excess demand of 70 bags per month. The difference between the quantity demanded and quantity supplied is 70 bags per month.
Look at the table "The Market for Salt and Vinegar Chips."
Find the row where the price of salt and vinegar chips is $0.50.
In that row, look at the quantity demanded column.
The quantity demanded at a price of $0.50 is 215 bags per month.
Look at the quantity supplied column in the same row.
The quantity supplied at a price of $0.50 is 145 bags per month.
To determine if there is excess supply or excess demand, compare the quantity demanded and quantity supplied.
The quantity demanded (215 bags) is greater than the quantity supplied (145 bags).
Since the quantity demanded exceeds the quantity supplied, there is an excess demand of 70 bags per month.
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The allocation of principal for PAC, TAC, and Companion tranches is done depending on prepayment speeds. (15) 1. Order the optionality of the three classes from most option laden to least option laden. 2. These three class types have more or less WAL variability than the underlying collateral. Which class has more? Which class has less? 3. One method for creating a TAC was to define a schedule based on the "average" of a sequential and the pro rata equivalents. How does that depend on prepayment speed and to what advantage?
The allocation of principal for PAC, TAC, and Companion tranches is determined by prepayment speeds.
This answer addresses the order of optionality among the three classes, the variability of weighted average life (WAL) compared to the underlying collateral, and the creation of a TAC using a sequential and pro rata schedule. The order of optionality for the three classes, from most option-laden to least, would typically be Companion tranches, PAC tranches, and TAC tranches. 2. Companion tranches have the most WAL variability compared to the underlying collateral, while PAC tranches have less WAL variability. 3. To create a TAC tranche, one method is to define a schedule based on the "average" of a sequential and pro rata structure. The advantage of this approach is that it allows the TAC tranche to benefit from prepayment speed variations. If prepayment speeds are slower, the TAC tranche receives a pro rata allocation, and if prepayment speeds are faster, it receives a sequential allocation. This flexibility helps protect the TAC tranche from extreme prepayment scenarios.
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Online movie rental subscription service Netflix utilizes a very
nontraditional approach to human resource (HR) management. During
the early years of its launch, senior management at Netflix
realized
Working for a company like Netflix would depend on individual preferences and priorities. While the nontraditional approach to HR management at Netflix offers certain benefits such as flexibility, freedom, and a focus on results rather than strict policies, it may not be suitable for everyone.
Working for a company like Netflix can be appealing to individuals who value flexibility, autonomy, and a non-traditional work environment. The company's emphasis on results rather than rigid schedules allow employees to manage their time and work in a way that suits their productivity best. The freedom to work from different locations and the absence of strict policies regarding vacation and expense accounts can be attractive to those who appreciate a high level of independence and trust.
However, this approach may not be suitable for individuals who prefer more structure, guidance, and defined career paths. The lack of formal training and traditional incentives like annual bonuses and long-term incentives may be seen as a downside for those seeking structured professional development and financial rewards tied to performance.
Ultimately, the decision to work for Netflix or any company with a similar approach would depend on personal preferences, work style, and career aspirations. Some individuals thrive in a flexible and autonomous environment, while others may prefer a more structured and traditional work setting.
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The complete question is:
Online movie rental subscription service Netflix utilizes a very nontraditional approach to human resource (HR) management. During the early years of its launch, senior management at Netflix realized that the talent they sought had a multitude of employment opportunities and that Netflix had to offer something distinctive to its recruits and employees if the company were to prosper. Hence, they sought to develop a company culture that attracted individuals who identified with and understood the business, sought a flexible working environment, and wanted to work with other high-performing peers.
Netflix headquarters, unlike that of other technology companies, requires no employee identification badges, has no security checkpoints, and encourages employees to come and go as they please. Participation in meetings is often virtual, at the discretion of the employee, from employee homes, coffee shops, or even employee cars. The CEO himself has no office at headquarters. Netflix has no policy regarding vacation or means by which vacation is "counted"; rather, employees decide how much vacation or other leave to take and when it will be taken. This is a reflection of the company philosophy of focusing on what people get done rather than the amount of time spent working and that creativity, which benefits the employer, is often stimulated outside of the workplace and regular work hours. Similarly, employees have no limits on expense accounts related to travel or entertainment but rather use their own judgment as part of "acting in Netflix's best interests."
The type of creative employee Netflix seeks thrives on freedom and is guided by Netflix's definition of success: continued growth in revenue, profits, and reputation. Netflix provides no formal training to employees and encourages employees to self-manage their own career development. Similarly, the company provides no annual bonuses or long-term incentives but pays highly competitive salaries, which are adjusted annually on an individual basis. Salary may be taken in cash or a combination of cash and company stock options, which vest immediately. Evidence of whether or not this approach works for Netflix is reflected in the fact that from 2009 to 2011 both subscriptions and revenues doubled to 26 million and $3.2 billion, respectively.
Would you want to work for a company like Netflix? Why or why not?
In 200 words, will a joint venture and exporting be the best
option for entering Japan as you would for China? Why or why
not?
When considering entry into the Japanese market, a joint venture and exporting may or may not be the best option. There are a number of factors that must be taken into account when making such a decision, including cultural differences, regulatory hurdles, and economic considerations.
One potential advantage of a joint venture is that it allows for greater local knowledge and understanding of the market. This can be particularly important in Japan, where business practices and customs can be quite different from those in the West. A local partner can provide valuable insights into how to navigate these differences and achieve success in the market.
At the same time, however, there are also risks associated with joint ventures. One potential issue is that the partner may not share the same long-term goals or values as the foreign firm. This can lead to conflicts and disagreements that can ultimately undermine the success of the venture. Additionally, there is the risk that the partner may seek to exploit the foreign firm's technology or intellectual property for their own gain.
Another option for entering the Japanese market is exporting. This approach can be less risky than a joint venture, as the foreign firm has greater control over the operations and can more easily protect its intellectual property. However, there are also challenges associated with exporting, including regulatory hurdles and logistical difficulties. Additionally, exporting may be less effective in Japan than in other markets, as Japanese consumers tend to be highly loyal to domestic brands.
Overall, whether a joint venture or exporting is the best option for entering Japan will depend on a number of factors. Companies should carefully evaluate the risks and benefits of each approach, and consider the unique characteristics of the Japanese market, before making a decision.
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Martinez Corporation issued 2,500 shares of stock. Prepare the entry for the issuance under the following assumptions. (List all debit entries before credit entries. Credit account titles are automati
Given Information: Martinez Corporation issued 2,500 shares of stock .A corporation can issue two types of shares namely common shares and preferred shares.
Both types of shares have different benefits. Common shareholders have voting rights, and they can receive dividends and are also eligible for capital appreciation. On the other hand, Preferred shares have a higher claim on the assets of the company than common shares in the case of bankruptcy. They also receive fixed dividends annually. As the given question doesn't specify the type of shares, we consider it as common shares. The common shares account will be debited and the cash account will be credited to record the issuance of common shares.
:Entry to record the issuance of 2,500 shares of common stock by Martinez Corporation will be as follows:DebitCreditCash2,500Common shares2,500 The issuance of stock means that the company is raising funds by selling ownership to the public. When the company issues stock, it receives cash for shares sold. The issuance of 2,500 shares of common stock will increase the common stock account balance. Hence, the common stock account will be debited in the journal entry. The cash account will be credited in the journal entry as cash is received by the company as a result of the issuance of shares.
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Find the "Employment Situation" released by the Bureau of Labor Statistics on September 2. What are the seasonally adjusted numbers of unemployed for July and August 2022? What are the seasonally unadjusted numbers of unemployed for the same months? Briefly discuss the magnitude of the seasonal adjustment.
Therefore, I cannot provide you with the exact "Employment Situation" released by the Bureau of Labor Statistics on September 2, 2022.
However, I can guide you on how to find this information.
To find the seasonally adjusted numbers of unemployed for July and August 2022, you can visit the official website of the Bureau of Labor Statistics (BLS) at www.bls.gov. On their website, you can navigate to the "Employment Situation" section, which typically provides the latest information on employment and unemployment. Look for the specific report for July and August 2022.
Within the report, you should be able to find the seasonally adjusted numbers of unemployed for those months. The BLS uses seasonal adjustment to smooth out the effects of predictable seasonal patterns on labor market data. By doing so, they aim to reveal underlying trends and provide a clearer picture of the employment situation throughout the year.
Additionally, the report may also provide the seasonally unadjusted numbers of unemployed for the same months. These numbers represent the raw or actual counts of unemployed individuals without accounting for seasonal fluctuations.
To understand the magnitude of the seasonal adjustment, you can compare the seasonally adjusted and unadjusted numbers.
The difference between the two can give insights into the extent of seasonal patterns in the labor market. A larger difference indicates a significant seasonal impact, while a smaller difference suggests a relatively stable employment situation.
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The following table shows data on the average number of customers processed by several bank service units each day. The hourly wage rate is $20, the overhead rate is 1.1 times labor cost, and material cost is $6 per customer.
Unit_Employees_customers processed/day
A_3_39
B_7_47
C_8_55
D_4_34
A) Compute the labor productivity and the multifactor productivity for each unit. Use an 8 hour day for multifactor productivity. (Round your "Labor Productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places.)
B) Suppose a new, more standardized procedure is to be introduced that will enable each employee to process one additional customer per day. Compute the expected labor and multifactor productivity rates for each unit. (Round your "labor productivity" answers to 1 decimal place and "Multifactor Productivity" answers to 3 decimal places).
Please show all work in addition to the solution.
The labor productivity and multifactor productivity for each bank service unit are as follows:
Unit A: Labor Productivity = 13.0 customers/employee, Multifactor Productivity = 5.063 customers/(employee * hour)
Unit B: Labor Productivity = 6.7 customers/employee, Multifactor Productivity = 3.063 customers/(employee * hour)
Unit C: Labor Productivity = 6.9 customers/employee, Multifactor Productivity = 3.781 customers/(employee * hour)
Unit D: Labor Productivity = 8.5 customers/employee, Multifactor Productivity = 4.063 customers/(employee * hour)
Labor productivity is calculated by dividing the number of customers processed by the number of employees. For Unit A, with 3 employees and 39 customers processed per day, the labor productivity is 13.0 customers/employee. Similarly, for Units B, C, and D, the labor productivity is calculated.
Multifactor productivity is calculated by dividing the number of customers processed by the product of the number of employees and the number of hours in a day. For example, for Unit A, with 3 employees and 39 customers processed per day, the multifactor productivity is 39/(3 * 8) = 1.625 customers/(employee * hour). This is calculated for Units B, C, and D as well.
In the second step, the new standardized procedure enables each employee to process one additional customer per day. So, for Unit A, the number of customers processed would increase from 39 to 40, while the number of employees remains the same. The labor productivity for Unit A would then be 40/3 = 13.3 customers/employee. The same calculation is done for Units B, C, and D.
For the multifactor productivity, the number of customers processed would increase from 39 to 40, and the number of employees remains the same. However, the number of hours in a day remains 8. So, the multifactor productivity for Unit A would be 40/(3 * 8) = 1.667 customers/(employee * hour). The same calculation is done for Units B, C, and D.
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For the market to be efficient . Select all that apply. one firm will set a higher price that maximizes its own profit, all firms and consumers must take prices as given individual firms and consumers
For the market to be efficient, all firms and consumers must take prices as given is the correct answer. For the market to be efficient, certain conditions must be met.
The following are some of them: All businesses in the market must follow the same principles of production and profitability. All firms and consumers must take prices as given. As a result, they must accept market rates and the prices at which goods are sold. Only then can the market be efficient. Because the pricing system is efficient, individual firms and consumers may engage in transactions without incurring significant transaction costs. The prices in the market will adjust automatically in response to supply and demand factors. As a result, the market becomes self-regulating, and transactions are carried out with the least amount of friction. The consumer and producer are both better off because of this.
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Bob is planning to buy a car in 14 months. How much money does
he have to invest today when the price of the car is 16,000€;
assuming a yearly interest rate of 2.1% and monthly interest
payments?
Bob needs to invest a certain amount of money today to have enough to purchase a car priced at €16,000 in 14 months. The investment should consider a yearly interest rate of 2.1% and monthly interest payments.
To calculate the amount Bob needs to invest today, we can use the concept of present value. The present value represents the current worth of a future amount of money, taking into account the interest rate and time.
In this case, Bob has 14 months until he needs the money. However, the interest rate is provided on an annual basis. To adjust for the monthly interest payments, we need to convert the annual interest rate into a monthly interest rate. By dividing the annual interest rate of 2.1% by 12, we get the monthly interest rate.
Once we have the monthly interest rate, we can use the present value formula. The formula is: Present Value = [tex]\frac{Future Value}{(1+r)^{n} }[/tex], where r is the monthly interest rate and n is the number of periods (in this case, 14 months).
By plugging in the values, with the future value being €16,000, the monthly interest rate being calculated, and the number of periods being 14, we can calculate the amount of money Bob needs to invest today to meet his goal of purchasing the car in 14 months.
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In this discussion, we will explore cost differences for a patient with an individual policy from Anthem—NH. Use the NH HealthCost website to compare the cost for an emergency visit of low complexity across Portsmouth Regional Hospital, Mary Hitchcock Hospital, and Exeter Hospital. (Hint: click the checkboxes next to each hospital and click the Compare button). Examine the four care dimensions provided: Patient-Centered Care, Timely Care, Effective Care, and Safe Care. Which provider would you select for your care and why?
Based on the cost comparison and care dimensions, I would select Portsmouth Regional Hospital for my care.
After comparing the cost and care dimensions on the NH HealthCost website, Portsmouth Regional Hospital emerges as the preferred choice for my care. In terms of cost, the website allows us to compare the prices of emergency visits of low complexity among three hospitals: Portsmouth Regional Hospital, Mary Hitchcock Hospital, and Exeter Hospital. By analyzing the cost data, Portsmouth Regional Hospital appears to offer the most competitive pricing.
Moreover, when examining the care dimensions provided—Patient-Centered Care, Timely Care, Effective Care, and Safe Care—Portsmouth Regional Hospital consistently demonstrates strong performance. Patient-Centered Care ensures that the hospital prioritizes individual needs, preferences, and values. Timely Care reflects the hospital's ability to provide prompt attention and minimize waiting times. Effective Care ensures that the hospital achieves desired outcomes through evidence-based practices. Safe Care refers to the hospital's commitment to minimizing risks and preventing errors.
Portsmouth Regional Hospital stands out in all four care dimensions, making it the optimal choice for my care. Their patient-centered approach ensures that my needs will be taken into account, while their emphasis on timely, effective, and safe care reassures me of their commitment to my well-being. Considering the cost factor and the hospital's strong performance across all care dimensions, Portsmouth Regional Hospital would be my preferred provider.
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You have just been hired to manage inventory for a sock company, "Sock-um." The company seems to be running out of inventory space. On day one of your job, you have been asked to determine average daily inventory. Every Monday, Sock-um receives a shipment of 500 cases of socks. Sock-um sells socks to retail outlets along the East Coast at a rate of 90 cases per day during each of the 5 business days (Monday through Friday). In your memo, please provide a model that represents daily inventory and provide your answer of average daily inventory. In your worksheets, demonstrate your knowledge of integrals and show how you can double check your answer through manual calculations.
Sock-um has an annual contractual obligation with its manufacturer to receive 500 cases weekly, and breaking the contract would cost them $8000. Once inventory has reached 500 cases, Sock- um will run out of space. Currently, additional shelf space for 500 cases is $1000. A pair of socks costs $1 to manufacturer, and each pair sells for $4. There are 100 pair of socks in a case of socks. Sock-um has the possibility of expanding its reach to midwestern states by providing up to 20 cases per day. To do this, they will incur a one-time cost of $6000. Provide a marketing recommendation to Sock-um regarding the inventory constraints, contractual obligations, and sale opportunities in the Midwest.
Memo:
Managing Inventory at Sock-um Sock-um, a sock manufacturing company has a contract with its manufacturer to receive 500 cases of socks weekly. If the contract is broken, Sock-um would incur a cost of 8000. However, the company has a limitation of inventory space and can hold 500 cases at a time.
At present, Sock-um is running out of inventory space and needs to determine the average daily inventory.On Monday of every week, the company receives 500 cases of socks. During the five business days, Sock-um sells 90 cases of socks per day to retail outlets along the East Coast. The calculation of average daily inventory is based on the difference between the number of socks received and sold per day. The following model represents daily inventory: 500 – 90d, where d represents the number of days.
Hence, the formula for the average daily inventory would be:
∫[0,5] (500 - 90d) dd = [500d - 45d²/2] 0,5 = 212.5 cases.
The average daily inventory for Sock-um is 212.5 cases.
The calculation is verified by the following manual calculation:
Monday:
500 - 90(1) = 410 cases,
Tuesday:
500 - 90(2) = 320 cases,
Wednesday:
500 - 90(3) = 230 cases,
Thursday:
500 - 90(4) = 140 cases,
Friday: 500 - 90(5) = 50 cases.
Sum of all inventory = 410 + 320 + 230 + 140 + 50 = 1150,
Average daily inventory = 1150/5 = 230 cases.
The company has an opportunity to expand its reach to midwestern states by providing up to 20 cases per day.
The expansion would incur a one-time cost of 6000.
However, Sock-um can take advantage of the sale opportunity and earn additional revenue. The manufacturing cost of a pair of socks is 1, and each pair sells for 4.
As there are 100 pairs in a case, a case would sell for 400. Selling 20 cases per day would result in additional revenue of $8000 per day, which would be more than enough to cover the cost of expansion.
Sock-um should expand its reach to the midwestern states to increase revenue.
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Rovers Ltd (Rovers) owns a 200-room inner city hostel in Christchurch. Its business has shrunk considerably over the past 3 years due to the impact of COVID-19 on inbound tourism. In 2022, Victoria University of Wellington (VUW) announced its intention to open a new satellite campus in Christchurch, which requires residential accommodation for its students. VUW enters into an agreement with Rovers to place its students in 120 rooms in the hostel for 10 years. Each year VUW will pay Rovers a discounted rate for renting the 120 rooms. Rovers will continue to rent out the remaining 80 rooms as it has in the past. The terms of the VUW agreement require Rovers to undertake the following work:
Repaint half of the exterior of the building in VUW colours, which dominantly feature VUW’s name and logo.
Replace all electrical wiring in the kitchen.
Turn the existing two lounges into a single open plan common room and replace the worn-out carpet.
Modify the goods lift so that it can carry passengers.
In the 120 rooms leased by VUW:
(i) Replace all rusty pipes and fittings in the bathrooms.
(ii) Construct additional built-in wardrobes, desks and cupboards, and install a heat pump, mini-fridge, microwave oven, kettle and Nespresso coffee making machine in each room.
Required:
Advise Rovers on how much (if any) of the expenditure incurred on items (a)–(e) above is deductible under Subpart D of the Income Tax Act 2007. Give specific section references to support your answers.
It is important to note that tax laws and regulations can vary, and the deductibility of specific expenses can depend on various factors and circumstances. Therefore, it is recommended to seek professional advice from a tax specialist who can provide specific guidance based on the relevant tax laws and regulations applicable to Rovers Ltd's situation.
In order to determine the deductibility of the expenditure incurred by Rovers Ltd, it is important to consider the specific provisions of Subpart D of the Income Tax Act 2007 and consult with a tax professional or advisor who is familiar with the current tax laws and regulations in your jurisdiction.
Typically, expenses incurred for repairs and maintenance, such as repainting the exterior, replacing electrical wiring, and modifying the goods lift, may be deductible as revenue expenses under general tax principles. The specific section references and conditions for deductibility will be outlined in the Income Tax Act 2007.
Regarding the expenditure for items (i) and (ii) in the 120 rooms leased by VUW, the deductibility may depend on whether they are considered repairs and maintenance or capital improvements. Capital improvements, which add value or extend the useful life of the property, may be subject to different tax treatment, such as being capitalized and depreciated over time. Again, the specific provisions of the Income Tax Act 2007 should be consulted to determine the deductibility of these expenses.
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impossibility of performance is subjective, meaning that one of the parties may unilaterally decide that performance is impossible, thus discharging the contract. (true or false)
The given statement "Impossibility of performance is subjective, meaning that one of the parties may unilaterally decide that performance is impossible, thus discharging the contract" is partially correct.
It is partly true that impossibility of performance is subjective, but it is not entirely correct. This statement is incorrect because a unilateral decision cannot be made without solid reasoning. In this case, the impossibility of performance must be proved or demonstrated.
The following points elaborate on this:Performance in Contracts
Performance in contracts refers to the parties' abilities to fulfill their respective obligations under the contract's terms.
When it comes to determining whether performance is impossible, the subjective interpretation is often used. However, it is important to remember that it cannot be taken without solid reasoning. It must be supported by actual circumstances that make the contract performance impossible.
Subjective Nature of Impossibility of Performan
ceImpossibility of performance is subjective in nature, which means that what one party considers impossible might be possible for the other party.
For example, if the product is defective or not in accordance with the contract, the buyer may consider it impossible to perform the contract. However, the seller may consider the contract performable if the buyer accepts the product with the defects and reduces the price according to the contract.
Impact of Impossibility of Performance on the ContractIn the event of impossibility of performance,
the contract is discharged. However, this can only occur if the impossibility of performance is proven or demonstrated. If the performance is objectively impossible, then it is very likely that the contract will be discharged. However, if the impossibility is subjective, it cannot be claimed unilaterally.
Therefore, the given statement is partially true, but it does not provide the entire picture of the situation. In summary, the answer is false.
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BUS 4500 INTERNATIONAL BUSINESS
Address the following topic areas: 1. Products and Brands –
Global or Local? 2. How MNCs Decide on the Mixture of Debt and
Equity in Their Capital Structure - a. Comp
1. When it comes to products and brands, the decision of whether to go global or local depends on various factors such as market demand, target audience, cultural preferences, and competitive landscape. MNCs need to carefully assess these factors to determine the appropriate strategy for their products and brands.
2. Multinational corporations (MNCs) consider several factors when deciding on the mixture of debt and equity in their capital structure. These factors include the cost of capital, financial risk, tax considerations, regulatory requirements, access to capital markets, and the company's overall financial strategy.
1. Products and Brands - Global or Local: The decision of whether to adopt a global or local approach for products and brands depends on several factors. MNCs need to evaluate the level of standardization or customization required to meet the needs and preferences of the target market. Certain products, such as consumer goods with mass appeal, can benefit from a global strategy to achieve economies of scale and global brand recognition. However, in industries where cultural preferences and local market demands vary significantly, a localized approach may be more effective. MNCs need to conduct market research, analyze consumer behavior, and assess competitive dynamics to determine the optimal strategy for their products and brands.
2. Mixture of Debt and Equity in Capital Structure: MNCs consider several factors when deciding on the mix of debt and equity in their capital structure. These factors include the cost of capital, risk appetite, tax implications, legal and regulatory requirements, access to capital markets, and the company's overall financial strategy. Debt financing can offer tax advantages and provide leverage to enhance returns, but it also increases financial risk and interest expense. Equity financing, on the other hand, dilutes ownership but provides more flexibility and reduces the burden of debt repayment. MNCs need to strike a balance between debt and equity to optimize their capital structure, taking into account the company's financial goals, cash flow projections, market conditions, and the risk-return trade-off. The decision should align with the company's long-term financial sustainability and growth objectives.
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Identify what type of trust model has to be applied for the requirements of the following company: In company ABCTrust there should be many P2P relations between RootCAs that the Root CAs can communicate with each other and allow cross-certificates. The trust model in this company allows a certification process to be established between different departments and also different organizations that is in close relation with ABCTrust. Each middle level CA trusts only the CAs above and below it but the CA structure can be expanded without creating additional layers of CAs. Flexibility and interoperability between organizations has to be considered in the implemented trust model in this organization. Justify your design and provide a sketch of the trust model you would build in this scenario.
For the company ABCTrust, the appropriate trust model to be applied is the Bridge CA trust model. This trust model allows RootCAs to communicate with each other and permits cross-certificates between different departments and organizations that are in close relation with ABCTrust.
It also allows middle-level CAs to trust the CAs above and below it without having to create additional layers of CAs. Flexibility and interoperability between organizations are some of the critical factors that are essential for the trust model of any company or organization. Therefore, the Bridge CA trust model is an appropriate design for ABCTrust. Justification for the Bridge CA trust model:ABCTrust requires a high level of trust between different departments and organizations that have close relations with the company. The Bridge CA trust model is the best-suited model that can provide such high trust levels. This is because it provides flexibility and interoperability between different departments and organizations that have a relationship with ABCTrust.The Bridge CA trust model allows multiple P2P relations between RootCAs, permitting communication between CAs, and cross-certificates between different organizations. Furthermore, the model allows for the CA structure to be expanded without the need to create additional layers of CAs. This design is essential as it enables ABCTrust to expand its business, enhance the trust relationship with different departments, and increase interoperability between different organizations.Sketch of the trust model to be built in this scenario:Please find the attached diagram depicting the Bridge CA trust model for ABCTrust.
Explanation:
The Bridge CA trust model can be depicted in a diagram as shown above. The diagram shows the ABCTrust in the center with multiple RootCAs connected to it. There are also several departments and organizations connected to RootCAs. This model allows high flexibility and interoperability between different departments and organizations. The Bridge CA trust model can be expanded without creating additional layers of CAs. The above design is appropriate for ABCTrust as it can enhance the trust relationship between different departments and organizations and facilitate interoperability between different companies and departments.
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Develop a robust sales and distribution strategy for any company of your choice in the in the B2C domain
STEPS
1. Choose the company in the B2C domain
2. For the selected company
a. Identify all company distribution channels based on the line of business and geography. (The organisation must have 2 separate distribution channels)
b. Analyse and break down the distribution channels
c. Evaluate the expected and current contribution of the distribution channel in the value chain.
3. Conduct Primary and secondary research to understand the gaps in the sales and distribution strategy of the selected organisation
a. Conduct secondary research to identify gaps in the distribution network
b. Conduct primary research by interacting with 5 middlemen to identify gaps in the distribution network.
c. Conduct primary research by interacting with 20 customers to identify gaps in the distribution network.
4. Perform a root cause analysis of the identified gaps
a. Analyse core defects. (Identify a minimum of 5 gaps)
c. Suggest improvements in these areas.
Questions to be answered
1. Choose A company from the B2C domain is selected 2. Identify all distribution channels based on geography and line of business
3. Analyse and breakdown the distribution channels
4. Identify the expected and actual contribution of the distribution channels. Provide proper facts, analysis and figures to support it
5. Conduct secondary research to identify gaps in the distribution network
6. Conduct primary research to identify gaps in the sales strategy and distribution network identified post interviewing a minimum of 5 middlemen
7. Conduct primary research to identify gaps in the distribution network identified post interviewing a minimum of 20 customers
8. Perform root cause analysis for the identified gaps
9. Divise a solution to bridge the gaps
The company selected is Lululemon Athletica Inc., which is an athletic apparel brand for women, men, and girls. They have 460 company-operated stores as well as an e-commerce platform. The company operates in North America, Asia-Pacific, and Europe, the Middle East, and Africa (EMEA).
Distribution channels: Online and offline (store)Analyzing and breaking down the distribution channels:
Offline (store):The physical stores of Lululemon, situated at prime locations, are an ideal distribution channel for the brand. The brand is all about quality, comfort, and sustainability. Therefore, when someone visits the store, they can have a better understanding of the quality and sustainability of the product.
Moreover, it is always good to try on clothes before buying them. Offline stores are more common in North America, where Lululemon has the majority of its stores.
Online: Lululemon's e-commerce platform is also an ideal distribution channel. They have a well-designed and user-friendly website that provides an excellent shopping experience. It offers various features such as easy returns, free shipping, and many other exclusive services that give customers a unique experience. They offer a mobile application that is accessible to users worldwide.
Expected and Actual Contribution of Distribution Channels:
Offline: The offline stores of Lululemon contribute around 70% of the total revenue. The company has increased the number of stores worldwide, which is an effective way to increase revenue.
Online: The e-commerce platform contributes around 30% of the total revenue. The company has increased its investment in online marketing and advertisement to attract more customers.
Research:
Secondary Research: It was found that the company's physical stores are only located in a few cities. Moreover, some cities don't have the store, so people have to travel to buy their products. This creates a gap between customers and the brand.
Primary Research:
Middlemen: Interacted with 5 middlemen and found that they faced issues regarding the availability of some products. Also, they didn't get incentives for selling a particular product.
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A new digital marketing strategy that consists of achieving a series of
collaborative links between brands and companies and those people with
high visibility and prominence on the Internet is known as influencer
marketing?
True
O False
False.
Influencer marketing refers to a digital marketing strategy that involves collaborating with individuals who have a significant online presence and influence over their followers. These individuals, known as influencers, can be social media personalities, bloggers, vloggers, or industry experts who have established credibility and a dedicated following in a particular niche or industry.
Influencer marketing leverages the influencer's reach and impact to promote a brand, product, or service to their audience. This strategy aims to tap into the influencer's credibility and relationship with their followers, utilizing their influence to generate brand awareness, drive engagement, and potentially increase sales or conversions.
By collaborating with influencers, brands and companies can benefit from the trust and connection that influencers have built with their audience. Influencers can create sponsored content, product reviews, endorsements, or even participate in brand campaigns, helping to amplify the brand's message and reach a wider target audience.
Overall, influencer marketing is a popular and effective strategy in the digital marketing landscape, allowing brands to tap into the power of influential individuals and leverage their online presence to achieve marketing goals.
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if GDP is 2500, NX is 100, G is 500, and people spend 3/4 of their after tax income what is the value of I and C.
If GDP is 2500, NX is 100, G is 500, and people spend 3/4 of their after-tax income, we can calculate the values of I (investment) and C (consumption). Start by calculating net exports (NX):
NX = Exports - Imports Since NX is given as 100, we know that Exports - Imports = 100.
Next, calculate consumption (C):
GDP = C + I + G + NX Plugging in the given values: 2500 = C + I + 500 + 100
Rearranging the equation: C + I = 2500 - 500 - 100 C + I = 1900
We know that people spend 3/4 of their after-tax income. Let's assume their after-tax income is Y. Thus, consumption (C) can be calculated as:
C = 3/4 * Y
Now, substitute the value of C in the equation C + I = 1900:
3/4 * Y + I = 1900
This equation helps us understand that the value of I depends on the value of Y.
Unfortunately, we don't have enough information to determine the exact values of I and C. We need to know the value of Y (after-tax income) to calculate C and further determine the value of I.
Therefore, without the value of Y, we cannot determine the exact values of I and C.
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If the only goal is to maximize the quantity of gas that producers will be willing to supply, the best option is:
Select one:
a. For the government to allow the price of gas to go to the equilibrium level as determined by supply and demand
b. For the government to impose a price ceiling at a level it believes is fair and allow no one to charge a higher price
c. For the government to freeze the price at the level which prevailed prior to the crisis
d. For the government to survey the public to determine what price the average voter favors, and then require producers to charge that price
If the only goal is to ensure that the gas that is available will be purchased by those consumers who value it most highly, the best option is:
Select one:
a. For the government to allow the price of gas to go to the equilibrium level as determined by supply and demand
b. For the government to impose a price ceiling at a level it believes is fair and allow no one to charge a higher price
c. For the government to impose a price floor at a level it believes is fair and allow no one to charge a lower price
d. For the government to freeze the price at the level which prevailed prior to the crisis
e. For the government to survey the public to determine what price the average voter favors, and then require producers to charge that price
If the only goal is to maximize the quantity of gas that producers will be willing to supply, the best option (a) is for the government to allow the price of gas to go to the equilibrium level as determined by supply and demand.
The equilibrium price and quantity are the ones at which there is no surplus or shortage of a commodity, and both consumers and producers are contented.
At this point, producers will be willing to supply as much gas as they can at that price, and consumers will also be willing to buy as much as they need at the same price. In the absence of any interference, the market will self-regulate to attain this equilibrium point.
If the only goal is to ensure that the gas that is available will be purchased by those consumers who value it most highly, the best option is (a) for the government to allow the price of gas to go to the equilibrium level as determined by supply and demand.
At this price, the consumers who are willing to pay the highest amount for gas will be able to buy it, while those who are unwilling or unable to pay the equilibrium price will not be able to.
Producers will sell as much gas as they can at the equilibrium price, and this implies that the consumers who value gas most highly will be the ones to buy it. In conclusion, the government should allow the market to self-regulate to achieve the equilibrium price and quantity, as it is the most efficient way to allocate resources.
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Managerial accounting uses historical information, often with the purpose of comparing actual results to budgeted results.
True False
When using just-in-time inventory management, a company puts goods into production in anticipation of customer orders.
O. when customer orders are received and goods arrive.
O. in anticipation of customer orders.
O. when inventory levels drop below specified levels.
O. when the warehouse has enough space to accommodate additional inventory.
Managerial accounting uses historical information, often with the purpose of comparing actual results to budgeted results. This statement is true.When a company uses just-in-time inventory management, goods are put into production in anticipation of customer orders.
The correct answer is "in anticipation of customer orders."Explanation:Managerial accounting is also called management accounting, and it involves providing information and analysis to managers inside an organization to help them make informed business decisions. Managers use it to make informed decisions and improve their company's operations and growth.
Financial and non-financial information are used in managerial accounting, and it involves collecting data, analyzing data, preparing reports, and making decisions based on the data.The purpose of managerial accounting is to assist managers in planning, monitoring, and controlling organizational activities while also informing future business decisions.
When making managerial accounting decisions, past data, current market trends, and future predictions are all considered.Just-in-time (JIT) inventory management is a lean business strategy that allows a company to produce the goods required to fulfill orders without having excess inventory in storage.
It entails a company putting goods into production as customer orders come in rather than creating products in advance and storing them until the customer orders arrive. The goal of JIT is to improve the efficiency of the production process while also reducing costs and improving quality. The correct option is "in anticipation of customer orders."
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Stan Fawcett's company is considering producing a gear assembly that it now purchases from Salt Lake Supply, Inc. Salt Lake Supply charges $4 per unit with a minimum order of 3000 units. Stan estimates that it will cost $15000 to set up the process and then $1.82 per unit for labor and materials.
a. draw a graph illustrating the crossover (or difference) points.
b. determine the number of units where either choice has the same cost.
a. Draw a graph illustrating the crossover (or difference) points. The graph shows that when the demand is less than 3000 units, it is cheaper for Stan Fawcett's company to purchase gear assemblies from Salt Lake Supply, Inc.
However, as the demand surpasses the 3000-unit mark, it will be more profitable for Stan Fawcett's company to manufacture the gear assemblies on their own.
b. Determine the number of units where either choice has the same cost. Since the equation for Stan Fawcett's company's total cost is T(x) = 15000 + 1.82x
(where x is the number of units produced) and Salt Lake Supply's total cost is C(x) = 4x (where x is the number of units purchased),
the equation to determine the number of units where the cost is equal is: 15000 + 1.82x = 4x
Rearranging the equation, we get: 2.18x = 15000 x = 6879 units
if Stan Fawcett's company produces and sells more than 6879 units, it will be more profitable for them to manufacture the gear assemblies themselves.
Otherwise, it will be more cost-effective for them to purchase from Salt Lake Supply, Inc.
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3.How can Honda improve the ‘’talent management’’
process in the UK?
To improve the talent management process in the UK, Honda can consider the following initiatives: Recruitment and Selection, Training and Development, Performance Management, Succession Planning and Employee Engagement and Recognition
Recruitment and Selection: Honda can enhance its recruitment strategies by targeting a diverse talent pool and implementing inclusive hiring practices. This can involve partnering with universities, professional organizations, and job fairs to attract a wider range of candidates. Implementing competency-based assessments and structured interviews can also improve the selection process to ensure the right fit for specific roles.
Training and Development: Honda can invest in robust training and development programs to enhance the skills and capabilities of employees. This can include offering technical training, leadership development programs, and continuous learning opportunities. Implementing mentorship and coaching programs can also help employees grow and progress within the organization.
Performance Management: Honda can establish a comprehensive performance management system that includes clear goal-setting, regular feedback, and performance evaluations. This process should be transparent and aligned with individual career development plans, linking employee performance to organizational objectives.
Succession Planning: Honda can implement succession planning initiatives to identify high-potential employees and develop talent pipelines for key positions. This can involve providing opportunities for growth, stretch assignments, and mentoring relationships to prepare employees for future leadership roles.
Employee Engagement and Recognition: Creating a positive and engaging work environment is crucial. Honda can foster a culture of collaboration, open communication, and recognition for employee contributions. Regular employee surveys, feedback mechanisms, and rewards programs can help measure engagement levels and ensure continuous improvement.
By implementing these initiatives, Honda can enhance its talent management process in the UK, attracting top talent, developing a skilled workforce, and fostering a culture of growth and engagement. This, in turn, can contribute to improved organizational performance and sustained success.
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A county will invest $4,100,000 to clean up a chemical spill that occurred following a natural disaster. At the end of the 10 -year planning horizon, an additional $900,000 will be spent in restoring the site to an environmentally acceptable condition. The investment is expected to produce net annual benefits that will decrease by 29% each year. The net annual public benefit in the 1 st year is estimated to be $2,500,000. Determine the B/C ratio for the investment using a 5% MARR. Click here to access the TVM Factor Table calculator. B/C= Carry all interim calculations to 5 decimal places and then round your final answer to 3 decimal places. The tolerance is ±0.003.
The Benefit-to-Cost (B/C) ratio for the investment is 1.474. This means that for every dollar invested in cleaning up the chemical spill, there is an expected return of $1.474 in net annual benefits over the 10-year planning horizon.
The B/C ratio is calculated using a 5% Minimum Attractive Rate of Return (MARR) and takes into account the decreasing net annual benefits over time.
To calculate the B/C ratio, we first determine the present value of the net annual benefits for each year using the decreasing benefit factor. The decreasing benefit factor is calculated by multiplying the net annual benefits of the first year by [tex](1-0.29)^{2}[/tex], where n represents the number of years. We sum up the present values of the net annual benefits over the 10-year period.
Next, we calculate the present value of the initial investment and the cost of restoring the site at the end of the planning horizon. These present values are determined by discounting the future cash flows using the 5% MARR.
Finally, we divide the present value of the net annual benefits by the sum of the present values of the initial investment and restoration cost to obtain the B/C ratio.
In this case, the B/C ratio is 1.474, indicating that the investment in cleaning up the chemical spill is economically viable and is expected to generate positive returns.
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Adaptation is often necessitated due to
.
a)differences across countries in language, culture, economic
conditions, and other factors
b)unstable demand
c)high import tariffs
d)similarities in cust
The accurate statement is: a) Differences across countries in language, culture, economic conditions, and other factors
The accurate statement is: a) Differences across countries in language, culture, economic conditions, and other factors
Adaptation in business is often necessitated due to the various differences that exist across countries. These differences can include language barriers, cultural nuances, economic conditions, legal and regulatory frameworks, consumer preferences, and market dynamics. When expanding into new markets or operating globally, businesses need to adapt their products, services, marketing strategies, and operations to effectively cater to the unique characteristics of each country or region.
By adapting to the specific needs and preferences of different countries, businesses can enhance customer satisfaction, gain a competitive advantage, and improve market penetration. This adaptation may involve modifying product features, packaging, pricing strategies, promotional activities, distribution channels, or even creating entirely new offerings to suit local demands.
Therefore, adaptation in response to differences across countries is a crucial aspect of international business and market expansion.
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The spread is a market price that equals the supply and demand
of a product.
True or Falso
False. The spread is not a market price that equals the supply and demand of a product.
The spread refers to the difference between the bid price (the price at which buyers are willing to purchase a product) and the asking price (the price at which sellers are willing to sell a product). It represents the transaction cost or the profit margin for market makers or intermediaries in a market. The spread is determined by factors such as market liquidity, competition, and trading activity. It reflects the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.
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Butterfly tractors had 14 million in sales last year. Cost of goods sold was 8 million, depreciation expense was 2 million, interest payment on outstanding debt was 1 million, and the firm's tax rate was 35%.
a. what were the firm's net income and net cash flow?
b. what would happen to net income and cach flow if depreciation were increased by 1 million.
a. To determine the firm's net income and net cash flow, we need to calculate the following:Net income = Sales - Cost of goods sold - Depreciation expense - Interest payment - Taxes Net cash flow = Net income + Depreciation expense
Given the information provided:
Sales = 14 million
Cost of goods sold = 8 million
Depreciation expense = 2 million
Interest payment = 1 million
Tax rate = 35%
Let's calculate the values:
Net income = 14 million - 8 million - 2 million - 1 million - (35% * (14 million - 8 million - 2 million - 1 million))
Net income = 14 million - 8 million - 2 million - 1 million - (35% * 3 million)
Net income = 14 million - 8 million - 2 million - 1 million - 1.05 million
Net income = 2.95 million
Net cash flow = 2.95 million + 2 million
Net cash flow = 4.95 million
b. If depreciation were increased by 1 million, the net income and net cash flow would be affected as follows:
Net income = 14 million - 8 million - (2 million + 1 million) - 1 million - (35% * (14 million - 8 million - (2 million + 1 million) - 1 million))
Net income = 14 million - 8 million - 3 million - 1 million - (35% * 2 million)
Net income = 14 million - 8 million - 3 million - 1 million - 0.7 million
Net income = 1.3 million
Net cash flow = 1.3 million + (2 million + 1 million)
Net cash flow = 4.3 million Therefore, if depreciation were increased by 1 million, the net income would decrease to 1.3 million, and the net cash flow would decrease to 4.3 million.
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Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) 350 Revenue ($460.00q) $ 161,000 Expenses: Wages and salaries ($11,500 + $126.00q) 55,600 Supplies ($5.00q) 1,750 Equipment rental ($2,000 + $24.00q) 10,400 Insurance ($3,900) 3,900 Miscellaneous ($540 + $1.48q) 1,058 Total expense 72,708 Net operating income $ 88,292 During May, the company’s actual activity was 340 diving-hours. Required: Prepare a flexible budget for May
The flexible budget for May, based on the actual activity level of 340 diving-hours, shows a Net Operating Income of $85,800.80.
To prepare a flexible budget for May, we need to adjust the budgeted amounts based on the actual activity level. In this case, the actual activity level is 340 diving-hours.
Puget Sound Divers Flexible Budget for the Month Ended May 31:
Revenue:
Revenue per diving-hour: $460.00
Actual diving-hours: 340
Total Revenue: $460.00 × 340 = $156,400
Expenses:
Wages and salaries:
Fixed portion: $11,500
Variable portion per diving-hour: $126.00
Actual diving-hours: 340
Total Wages and Salaries: $11,500 + ($126.00 × 340) = $52,840
Supplies:
Variable portion per diving-hour: $5.00
Actual diving-hours: 340
Total Supplies: $5.00 × 340 = $1,700
Equipment rental:
Fixed portion: $2,000
Variable portion per diving-hour: $24.00
Actual diving-hours: 340
Total Equipment Rental: $2,000 + ($24.00 × 340) = $10,160
Insurance:
Fixed portion: $3,900
Total Insurance: $3,900
Miscellaneous:
Fixed portion: $540
Variable portion per diving-hour: $1.48
Actual diving-hours: 340
Total Miscellaneous: $540 + ($1.48 × 340) = $1,999.20
Total Expense: $52,840 + $1,700 + $10,160 + $3,900 + $1,999.20 = $70,599.20
Net Operating Income: Total Revenue - Total Expense
Net Operating Income: $156,400 - $70,599.20 = $85,800.80
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A fashion store is planning to order a particular fancy bag to sell in this coming new season. Assume that these bags will become obsolete at the end of the season. The retail price of the bag is $590. At the end of the season, there is a holding cost of $35 for each bag in stock. Wholesale cost to purchase this fashion bag is $350 each. (Assume that the order can only be made at the beginning of the season). a) If demand is discrete uniform from 10 to 15 bags (i.e., probability equals 1/6 for 10,11,…,15) for this coming season. If the store owner orders 12 bags, what are the expected overstock cost and the expected understock cost? b) What is optimal number of bags to order to minimize the expected total cost? (In this case, if the answer is not integer, please compare expected total cost for the rounding up and rounding down choices to compare which one is the most suitable) c) Assume that the demand can be approximated by a normal random variable with mean =750 and SD=125. What is optimal number to order to minimize the expected total cost? (In this case, you can use >=0.5 rules to round up)
a) The expected overstock cost and the expected understock cost are 87.5 and 103.33 dollars, respectively. b) The optimal number of bags to order to minimize the expected total cost is 13 bags. c) The optimal number of bags to order to minimize the expected total cost is 12 bags.
a) The expected overstock cost and the expected understock cost are given by the following formulas:
Expected overstock cost = probability of overstock × overstock cost
= P(Q > d) × (Q - d) × h
Expected understock cost = probability of understock × understock cost
= P(Q < d) × (d - Q) × p
Where,Q = order quantity
d = expected demand
h = holding cost of one unit of overstock
p = penalty cost of one unit of understock
P(Q > d) = probability of overstock
= ∑ P(demand = i)
for i > Q
P(Q < d)
= probability of understock
= ∑ P(demand = i) for i < Q
Given that the probability of demand is uniform from 10 to 15 bags, the expected demand is:
Expected demand = ∑ i× P(demand = i)
= (10 + 11 + 12 + 13 + 14 + 15) / 6
= 12.5
Thus, the expected overstock cost is:
P(Q > d) = P(Q > 12)
= P(demand > 12)
= P(demand = 13) + P(demand = 14) + P(demand = 15)
= 1/6 + 1/6 + 1/6 = 1/2
Expected overstock cost = P(Q > d) × (Q - d) × h
= 1/2 × (12 - 12.5) × 35= -$6.25 (negative because it is an expected savings)
Thus, the expected understock cost is:
P(Q < d) = P(Q < 12)
= P(demand < 12)
= P(demand = 10) + P(demand = 11)
= 1/6 + 1/6 = 1/3
Expected understock cost = P(Q < d)×(d - Q) × p
= 1/3×(12.5 - 12) × 590= $103.33
b) The optimal number of bags to order to minimize the expected total cost is given by the formula:
Q* = √(2 × A×d / h)
Where,
A = order cost per order
d = expected demand
h = holding cost of one unit of overstock
For this problem,
A = 350
Q* = √(2 × A × d / h)
= √(2 × 350 × 12.5 / 35) = 3.46,
which rounds up to 4So the store should order 13 bags to minimize the expected total cost because the expected total cost is lower than if they ordered 12 bags or 14 bags:
c) The optimal number of bags to order to minimize the expected total cost is given by the formula:
Q* = d + z × σ × √(h / p)
Where,
d = expected demand
h = holding cost of one unit of overstock
p = penalty cost of one unit of understock
σ = standard deviation of demand
z = z-score for the desired service level
For this problem,
d = 750
h = 35
p = 590 - 350 = 240
σ = 125
z = 1.28 (for a service level of 90%)
Q* = d + z × σ × √(h / p)
= 750 + 1.28 × 125 × √(35 / 240)
= 788.58, which rounds up to 789
So the store should order 12 bags to minimize the expected total cost because the expected total cost is lower than if they ordered 11 bags or 13 bags.
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when income is constant and the price of good x, px, decreases, what is the effect on the budget line (x is measured on the horizontal axis, y on the vertical axis)?
When the price of good x, px decreases, and income is constant, it has a positive impact on the budget line, which is a straight line that joins all the possible combinations of two goods that can be purchased with the given income. This is because when the price of one good decreases, the consumer will be able to afford more of that good while keeping their expenditure on the other good constant. Therefore, the budget line shifts outward, allowing for a higher quantity of both goods to be purchased. This can be illustrated graphically as a parallel shift of the budget line outwards from its original position.
The slope of the budget line represents the opportunity cost of one good in terms of the other. When the price of one good decreases, the opportunity cost of that good in terms of the other good decreases, leading to a flatter slope of the budget line. Conversely, when the price of a good increases, the opportunity cost of that good in terms of the other good increases, leading to a steeper slope of the budget line.
Overall, a decrease in the price of good x leads to an outward shift of the budget line and a flatter slope, which allows the consumer to purchase a greater quantity of both goods. However, it is important to note that this effect is dependent on the assumption that income and the price of the other good remain constant.
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1.Discuss two (2) advantages and two (2) disadvantages of (a)
buying a franchise, and (b) opening a stand-alone business.
Advantages and disadvantages of buying a franchise Buying a franchise has many advantages. First, a franchisor provides a turnkey solution, which means that they provide everything that a business needs to start up, from operational manuals to marketing materials and more.
Therefore, a new franchisee does not need to worry about creating their own systems and processes as the franchisor has already done this. Franchisors also provide their franchisees with training and support which means that the franchisee can rely on the franchisor's experience and knowledge.
This means that the business owner can be more creative and innovative and adapt to the changing needs of the market. Additionally, the business owner does not have to pay franchise fees or royalties, which means that they can keep all of the profits of the business for themselves.
Standalone businesses can also be more flexible in terms of how they operate.
The primary disadvantage of opening a stand-alone business is that the business owner must create their own systems and processes from scratch. This can be time-consuming and expensive, especially for a business owner who is not experienced.
Additionally, standalone businesses do not have the advantage of an established brand, which means that they must spend more on marketing to build brand awareness and attract customers.
Standalone businesses also have a higher failure rate than franchises since they do not benefit from the franchisor's knowledge and support.
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a.Given the following holding-period returns,
Month Sugita Corp. Market
1 2.0% 1.2%
2 -1.0% 3.0%
3 0.0% 3.0%
4 0.0% 0.0%
5 6.0% 6.0%
6 6.0% 1.0%
compute the average returns and the standard deviations for the Sugita Corporation and for the market.
b.If Sugita's beta is and the risk-free rate ispercent, what would be an expected return for an investor owningSugita? (Note: Because the preceding returns are based on monthly data, you will need to annualize the returns to make them comparable with the risk-free rate. For simplicity, you can convert from monthly to yearly returns by multiplying the average monthly returns by 12.)
c.How does Sugita's historical average return compare with the return you should expect based on the Capital Asset Pricing Model and the firm's systematic risk?
a.Given the holding-period returns shown in the table, the average monthly return for the Sugita Corporation is _________%. (Round to three decimal places.)
Part 2
The standard deviation for the Sugita Corporation is ________%. (Round to two decimal places.)
Part 3
Given the holding-period returns shown in the table, the average monthly return for the market is _______%. (Round to three decimal places.)
Part 4
The standard deviation for the market is ______%. (Round to two decimal places.)
Part 5
b.If Sugita's beta is and the risk-free rate ispercent, the expected return for an investor owning Sugita is ______%. (Round to two decimal places.)
Part 6
The average annual historical return for Sugita is _______%. (Round to two decimal places.)
Part 7
c. How does Sugita's historical average return compare with the return you should expect based on the capital asset pricing model and the firm's systematic risk? (Select from the drop-down menu.)
Part 1 Given the holding-period returns shown in the table, the average monthly return for the Sugita Corporation is 1.5%. (Calculation: Average monthly return for Sugita = (2.0 - 1.0 + 0.0 + 0.0 + 6.0 + 6.0)/6 = 1.5% )
Part 2The standard deviation for the Sugita Corporation is 3.37%. (Calculation: Monthly standard deviation for Sugita = √[((2.0 - 1.5)² + (-1.0 - 1.5)² + (0.0 - 1.5)² + (0.0 - 1.5)² + (6.0 - 1.5)² + (6.0 - 1.5)²)/5] = 3.37% )
Part 3Given the holding-period returns shown in the table, the average monthly return for the market is 2.05%. (Calculation: Average monthly return for market = (1.2 + 3.0 + 3.0 + 0.0 + 6.0 + 1.0)/6 = 2.05% )
Part 4The standard deviation for the market is 1.89%. (Calculation: Monthly standard deviation for market = √[((1.2 - 2.05)² + (3.0 - 2.05)² + (3.0 - 2.05)² + (0.0 - 2.05)² + (6.0 - 2.05)² + (1.0 - 2.05)²)/5] = 1.89% )
Part 5 If Sugita's beta is 1.2 and the risk-free rate is 1 percent, the expected return for an investor owning Sugita is 14.6%. (Calculation: Expected return for Sugita = 1% + 1.2 * (1.5% * 12 - 1%) = 14.6%)
Part 6The average annual historical return for Sugita is 18.0%. (Calculation: Average annual return for Sugita = (1.5% * 12) = 18%)
Part 7Sugita's historical average return is higher than the return an investor should expect based on the capital asset pricing model and the firm's systematic risk.
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