Home Decor has a pretax cost of debt is 6.8 percent and a tax rate of 22 percent. What is the cost of equity if the debt-equity ratio is .65?
a-16.89%
b-17.07%
c-14.70%
d-15.69%
e-16.44%

Embarking on supply chain design is an essential step for operations managers to optimize their company's logistics processes. However, before doing so, they need to consider various factors to ensure that the supply chain meets the company's objectives and goals.

One of the first considerations is what kind of distribution to have, whether it is direct, indirect, or a combination of both. This decision is critical since it affects the costs, lead times, and customer experience. Another important consideration is the "make-or-buy" and outsourcing designs. It involves deciding whether to produce goods in-house or outsource them to external suppliers. This decision impacts costs, quality control, lead times, and other factors. Operations managers need to consider which option is best suited for their company's needs. Managing supply chain inventory is another essential consideration. They need to evaluate the inventory levels required to fulfill customer orders while minimizing inventory holding costs. This requires an accurate forecast of demand, efficient order management processes, and effective inventory tracking systems.

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False. Bus drivers, editors and reporters, and college and university teachers are not examples of occupations that are close to an equal gender ratio.

The statement is false. Bus drivers, editors and reporters, and college and university teachers are not occupations that typically have an equal gender ratio. In fact, these occupations tend to exhibit gender imbalances. For example, bus driving is often male-dominated, while teaching at the college and university level may have more female representation.

Similarly, the field of journalism and editing has historically had disparities in gender representation, with certain roles being dominated by one gender over the other. Achieving gender balance in these occupations remains an ongoing challenge, with efforts focused on promoting diversity and inclusivity in the workplace.

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The statement "when a preference in bankruptcy exists, there is no preference of one creditor over other creditors" is false because when a preference in bankruptcy exists, it means that one creditor has received preferential treatment over other creditors.

This happens when a debtor repays one creditor in full or transfers assets to one creditor shortly before filing for bankruptcy while leaving other creditors with less or nothing.

The preference is seen as unfair because it gives the preferred creditor an advantage over others and reduces the debtor's estate available to pay all creditors.

To prevent this unfairness, bankruptcy law allows the trustee to avoid or undo certain preferential transfers and recover the transferred property or its value. The recovered property or value is then distributed fairly among all the creditors.

The purpose of avoiding preferences is to promote equality among creditors and prevent any creditor from receiving more than they are entitled to receive.

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False. James MacMullan is not most famous for his iconic poster of Bob Dylan modeled after a self-portrait by Marcel Duchamp.

In fact, there is no widely recognized association between James MacMullan and a Bob Dylan poster inspired by Marcel Duchamp's self-portrait. James MacMullan is an American artist and illustrator known for his work in the theater industry, particularly for creating theatrical posters and artwork for Broadway productions. He has created numerous posters for theatrical shows, but there is no prominent connection between him, Bob Dylan, and Marcel Duchamp's self-portrait. It's important to ensure the accuracy of information when attributing specific works or associations to artists, as misinformation can sometimes circulate.

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The adjustment to journalize an additional premium due at the end of the year for worker's compensation insurance (WCI) is Option C. Debit WCI Expense and credit WCI Payable.

This entry is made to recognize the additional expense related to worker's compensation insurance that has been incurred but not yet paid at the end of the year. The debit to WCI Expense increases the expense account, reflecting the additional cost of the insurance. Meanwhile, the credit to WCI Payable increases the liability account, indicating that the company owes the insurance premium to the insurer.

Option A is incorrect because cash is not affected by the adjustment entry. The payment has not been made yet, so cash should not be credited. Option B is incorrect because there is no Compensation Refund account involved in this adjustment. The entry is related to worker's compensation insurance, not a refund of compensation.

Option D is incorrect because there is no WCI Insurance Refund account involved in this situation. The adjustment is for recognizing additional premium due, not a refund. Option E is incorrect because the adjustment specifically relates to worker's compensation insurance, so the Insurance Payable account should not be used. Instead, WCI Payable is the correct account to credit. Therefore, the correct option is C.

The question was incomplete, Find the full content below:

The adjustment to journalize an additional premium due at the end of the year for worker's compensation insurance (WCI) is:

A. debit WCI Expense and credit Cash

B. debit WCI Expense and credit Compensation Refund

C. debit WCI Expense and credit WCI Payable

D. debit WCI Insurance Refund and credit WCI payable

E. debit Insurance Payable and credit WCI Payable

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This communication should comply with any applicable regulations and legal requirements, such as securities laws or consumer protection laws.

To ensure it is accurate, transparent, and does not mislead or deceive the recipients. It is important to provide relevant information about XYZ and its offerings, including any risks associated with the investment, potential returns, and any other material facts that could influence the investors' decision-making process.

The communication should be professional, clear, and tailored to the target audience, conveying the benefits and features of XYZ in a persuasive but compliant manner. Additionally, it is crucial to maintain data privacy and confidentiality by handling personal information securely and in accordance with privacy laws and regulations.

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The idea that real interest rates are unaffected by changes in expected inflation is known as the Fisher effect.

The Fisher effect is an economic theory proposed by economist Irving Fisher. According to this theory, changes in expected inflation do not impact real interest rates. Instead, nominal interest rates adjust in response to changes in expected inflation. In other words, if expected inflation increases, nominal interest rates will also increase to compensate for the inflationary effect, while the real interest rate (the interest rate adjusted for inflation) remains unchanged.

The Fisher effect is based on the assumption that individuals and businesses anticipate changes in inflation and adjust their behavior accordingly. For example, if individuals expect higher inflation in the future, they will demand higher nominal interest rates to maintain the same level of real return on their investments. This adjustment ensures that the purchasing power of their savings is preserved.

In summary, the idea that real interest rates are unaffected by changes in expected inflation is referred to as the Fisher effect. According to this concept, nominal interest rates adjust to compensate for changes in expected inflation, while the real interest rate remains constant.

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The statement "most large companies will use only one inventory costing method for all of its different segments" is false.

Large companies often use different inventory costing methods for different segments or product lines, depending on their specific needs and industry requirements.

Some common inventory costing methods include First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and Weighted Average Cost.

Companies may choose to use different methods to optimize inventory management, achieve tax benefits, or match the specific characteristics of their products or industries.

This flexibility allows large companies to adapt to varying business environments and manage their inventory more effectively.

Hence, the statement is false.

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The line (1,3) from the entity set Employee to the relationship Assign indicates that an employee can be assigned to at least one and up to three assignments.

In an E-R diagram, the line with (1,3) notation between the entity set Employee and the relationship Assign represents the cardinality of the relationship.

The number before the comma (1) indicates the minimum number of assignments an employee can have, while the number after the comma (3) represents the maximum number of assignments. This notation implies that an employee must be assigned to at least one assignment (minimum cardinality of 1) but can be assigned to a maximum of three assignments.

It establishes the range of the relationship, allowing for flexibility in the number of assignments an employee can have within the specified limits.

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False. Responsive supply chains do not necessarily work best when frequent product introduction exists.

While it is true that responsive supply chains are designed to adapt quickly to changes in demand and customer preferences, it is not accurate to say that they work best when frequent product introduction exists. The optimal supply chain strategy depends on various factors, including the nature of the products, market conditions, and customer demands.

Frequent product introduction can pose challenges for supply chains, particularly if the products have complex manufacturing processes, require specialized components, or involve extensive coordination with suppliers. Rapidly introducing new products can strain the supply chain's capacity, lead to inventory management issues, and increase costs.

Responsive supply chains are generally better suited for volatile and unpredictable demand patterns, where the ability to quickly respond to changes is critical. They focus on agility, flexibility, and real-time information sharing to meet customer demands effectively. However, supply chains for products with stable demand patterns or longer product life cycles may prioritize efficiency and cost optimization over responsiveness.

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(a) To calculate the forward/futures price for a contract with delivery on April 21, we use the formula: Forward/Futures price = Spot price x e^(risk-free rate x time to maturity) (b) If you fixed the price with a forward contract on 10 units of kryptonite and the price of kryptonite on April 21 is $106 per unit, your payoff from holding the forward contract to maturity would be

In this case, the spot price of kryptonite is $100, the daily compounded risk-free rate is 0.5% per day, and the time to maturity is 4 days. Therefore, the forward/futures price for a contract with delivery on April 21 is: Forward/Futures price = $100 x e^(0.005 x 4) = $101.98

Payoff = (Forward price - Spot price) x Units In this case, the forward price is $101.98 and the spot price is $106, and you have 10 units of kryptonite. Therefore, your payoff would be: Payoff = ($101.98 - $106) x 10 = -$40.20 (negative because you have a loss) This means that by entering into the forward contract, you agreed to sell 10 units of kryptonite at a price lower than the market price on April 21, resulting in a loss.

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The success of the Fair Trade (FT) label relies, in part, on several key factors.

Firstly, consumer awareness plays a significant role in the label's success. As more individuals become informed about the ethical, social, and environmental benefits associated with FT products, demand for such items increases, promoting their market growth.

Additionally, transparency and trust are essential components of the FT label's success. The certification process ensures that products meet stringent ethical and sustainability criteria, giving consumers confidence in their purchases. The credibility of the FT certification and auditing process is crucial in maintaining this trust.

Collaboration among producers, suppliers, and retailers is another vital aspect of the FT label's success. By working together, these stakeholders create a strong supply chain that supports fair wages, safe working conditions, and environmental protection, which are the core principles of the FT movement.

Lastly, the FT label's success depends on continuous improvement and adaptation to changing market dynamics. As consumers become more discerning and demand higher ethical and sustainability standards, the FT label must evolve to address these expectations, ensuring its ongoing relevance and effectiveness in promoting fair trade practices.

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Answer:

I believe the answer is disagree

To minimize the risks involved with developing the new product that helps cure insomnia and ensure success, there are several steps that could be taken. Firstly, conduct extensive market research to identify the potential demand for such a product, as well as to determine any gaps in the market that could be filled.

This research will provide insights into consumer preferences, price points, and competition. Secondly, create a detailed plan for product development, including timelines, budgets, and milestones. This plan should be reviewed and updated regularly as the project progresses. Thirdly, consider partnering with external experts, such as sleep clinics or medical professionals, to gain additional knowledge and expertise in the field. This collaboration will provide credibility to the product and potentially open new distribution channels.

Fourthly, create a prototype of the product and test it with a select group of users to gather feedback and make improvements. Lastly, consider securing funding through venture capitalists or other investors to help offset the costs of development.As for the next step in ensuring a successful transition to the new CRM software, it is important to set reasonable sales goals for the sales team until they’ve had a chance to learn the new software. This will help them gradually adjust to the new system and prevent frustration and burnout.

In addition, providing adequate training and support to the sales team will help them become more proficient with the software and increase their overall performance. Regular feedback and communication between management and sales staff is also crucial to ensure that any issues are addressed promptly and that the CRM system is being used to its full potential. Finally, monitoring and analyzing key performance indicators (KPIs) will allow management to track progress and identify areas for improvement.

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To minimize the risks involved with developing the new insomnia cure device and ensure success, it would be best to collaborate with other relevant organizations in designing, developing, and testing the new product. This would help spread the risk and bring in expertise from different areas, which can help ensure that the final product is both effective and efficient.

In ensuring a successful transition to the new CRM software and all that it entails, the next step should be to involve the members of the sales team in identifying the organization's needs and selecting the most appropriate CRM software program. This would help ensure that the sales team is invested in the success of the project and that the new software meets their needs. Additionally, providing the sales team with plenty of training opportunities and reassurance would help them feel confident and capable of mastering the new CRM software. Finally, setting reasonable sales goals for the sales team until they've had a chance to learn the new CRM software would help them adjust to the new system without feeling overwhelmed or demotivated.

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Different prices are charged for different shoes for a variety of reasons. The price of a shoe can be influenced by a range of factors, including the quality of the materials, the brand name, the style, the production costs, and the market demand.

In general, the price of a shoe is based on a combination of these factors. For example, a high-end shoe made from premium materials may be priced higher than a basic shoe made from lower-quality materials. Similarly, a shoe from a well-known and prestigious brand may be priced higher than a similar shoe from a less well-known brand.

In addition, the production costs of a shoe can also affect its price. For example, a shoe that requires more time or labor to manufacture may be priced higher than a shoe that is easier and less expensive to produce. Finally, the market demand for a particular shoe can also play a role in its price. If a shoe is in high demand, the price may be higher than if it were not in high demand.

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The monthly payment for a $250,000 home mortgage at a fixed APR of 4.5% for 15 years is approximately $1,907.16.

To calculate the monthly payment, we can use the formula for a fixed-rate mortgage. The loan amount is $250,000, and the annual percentage rate (APR) is 4.5%. The loan term is 15 years, which is equivalent to 180 months. Plugging these values into the formula, we find that the monthly payment is approximately $1,907.16. This amount includes both principal and interest. Over the term of the loan, the total amount paid would be $343,089.60. Of this total, the percentage paid toward the principal and interest can be calculated by comparing the respective amounts.

Mortgage calculations and how to determine monthly payments, one can consult financial resources and mortgage calculators available online. Understanding the breakdown of principal and interest payments can help borrowers make informed decisions about their mortgage terms and financial planning.

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To calculate the NPV of the project, we need to determine the cash flows associated with the project for each year and discount them to the present value using the required rate of return.

Year 0:

Initial fixed asset investment: -$2,400,000

Year 1 to Year 3:

Sales: $2,530,000

Costs: -$1,550,000

Depreciation: -$800,000 ($2,400,000 / 3)

Taxable income: $180,000 ($2,530,000 - $1,550,000 - $800,000)

Taxes (25%): -$45,000

Net income: $135,000

Add back depreciation: $800,000

Net cash flow: $935,000 ($135,000 + $800,000)

Using the required rate of return of 10%, we can calculate the present value factor (PVF) for each year:

Year 0: PVF = 1

Year 1: PVF = 1 / (1 + 0.10)^1 = 0.9091

Year 2: PVF = 1 / (1 + 0.10)^2 = 0.8264

Year 3: PVF = 1 / (1 + 0.10)^3 = 0.7513

The present value of the cash flows can be calculated as follows:

Year 0: -$2,400,000

Year 1: $935,000 x 0.9091 = $849,500

Year 2: $935,000 x 0.8264 = $772,196

Year 3: $935,000 x 0.7513 = $702,646

The sum of the present value of the cash flows is $19,342. Therefore, the NPV of the project is:

NPV = Sum of present value of cash flows - Initial investment

NPV = $19,342 - $2,400,000

NPV = -$2,380,658

The negative NPV indicates that the project is not financially viable and should be rejected.

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When a private market fails to deliver an optimal quantity of goods and services, it is referred to as market failure. Market failure occurs when the free market mechanism is unable to allocate resources efficiently, leading to suboptimal outcomes. In such cases, government intervention or other corrective measures may be necessary to address the market failure and ensure the provision of goods and services at an optimal level.

Market failure is a concept in economics that describes a situation where the free market fails to achieve an efficient allocation of resources. The private market, driven by supply and demand forces, is unable to deliver an optimal quantity of goods and services to meet society's needs. This can occur due to various reasons such as externalities, market power, public goods, and information asymmetry.

Externalities, such as pollution or the impact of certain activities on third parties, can lead to market failure. When the cost or benefit of a good or service extends beyond the buyer and seller, the private market may not consider these external effects in determining prices and quantities, resulting in suboptimal outcomes.

Market power, where a single firm or a small group of firms have significant control over the market, can also lead to market failure. In such cases, the dominant players may restrict output or charge high prices, leading to inefficient resource allocation and reduced consumer welfare.

Public goods, such as national defense or clean air, have characteristics that make it difficult for private markets to provide them efficiently. The non-excludable and non-rival nature of public goods means that individuals cannot be excluded from consuming them, and one person's consumption does not diminish others' ability to consume. Without government intervention or collective action, private markets may underprovide public goods.

Information asymmetry, where one party has more information than the other, can also lead to market failure. When buyers or sellers have incomplete or asymmetric information about the quality or characteristics of a product, it can result in adverse selection or moral hazard problems, causing market inefficiencies.

To address market failures, governments may intervene through regulations, taxes, subsidies, or the provision of public goods. These interventions aim to correct the suboptimal outcomes and ensure the efficient allocation of resources to meet society's needs.

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The four major differences between goods and services are intangibility, inseparability, perishability, and heterogeneity.

Intangibility refers to the fact that services cannot be seen, touched or felt, whereas goods can be physically handled.

Inseparability refers to the fact that services are often produced and consumed at the same time, whereas goods can be produced and consumed at different times and locations.

Perishability means that services cannot be stored, unlike goods which can be kept in inventory. Heterogeneity refers to the variability in quality and consistency of services, whereas goods are often standardized.

These differences affect the way that businesses market and manage their offerings.

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Satish, a McDonald's crew member, is attempting to beat the store record for drive-through service speed. This means that he is trying to provide the fastest possible service to customers who visit the drive-through window.

A fast-food restaurant's drive-through service, such as McDonald's, is an important aspect of the total customer experience.

Customers will be more satisfied with speedier service, which can lead to repeat business and positive word-of-mouth advertising.

Satish will need to work efficiently and swiftly to beat the store record for drive-through service speed, ensuring that orders are accurate and food is prepared on time.

This may entail multitasking, such as taking orders while cooking meals, to reduce client wait time.

Satish may also need to work with other crew members to ensure that the drive-through service runs smoothly.

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Satish, who is a crew member at McDonald's, is striving to break the store's drive-through service speed record. Essentially, he aims to deliver the quickest possible service to customers who use the drive-through window.

Satish is likely attempting to break the record for the quickest time it takes to serve a customer at the drive-through window. This is a common performance metric that is used by many fast-food chains to evaluate their employees' efficiency and the overall performance of the store. By breaking the record, Satish may receive recognition from his manager, which could result in a bonus or a promotion. Additionally, faster service can lead to increased customer satisfaction and loyalty, which can improve the store's sales and reputation. However, it is important for Satish to maintain quality standards while attempting to increase speed, as the quality of the food and service should never be compromised for speed.

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The societal marketing concept states that companies should try to turn deficient products into salutary ones. This approach reflects a broader commitment to societal well-being and demonstrates a company's dedication to responsible business practices.

The societal marketing concept suggests that companies should not only focus on satisfying customer needs and wants but also take into account the broader societal well-being. In this context, deficient products refer to products that may have negative impacts on consumers' health, safety, or the environment. The concept encourages companies to improve these deficient products by making them more beneficial or salutary to consumers and society as a whole.

By transforming deficient products into salutary ones, companies align their business objectives with social responsibilities. They take proactive measures to address any shortcomings or negative consequences associated with their products. This may involve improving product safety, reducing environmental impact, enhancing product quality, or incorporating socially responsible practices throughout the value chain.

While the other options mentioned in the answer choices may be relevant to marketing strategies, the societal marketing concept specifically emphasizes the transformation of deficient products into salutary ones.

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The above  table shows a consumption schedule. If disposable income is $550, we would expect consumption to be higher than $430 based on the observed trend.

Unfortunately  the given multiple-choice options don't align with the consumption schedule provided but from the inferences derived from the table we would infer consumption to be higher than $430 on the basis of trend studied from the table above.

Based on the given consumption schedule, to find the expected consumption when disposable income is $550, you can follow these procedures:

1. Observe the trend in the given consumption schedule. As disposable income increases, consumption also increases.
2. Look for the closest values to $550 in the given disposable income data, which are $500 and $450.
3. Check the corresponding consumption values for these disposable incomes, which are $430 and $400 respectively.
4. Since $550 is between $500 and $450, the expected consumption will be between $430 and $400.

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An essential part of a firm's integrated marketing communications strategy is consistency.

Consistency is a crucial element in an integrated marketing communications (IMC) strategy. IMC aims to create a unified and cohesive brand message across various marketing channels and touchpoints. Consistency ensures that all communication efforts, including advertising, public relations, sales promotion, direct marketing, and digital marketing, work together harmoniously to convey a clear and unified brand identity.

In the context of IMC, consistency means that the brand message, visuals, tone, and positioning remain consistent across different communication channels and mediums. This consistency helps build brand recognition and reinforces the desired brand image in the minds of consumers. When consumers encounter consistent messages across multiple platforms, it enhances their understanding of the brand, improves brand recall, and fosters trust and loyalty.

By maintaining consistency in their marketing communications, firms can effectively deliver a coherent brand message, establish a strong brand presence, and enhance the overall effectiveness of their marketing efforts. It ensures that all aspects of the communication strategy work in synergy to create a seamless and impactful brand experience for consumers.

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The correct answer is B) facilitate rapid communication of fast-breaking news. Business services, including advertising, banking, and journalism, are often centrally located to facilitate the rapid communication of fast-breaking news.

This proximity enables efficient communication channels, such as face-to-face meetings, networking events, and access to technological infrastructure, which are crucial for the timely and accurate exchange of information. Centrally locating these services also allows for easy access to transportation hubs, technology centers, and other key resources that support their operations. Additionally, being in close proximity to other businesses and industry professionals fosters collaboration, knowledge sharing, and synergies that can benefit the growth and development of these business services. While other factors such as a safe environment or presence in the seat of government may also influence the location of certain business services, the primary reason for centralization is typically to enable fast and efficient communication in the case of rapidly evolving news or information.

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Analytical procedures are required in the planning phase, substantive testing phase, and final review phase of an audit.

Analytical procedures are an essential component of the audit process and are conducted at different stages to obtain reasonable assurance about the financial statements. In the planning phase, auditors use analytical procedures to assess the risk of material misstatement and to develop an overall audit strategy. These procedures involve evaluating financial information, identifying significant fluctuations or trends, and comparing them to prior periods or industry benchmarks.

During the substantive testing phase, analytical procedures are performed to obtain substantive evidence about specific assertions in the financial statements. Auditors use analytical procedures to corroborate other audit evidence and identify areas that may require further investigation or testing. These procedures can help detect any anomalies or inconsistencies that may indicate potential misstatements or errors in the financial statements.

In the final review phase, analytical procedures are again employed to assess the overall reasonableness of the financial statements. Auditors review the financial results and ratios, compare them to expectations or industry norms, and investigate any significant variances or unexpected findings. These procedures help ensure that the financial statements are free from material misstatements and provide reliable information to users.

In summary, analytical procedures are required in all three phases of an audit - planning, substantive testing, and final review - to assess risks, gather substantive evidence, and evaluate the overall reasonableness of the financial statements.

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The debate over whether or not the factory workers will organize a union is the main source of contention in the documentary. To prevent any prospective union action in his plant, Chairman Cao, the company's founder and CEO, even recruited a consulting firm that is anti-union.

The collective values of the Chinese culture are prioritized over the needs and aspirations of the individual. The United States, however, values individual accomplishments. Independence for Americans is characterized by freedom of choice, individual autonomy, and self-fulfillment. Therefore, anything you accomplish is your doing.

A Net-flix documentary that reveals the chairman and managers of the Chinese-owned Fuyao Glass America Inc. making derogatory remarks about American workers and their attempts to organize a union at the Moraine, Ohio, facility has caused backlash for the company.

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A customer who is both loyal and profitable is referred to as a "true believer".

True believers are the ideal type of customer for businesses to have as they are not only loyal to the brand but also generate a significant amount of profit for the company. These customers are often repeat purchasers and advocates of the brand, which means they bring in new customers through word-of-mouth marketing. Businesses that have a higher number of true believers have a greater chance of success as these customers tend to spend more money on their products or services. Therefore, companies strive to retain these customers by providing exceptional customer service, rewarding loyalty, and continuously improving their products or services to maintain their trust and loyalty.

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A pension plan that requires employers to guarantee a minimum return is referred to as a defined benefit plan.

Defined benefit plans are retirement plans in which the employer agrees to pay a specific benefit to the employee upon retirement, based on a formula that takes into account the employee's salary and years of service. The employer is responsible for funding the plan and guaranteeing the promised benefits, which is why it is often considered a more secure retirement option for employees. The minimum return guarantee ensures that the employee will receive at least a certain amount of income in retirement, regardless of how the investment performance of the plan performs.
Defined Benefit Plan promises a specific monthly benefit at retirement, calculated using a formula based on factors like salary, age, and years of service.

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Based on the provided information, let's analyze the legality of Abbie's termination and the impact of different scenarios:

Abbie's termination: Building Co's termination of Abbie may not be legal if it was solely based on her disclosures to Zuki about the overcharges. The public policy exception to employment at will can protect employees who blow the whistle on illegal activities by their employers.

Reporting to government authorities, upper-level managers, or the media: Abbie would qualify as a whistleblower under the law if she reported her findings of illegal overbilling to any of these entities.

Reporting to the local television news: If Abbie reported her findings to the local television news, she would meet the legal requirement of a whistleblower. The fact that Abbie is an employee at will does not impact the legality of the decision.

Seeking redress: Abbie can seek redress based on grounds of the public policy exception to employment at will and the Whistleblower Protection Act if she reported illegal activity and reported it to the necessary individuals or entities.

Building Co executives' response: Building Co executives should have taken action when they learned of the overbilling from Abbie. It is not specified whether they took appropriate action to investigate the matter or punish the managers involved.

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The total cost of the system with the doubled service rate is:  $87.50

To calculate the total system cost, we need to consider the cost of waiting and the cost of service. The cost of waiting is the product of the number of units waiting and the cost of waiting per unit per period, while the cost of service is the product of the number of units served and the cost of service per unit.

At the current service rate, the average number of units waiting is 5, and the average number of units served is 20. Therefore, the total cost of the system is: Total cost = (5 x $5.00) + (20 x $2.50) = $62.50

If the service rate is doubled, the new service rate will be 40 units per period, and the cost of service will increase to $3.50 per unit served. The average number of units waiting will decrease to zero, and the average number of units served will increase to 25.

The total cost of the system with the doubled service rate is:

Total cost = (0 x $5.00) + (25 x $3.50) = $87.50

The total system cost increases with the doubled service rate, even though there is no waiting cost. This is because the cost of service increases, and the total cost of the system is the sum of the cost of waiting and the cost of service.

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