products.In conclusion, Nike's business model is more value-driven, with a focus on creating premium products that meet customer needs and preferences.
The company has a high cost structure due to the expenses associated with R&D, manufacturing, and marketing, but it takes advantage of economies of scale and scope to reduce costs where possible.
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______ represents the process by which goods, services or ideas are used and transformed into value.
Operations management is the process by which goods, services, or ideas are used and transformed into value
The process by which goods, services or ideas are used and transformed into value is known as operations management. It is the administration of all activities that produce products and services. It has a significant impact on the productivity and efficiency of a company.Operations management entails the planning, coordinating, and supervising of all activities that create goods or services. It is a comprehensive approach that includes supply chain management, production management, and quality control. Operations management is essential because it ensures that goods and services are delivered to customers efficiently, cost-effectively, and on time.There are various benefits of operations management. These include reducing costs, improving quality, increasing efficiency, and enhancing customer satisfaction. Operations management helps companies to create value by transforming raw materials into finished products. It converts services or ideas into valuable products that meet customer needs and preferences.Operations management is crucial for businesses as it allows them to develop a competitive advantage. By optimizing their operations, businesses can provide customers with the products and services they require more effectively. In addition, they can increase their productivity, reduce costs, and improve quality.
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