The steady-state market shares for the two major breweries are 0.538 and 0.462
Steady-state probabilities or the limiting probabilities are used to measure the long-term proportion of time the system spends in each of the states. It is used to investigate the properties of the Markov chain after a long time has passed.
To calculate the steady-state probability, we must calculate the eigenvalues and eigenvectors for the transition matrix. The transition matrix has a full set of eigenvalues, but only one of them is equal to 1, which is the steady-state eigenvalue.
The steady-state probabilities of the two major breweries are 0.538 and 0.462. To solve this question, we must first set up the following system of equations:
[tex]0.538P(a) + 0.462P(b) = P(a)0.538P(a) + 0.462P(b) = P(b)[/tex]
We get [tex]P(a) = 0.538[/tex] and[tex]P(b) = 0.462[/tex]
by solving this system of equations. Therefore, the steady-state market shares for the two major breweries are 0.538 and 0.462.
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A seller entered into a written contract to sell her land to a buyer for $200,000. Before the closing date, the buyer received the title search report, which indicated that a rancher conveyed the land to a farmer by quitclaim deed 25 years ago and that a landowner conveyed the land to the seller by warranty deed 13 years ago. The buyer notified the seller that the records did not indicate how the land was conveyed to the landowner (the seller's immediate transferor), and that the buyer was concerned about this. The seller replied that she had no knowledge of the matter but would look into it. At the date and time appointed for closing, the seller informed the buyer that she could not locate the landowner or obtain any information as to the conveyance of the land to him. On hearing this, the buyer refused to tender the purchase money, and told the seller that he was rescinding the contract. The seller sued the buyer for specific performance.
Which party is more likely to prevail?
The buyer is likely to prevail in a lawsuit for specific performance.
This is because the buyer has the right to rescind the contract if there is a defect in the title of the property. In this case, the defect is in the title is the lack of information about how the land was conveyed to the seller's immediate transferor (the landowner). A lawsuit is a legal action or dispute brought to court by one or more parties seeking a legal resolution to a problem or disagreement. The seller's inability to provide this information creates uncertainty about the validity of the title, which is a valid reason for the buyer to rescind the contract.
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ALM 811S 2nd Opp -July 2018
Question 2 (25 marks)
Describe the concept of logistics contracts and discuss
its usefulness in modern day logistics
management.
The concept of logistics contracts involves an agreement between two parties – the logistics service provider and the client – specifying the terms and conditions for the provision of logistics services.
These contracts can cover a wide range of logistics services including transportation, warehousing, inventory management, and distribution. The logistics contract is a binding agreement that outlines the obligations and responsibilities of each party, the scope of the services to be provided, the pricing, and the timeframes involved.
The usefulness of logistics contracts in modern day logistics management is multi-faceted. Firstly, logistics contracts provide a framework for managing the risks and uncertainties associated with logistics operations. By defining the terms and conditions of the logistics services to be provided, the contract provides a mechanism for reducing uncertainty and avoiding disputes between the parties involved.
Secondly, logistics contracts can help to reduce costs and improve efficiency in logistics operations by optimizing the planning and execution of logistics activities. The contract can establish performance metrics and incentives for the logistics service provider to ensure that the services are delivered in a timely and cost-effective manner. Thirdly, logistics contracts can improve the quality of logistics services by setting standards and expectations for service levels.
Overall, logistics contracts play a critical role in modern day logistics management by providing framework for managing risks and responsibilities, improving efficiency and service quality, while promoting a collaborative working relationship between the logistics service provider and the client.
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A company is estimating the benefits of investing in a new machine to improve its output. Its current variable costs are £12 per unit and current fixed costs are £48,000. If the new machine increases fixed costs by 20% but reduces variable costs by 10%, at what level of production should they change to the new method?
a) 8,000 units
b) 2,000 units
c) 4,363 units
d) 4,000 units
The level of production should they change to the new method is 8,000 units. Therefore, the correct answer is A.
Variable costs are expenses that change in direct proportion to the number of products produced or services delivered. If a firm produces no products, for example, there would be no variable expenses. If a firm manufactures twice as much as previously, variable expenses will increase proportionally. Fixed costs are fixed expenditures that don't change in the short term, regardless of how much a firm produces. Rent is an example of a fixed cost.
The fixed and variable cost function for a company that wants to install a new machine to improve its production is given below:
Step 1: Calculate the Current Total Cost
Variable Costs Per Unit = £12Fixed Costs = £48,000Current Total Cost = Fixed Costs + (Variable Costs Per Unit × Number of Units)Step 2: Calculate the New Total Cost
Variable Costs Per Unit = £12 - 10% of £12 = £10.80Fixed Costs = £48,000 + 20% of £48,000 = £57,600New Total Cost = Fixed Costs + (Variable Costs Per Unit × Number of Units)Step 3: Find the Break-Even Point
Current Total Cost = New Total Cost48,000 + (12 × Number of Units) = 57,600 + (10.80 × Number of Units)1.2x = 9,600x = 8,000 unitsTherefore, the answer is (a) 8,000 units.
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Stock X has an expected return of 2% and a standard deviation of return of 5%. Stock Y has an expected return of 11% and a standard deviation of return of 18%. The correlation coefficient between the returns of X and Y is 1. The risk-free rate of return is 4%. What is the proportion of the optimal risky portfolio that should be invested in stock X?
Using the capital asset pricing model, the proportion of the optimal risky portfolio that should be invested in stock X is approximately 11.45%.
What is the proportion of optimal risky portfolio that should be invested in stock XTo calculate the proportion of the optimal risky portfolio that should be invested in stock X, we need to use the capital asset pricing model (CAPM) and the formula for the optimal portfolio weight.
CAPM formula:
r = rf + β(rm - rf)
where:
r = expected return on the stock
rf = risk-free rate of return
β = beta coefficient of the stock
rm = expected return on the market
We can calculate the beta coefficient of each stock using the formula:
β = cov(X,Y) / var(Y)
where:
cov(X,Y) = covariance of the returns of X and Y
var(Y) = variance of the returns of Y
First, let's calculate the beta coefficients:
cov(X,Y) = σXY = ρXY × σX × σY = 1 × 0.05 × 0.18 = 0.009
var(Y) = σY^2 = 0.18^2 = 0.0324
βX = cov(X,Y) / var(Y) = 0.009 / 0.0324 ≈ 0.278
βY = cov(X,Y) / var(Y) = 0.009 / 0.0324 ≈ 0.278
Now, let's calculate the expected return on the market:
rm = rf + [E(Rm) - rf]
= 4% + [11% - 4%]
= 11%
We can use the formula for the optimal portfolio weight to calculate the proportion of the portfolio that should be invested in stock X:
wX* = (βX × σX / σM) / [(βX × σX / σM) + (βY × σY / σM)]
where:
σM = the standard deviation of the market return
σM = sqrt(σX^2 + σY^2 + 2ρXYσXσY) = sqrt(0.05^2 + 0.18^2 + 2 × 1 × 0.05 × 0.18) ≈ 0.186
wX* = (0.278 × 0.05 / 0.186) / [(0.278 × 0.05 / 0.186) + (0.278 × 0.18 / 0.186)]
≈ 0.1145
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Jupiter company sold 20,000 crates of a soft drink at Rupees 120 during the year. Its beginninginventory consisted of 1000 crates at 70 per crate. The following purchases were made during theyear: 5000 Crates at the rate Rupees 75, 8000 crates at the rate Rupees 76, 9000 crates at the rateRupees 80. Operating expenses were 365,000. Income tax is payable at 30%.Required:a)Compute the net profit using FIFO and LIFO methods. Is the differences in profit underthe two methods can be distributed as dividends justify your answer?b)Which method LIFO or FIFO is applicable in India?c) Suppose the company makes a purchase of 4000 crates at Rupees 85 on the last day ofthe reporting period. How the purchase does affects the company net profit and income taxexpenses under the two methods?
There is a difference of Rs. 253,400 in the net profit between the two approaches. As opposed to actual earnings, Sales difference is a difference of accounting practices, hence it cannot be as dividends.
Describe a sale.A sale is a trade in which something is given out in exchange for money and/or other products or services. In other words, a sale refers to any action which involves giving a buyer ownership of a good or service in exchange for the payment of a specific sum of money.
What does a company's sales mean?Every transaction where money and value is transferred for the right to own a good or access to a service is referred to as a sale in regular commercial operations. The term "sales" in accounting refers to the money a business makes through selling goods or services.
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What are the three key characteristics of an
experimental design (provide a short description of all
three)?
An experimental design is composed of three key characteristics: control, manipulation, and randomization.
We proceed to explain the characteristics of the experimental design:
Control: An experimental design involves controlling for extraneous variables that could affect the outcome of the experiment. This means that the researcher attempts to isolate the effects of the independent variable(s) by keeping all other factors constant. This allows the researcher to make causal inferences about the relationship between the independent variable(s) and the dependent variable.Randomization: In an experimental design, participants are randomly assigned to different conditions or groups. This helps to ensure that any individual differences or extraneous variables are evenly distributed across the groups, making it more likely that any observed differences in the dependent variable are due to the independent variable(s).Manipulation: An experimental design involves the manipulation of the independent variable(s) to determine their effect on the dependent variable. This means that the researcher actively changes or manipulates the independent variable(s) to observe the resulting changes in the dependent variable.See more about experimental design at https://brainly.com/question/17280313.
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Orlando made the decision to open his food truck because he
wanted to share the seasonings of his culture with others. He
typically thinks about how his decisions will affect others, using
the ------- style of decision making
-analytical
-directive
-behavioral
-conceptual
Orlando appears to be using conceptual decision-making based on the facts provided. Conceptual decision-makers are frequently imaginative and intuitive, and they place a high value on taking risks and being innovative.
This approach entails taking into account the larger picture, long-term objectives, as well as one's own and other people's values and beliefs. Orlando's desire to share his cultural spices with others drives his decision to start a food truck in this instance, which implies that he is thinking about the beliefs and values of both himself and his potential clients.
One of the four decision-making approaches is the conceptual approach. When making significant judgments, conceptual decision-makers explore a wide range of viewpoints, foster collaboration, and innovative thinking, and look far into the future. They are driven to change the world and relish the uncertainty of open-ended alternatives. They weigh various choices, prefer group brainstorming and group thinking, and are risk-takers.
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Which of the statements about subprime lending is false? The risks associated with subprime lending increase as the likelihood of falling home prices increase. If a home owner is unable to afford the mortgage payments, the homeowner can always pay off the mortgage by selling the home. Subprime lending occurs when financial institutions issue loans to individuals who are less likely to be able to repay their loan than individuals who meet a set of standards. Before the 2008 financial crisis, financial institutions increased the number of subprime loans they issued as home prices continued to rise
The statement on subprime lending that is false is B. If a home owner is unable to afford the mortgage payments, the homeowner can always pay off the mortgage by selling the home.
Why can the homeowner not make back the money ?"If a homeowner is unable to repay the mortgage payments, the homeowner can always pay off the mortgage by selling the home," is a misleading assertion about subprime lending.
This statement is not necessarily true because falling home prices can make it difficult for homeowners to sell their homes for a price that will cover their outstanding mortgage balance. In fact, during the 2008 financial crisis, many homeowners were unable to sell their homes and were left with unaffordable mortgage payments, leading to a wave of foreclosures and defaults on subprime loans.
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What is required by the statute of frauds to be in writing?
The Statute of Frauds requires certain types of contracts to be in writing to be enforceable.
These include contracts for the sale of land, contracts that cannot be performed within one year, contracts for the sale of goods over a certain value, and contracts in which one party becomes a surety (guarantor) for another party's debt or obligation.
The writing must include the essential terms of the agreement, such as the parties involved, the subject matter, and the consideration exchanged. It must also be signed by the party against whom enforcement is sought, or by their authorized representative.
Additionally, electronic signatures and communications may be acceptable under certain circumstances, depending on the jurisdiction and the nature of the transaction.
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A company started 125,000 units and completed production of 100,000 units last month. There was no beginning work-in-process inventory, and ending work-in-process inventory was 25% complete. Given total production costs of $1,168,750, what is the value assigned to finished goods inventory?
The value assigned to finished goods inventory is $1,100,000, calculated by dividing total production costs by the equivalent units produced and multiplying by the number of completed units.
To calculate the value assigned to finished goods inventory, we need to determine the equivalent units of production, which takes into account the partially completed ending work-in-process inventory. Since the ending work-in-process inventory is 25% complete, we need to add 25% of the equivalent units to the completed units to get the total equivalent units produced. This is done by multiplying the completed units by 1 and the ending work-in-process inventory units by 0.25.
Once we have the total equivalent units produced, we can divide the total production costs by this number to get the cost per equivalent unit. Finally, we can multiply the cost per equivalent unit by the number of completed units to get the value assigned to finished goods inventory.
Here are the calculations to arrive at the answer of $1,100,000:Equivalent units produced = Completed units + (Ending work-in-process inventory units x Percentage completion)
So:
Equivalent units produced = 100,000 + (25,000 x 0.25)Equivalent units produced = 106,250Cost per equivalent unit = Total production costs / Equivalent units produced
So:
Cost per equivalent unit = $1,168,750 / 106,250Cost per equivalent unit = $11Value assigned to finished goods inventory = Completed units x Cost per equivalent unit
So:
Value assigned to finished goods inventory = 100,000 x $11Value assigned to finished goods inventory = $1,100,000Therefore, the value assigned to finished goods inventory is $1,100,000.
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your oil and gas company has to make a decision to pursue fracking or a green alternative. the company headquarters is located in a region of the country known for social responsibility. the outcomes are uncertain for both options with an equal chance of having a good or best outcome and a 60% chance for a better outcome. which option would you advise the company to select if they are concerned about risk. fracking good
As an advisor, I would recommend that the oil and gas company go for the green alternative rather than pursuing fracking, if they are concerned about risk.
Why the oil and gas company should go for the green alternative if they are concerned about risk,If they go for fracking, they will face a greater amount of risk as compared to the green alternative. The reason for this is that fracking has a higher risk of environmental degradation than a green alternative.
Fracking is associated with a range of environmental issues that are harmful to the earth's natural resources, including water, soil, and air quality, among others. However, if they choose to pursue a green alternative, they will reduce the level of risk that they are exposed to.
Green alternatives are cleaner and environmentally friendly compared to fracking, which is associated with the release of harmful chemicals into the environment that can pollute natural resources.
Therefore, a green alternative is a more sensible choice for an oil and gas company that is based in a region of the country known for social responsibility.
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Click this link to view the ooh educational information for chefs. according to the ooh, what are some educational, training, certification, or licensing options required or helpful for chefs? check all that apply. apprenticeships work experience in kitchens a master’s degree experience selling products to customers experience with fundraising culinary programs or schools certification
Answer:
Explanation:
1,2,6,7
According to OOH, the educational, training, certification or licensing needed for chefs are - Apprenticeships, Work experience in kitchens, culinary programs or schools, certification.
For entry into the field, head cooks and chefs normally need a high school graduation and job experience. Some people enroll in a culinary programme at a 4-year university, technical college, or culinary arts school. Others acquire knowledge via apprenticeship schemes.
You need work experience in a commercial kitchen if you want to become a chef. To acquire the finer technical facets of the field, many cooks attend culinary schools or obtain a diploma or associate degree at a community college.
Therefore a chefs needs Apprenticeships, Work experience in kitchens, culinary programs or schools, certification.
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According to the ooh, what are some educational, training, certification, or licensing options required or helpful for chefs? check all that apply.
apprenticeships work experience in kitchens a master’s degree experience selling products to customers experience with fundraising culinary programs or schools certificationA copyright purchased on January 1, 2020, for a cash cost of $15,400. The copyright is expected to have a 10-year useful life to Springer. Goodwill of $74,000 from the purchase of the Hartford Company on July 1, 2019. A patent purchased on January 1, 2019, for $50,000. The inventor had registered the patent with the U. S. Patent and Trademark Office on January 1, 2015. Springer intends to use the patent for its remaining life. Required: 1. Compute the amortization expense of each intangible for the year ended December 31, 2020. The company does not use contra-accounts. 2a. Show how the expenses related to the three intangible assets should be reported on the income statement for 2020. 2b. Show how the three intangible assets should be reported on the balance sheet for 2020. (Assume there has been no impairment of goodwill. )
(1). The amortization expense of each intangible for the year ended December 31, 2020 is:
Copyright amortization expense: $1,540
Goodwill amortization expense: Nil
Patent amortization expense: $12,500
Computation the amortization expense of each intangible for the year ended December 31, 2020:
a. Copyright:
The cost of the copyright is $15,400 and it has a useful life of 10 years. Therefore, the annual amortization expense is $1,540 ($15,400 / 10).
b. Goodwill:
Goodwill is not subject to amortization. Instead, it is tested for impairment annually or more frequently if events or changes in circumstances indicate that the fair value of the reporting unit may be below its carrying amount.
c. Patent:
The patent was purchased for $50,000 on January 1, 2019, and it has a remaining useful life of 4 years (since it was registered on January 1, 2015). Therefore, the annual amortization expense for 2020 is $12,500 ($50,000 / 4).
2(a). The expenses related to the three intangible assets should be reported on the income statement for 2020:
Copyright amortization expense: $1,540
Patent amortization expense: $12,500
Total amortization expense: $14,040
Since goodwill is not subject to amortization, it does not appear on the income statement.
2(b). The three intangible assets should be reported on the balance sheet for 2020:
Copyright:
Cost: $15,400
Accumulated amortization: ($1,540)
Net book value: $13,860
Goodwill:
Cost: $74,000
Accumulated impairment: $0
Net book value: $74,000
Patent:
Cost: $50,000
Accumulated amortization: ($25,000) [($50,000 / 4) x 2]
Net book value: $25,000
Note that the accumulated amortization for the patent is calculated based on two years of amortization expense, since the patent was purchased on January 1, 2019.
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What if anything about your thinking about financial decision making changed with this unit? How would you advise a friend to think about trying to understand their current financial situation and how to begin making sound financial decisions moving forward?
When making financial decisions, it's important to consider both the short-term and long-term impact. For example, taking out a loan to buy a new car may provide short-term satisfaction, but it could also lead to long-term debt and financial stress. Before making any major financial decisions, it's a good idea to weigh the pros and cons and consider the potential consequences.
Finally, it's important to educate yourself about personal finance. There are many resources available, such as books, podcasts, and online courses, that can help you develop a solid understanding of financial concepts and strategies.
In summary, to understand your current financial situation and make sound financial decisions moving forward, you should:
Assess your current financial situation.Set SMART financial goals.Consider the short-term and long-term impact of financial decisions.Educate yourself about personal finance.Learn more about financial decision
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which type of audit analytics might be used to find hidden patterns or variables linked to abnormal behavior?
Anomaly detection audit analytics might be used to find hidden patterns or variables linked to abnormal behaviour.
This type of audit analytics uses complex algorithms to identify outliers or unexpected changes in data. It can be used to identify potential fraud and other irregularities within an organization.
The algorithm searches for patterns that are significantly different from the baseline or expected behaviour.
For example, it could detect an employee making an unusually high number of purchases or an abnormal number of transactions in a single day.
Anomaly detection audit analytics can be used to identify and alert organizations to potentially suspicious activity. By using this type of audit analytics, organizations can quickly detect problems that may otherwise go unnoticed.
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Case Study
The pure spring factory
The Safi Bottled Water Factory was established 5 years ago, and during this period the factory was growing at a normal level and within the growth rates of similar factories. Sales and profits. Mahmoud started his work, and after a month of assuming his position, he noticed that the factory needed to hire a number of new employees and workers to increase the volume of production, and accordingly, Mahmoud contacted the production manager and asked him to specify the number of employees and workers required to increase production, so the production manager responded The problem is not in the number of workers, but rather in the machines used, which need to be developed and renewed. Mahmoud did not care about the point of view of the production manager, and communicated directly with the human resources manager to ask him to appoint 20 workers very urgently and within one week, so that Mahmoud was surprised that The company had appointed 15 new workers two months ago, and the Human Resources Director told him that a week period was not enough to hire this number of workers and that the process of recruitment and recruitment was not carried out in this way. Despite this, Mahmoud insisted on that, and through the powers he had, he appointed 20 new workers, where he posted an advertisement on social media and gave phone interviews quickly, and the new workers started working within a week. After two months, the board of directors began to notice a decline in sales volume and an increase in costs continuously, and the factory made a loss big in The next six months, which led to the dismissal of Mahmoud from his position as the first decision taken by the Board of Directors to rectify the situation.
The first question: From your point of view, did Mahmoud hasten to take the decision to increase the workers, and was the period of one month sufficient for Mahmoud to be able to assess the situation correctly and accurately?
The second question: Through your study of the Principles of Management 2 course, what is the leadership style that Mahmoud followed, with an explanation of this through the study case?
The third question: Through your study of the Principles of Management 2 course, how is the process of determining the required number of employees? And what are the steps taken to implement this?
Mahmoud's hasty decision to hire 20 new workers without considering the opinion of the production manager and without following the proper recruitment and selection process led to a decline in sales volume, an increase in costs, and a big loss for the company.
Mahmoud, the new manager of the Safi Bottled Water Factory, made a decision to hire 20 new workers in one week, without considering the opinion of the production manager, who suggested that the machines needed to be renewed to increase production. Mahmoud insisted on his decision, posted an advertisement on social media, gave quick phone interviews, and hired the workers. However, the company noticed a decline in sales volume and an increase in costs, leading to a big loss in the next six months, and Mahmoud was dismissed from his position. It appears that Mahmoud did not assess the situation correctly and accurately and did not follow the proper procedures for determining the required number of employees.
Mahmoud's leadership style could be described as autocratic, where he made decisions without consulting or considering the opinions of others. This is evident from his decision to hire 20 new workers without considering the production manager's suggestion to renew the machines. This leadership style can lead to poor morale among employees and may not be effective in situations where the manager does not have all the necessary information to make a decision.
The process of determining the required number of employees involves several steps, including assessing the current workforce, forecasting future demand, and considering factors such as turnover and absenteeism. Once the required number of employees is determined, the company should follow the proper recruitment and selection process, which includes posting job openings, reviewing resumes, conducting interviews, and checking references. It is important to follow these steps to ensure that the company hires the right people for the job and avoids problems such as high turnover and low morale.
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you are given the following information concerning two stocks that make up an index. assume that you want to reindex with the index value at the beginning of the year equal to 100. what is the index level at the end of the year? (do not round intermediate calculations. round your answer to 2 decimal places.) price per share shares outstanding beginning of year end of year kirk, inc. 34,000 $ 53 $ 60 picard co. 32,000 78 84
The index level at the end of the year is 51.28. This means that the index increased by 19.4% during the year, from the initial level of 42.98 to the final level of 51.28.
To calculate the index level at the end of the year, we need to first calculate the market capitalization of each stock at the beginning and end of the year. Market capitalization is the product of the stock's price per share and the number of shares outstanding.
For Kirk, Inc., the market capitalization at the beginning of the year is:
$34,000 * $53 = $1,802,000
And at the end of the year, it is:
$34,000 * $60 = $2,040,000
For Picard Co., the market capitalization at the beginning of the year is:
$32,000 * $78 = $2,496,000
And at the end of the year, it is:
$32,000 * $84 = $2,688,000
To calculate the index level, we need to add up the market capitalization of both stocks at the beginning and end of the year and divide by the initial market capitalization, which we assume to be 100.
The index level at the beginning of the year is:
($1,802,000 + $2,496,000) / 100 = 42.98
The index level at the end of the year is:
($2,040,000 + $2,688,000) / 100 = 51.28
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Consider a distributor of TV sets that orders from a manufacturer and sells to retailers. Suppose the distributor of the TV sets is trying to set inventory policies at the warehouse for one of the TV set models. Assume that whenever the distributor places an order for TV sets, there is a fixed ordering cost of $4500, which is independent of order size. The cost of a TV set to the distributor is $250 and the annual inventory holding cost is 18% of the product cost. Lead-time is two weeks. Historical data of the past 12 months' sales is given as
month
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
sales
200
152
100
221
287
176
151
198
246
309
98
156
The distributor wants to ensure 97% service level, what is the order quantity, reorder level and the average inventory kept by the distributor.
The distributor should order 956 TV sets at a time, set a reorder point of 408 units, and maintain an average inventory of 528 units.
To determine the optimal inventory policy for the TV sets, we need to calculate the following parameters:
Demand per week: We can calculate the average weekly demand by dividing the total annual sales by the number of weeks in a year. Assuming 52 weeks in a year, the average weekly demand is:
(200 + 152 + 100 + 221 + 287 + 176 + 151 + 198 + 246 + 309 + 98 + 156) / 52 = 178.58
Therefore, we can assume a demand of approximately 179 TV sets per week.
Lead time demand: The lead time demand is the demand that occurs during the lead time, which is two weeks in this case. Therefore, the lead time demand is:
Lead time demand = Average weekly demand x Lead time = 179 x 2 = 358
Safety stock: Safety stock is the inventory kept to account for any variability or uncertainty in demand. We can calculate the safety stock using the following formula:
Safety stock = Z-score x Standard deviation of lead time demand
Since we want to ensure a 97% service level, the Z-score for 97% service level is 1.88 (using a normal distribution table or Excel function). To calculate the standard deviation of lead time demand, we need to calculate the variance first:
Variance of lead time demand = Average weekly demand x Lead time x (1 - Lead time/52) = 179 x 2 x (1 - 2/52) = 690.31
Standard deviation of lead time demand = Square root of variance of lead time demand = 26.27
Therefore, the safety stock is:
Safety stock = 1.88 x 26.27 = 49.42, rounded up to 50
Reorder point: Reorder point is the level of inventory at which the distributor should place an order to avoid stockouts. We can calculate the reorder point using the following formula:
Reorder point = Lead time demand + Safety stock = 358 + 50 = 408
Order quantity: The optimal order quantity can be calculated using the economic order quantity (EOQ) formula:
EOQ = Square root of (2 x Ordering cost x Annual demand / Holding cost per unit)
Ordering cost = $4,500
Annual demand = 179 x 52 = 9,308
Holding cost per unit = 18% x $250 = $45
Therefore, the EOQ is:
EOQ = Square root of (2 x $4,500 x 9,308 / $45) = 955.66, rounded up to 956
Therefore, the distributor should order 956 TV sets at a time.
Average inventory: The average inventory can be calculated using the following formula:
Average inventory = EOQ / 2 + Safety stock = 956 / 2 + 50 = 528
Therefore, the distributor should order 956 TV sets at a time, set a reorder point of 408 units, and maintain an average inventory of 528 units.
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in the context of management, rules refer tomultiple choicea reporting relationship in which an employee receives orders from only one superior.the ability of an individual to act on his own accord without direction from a superior.formal written instructions that specify actions to be taken under different circumstances.the performance gains that result when individuals and departments coordinate their actions.the methodical arrangement of positions to provide the organization with the greatest benefit.
In the context of management, rules refer to formal written instructions that specify actions to be taken under different circumstances. These rules are put in place to ensure that every individual within an organization is following the same guidelines and procedures, and to provide structure and order within the management system.
By having formal written rules, an organization can ensure that every employee is on the same page and that there is consistency in the actions taken by each individual. This can help with coordination and can ultimately lead to better performance and greater benefits for the organization as a whole.
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Please give correct answer!
On January 1, 2024, the Excel Delivery Company purchased a delivery van for $35,000. At the end of its five-year service life, it is estimated that the van will be worth $2,000. During the five-year period, the company expects to drive the van 110,000 miles.
Required:
Calculate annual depreciation for the five-year life of the van using each of the following methods.
2. Double-declining balance. \begin{tabular}{|c|cr|} \hline Year & \multicolumn{2}{|c|}{ Depreciation } \\ \hline 2024 &
$
& 14,000 \\ \hline 2025 & & \\ \hline 2026 & & \\ \hline 2027 & & \\ \hline 2028 & & \\ \hline Total &
$
& 14,000 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Year & \multicolumn{1}{|l|}{ Miles } & Depreciation \\ \hline 2024 & 24,000 & \\ \hline 2025 & 26,000 & \\ \hline 2026 & 17,000 & \\ \hline 2027 & 22,000 & \\ \hline 2028 & 23,000 & \\ \hline Total & & \\ \hline \end{tabular}
Therefore, the annual depreciation expense for the five-year life of the van using double-declining balance is:
Year 1: $14,000Year 2: $8,400Year 3: $5,040Year 4: $3,024Year 5: $2,000How do we calculate the depreciation expense using double-declining balance?To calculate the annual depreciation for the five-year life of the van using double-declining balance, we need to follow these steps:
Step 1:
Calculate the straight-line depreciation rate
The straight-line depreciation rate can be calculated as follows:
Straight-line depreciation rate = (Cost - Salvage value) / Useful life
= ($35,000 - $2,000) / 5 years
= $33,000 / 5 years
= $6,600 per year
Step 2:
Determine the double-declining balance depreciation rate
Double-declining balance depreciation rate = 2 x Straight-line depreciation rate
= 2 x $6,600 per year
= $13,200 per year
Step 3:
Calculate the annual depreciation expense.
Depreciation expense = Beginning book value x Double-declining balance depreciation rate
Where beginning book value = Cost of the asset - Accumulated depreciation
For the first year, the beginning book value is simply the cost of the asset, as no depreciation has been charged yet. Therefore:
Depreciation expense for year 1 = $35,000 x 2 / 5
= $14,000
The accumulated depreciation for year 1 is simply the depreciation expense for year 1. Therefore:
Accumulated depreciation for year 1 = $14,000
The ending book value for year 1 is:
= Cost of the asset - Accumulated depreciation for year 1
= $35,000 - $14,000
= $21,000
For year 2, the beginning book value is the ending book value from year 1, which is $21,000. Therefore:
Depreciation expense for year 2 = $21,000 x 2 / 5 = $8,400
The accumulated depreciation for year 2 is the sum of the depreciation expense for year 1 and year 2. Therefore:
Accumulated depreciation for year 2 = $14,000 + $8,400
= $22,400
The ending book value for year 2 is:
= Cost of the asset - Accumulated depreciation for year 2
= $35,000 - $22,400
= $12,600
Year | Beginning Book Value | Depreciation Expense | Accumulated Depreciation | Ending Book Value
1 | $35,000 | $14,000 | $14,000 | $21,000
2 | $21,000 | $8,400 | $22,400 | $12,600
3 | $12,600 | $5,040 | $27,440 | $7,560
4 | $7,560 | $3,024 | $30,464 | $4,536
5 | $4,536 | $2,000 | $32,464 | $2,536
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One of the driving goals of entrepreneurs is to start up a company, and then take it public through an IPO (initial public offering). It is the prospect of realizing great gains by going public that feeds the venture capital frenzy. During the dot-com glory days, many companies with no revenues – indeed, with no prospect of revenues in the foreseeable future – went public and consequently made their investors very rich.
The Washington Post article provided below offers a story of a company that has just "gone private" after being public for a number of years. The story makes it clear that there is nothing automatically good about going public. In fact, for serious businesses, there can be important drawbacks.
Read the article carefully, and then bring together your business wisdom to answer the following questions:
What was the driving force for Deltek going public in the first place? Was there merit in this logic?
What advantages did Deltek find in going public once it became a public company? What disadvantages did it face?
What distinguishes Deltek from the dot-com companies that rushed to go public? Why did those companies go public? Who gained?
Why did Deltek decide to leave the public arena and become a closely held corporation once again? Do you think its management made the right decision?
1) The driving force for Deltek going public in the first place was to gain access to additional capital. It was believed that by going public, Deltek would be able to raise large amounts of capital through initial public offerings (IPOs) and by offering stock options to attract and retain talent.
2) Once Deltek became a public company, it gained advantages such as the ability to increase its brand visibility and the ability to use stock options to help attract and retain talent.
However, it also faced certain disadvantages such as a higher cost of capital, the need to meet reporting requirements, and the possibility of its decisions being influenced by the interests of shareholders.
3) Unlike the dot-com companies that rushed to go public, Deltek was a profitable, well-established software business with an existing customer base.
4) The dot-com companies went public in order to realize gains quickly, and their investors gained by quickly realizing returns on their investments.
5) Deltek decided to leave the public arena and become a closely held corporation once again because the management felt the costs and pressures associated with being a public company outweighed the benefits.
Its management believed that as a private company, Deltek would have greater freedom to focus on long-term strategies without the scrutiny of shareholders and the media. Overall, it seems that Deltek's management made the right decision.
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brice co. purchases land in order to drill oil. this oil field would be classified as a(n) on the balance sheet. multiple choice question. natural resource current asset intangible asset plant asset
The land purchased by Brice Co. to drill oil would be classified as a natural resource on the balance sheet.
A natural resource is a material found on Earth that can be used for economic gain. These resources are normally classified as renewable or non-renewable.
They may also be classified as living or non-living.A natural resource is something that has been found and is used to benefit humans in various ways.
Minerals, forests, wildlife, water resources, and land are all examples of natural resources.Therefore, the land purchased by Brice Co. to drill oil would be classified as a natural resource on the balance sheet.
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as a condition of being hired as project manager for a defense company, you must sign a nondisclosure agreement (nda). of the following, which is the best description of this document? seleccione una: a. an agreement that the signer will abide by the defense secrets section of the standards for the national industrial security program (nisp) b. an agreement that the signer will accede to the terms of the defense security service (dss) as detailed in the document c. an agreement that the signer will limit discussion of the project to designated personnel d. an agreement that the signer will limit discussion of the project to designated personnel in accordance with the term of the standards for the national industrial security program (nisp)
The correct option is c. The best description of the Non-disclosure Agreement (NDA) is: "An agreement that the signer will limit discussion of the project to designated personnel."
Non-disclosure Agreement (NDA): The Non-disclosure Agreement (NDA) is a legal agreement between two parties that prevents the disclosure of confidential information shared between them. It is also known as the confidentiality agreement (CA) or a confidential disclosure agreement (CDA).
Nondisclosure agreements are commonly used in the legal system as they prevent confidential information from being disclosed or shared with unauthorized people. As a condition of being hired as a project manager for a defense company, you must sign a Non-disclosure agreement (NDA) which specifies that the signer will limit discussion of the project to designated personnel in accordance with the terms of the standards for the national industrial security program (NISP).
Option C is the best description of this document: "An agreement that the signer will limit discussion of the project to designated personnel."
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Ron Christian and his wife, Kay established a carwash, Crossroads on 20 acres of worthless desert land 30 years ago on the outskirts of El Paso
Ron Christian and his wife, Kay established a carwash called Crossroads on a piece of land that was 20 acres in size and was considered to be of little or no value due to being located in a desert area that was on the outskirts of the city of El Paso.
Starting a business on such land would have been considered a risky venture as the location would not have been ideal for attracting customers. However, Ron and Kay took the risk and established a carwash, which over the years proved to be successful.
Their entrepreneurial spirit, hard work, and dedication paid off, and the carwash became a thriving business. The location of the carwash may have initially been seen as a disadvantage, but Ron and Kay were able to turn it into an opportunity by providing a much-needed service in an underserved area.
Their success story serves as an inspiration to other entrepreneurs who may be hesitant to take risks or who may not have access to ideal locations for their businesses. It highlights the importance of innovation, hard work, and perseverance in turning challenges into opportunities and achieving success.
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1- In a company, A invested $1500 for 4 months and B invested $1200 for 6 months and C invested $ 3600 for 2 months. If a company has a profit of $680. What will be the share of A, B, and C?
2- A, B, and C start a business. Twice the capital of A is equal to thrice the capital of B and the Capital of B is four times the capital of C. What will be A’s share if the profit earned is $ 2,75,00.
3- A and B are partners in a business. They invest in the ratio 5: 6, at the end of 8 months B withdraws. If they receive profits at the end of the year in the ratio of 5: 9, find how long A’s investment was used?
Answer: Your welcome!
Explanation:
1- A's share of the profit will be $240, B's share of the profit will be $360, and C's share of the profit will be $80. This is calculated by taking the total invested amount by each partner and dividing it by the total invested amount by all partners. A's total invested amount is $1500, B's total invested amount is $1200 and C's total invested amount is $3600. Therefore, A's share is $1500/$6300 = 24%, B's share is $1200/$6300 = 19%, and C's share is $3600/$6300 = 57%. The percentages are then multiplied by the total profit of $680 to determine each partner's share of the profit. A's share is 24% x $680 = $240, B's share is 19% x $680 = $360, and C's share is 57% x $680 = $80.
2- A's share of the profit will be $1,350. This is calculated by taking the capital invested by each partner and dividing it by the total capital invested by all partners. A's capital invested is twice that of B, which is three times that of C. Therefore, A's capital invested is (2 x 3 x C) = 6C. B's capital invested is 3C and C's capital invested is C. The total capital invested by all partners is 6C + 3C + C = 10C. A's share of the profit is 6C/10C = 60%, which is then multiplied by the total profit of $2,750 to determine A's share of the profit. A's share is 60% x $2,750 = $1,650.
3- A's investment was used for 8 months. This is calculated by taking the ratio of A's investment to B's investment, which is 5:6, and then multiplying it by the length of time B's investment was used, which was 8 months. A's investment was used for 8 x (5/6) = 8 x 0.833 = 6.67 months, which is approximately 8 months.
which of the following statements is false regarding consolidated tax returns? group of answer choices an affiliated group can file a consolidated tax return only if it elects to do so. for a group of corporations filing a consolidated tax return, losses from certain intercompany transactions are deferred until realized through a transaction outside of the group. for a group of corporations filing a consolidated tax return, an advantage is that losses of one group member may offset gains of another group member. to file a consolidated tax return, one corporation must own 50 percent or more of the stock of another corporation.
The following statement is FALSE regarding consolidated tax returns: " to file a consolidated tax return, one corporation must own 50 percent or more of the stock of another corporation."
A consolidated tax return is a single tax return filed on behalf of two or more affiliated companies. An affiliated group is defined as an affiliated group of corporations, any of which own more than 50 percent of the total combined voting power of all classes of stock of each of the other corporations.
An affiliated group can file a consolidated tax return, even if one corporation does not own 50 percent or more of the stock of another corporation. A benefit of filing a consolidated tax return is that losses from certain intercompany transactions can be deferred until realized through a transaction outside of the group. Additionally, losses of one group member can offset gains of another group member, thus allowing for the group to reduce its overall tax liability.
A tax return is a form that an individual or a business is required to file with the government, typically on an annual basis, to report their income and expenses for the year and to calculate the amount of tax owed or the amount of refund due.
The tax return includes information about the taxpayer's income from various sources, such as employment, investments, and business activities, as well as deductions and credits that can reduce the amount of tax owed. The tax return also includes a calculation of the taxpayer's total tax liability for the year, based on their income and other factors.
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The revenue from the luxury or prestige cosmetics market stood at 22.23 billion U.S. dollars worldwide in 2020, and will rise to 33.83 billion dollars by 2025. Some people say that luxury brand marketers are often "selling a dream"? What is your opinion about this statement and which attributes of luxury brands must be aligned with the image of the brand? Provide examples to support your discussion. Answer your question in 300 words and use at least 2 references to support your discussion.
The statement that luxury brand marketers are often "selling a dream" is accurate. The attributes of luxury brands that must be aligned with the brand image are brand identity, consistent quality and craftsmanship, and exclusivity.
In my opinion, the statement that luxury brand marketers are often "selling a dream" is true. This is because they are selling more than just a product; they are selling an experience, a feeling, and a lifestyle. Consumers of luxury brands are not just buying a lipstick or a handbag, they are buying into a brand image that aligns with their values and aspirations. They want to be associated with the exclusivity and prestige that luxury brands offer.
To align with the image of the brand, luxury brands must have certain attributes.
Firstly, they must have a strong brand identity that is easily recognizable and memorable. This includes their logo, packaging, and overall aesthetic. For example, Chanel's iconic double C logo is instantly recognizable and associated with luxury.Secondly, luxury brands must maintain a consistent level of quality and craftsmanship. Consumers of luxury brands expect nothing but the best, and any decrease in quality can tarnish the brand's image. For example, Hermes is known for its high-quality leather goods and expert craftsmanship.Finally, luxury brands must create a sense of exclusivity and rarity. This can be achieved through limited edition collections, collaborations with other luxury brands, or even by restricting the availability of their products. For example, Louis Vuitton's limited edition collaborations with artists and designers are highly coveted by consumers who want to own something unique and exclusive.Overall, luxury brands must align their brand image with their values, aspirations, and lifestyle of their consumers. They must create a sense of exclusivity, maintain high quality and craftsmanship, and have a strong brand identity. This is what sets them apart from other brands in the market.
References:
Mowle, E., & Merrilees, B. (2018). Strategic brand orientation, consumer innovativeness, and brand performance: A cross-national study of China and Australia. Journal of Business Research, 86, 300-310.
Muller, E., & Perrey, J. (2018). The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands. Kogan Page Publishers.
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the owner of firewood to go is considering buying a hydraulic wood splitter which sells for $50,000. he figures it will cost an additional $100 per cord to purchase and split wood with this machine, while he can sell each cord of split wood for $125. what would the potential profit be if he were to split 4,000 cords of wood with this machine? $0 $75,000 $100,000 $50,000 $200,000
The potential profit would be $200,000 if he were to split 4,000 cords of wood with this machine.
Potential profit is the maximum profit that a company could make if all goods or services are sold. The profit would be generated if every possible revenue stream were fully captured, and any expenses or losses were avoided.
However, because the market is inherently volatile, potential profit is typically an overly optimistic prediction. On the other hand, potential revenue reflects the most revenue that can be generated by a product without accounting for the expense or cost of producing it.
Price of hydraulic wood splitter: $50,000. Additional cost to purchase and split wood with this machine: $100/cord. Selling price of each cord of split wood: $125/cord. Total amount of cords of wood with this machine: 4,000 cords.
Calculation of profit:
Profit per cord = Selling price per cord - cost per cord= $125 - $100 = $25.
Profit for 4,000 cords of wood = Profit per cord × Total cords of wood= $25 × 4,000= $100,000.
Hence, the potential profit would be $200,000 if he were to split 4,000 cords of wood with this machine. Therefore, the correct option is D. $200,000.
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A business paid $ 7.000 to a creditor in payment of an amount owed. The effect of the transaction on the accounting equation was to a. increase an asset, increase a leability
b. increase an asset, decrease another asset
c. accounts being used are cash and accounts payable
d. increase an asset, increase stockholders equity
e. decrease an asset, decrease a liability
The effect of the transaction on the accounting equation was to b.) increase an asset, decrease another asset.
What is the effect of the transaction on the accounting equation?An asset and a liability are two aspects of the accounting equation that must be in balance, and changes to either will affect the other.In this case, the business pays $7,000 to a creditor to pay off a debt.
This transaction affects the accounting equation in the following way:
It increases the Cash account, which is an asset, by $7,000.It decreases the Accounts Payable account, which is another asset, by $7,000.
The accounting equation is therefore increased by $7,000 on one side and decreased by $7,000 on the other side, so it remains in balance.
Therefore, the answer is option b. increase an asset, decrease another asset.
Accounting equation:
Assets = Liabilities + Stockholders' Equity
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If a subsequent event occurs after the report date but prior to the release date of an audit report, resulting in management's revision of the financial statements of a non issuer, then the auditor may do any of the following, EXCEPT:A) Maintain the original date of the report and state that the opinion is limited to the financial statements as they existed prior to the subsequent event.B) Perform audit procedures necessary to obtain assurance about the revised financial statements.C) Include an additional date in the audit report that is limited to the revision to the financial statements.D) Revise the date of the audit report to reflect the necessity of additional audit procedures.
If a subsequent event occurs after the report date but prior to the release date of an audit report, resulting in management's revision of the financial statements of a non issuer, then the auditor may do any of the following, EXCEPT: Revise the date of the audit report to reflect the necessity of additional audit procedures. The correct answer is D) .
Auditor’s opinion is based on the information present in the financial statements up to the date of the report. But sometimes an event takes place after the report date but prior to the release date of an audit report that could have an impact on the financial statements of the company.
In such cases, the auditor may follow any of the following procedures: Perform audit procedures necessary to obtain assurance about the revised financial statements. Include an additional date in the audit report that is limited to the revision to the financial statements. Maintain the original date of the report and state that the opinion is limited to the financial statements as they existed prior to the subsequent event.
Revise the date of the audit report to reflect the necessity of additional audit procedures. Therefore, the correct answer is D) Revise the date of the audit report to reflect the necessity of additional audit procedures.
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