Answer:
A) ≈ 3.509 grams
B) The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( NO )
c) 1.051 ounces
Explanation:
A) The largest standard deviation ( in grams)
This can be calculated applying the capability index formula and according to the capability index formula the value at which a process is capable is at : 1.33
hence the largest standard deviation = upper limit - lower limit / 6 * 1.33
( 354 - 326 ) / 7.98 = 3.5087 ≈ 3.509 grams
B) we first calculate the process mean and std of the box
standard deviation = [tex]\sqrt{variance }[/tex]
std of the six-bar box = [tex]\sqrt{6*0.86^2}[/tex] = 2.106
process mean = 6 * ( 1.03 * 28.33) = 175.079
the mean is not centered between the upper specification and the lower specification hence we will apply the formulae used in calculating the capability index for an uncentered process
Cpk = (upper value - process mean) / (3 * std of box),
= (187 - 175.079) / ( 3 * 2.106) = 11.921 / 6.318 = 1.89
Cpk = (process mean - lower value ) / (3*std of box)
= ( 175.079 - 153 ) / (3 * 2.106) = 22.079 / 6.318 = 3.49
The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( N0 )
c ) lowest setting
calculate the value of the mean using capability index of 1.33
Cpk = (upper value - mean ) / 3 * std
mean = 187 - 1.33 * 3 * 2.106
= 187 - 8.40 = 178.60 grams
Cpk = ( process mean - lower value ) / 3 * std
mean = 1.33 * 3 * 2.106 + 153
= 8.40 + 153 = 161.40 grams
the lowest setting in ounces
= 178.60 / ( 6 bar * 28 .33)
= 178.60 / 169.98 = 1.051 ounces
At a sales level of $300,000, James Company's gross margin is $15,000 less than its contribution margin, its net operating income is $50,000, and its selling and administrative expenses total $120,000. At this sales level, its contribution margin would be:
Answer:
$185,000
Explanation:
Jame's company gross margin is $15,000 less than its contribution margin at a sales level of $300,000
It's net operating income is $50,000
Selling and administrative expenses is $120,000
The first step is to calculate the gross margin
= net operating income + selling and administrative expenses
= $50,000 + $120,000
= $170,000
Therefore, since the gross margin at the sales level is $15,000 less then the contribution margin can be calculated as follows
= $170,000 + $15,000
= $185,000
Hence the contribution margin at this sale level is $185,000
Athena Company provides employee health insurance that costs $15,500 per month. In addition, the company contributes an amount equal to 3% of the employees' $155,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:_________.
Debit to Payroll Taxes Expense $20,150.
Debit to Employee Retirement Program Payable $4650.
Credit to Employee Benefits Expense $15,500.
Debit to Medical Insurance Payable $15,500.
Debit to Employee Benefits Expense $20,150.
Answer: Debit to Employee Benefits Expense $20,150
Explanation:
Amount that company gives to employees as benefits;
= Health insurance + Retirement contribution
= 15,500 + ( 3% * 155,000)
= 15,500 + 4,650
= $20,150
As this is an expense, it will be debited to the relevant expense account being the Employee Benefits expense account.
1. Discuss the strategic relevance of identifying the industry's dominant economic features. Give four examples of relevant factors and discuss what makes them strategically important facts.
Answer with Explanation:
Identifying industry’s dominant economic features helps in understanding what key factors ensures its survival and success. The understanding of business environment also helps in making informed decisions that generates value for the company. Some of the important industry's dominant economic features are as under:
Market Size and Growth Rate: This helps in understanding how large is the market. If the market size very large then it means we have running customers which means we rarely have repetitive customer. Hence the chances of survival are more in a relative large market as apposed to small market. Similarly the market growth rate is also an attractive factor because greater the market growth rate the greater would be chances of success because new customer entrants are continuously growing with great numbers. This great pace will generate great sales in the future as well.
Scope of Rivalry: The number of competitors operating in the market and their size is often termed as scope of rivalry. Furthermore, the greater are the number of competitors in the market the lower is the bargaining power of the competitors and vice versa. This means that the profit earning will be affected with the population of competitors in the market as every competitor will try to attract the customers by discounting their product prices. The survival of new entrant in such a market is very difficult.
Level of Product Differentiation: If are considering a car market of a developing country like Indonesia, Pakistan, Mongolia, Uzbekistan, etc which have higher population and the level of purchasing power of people very low than developed countries like US and UK. This means that the level of product differentiation will be very low. Hence the survival of highly differentiated product in such market is very difficult. So the level of product differentiation may alter your decision making process.
Technology Adoption Cost: If the technology adoption cost is very low then it more risky market as the product may get obsolete very early and the life-cycle of the product will be very shorter. This means that the revenue generated from the product would be lower as the demand of new technology takes all the sales away.
Profitability of the Market Segment: The profit margin of the product of a particular market segment is higher and the level of risk is also within a acceptable range then it will be strategically important because the amount invested will be recovered earlier because higher profit margins. We can also increase the sale of the product by reducing the price in market which prizes its customer at a high, this will increase the demand and profits of the company. Hence it is a successful and survival ensuring market.
The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 20% 0.4 9 5 0.3 18 12 a. Calculate the expected rates of return for the market and Stock J. b. Calculate the standard deviations for the market and Stock J. Ehrhardt, Michael C.. Corporate Finance: A Focused Approach (p. 287). Cengage Learning. Kindle Edition.
Answer:
A) The expected return for the market is 13.5 and stock is 11.6.
B) The standard deviation of the market is 3.85 and stock is 6.22.
Explanation:
[tex]\text{The formula to find the expected value.} \\\mu =E(X) = \sum xP(x) \\\text{Expceted return from market.} \\\mu_m = E(rates \ of \ return \ on \ market) \\= (15)(0.3)+(9)(0.4)+(18)(0.3) \\= 13.5 \\\text{The expected rate of return from stock J.} \\\mu_j = E(rates \ of \ return \ on \ market) \\= (20)(0.3) + (5)(0.4) + (12)(0.3) \\= 11.6 \\[/tex]
[tex]\\B. \text{The formula for variance.}\\\sigma ^2 = Var(X) \\= \sum x^2 P(x)- \mu^2 \\Standard \ deviation, \sigma = \sqrt{\sigma ^2} \\\text{Vraince from market.} \\\sigma _m ^2 = \left [ (15)^2 (0.3) + (9)^2 (0.4) + (18)^2 (0.3) \right ] - (13.5)^2 \\= 167.1 - 182.25 \\= 14.85 \\[/tex]
[tex]Standard \ deviation = \sqrt{14.85} \\= 3.85357 \\\text{Variance of stock J.} \\\sigma _j ^2 = \left [ (20)^2 (0.3) + (5)^2 (0.4) + (12)^2 (0.3) \right ] - (11.6)^2 \\= 173.2 - 134.56 \\= 38.64 \\Standard \ deviation \ of \ stock \ J = \sqrt{38.64} \\= 6.216108 \\= 6.22[/tex]
Which of the following is the most plausible effect of nearing debt ceiling on the interest rates paid by Americans?
A. None, it will only effect interest rates paid by foreigners.
B. Americans will pay lower interest rates.
C. Americans will pay higher interest rates.
Answer: C. Americans will pay higher interest rates.
Explanation:
The most plausible effect of nearing debt ceiling on the interest rates paid by Americans is that Americans will pay higher interest rates.
Since the debt ceiling is the method used to curtail and limit the amount of debt that the government of a particular country can borrow, the government has to look for other means to make money and will therefore make Americans pay higher interest rates.
A company decides to establish an EOQ for an item. The annual demand is 400,000 units, each costing $9, ordering costs are $35 per order, and inventory carrying costs are 22%. Calculate the following:
a. The EOQ in units
b. Number of orders per year.
c. Cost of ordering, cost of carrying inventory, and total cost
Answer and Explanation:
a. The computation of the economic order quantity is shown below:
[tex]= \sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}[/tex]
[tex]= \sqrt{\frac{2\times \text{400,000}\times \text{\$35}}{\text{\$1.98}}}[/tex]
= 3,761 units
b. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= 400,000 ÷ 3,761 units
= 106.35 orders
c. The computation of the total cost is shown below:
= Purchase cost + ordering cost + carrying cost
where,
Purchase cost = Annual consumption × Cost per unit
= 400,000 × $9
= $2,800,000
Ordering cost = (Annual demand ÷ EOQ) × Cost to place one order
= (400,000 ÷ 3,761) × $35
= $3,723
Carrying cost = (EOQ ÷ 2) × carrying cost percentage × Cost per unit
= (3,761 ÷ 2) × 22% × $9
= $3,723
Now put these values to the above formula
So, the value would equal to
= $2,800,000 + $3,723 + $3,723
= $2,807,446
Answer:
c
Explanation:
Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the company given the following additional information:
Bond Coupon Rate = 8% Bond Yield to Maturity = 6% Dividend, expected = $5 Price, common = $80
Growth Rate = 5% Corporate Tax Rate = 30 %
A) Less than 5.0%.
B) More than 5.0% and less than 6.25%.
C) More than 6.25% and less than 7.5%.
D) More than 7.5%.
Answer:
As the WACC is more than 7.5%, option D is the correct answer.
Explanation:
The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
w represents the weight of each componentr represents the cost of each componentD, P and E represents debt, preferred stock and common stock respectivelyFirst we need to determine the cost of debt and equity for this firm.
We use the market value of debt and thus, rate for the calculation of WACC.
The cost of debt will be its yield to maturity as it is the current rate or cost. Thus, rD will be 6%.
The cost of equity can be determined using the constant growth model of DDM 's formula for prcie today.
P0 = D0 * (1+g) / (r - g)
80 = 5 * (1+0.05) / (r - 0.05)
80 * (r - 0.05) = 5.25
80r - 4 = 5.25
80r = 5.25 + 4
r = 9.25 / 80
r = 0.115625 or 11.5625%
WACC = 0.5 * 0.06 * (1-0.3) + 0.5 * 0.115625
WACC = 0.0788125 or 7.88125%
As the WACC is more than 7.5%, option D is the correct answer.
Which one of the following stock index futures has a multiplier of $10 times the index value?
a. Russell 2000
b. Dow Jones Industrial Average
c. Nikkei
d. DAX-30
e. NASDAQ 100
Answer: b. Dow Jones Industrial Average
Explanation: The Dow Jones Industrial Average index futures has a multiplier of $10 times the index value which is used to calculate contract settlements and helps determine the dollar value of each point of price movement. For example, Dow multiplier is 10, meaning each Dow point is worth $10 per contract.
You are happy to see that today's Productivity results relative to goal are trending positively overall; however, you want to focus on really improving one team over the next four hours of your shift. Based on examining the last three hours, which team should you focus on to most positively impact your area's overall results
Answer:
If I were to choose, I'd go for Team 4.
Explanation:
Team 1 is currently on an upward trend with the fastest improvement in their overall productivity moving from 92% to 103%, an 11.9% growth in 6 hours;Team 2 had a slight recession but by the end of the 6 hour period were almost back where they started at 104%, a 1.9% decline. Given that they are still back on an upward trend, I'd give them little or not energy as their 6-hour performance has been the most consistent overall;Team 3 started their performance at 95% and plummetted from then to about 90%, a regressed performance of about 5.3%Team 4 went from 103% to 91%, an 11.7% decline in performance.So given that team 4 has the potential to revert back to, at the very least the starting performance of 103%, and that they have the highest rate of decline in performance, I'd focus on them to improve the overall performance of teams.
Cheers!
Find the duration of a bond with settlement date June 11, 2018, and maturity date December 15, 2027. The coupon rate of the bond is 4%, and the bond pays coupons semiannually. The bond is selling at a yield to maturity of 5%.
Answer:
the duration of a bond is 7 years and 7 months.
Explanation:
The settlement date is the date that the bond transaction is finalized where buyer must make payment and seller deliver the asset.
Duration of the bond will thus be the period between settlement date and the maturity date of the bond. That is June 11, 2018 and December 15, 2027 respectively.
The period between the two dates is 7 years and 7 months.
Relevant range is the range of activityâ (volume) over which total fixed costs and variable costs per unit can be assumed to remain the same.A. TrueB. False
Answer:
A. True
Explanation:
An important assumption used in Cost Volume Profit Analysis is the use of a relative range.
The term relative range is used to refer to the output range at which the firm expects to be operating within a short - term planning horizon. It is here that, total fixed costs and variable costs per unit can be assumed to remain the same.
However, it is important to note that the Economist looks at the whole range of output from zero to maximum and does not use this term at all. Hence, on their assumption total fixed costs and variable costs per unit will never remain the same.
A 55 year-old supervisor at a private company, who has always received good performance appraisals, is nevertheless fired. Two younger supervisors (37 and 42 years old, respectively) from the same department and whose performance appraisals have been lower than the 55 year old’s were nonetheless retained by the company. The employer says that it had to save money and that older supervisor earned considerably more money than the younger supervisors, which he did. If the termination is legally challenged, a court would most likely decide:________.
a. For the employer because employee could not establish a prime facie case of age discrimination under the ADEA.
b. For the employer because one of the employers retained was also over 40 years of age.
c. For the employer because it had a lawful, non-discriminatory motive for the termination.
d. For the employer because the employer had engaged in disparate treatment based on age.
Answer:
a. For the employer because employee could not establish a prime facie case of age discrimination under the ADEA.
Explanation:
This is true, because, had it been that the employee could be able to determine a prime facie reason why he was fired, it would go a long way in his case in the court of law.
A woman worked for 30 years before retiring. At the end of the first year of employment she deposited 5000 into an account for her retirement. At the end of each subsequent year of employment, she deposited 3% more than the prior year. The woman made a total of 30 deposits. She will withdraw 50,000 at the beginning of the first year of retirement and will make annual withdrawals at the beginning of each subsequent year for a total of 30 withdrawals. Each of these subsequent withdrawals will be 3% more than the prior year. The final withdrawal depletes the account. The account earns a constant annual effective interest rate. Calculate the account balance after the final deposit and before the first withdrawal.
Answer:
$797,837
Explanation:
the first withdrawal is $50,000
the second is $51,500
and so on...
the formula that used to solve the interest rate earned by the annuity is:
$50,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / [(1 + i)³⁰ x (i - 3%)]} x (1 + i) = $5,000 x {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}
we start to simplify the equation by cancelling {[(1 + i)³⁰ - (1 + 3%)³⁰] / (i - 3%)}
[$50,000 x (1 + i)] / (1 + i)³⁰ = $5,000
now we cancel $5,000 on each side:
[10 x (1 + i)] / (1 + i)³⁰ = 1
now lets take away (1 + i):
10 / (1 + i)²⁹ = 1
things get a little bit more simple now:
10 = (1 + i)²⁹
²⁹√10 = ²⁹√(1 + i)²⁹
1.082636734 = 1 + i
i = 1.082636734 - 1 = 0.082636734 = 8.2636734%
now we replace i in any equation:
= $50,000 x {[(1 + 0.082636734)³⁰ - 1.03³⁰] / [(1 + 0.082636734)³⁰ x (0.082636734 - 0.03)]} x (1 + 0.082636734)
= $50,000 x {[10.82636738 - 2.427262471] / [10.82636738 x 0.052636734]} x (1 + 0.082636734)
= $50,000 x {8.399104909 / 0.56986462} x (1.082636734)
= $50,000 x 14.73877236 x 1.082636734
= $797,837
Summarize the impact of foreign exchange rates on the company’s financial statements. What risks do foreign exchange rates pose? Provide academically supported example(s) in your response
Answer with Explanation:
Foreign exchange rates can have significant impact on the company's financial statements because the spot rate at that date can be affect the value of the company's assets. It is very common in consolidated financial statement of a multinational companies.
The impact on the financial statements can be as under:
The fluctuation in currency value can under or over statement of assets. liabilities and Income & Expenses.The fluctuation makes the analysis of the financial statements meaningless. The performance of the company in a consolidated statement will be in a state that would not be better understood or time consuming by experts to develop understanding of what the financial statement is saying. It would be difficult for an ordinary person to understand the performance of the business.It can also also manipulate the value of the assets of the company because increase in devaluation of the currency means increase in inflation and vice versa.The value of the company acquired can be affected significantly which means that the investment (value of whole company) can turn into significant losses which means it can result reporting losses of in a consolidated financial statement. This would also result in decrease in the stock value of the group as a whole.Which of the following is one of the three arguments in favor of narrow corporate social responsibility?
a. let-government-do-it
b. visible-hand
c. society-lacks-the-expertise
d. business-can-handle
Answer:
Option "A" is the correct answer to the following question.
Explanation:
Corporate Social Responsibility is a theory of social private enterprise self-regulation which always seeks to lead to public interests of a philanthropy, political or humanitarian nature by participating or encouraging voluntary or ethical action.
Subject matter experts often perform specific project activities when necessary. Which of the following statements accurately describes the role of subject matter experts in support of a project?
a. The subject matter experts are typically assigned to the project from start to finish.
b. The subject matter experts may not relate strongly with a project due to the temporary nature of their involvement.
c. Subject matter experts typically approve critical project decisions.
d. none of these
Answer:
b. The subject matter experts may not relate strongly with a project due to the temporary nature of their involvement.
Explanation:
A subject matter expert is a person that is considered to be an authority in a particular field or area. Because of their defined area of expertise they are only invited into a project to perform specific activities.
Due to the temporary nature of their roles in project they don't tend to have a buy-in to the project objectives.
If they were involved in various aspects of the project on a more permanent basis, they would have developed a commitment to see the project through to the end
__________________ is a significant component of the customer experience.
Answer:
IT
Explanation:
Technology plays a significant role in developing, maintaining or building the customer experience. The method of purchasing goods, searching goods online and getting data have become accessible to the customers. Also, the method of paying and getting refunds have also become very easy. Increment in the customer loyalty and improvement in the customer satisfaction have too been influenced respectively.
Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterBudgeted unit sales 17,000 20,000 16,000 15,000The company's variable selling and administrative expense per unit is $1.60. Fixed selling and administrative expenses include advertising expenses of $10,000 per quarter, executive salaries of $35,000 per quarter, and depreciation of $16,000 per quarter. In addition, the company will make insurance payments of $5,000 in the first quarter and $5,000 in the third quarter. Finally, property taxes of $7,000 will be paid in the second quarterRequired:Prepare the company's selling and administrative expense budget for the upcoming fiscal year.
Answer and Explanation:
The preparation of the company selling and admin expense for the upcoming fiscal year is shown below:
Quarters
Particulars 1st 2nd 3rd 4th Year
Unit Sales 17000 20000 16000 15000 68000
Variable selling
and administrative
expense per unit $1.60 $1.60 $1.60 $1.60 $1.60
Variable selling
and administrative
expense $27,200 $32,000 $25,600 $24,000 $108,800
Fixed selling and administrative expense
Advertising $10,000 $10,000 $10,000 $10,000 $40,000
executive salaries $35,000 $35,000 $35,000 $35,000 $140,000
Depreciation $16,000 $16,000 $16,000 $16,000 $64,000
Insurance $5,000 $5,000 $10,000
Property taxes $7,000 $7,000
Total fixed selling
and administrative
expense $66,000 $68,000 $66,000 $61,000 $261,000
Total
selling and
administrative
expense $93,200 $100,000 $91,600 $85,000 $369,800
Less:
Depreciation -$16,000 -$16,000 -$16,000 -$16,000 -$64,000
Cash
disbursement
for selling and
administrative
expenses $77,200 $84,000 $75,600 $69,000 $305,800
The following information is from the December 31, 2017 balance sheet of Jackson Corporation
Preferred Stock, $100 par $260,000
Paid In Capital in Excess of Par - Preferred 14,000
Common Stock, $1 par 77,000
Paid - In Capital in Excess of Par - Common 213,000
Retained Earnings 58,600
Total Stockholders' Equity $622,600
What is the average issue price of the preferred stock shares? (Round answers to the nearest dollar.)
A. $104
B. $105
C. $167
D. $100
Answer:Average issue price = $105--b
Explanation:
Preferred stock , $100 par = $260,000
number of shares issued =Preferred stock / par value preferred stock= =$260,000 / $100 = 2,600 shares
Paid in capital in excess of par = total issued price - preferred stock
total issued value = paid in capital in excess of par preferred stock + preferred stock = 14,000 + 260,000=$274,000
Average issue price = Total issue price / number of shares issued = $274,000/ 2600= 105.38 = $105
If a firm's beta was calculated as 1.3 in a regression equation, a commonly used adjustment technique would provide an adjusted beta of Group of answer choices zero or less. between 0.3 and 0.9. less than 1.0 but greater than zero. greater than 1.3. between 1.0 and 1.3.
Answer: Between 1.0 and 1.3
Explanation:
The adjusted beta technique assumes that the beta of the security is moving towards the market beta overtime so it adjusts the security's beta by computing a weighted average of the security's beta and the market beta in the following manner;
Adjusted beta = (.67) * Security beta + (.33) * 1.0
= 0.67 * 1.3 + 0.33
= 1.2
What can be the result of job expectations, dysfunctional or negative work culture, poor personal fit with the job, poorly designed jobs, or lack of work-life balance
Answer:
Burnout
Explanation:
All of these factors can be causes on Burnout. This is a state of emotional, physical, and mental exhaustion caused by excessive and prolonged stress. This usually occurs due to stress from overworking yourself or dislike from your day to day job which can cause you to feel overwhelmed, emotionally drained, and unable to meet constant demands. The two best treatments for this are to reframe the way you look at work and be more social (take breaks with friends).
A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. a. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950.
Answer:
The answer is 4.26 percent
Explanation:
This is a semiannual paying coupon.
N(Number of periods) = 40 periods ( 20 years x 2)
I/Y(Yield to maturity) = ???
PV(present value or market price) = $950
PMT( coupon payment) = $40 ( [8 percent÷ 2] x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 40; PMT = 40; FV= $1,000; PV= -950 CPT I/Y = 4.26
Therefore, the bond's yield-to-maturity is 4.26 percent
Answer:A 20-year maturity bond with par value of $1,000 makes semiannual coupon payments at a
coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond
if the bond price
Explanation:
The administrative department is not responsible for _____ communication.
written
formal
verbal and nonverbal
all of the above
Answer:
I will say c I not shore 100%
Cottage Co. deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on December 31, its Cash account shows a debit balance of $18,367. The company’s bank statement as of December 31 shows an ending cash balance of $15,941. The following information was also available: Outstanding checks as of December 31 total $2,271. Included with the bank statement was a debit memo in the amount of $45 for service charges. Check No. 2519, listed with the canceled checks, was correctly drawn for $815 in payment of a utility bill on December 16. The company mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $870. The December 31 cash receipts of $3,455 were placed in the bank’s night depository after banking hours and were not recorded on the December 31 bank statement. The bank deducted $1,252 for an NSF check from a customer deposited on December 10. Table is attached need help!
Answer and Explanation:
The preparation of the bank reconciliation statement is presented below:
Cottage Co.
Bank reconciliation statements
At December 31
Updates to Bank Statement Updates to Company books
Ending bank balance as per Ending bank balance as per Books
Bank statement $15,941 $18,367
Additions Additions
Deposit in transit $3,455 Mistake $55 ($870-$815)
Deductions Deductions
Outstanding checks -$2,271 Service charges - $45
NSF check -$1,252
Up to date ending balance Up to date ending balance
$17,125 $17125
What is a major drawback to outsourcing, and what solution could company management institute? courcehero
Answer with Explanation:
Some of the major drawback of outsourcing and how these issues must be tackled is listed as under:
Loss of control. When the company outsources its one of operating department then the company looses the control that previously it was able to emphasize on the management. Usually the company department is outsourced to a professional firm that knows every single issue related to the task assigned. But sometimes issue arises when the the service company pretends that it is highly professional in dealing with the issues but they are not. Its almost rare in developed countries because of rule of law. In such cases the company has to avoid the contract and look for another firm to cooperate in this area.Reputational Risk: The negligence of working of third party may result in reputational losses. This may also have financial impacts in the form of loss of loyalty and sales. This risk is inherent risk and the solution is that the company must not form a contract until they are well assure of the professionalism of the firm.Confidentiality Risk: The competitive advantage can be due to a new IT system implemented that integrates the information and lower the cost of information for the company that helps it in making much better decisions and is the reason of competitive advantage. The loss of this confidential data might result in loss of ideas or mechanism working knowledge that competitor may use to overcome the competitive advantage. The solution to this can be awarding tender to the firm that is professional and agreeing them that they will not breach the confidentiality and if they do that then they will compensate the company.Coordination Issue: It is one of the major issue that the Outsourcing vendors don't frequently coordinate with the company because they have to manage other company data as well. The company and the firm must agree upon issues that must be resolved on a priority and in a defined time period.Firm A's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. Firm A incurs a 25% annual holding cost. What is Firm A's annual ordering costs if it orders at a quantity of 28 units? $27.00 $30.00 $31.50 $32.14
Answer:
32.14
Explanation:
Quantity = 28
Demand = 15
Ordering cost = $5
Holding cost = 25%
The question requires us to find firm A's annual ordering cost at this quantity.
We start by multiplying demand by number of months in a year.
15 x 12 = 180
Annual ordering cost = (180/28)*5
= 32.14
Firm A's ordering cost at a quantity of 28 units is therefore $32.14.
You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 21 percent probability of a boom, 72 percent chance of a normal economy, and 7 percent chance of a recession. What is your expected rate of return on this stock
Answer:
Expected rate of return on stock is 14.86%
Explanation:
The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,
rE = pA * rA + pB * rB + ... + pN * rN
Where,
pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario rA, rB, ... represents the return in scenario A, B and so on
rE = 0.21 * 0.2 + 0.72 * 0.15 + 0.07 * -0.02
rE = 0.1486 or 14.86%
Midwest Sales, Inc. has a stated written policy by which all similarly situated employees are to be paid the same salary. John Doe (a male), a Senior Executive Vice President for Sales and Marketing for Midwest’s ZONE A, is paid $100,000 a year by Midwest. Jane Roe (a female), a Senior Executive Vice President for Sales and Marketing for Midwest’s ZONE B, is paid $95,000 a year by Midwest. Jane has worked for Midwest two years longer than John. The description of John and Jane’s respective jobs are identical. What is most accurate statement concerning any legal challenge to the differential is pay between what Midwest pays John and Jane?a) The pay difference is not unlawful and cannot be challenged because there is less than a 10% pay difference between what Midwest pays John and Jane.b) The pay difference is unlawful, unless Midwest can establish some significant difference between Zone A and Zone B.c) The pay difference is not unlawful and cannot be challenged in this instance because the "seniority" defense allows for different pay for men and women even though they may be performing "substantially the same job".d) The pay difference is unlawful, not because of the gender difference between John and Jane, but because Midwest is violating its own stated pay policy.
Answer:
b) The pay difference is unlawful, unless Midwest can establish some significant difference between Zone A and Zone B.
Explanation:
The equal Pay Act of 1963 states that men and women should earn the same salary for similar jobs, i.e. there should be no distinction of gender when establishing a person's salary.
The exception to this rule would be that the work carried out in Zone A is much more demanding, challenging, difficult, important or relevant than the work carried out in Zone B. E.g. Zone A represents 75% of total revenue, or includes very large cities.
Nader, Inc., has the following information available from prior month and the general ledgert: Costs in Beginning WIP Costs added Current PeriodDirect materials $2,300 $ 21,252Conversion costs 6,200 150,536Total beginning WIP $8,500At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs. Direct materials are added at the beginning of the process. (Assume that the company uses the FIFO costing method.)The equivalent units of production for direct materials and conversion costs, respectively, were:______.A) 5,120 for direct materials and 5,056 for conversion costs.B) 4,480 for direct materials and 4,544 for conversion costs.C) 4,120 for direct materials and 4,056 for conversion costs.D) 4,620 for direct materials and 4,856 for conversion costs.
Answer:
D) 4,620 for direct materials and 4,856 for conversion costs.
Explanation:
Equivalent Units of Production Calculation ;
Direct Materials
To finish opening Work In Process (320 × 0%) = 0
Started and Completed = 4,300
Closing Work In Process (320 × 100%) = 320
Total Equivalent units of production for direct materials = 4,620
Conversion Costs
To finish opening Work In Process (320 × 60%) = 192
Started and Completed = 4,300
Closing Work In Process (320 × 80%) = 256
Total Equivalent units of production for direct materials = 4,748
Conclusion :
The closest option is D : 4,620 for direct materials and 4,856 for conversion costs.
According to classical macroeconomic theory, changes in the money supply affect:_______.
a. real GDP and the price level.
b. real GDP but not the price level.
c. the price level, but not real GDP.
d. neither the price level nor real GDP.
Answer:
Option A. real GDP and the price level.
Explanation:
Option “A” is correct because the change in money supply (say increase) will decrease the interest rate and that will result in an increase in investment and more investment will generate more jobs and more money in consumers’ hands. Thus, they will stimulate the spending and aggregate demand will increase. Resulting in the rise in price and rise in real GDP. therefore, option A is right.