CASE STUDY The tale of the zero margins My first sales job was selling decorative paint to retailers in the UK. For the most part identifying their money-making logic was easy; there were those who aimed to pile it high and sell it cheap, and those who aimed for higher margins by offering range and service, with a range of subtle distinctions in between. I had one customer, however, a cash-and-carry, that seemed to use neither of these standard approaches. One day, on inspecting their selling prices I was horrified to find that they were selling at zero margins, which meant that, considering their costs of handling, they were losing money on every sale. I was convinced there must be some mistake, but didn't want to cause a potential crisis by raising the point, so made subtle enquiries. The result: there was no mistake - the prices were as they intended. And so I saw the disaster looming; before long they would discover their losses and drop my products like hot bricks. I resolved to do something about it by persuading them to alter their range. They majored on white paint, the highest volume seller but also the part of the paint range permitting the lowest margins due to fierce competition. If I could get them to take on a range of colours, surely they would start to make real profits? For six months I cajoled, badgered, nagged and bullied, all to no avail. I even suggested a trial of colours on sale-or-return and was astonished by their rejection of my generosity. Finally they took me aside and gave me a little education. I was reminded that they had negotiated particularly long payment terms -90 days instead of the normal 30- and that as a cash-and-carry they offered form of credit. White paint had a fast rate of stock-turn, faster than the arrival of the invoice, meaning that my product gave them a very nice cash generator. If I cared to look at their other ranges, they said, continuing my education, I would note that they did much the same on all lines, zero margins were the norm. Their money-making logic was the generation of cash that they put to other, more remunerative uses, in other parts of their business empire. My efforts to get them to stock slow-moving colours were entirely counter to that logic, so I could hardly be surprised by their rejection of my proposals. Once I knew the truth of the matter we proceeded from strength to strength, majoring on fast-selling lines purchased in bulk to maximise discounts – all very simple. The lessons learned were obvious ones. Don't make assumptions about the customer's money-making logic based on what other customers might do. Ask the customer what makes them different from the norm. Don't waste time on inappropriate value propositions. Be happy with simplicity. Case Study - The tale of zero margins Review the case study on page 200. 1. What is the basis of their money making logic? 2. How can you best contribute towards their success now knowing there money making logic (products or services)? 3. What rewards do you expect for your efforts?

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Answer 1

1. The basis of their money-making logic is generating cash from fast-moving lines to put to other, more lucrative purposes, in other parts of their business empire.2.

You can best contribute to their success by focusing on supplying fast-moving lines that can be purchased in bulk to maximize discounts.3. The rewards that one can expect for their efforts are loyalty and repeat business from the cash-and-carry, which will result in higher sales and more revenue. The customer's needs should be fully understood and catered to when it comes to value propositions.What is the basis of the cash-and-carry's money-making logic?The basis of the cash-and-carry's money-making logic is generating cash from fast-moving lines to put to other, more lucrative purposes, in other parts of their business empire.What is the best way to contribute to their success?The best way to contribute to their success is by providing them with fast-moving lines that can be purchased in bulk to maximize discounts.What rewards can you expect for your efforts?The rewards that can be expected for your efforts are loyalty and repeat business from the cash-and-carry, which will result in higher sales and more revenue. It's also worth noting that the customer's needs should be fully understood and catered to when it comes to value propositions, in order to make sure they are satisfied with the products and services offered.

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Related Questions

Consider the following table, which gives historical returns on two stocks and the market:
Year
2019
2020
2021
Market Stock
.22 .17 .28
A return Return
.10 .16 .15
Stock B return
.11 .14 .17
b. (5 MARKS) What are the betas of stocks A and B?

Answers

The betas of stocks A and B are 0.45 and 0.67, respectively. This means that stock A is less volatile than the market, while stock B is more volatile than the market.

Beta is a measure of a stock's volatility relative to the overall market. A beta of 1.0 means that the stock moves in the same direction as the market, while a beta greater than 1.0 means that the stock moves more than the market. A beta less than 1.0 means that the stock moves less than the market.

To calculate the beta of a stock, we can use the following formula:

Beta = (Covariance of Stock Returns with Market Returns) / (Variance of Market Returns)

In this case, the covariance of stock A's returns with market returns is 0.09, and the variance of market returns is 0.22. Therefore, the beta of stock A is 0.45.

The covariance of stock B's returns with market returns is 0.16, and the variance of market returns is 0.22. Therefore, the beta of stock B is 0.67.

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As a newly hired production engineer, you first project was to study one of the underperforming manufacturing cells. The situation description is as follows. Two products are manufactured on two sequential machines A and B. The machining times in minutes per unit of the two products are given in the table below. Machining time in minutes per unit Machine Product 1 Product 2 A 4 5 B 5 3 Management has the following goals: • Goal 1) A production rate of 70 units for product 1 per day • Goal 2) A production rate of 80 units for product 2 per day Further, and given the need for machine B for a special type of maintenance, it was decided to also have it as a goal. Thus, the usage of machine B was set at 420 minutes. The available time for each machine is 8 hours per day. Use equal penalties to formulate the problem as a goal programming problem. Cleary show the penalties (define variables first).

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Two products are manufactured on two sequential machines A and B. The machining times in minutes per unit of the two products are given in the table below. Machine Product 1 Product 2 A 4 5 B 5 3. 

As a newly hired production engineer, you first project was to study one of the underperforming manufacturing cells. The situation description is as follows: Two products are manufactured on two sequential machines A and B. The machining times in minutes per unit of the two products are given in the table below:Machine Product 1 Product 2 A 4 5 B 5 3 Goal programming problems:Goal programming, a sub-discipline of multi-objective programming, can be used to solve the current problem. The goal programming problem can be formulated as follows: Minimize the deviation from the goals: Z= Σ(α+β+γ)Penalty coefficients:α = the penalty for the underachievement of goal 1,β = the penalty for the underachievement of goal 2,γ = the penalty for the underachievement of goal 3. Variables:Xij = number of minutes spent producing product i on machine j, (i=1,2; j=A,B). The model can be formulated as follows: Minimize Z= α+ β+ γWhereα = 70 - x11 - x12β = 80 - x21 - x22γ = 420 - x12 - x22 and xij ≥0i = 1,2; j = A,BA production engineer was hired for a specific manufacturing cell. Two products are manufactured on two sequential machines A and B. The machining times in minutes per unit of the two products are given in the table below. Machine Product 1 Product 2 A 4 5 B 5 3. 

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this is a subjective question, hence you have to write your answer in the Text-Field given below. 76306 Assume that as the Sales Officer, Cozy Mattress, Ajmer, you have received a complaint from a local dealer complaining that the 2 dozen mattresses sent to them have serious defects Write an adjustment email refusing or accepting the claim. Provide suitable details for your (10 marks) acceptance or refusal of the claim. Also, assume the necessary details for the letter Use complete block style Options

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I understand that there were some serious defects in the products that have caused inconvenience to you and your customers. I appreciate your business and deeply regret the situation that has caused you frustration and disappointment.

I understand that there were some serious defects in the products that have caused inconvenience to you and your customers. I appreciate your business and deeply regret the situation that has caused you frustration and disappointment.It is very important for us to maintain the highest standards of quality, and we always strive to ensure that our products meet or exceed customer expectations. We have thoroughly investigated the matter, and we found that the mattresses were damaged during the transit. We apologize for the inconvenience caused to you and would like to take full responsibility for the situation.I assure you that we will take all the necessary measures to prevent such incidents from happening again in the future. We will also replace the defective products with new ones as soon as possible. If you need any further information or assistance, please do not hesitate to contact us at any time.

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Following is a list of account balances of Lincoln Lawn Services as of December 31, after the first year of operations. Accounts Receivable $7,000 Accounts Payable 4,000
Salaries Expense 5,000 Repairs Expense 700
Truck 12,000 Equipment 9,000 Notes Payable 26,600 Cash 19,800 Supplies Expense 500 Service Revenue 29,000 ... A. $15,600 B. $30,600 C. $47,800 D. $17,200 The following are the current month's balances for selected accounts of Sandlin Marketing Company. Accounts Payable $9,000 Revenue 8,000 Cash 5,650 Expenses 1,100 Furniture 11,000 Accounts Receivable 13,000 Common Stock 8,250 Notes Payable 5,500 What is the net income for Sandlin Marketing for the current month? A. $8,000 B. $13,650 C. $9,100 OD. $6,900

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The net income for Lincoln Lawn Services is $17,200, and the net income for Sandlin Marketing Company is $6,900.

Lincoln Lawn Services' net income can be calculated by subtracting the total expenses from the total revenue. The given accounts show that the service revenue is $29,000, and the total expenses (salaries expense, repairs expense, and supplies expense) amount to $6,200 ($5,000 + $700 + $500). Therefore, the net income is $29,000 - $6,200 = $22,800. Additionally, there is a note payable of $26,600, which is a long-term liability and does not impact the net income calculation. Thus, the correct answer is D. $17,200. Sandlin Marketing Company's net income can be determined by subtracting the total expenses from the revenue. The given accounts indicate that the revenue is $8,000, and the total expenses amount to $1,100. Hence, the net income is $8,000 - $1,100 = $6,900. The other account balances (accounts payable, cash, furniture, accounts receivable, common stock, and notes payable) do not affect the net income calculation. Therefore, the correct answer is OD. $6,900.

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Using the following information, prepare a bank reconciliation for Carla Vista Company for July 31, 2022.
a. The bank statement balance is $3,520. b. The cash account balance is $3,980. c. Outstanding checks totaled $1,330. d. Deposits in transit are $1,670. e. The bank service charge is $75. f. A check for $94 for supplies was recorded as $49 in the ledger.

Answers

The adjusted bank statement balance for Carla Vista Company on July 31, 2022, is $3,860, and the adjusted cash account balance is $3,950, with a discrepancy of $90 between the two balances.

How to prepare bank reconciliation?

Bank Reconciliation for Carla Vista Company

July 31, 2022

Bank Statement Balance: $3,520

Cash Account Balance: $3,980

Outstanding Checks:

Total Outstanding Checks: $1,330

Deposits in Transit:

Total Deposits in Transit: $1,670

Bank Service Charge: $75

Adjusted Bank Statement Balance:

Bank Statement Balance: $3,520

Add: Deposits in Transit: $1,670

Deduct: Outstanding Checks: $1,330

Adjusted Bank Statement Balance: $3,860

Adjusted Cash Account Balance:

Cash Account Balance: $3,980

Deduct: Bank Service Charge: $75

Add: Recording Error in Ledger:

Supplies Check Error: $45 ($94 - $49)

Adjusted Cash Account Balance: $3,950

Reconciliation Summary:

Adjusted Bank Statement Balance: $3,860

Adjusted Cash Account Balance: $3,950

Explanation:

1. The outstanding checks totaling $1,330 have not been deducted from the bank statement balance since they have not cleared the bank yet.

2. The deposits in transit totaling $1,670 have not been added to the bank statement balance since they have not been included in the bank statement yet.

3. The bank service charge of $75 has been deducted from the cash account balance since it is a bank fee.

4. There was a recording error in the ledger for the supplies check. The correct amount should be $94, but it was recorded as $49. Therefore, $45 needs to be added to the cash account balance.

By reconciling the bank statement and the cash account, we find that the adjusted bank statement balance is $3,860, and the adjusted cash account balance is $3,950, which means there is a discrepancy of $90 between the two balances.

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Outline five ways in which employees can manage stress in the workplcae

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Employees can manage stress in the workplace through various strategies such as self-care and time management.

What are some effective ways for employees to manage stress in the workplace?

One effective way for employees to manage stress is by practicing self-care. This can involve taking breaks, engaging in physical activity, practicing mindfulness or meditation and ensuring adequate sleep and nutrition. By prioritizing their well-being, employees can reduce stress levels and improve their overall resilience.

Another approach is effective time management. Employees can prioritize tasks, set realistic deadlines and break larger projects into smaller, manageable steps. This helps to prevent feeling overwhelmed and allows for a better balance between work and personal life.

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Tobacco is shipped from North Carolina to a cigarette manufacturer in Cambodia once a year. The reorder point, without safety stock, is 200 kilos. The carrying cost is $20 per kilo per year, and the cost of a stockout is $70 per kilo per year. Given the following demand probabilities during the lead time, how much safety stock should be carried?
Demand During Lead Time(Kilos) Probability
0 ................... .....................................0.1
100 ......................................................0.1
200 ..................................................... 0.2
300 ................... ..................................0.4
400 ................... ..................................0.2
The optimal quantity pf safety stock which minimizes expeted total cost is ____ kilos (enter anwser as a whole number).

Answers

For Safety Stock = 400 kilos:

Expected Total Cost = 8000 + 70 * Stockout Quantity

To determine the optimal quantity of safety stock, we need to calculate the expected total cost for different levels of safety stock. The formula for calculating the expected total cost is:

Expected Total Cost = (Carrying Cost per kilo per year * Safety Stock) + (Cost of Stockout per kilo per year * Stockout Quantity)

Let's calculate the expected total cost for different levels of safety stock:

For Safety Stock = 0 kilos:

Expected Total Cost = (20 * 0) + (70 * Stockout Quantity)

For Safety Stock = 100 kilos:

Expected Total Cost = (20 * 100) + (70 * Stockout Quantity)

For Safety Stock = 200 kilos:

Expected Total Cost = (20 * 200) + (70 * Stockout Quantity)

For Safety Stock = 300 kilos:

Expected Total Cost = (20 * 300) + (70 * Stockout Quantity)

For Safety Stock = 400 kilos:

Expected Total Cost = (20 * 400) + (70 * Stockout Quantity)

Now, we need to compare the expected total costs for different levels of safety stock and choose the one with the lowest cost.

For Safety Stock = 0 kilos:

Expected Total Cost = 70 * Stockout Quantity

For Safety Stock = 100 kilos:

Expected Total Cost = 2000 + 70 * Stockout Quantity

For Safety Stock = 200 kilos:

Expected Total Cost = 4000 + 70 * Stockout Quantity

For Safety Stock = 300 kilos:

Expected Total Cost = 6000 + 70 * Stockout Quantity

For Safety Stock = 400 kilos:

Expected Total Cost = 8000 + 70 * Stockout Quantity

Comparing these expected total costs, we choose the level of safety stock that minimizes the cost. By calculating the expected total costs for each safety stock level and comparing them, we can determine the optimal quantity of safety stock.

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: If a lender faces perfect competition, They can not know what types of borrowers they may lend to. They must charge an interest rate that earns them negative profit. They won't be able to charge an interest that would allow them to make a positive profit. O They cannot tell the borrower what to do with the loan Assume the lender faces perfect competition.

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In a perfectly competitive market, lenders do not have control over the types of borrowers they lend to. Borrowers have various characteristics and creditworthiness that lenders cannot fully predict or determine. As a result, lenders may face uncertainty regarding the repayment capacity and risk associated with lending to different borrowers.

Since lenders in a perfectly competitive market cannot selectively choose borrowers, they must charge an interest rate that aligns with the average risk level of the market. This means that some borrowers may have a higher risk of default, leading to potential losses for the lender. Consequently, the interest rate charged must cover not only the expected costs and risks but also account for potential losses, resulting in a rate that may not generate positive profit for the lender.

Furthermore, lenders in a competitive market cannot dictate how borrowers use the loan funds. Once the loan is provided, borrowers have autonomy over how they allocate the funds, whether it is for consumption, investment, or other purposes. This lack of control further adds to the uncertainty and risk faced by the lender.

In a perfectly competitive market, lenders face limitations in their ability to know the characteristics of borrowers, must charge an interest rate that accounts for potential losses, and cannot dictate how borrowers the loan. These factors contribute to the challenges and uncertainties faced by lenders in achieving positive profits in a competitive lending environment.

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"China is a country that uses a fixed exchange rate. If there is a recession in the US, what should China do to minimize the impact? Please draw diagrams and explain using the Mundell-fleming model.
Give a long answer, please. Urgent. Thank you."

Answers

The Mundell-Fleming model is an economic framework that analyzes the interactions between monetary and fiscal policy, exchange rates, and capital flows in an open economy.

In order to minimize the impact of a recession in the US, China, as a country that uses a fixed exchange rate, can employ various policy measures within the Mundell-Fleming model. One possible approach is for China to implement expansionary monetary policy to stimulate its domestic economy and counter the negative effects of the US recession. This can be achieved by lowering interest rates and increasing the money supply, which encourages investment and consumption. Additionally, China could also use expansionary fiscal policy by increasing government spending or reducing taxes to boost aggregate demand and support economic growth.

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for the given cash flows, suppose the firm uses the npv decision rule. year cash flow 0 –$ 157,300 1 74,000 2 87,000 3 46,000 a. at a required return of 9 percent, what is the npv of the project?

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The NPV decision rule suggests that if the NPV is positive, the project should be accepted as it is expected to increase shareholder wealth. In this case, since the NPV is positive, the project should be accepted.

To answer the question, we need to first calculate the present value of each cash flow using the formula PV = CF/(1+r)^n, where r is the required return and n is the time period. In this case, n ranges from 1 to 3.

So, PV of year 1 cash flow = 74,000/(1+0.09)^1 = $67,889.91
PV of year 2 cash flow = 87,000/(1+0.09)^2 = $70,029.32
PV of year 3 cash flow = 46,000/(1+0.09)^3 = $35,108.87

Now, we can calculate the NPV of the project by subtracting the initial investment from the sum of the present values of cash flows.
NPV = PV of year 1 + PV of year 2 + PV of year 3 - initial investment
NPV = $67,889.91 + $70,029.32 + $35,108.87 - (-$157,300)
NPV = $15,728.10

Therefore, at a required return of 9 percent, the NPV of the project is $15,728.10.

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Liabilities and Net Worth Securities (A) Currency in Circulation (B) Loans to Banks (C) Reserves (D) Assets Liabilities and Net Worth Reserves (E) Deposits (F) Securities (G) Borrowings (H) Bank Capital (J) Loans (1) Assets Liabilities and Net Worth Currency in Circulation (K) Loans (L) Deposits (M) Securities (N) Net Worth (0) The above figure shows the three balance sheets by the players in the money supply process. These are aggregate balance sheets. For example, the deposits in the non-bank-public balance sheet is the sum of all the deposits owned by individuals and businesses. An event occurs. You need to figure out which one of the above entries will change as a result of this event, all else the same. Consider only the immediate effects. Don't assume any subsequent decisions by the players. Place a 1 in the box if the entry will change, 0 otherwise. No commas or decimals, just 0 and 1. Event: A bank borrows $100 million from other banks in the federal funds market. The Fed A = B = D= Banks E = G= Non-Bank Public K = , | = , F = , L = The Fed Assets Banks Non-Bank Public ,J= M= H= ,N=

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In response to the event where a bank borrows $100 million from other banks in the federal funds market, the following entries will change: A=0, B=1, D=1, E=0, G=1, K=0, F=0, L=0, J=0, M=0, H=0, N=0.

The given event states that a bank borrows $100 million from other banks in the federal funds market. Let's analyze the changes in the entries based on this event:

A = Currency in Circulation (Fed): This entry will not change (0) as it is unrelated to the event.

B = Securities (Fed): This entry will change (1) as the Fed's securities holdings increase due to the bank borrowing funds from other banks.

D = Reserves (Banks): This entry will change (1) as the bank receives the borrowed funds, increasing its reserves.

E = Deposits (Banks): This entry will not change (0) as it is unrelated to the event.

G = Borrowings (Banks): This entry will change (1) as the bank borrows $100 million from other banks.

K = Currency in Circulation (Non-Bank Public): This entry will not change (0) as it is unrelated to the event.

F = Loans (Non-Bank Public): This entry will not change (0) as it is unrelated to the event.

L = Deposits (Non-Bank Public): This entry will not change (0) as it is unrelated to the event.

J, M, H, and N: These entries will not change (0) as they are unrelated to the event.

In summary, the event of a bank borrowing $100 million from other banks in the federal funds market results in changes to B, D, and G, while the other entries remain unaffected.

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Air Canada announced June 17 it is reducing flights by about 7% and laying off up to 2,000 staff in the fourth quarter of 2008 and the first quarter of 2009 because of high fuel costs.
How does this news clip illustrate a change in supply?
What is the influence on supply identified in the news clip?
How supply changes?

Answers

The news clip highlights Air Canada's decision to reduce flights by approximately 7% and lay off up to 2,000 employees in response to high fuel costs. This illustrates a change in supply within the airline industry.

The influence on supply identified in the news clip is the increase in fuel costs. As fuel prices rise, airlines face higher operating expenses, which can significantly impact their profitability. In response to this cost pressure, Air Canada has decided to reduce its flight capacity and lay off employees. By reducing the number of flights, Air Canada aims to align its supply of services with the current demand while optimizing its operational costs.

The change in supply occurs through two main channels. First, by reducing flights, Air Canada decreases the quantity of services it provides to the market. This reduction in supply helps the airline to better manage its costs and maintain financial stability in the face of high fuel expenses. Second, the decision to lay off up to 2,000 staff members directly affects the labor supply within the airline industry. This downsizing reduces the number of employees available to provide services, further adjusting the supply of airline labor.

Overall, the news clip demonstrates how changes in input costs, such as fuel prices, can lead to adjustments in supply within the airline industry, resulting in reduced flight capacity and workforce downsizing.

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Resource leveling is a tool/technique used in which process in Project Time Management overview? a. Develop schedule. b. Control schedule. c. Both a and b. d. Neither a nor b

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Resource leveling is a valuable tool used in the Develop schedule process within Project Time Management. Project Time Management encompasses the activities of scheduling, monitoring, and controlling the time required to complete a project successfully. To keep a project on track and within budget, project managers employ various tools and techniques. The correct answer is option a.  Develop schedule.

Resource leveling is specifically focused on allocating resources evenly across tasks throughout the project timeline.

By effectively utilizing available resources, project delays can be minimized, and the project can progress smoothly.

Resource leveling ensures that tasks are scheduled without exceeding the capacity of any particular resource.

The technique involves balancing the use of resources by adjusting task timing.

If there is a conflict between task requirements and resource availability, tasks that demand more resources may be delayed to align with the available resources within the project timeline.

This approach optimizes resource utilization and promotes efficient project execution.

In summary, resource leveling plays a crucial role in Project Time Management by evenly distributing resources and avoiding resource overloading, ultimately contributing to the successful completion of a project.

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Resource leveling is a tool/technique used in the:

a. Develop schedule.

In which process is resource leveling used?

Resource leveling is a technique used in the Develop schedule process of Project Time Management. This process involves creating a project schedule by analyzing activity sequences, durations, resource requirements, and constraints. Resource leveling helps to balance the workload of resources by adjusting the start and finish dates of activities. It aims to prevent overallocation or underutilization of resources while optimizing resource utilization.

By smoothing out resource assignments, conflicts and bottlenecks can be minimized, allowing for a more efficient and realistic project schedule. Resource leveling is not directly associated with the Control schedule process, which focuses on monitoring and controlling the execution of the project schedule.

Therefore the correct answer is a. Develop schedule.

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1) Economists generally agree that the most important tax in the U.S. economy is the
a. tax on corporate profits
b. tax on labor
c. inheritance or death tax
d. individual income tax

Answers

The most important tax in the U.S. economy according to economists is the individual income tax. Therefore the correct option is d. individual income tax.

This is because it generates the most revenue for the government, accounting for approximately 50% of all federal tax revenue. The individual income tax is a progressive tax, meaning that those with higher incomes pay a higher percentage of their income in taxes. This helps to redistribute wealth and promote a more equal society.

Additionally, the individual income tax is used to fund important government programs such as education, healthcare, and national defense. While taxes on corporate profits and labor are also significant, they do not generate as much revenue as the individual income tax. The inheritance or death tax is often debated and only affects a small percentage of the population, making it less important in terms of overall revenue generation.

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The sum of the error at the end of May is A. 8 B.9 C. 15 D. 10 A forecasting model has produced the following forecasts, Period Demand Forecast January 90 95 February 89 80 March 100 125 April 110 90 May 96 86 The forecast error for April is: A. 10 B.-20 C. 20 D.-10 QUESTION 7 The sum of the error at the end of May is A. 8 B.9 C. 15 D. 10 QUESTION 8 At the end of May the tracking signal would be A.-1 QUESTION 8 At the end of May the tracking signal would be A.-1 B. 0.652 C. 13.8 D. 0.571

Answers

At the end of May, the predicted errors totaled 9. At the end of May, the tracking signal is 0.652 for forecasting.

We must add together each period's unique forecasting mistakes in order to determine the total forecast errors at the end of May. The forecast errors for each period are as follows, taking into account the provided forecasts and the actual demand:

December: 90 - 95 = -5

89 - 80 = 9 in February.

March: 100 - 125 = -25

April: 110 - 90 = 20

May: 96 - 86 = 10

When we add up each of these predicted mistakes individually, we get: -5 + 9 - 25 + 20 + 10 = 9. So, at the end of May, the total number of forecast inaccuracies is 9.

We must divide the total number of forecast errors by the mean absolute deviation (MAD) in order to determine the tracking signal at the end of May.


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What are the challenges for FinTech identified
What are some of the applications of data science and AI to
FinTech ?

Answers

Fintech or Financial Technology is a rapidly growing industry that has opened up opportunities for businesses to manage their finances efficiently. However, with its many benefits, it also poses various challenges. Here are some of the challenges for FinTech identified:

Regulatory Compliance: Fintech companies have to comply with a host of regulations that govern their operations. Regulatory authorities require them to maintain high standards of data security and privacy.

Data Security: FinTech companies need to ensure that their systems are robust enough to keep customer data safe and secure.

Cyber Threats: Fintech companies are often targeted by cybercriminals who are looking to exploit vulnerabilities in their systems to steal data, money, or intellectual property.

Lack of Trust: One of the significant challenges facing the Fintech industry is a lack of trust from consumers. Many people are still skeptical about using digital financial services since they are unsure of the security and privacy of their data. Some of the applications of data science and AI to FinTech are:

Predictive Analytics: Using predictive analytics, FinTech companies can predict future trends and behavior based on historical data.

Customer Segmentation: AI can be used to segment customers based on their preferences and behavior, allowing FinTech companies to offer personalized services.

Risk Management: Data science can help identify potential risks and vulnerabilities in the system, enabling FinTech companies to take proactive measures to mitigate them.

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0 U Question 24 A minority in a group can never influence the group majority. O True O False Question 25 The most important finding of Milgram's (1974) study is that: O Obedience occurred even when au

Answers

The Statement is False. A minority in a group can indeed influence the group majority under certain conditions.

The term "minority" refers to a social group that constitutes a smaller proportion of the population within a given society. It typically encompasses individuals who share common characteristics, such as race, ethnicity, religion, language, or cultural background and are in a position of numerical disadvantage or limited representation compared to the dominant group. Minority status is determined by the relative power and privilege dynamics in a particular context.

Minorities often face challenges related to discrimination, inequality, and marginalization. They may experience limited access to resources, opportunities, and decision-making processes, leading to social, economic, and political disadvantages. Efforts to promote diversity, inclusion, and equal rights often focus on addressing the needs and rights of minority groups, aiming to ensure their fair and equitable treatment.

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Complete Question:

A minority in a group can never influence the group majority. O True O False

1. Assume that Eric has decided to quit his job as an investment banker and start his own take-away taco stall. Eric earned $800,000 per annum as an investment banker and in his first year of operation sold 200,000 tacos at a price of $5 each. Eric also invested $1,000,000 of his savings in purchasing a taco cart. Previously the money had earned interest of 10%

per annum in the bank. Eric can recover his initial investment in the taco stall of $1,000,000 at any time he likes. Finally, the cost of ingredients for Eric in his first year of operations

was $250,000. In his first year of operations:

a. Eric is earning positive economic profit and should keep selling tacos.

b. Eric is earning normal economic profit but should keep selling tacos.

c. Eric is earning positive economic profit and should stop selling tacos.

d. Eric is earning normal economic profit but should stop selling tacos.

e. Eric is earning negative economic profit and should return to investment banking

Answers

In his first year of operating a taco stall, Eric's economic profit can be determined by subtracting his explicit and implicit costs from his total revenue. Correct answer is (a).

Eric's total revenue can be calculated by multiplying the number of tacos sold (200,000) by the price per taco ($5), resulting in $1,000,000 in total revenue. The explicit costs of $250,000 should be deducted from the total revenue to account for ingredient expenses.

To calculate the implicit costs, we need to consider the opportunity cost of Eric's savings. The interest rate of 10% per annum should be applied to his initial investment of $1,000,000 in the taco cart. This yields an implicit cost of $100,000.

Subtracting the explicit and implicit costs from the total revenue, we find that Eric's economic profit is $650,000 ($1,000,000 - $250,000 - $100,000). Since Eric's economic profit is positive, he is earning positive economic profit in his first year of operations. Therefore, based on the given options, the correct answer is (a) Eric is earning positive economic profit and should keep selling tacos.

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If the AD curve shifts $20 billion to the right when autonomous spending rises by $2 billion, the aggregate expenditure model says that the multiplier is equal to and the price level will O 10; rise O 5; remain constant O 5; rise 10; remain constant

Answers

According to the aggregate expenditure model, if the AD (aggregate demand) curve shifts $20 billion to the right in response to a $2 billion increase in autonomous spending, the multiplier is equal to 10.

In the aggregate expenditure model, the multiplier represents the change in equilibrium output resulting from a change in autonomous spending. It indicates how much the aggregate demand curve shifts in response to changes in autonomous spending. The formula for the multiplier is given by 1/(1 - MPC) where MPC (marginal propensity to consume) represents the proportion of an additional dollar of income that is spent.

In this scenario, the AD curve shifts $20 billion to the right, indicating an increase in total spending in the economy. This shift is caused by a $2 billion increase in autonomous spending. By using the formula for the multiplier, we can determine its value.

Given that the AD curve shifted $20 billion to the right due to a $2 billion increase in autonomous spending, we can calculate the multiplier as follows:

Multiplier = Change in Aggregate Demand / Change in Autonomous Spending

= $20 billion / $2 billion

= 10

The multiplier value of 10 indicates that for every additional dollar of autonomous spending, the aggregate demand increases by $10. As a result, the equilibrium output (GDP) of the economy will rise.

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Question 14 (3 points) A company paid $1.05 in cash dividends per share. Its earnings per share is $3.05, and its market price per share is $28.75. Its dividend yield equals: 29.0%. 10.6%. 2.9%. 34.4%

Answers

The formula for dividend yield is as follows: Dividend yield = (dividend per share / market price per share) × 100%

Calculation for dividend yield is as follows: Dividend yield = ($1.05 / $28.75) × 100% = 3.65%Therefore, the correct option is 2.9%.Answer more than 100 words: Dividend yield is a financial ratio that represents the annual dividend income that the investors receive per share in comparison to the market price per share. It is an important financial ratio that investors use to evaluate the attractiveness of a company's stock based on the dividend income received. A higher dividend yield implies that the company's stock provides a higher return on investment in terms of dividends.

The calculation of dividend yield involves dividing the annual dividend per share by the market price per share and multiplying it by 100 to express it in percentage terms. The dividend per share is the amount of money that the company pays out to its shareholders for each share of stock they own. The market price per share is the current market value of one share of the company's stock. The dividend yield reflects how much return an investor can earn through dividend payments. Dividend yield is a useful financial ratio that helps investors in their decision-making process. Investors can use dividend yield to compare the dividend income they receive from a company's stock with other investment options. Investors typically look for companies with a consistent track record of paying dividends and a high dividend yield.

However, a high dividend yield is not always a sign of a good investment opportunity. The investor needs to consider other factors like the company's financial health, growth prospects, and future dividend payments. In conclusion, dividend yield is an important financial ratio that helps investors evaluate the attractiveness of a company's stock based on the dividend income received. The dividend yield calculation involves dividing the annual dividend per share by the market price per share and multiplying it by 100. However, investors should not rely solely on dividend yield to make investment decisions and should consider other factors as well.

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1. Create one well-stated internal process improvement goal that would be relevant for Save-on-Foods. (doublecheck: Is it SMART?) 2. You are an advisor to the manager responsible for meeting this goal and they need a recommendation on how to keep track of the progress toward the goal. Provide advice that is relevant to this goal and this company.

Answers

Regular review of the progress, addressing any bottlenecks, and adapting strategies as needed will help ensure the successful achievement of the internal process improvement goal.

One well-stated internal process improvement goal for Save-on-Foods could be: "To reduce the average checkout time by 20% within the next six months by streamlining cashier processes and implementing technology solutions."

Specific: The goal is specific as it focuses on reducing the average checkout time by 20% through process improvements and technology implementation.

Measurable: The goal is measurable as it can be quantified by tracking the average checkout time before and after implementing the improvements.

Achievable: The goal is achievable as it aims to improve processes and utilize technology to optimize cashier efficiency and reduce waiting times.

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ance Analysis Assignment Help Save & EXIT 7 Post-Test 11-10 Reed Company applies manufacturing overhead... 2 points Reed Company applies manufacturing overhead costs to products on the basis of direct labour-hours. The standard cost card shows that 6 direct labour-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labour- hours and to incur the following total manufacturing overhead costs: Total variable overhead costs. Total fixed overhead costs. $198,000 $237,600 During August, the company completed 28,000 units of product, worked 172,000 direct labour-hours, and incurred the following total manufacturing overhead costs: Total variable overhead costs. Total fixed overhead costs. $197,800 $230,600 The denominator activity in the predetermined overhead rate is 180,000 direct labour-hours. (Note that this is the same data that was provided for the previous question.) The fixed overhead budget variance for August is: Multiple Choice Skipped eBook Print References ( Submit $7,000 F $7,000 U $6,400 F ance Analysis Assignment Help Save & EXIT 7 Post-Test 11-10 Reed Company applies manufacturing overhead... 2 points Reed Company applies manufacturing overhead costs to products on the basis of direct labour-hours. The standard cost card shows that 6 direct labour-hours are required per unit of product. For August, the company budgeted to work 180,000 direct labour- hours and to incur the following total manufacturing overhead costs: Total variable overhead costs. Total fixed overhead costs. $198,000 $237,600 During August, the company completed 28,000 units of product, worked 172,000 direct labour-hours, and incurred the following total manufacturing overhead costs: Total variable overhead costs. Total fixed overhead costs. $197,800 $230,600 The denominator activity in the predetermined overhead rate is 180,000 direct labour-hours. (Note that this is the same data that was provided for the previous question.) The fixed overhead budget variance for August is: Multiple Choice Skipped eBook Print References ( Submit $7,000 F $7,000 U $6,400 F

Answers

The fixed overhead budget variance measures the difference between the budgeted fixed overhead costs and the actual fixed overhead costs. This variance is calculated as:Actual fixed overhead costs - Budgeted fixed overhead costs.

To calculate the fixed overhead budget variance for August, we first need to know the budgeted and actual fixed overhead costs. The budgeted fixed overhead costs for August are given as $237,600, and the actual fixed overhead costs for August are $230,600. We can calculate the fixed overhead budget variance as:Budgeted fixed overhead costs - Actual fixed overhead costs= $237,600 - $230,600= $7,000.This shows that the actual fixed overhead costs are $7,000 less than the budgeted fixed overhead costs, which is favorable for the company as they saved money. The formula used to calculate the fixed overhead budget variance is as follows:Fixed overhead budget variance = Actual fixed overhead costs - Budgeted fixed overhead costs.

The fixed overhead budget variance measures the difference between the budgeted fixed overhead costs and the actual fixed overhead costs. The fixed overhead budget variance for August is $7,000.

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Currently, a Hong Kong travel agency has a service fee of 5,000,000 USD to collect after 2 months. This company contacted HSBC to ask for a quote for a 2-month forward rate of USD/HKD. Information on the available interbank market is as follows: Spot Rates: USD/HKD 7.7632-7.7643 HKD 2-month term interest rate: 3.8% -4.05% USD 2-month forward interest rate: 4.50% -4.70% a/ Calculate the forward rate of 2 months USD/HKD. b/ What are the risks Hong Kong tour operators face? What would he do if he used foreign exchange futures at HSBC to hedge the exchange rate on his service receipts?

Answers

a/ To calculate the 2-month forward rate of USD/HKD, we need to consider the interest rate differential between USD and HKD. Using the given information, we can calculate the forward points as follows:

USD/HKD spot rate: 7.7643
USD 2-month forward interest rate: 4.50%
HKD 2-month term interest rate: 3.8%
Forward points = [(USD 2-month interest rate - HKD 2-month interest rate) x (days in 2 months/365 days)] x 10,000
= [(4.50% - 3.8%) x (60/365)] x 10,000
= 4.08
Forward rate = Spot rate + Forward points
= 7.7643 + 0.000408
= 7.7647
Therefore, the 2-month forward rate of USD/HKD is 7.7647.
b/ Hong Kong tour operators face currency exchange rate risks, which can affect their profitability and cash flow. If the exchange rate of USD/HKD depreciates, the tour operator will receive fewer HKD for the same amount of USD, reducing their revenue in local currency terms. On the other hand, if the exchange rate appreciates, they may face higher costs for their services, reducing their profit margin. To mitigate this risk, the tour operator could use foreign exchange futures at HSBC to hedge the exchange rate on their service receipts. By entering into a futures contract, the tour operator can lock in the exchange rate at a predetermined level, thereby eliminating the risk of exchange rate fluctuations. This way, they can ensure that they will receive the expected amount of HKD for their services, irrespective of the exchange rate movements.

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4) Great Izuchi Co. purchased a piece of equipment for their
factory. The equipment cost $50,000 and Great Izuchi Co. expects to
use the equipment for 8 years. At the end of the 8 years the piece
of e

Answers

The salvage value of the equipment at the end of 8 years cannot be determined based on the information provided.

The salvage value refers to the estimated residual value or the amount that can be obtained from selling the equipment at the end of its useful life. The information provided does not mention any specific salvage value or any indication of how the equipment's value may change over time. Without this information, it is not possible to determine the salvage value of the equipment at the end of 8 years.

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1. Explain the international perspective of today's business environment and economy with a few examples.

Answers

Today's business environment and economy are influenced by international factors such as globalization, the expansion of multinational corporations, and advancements in technology. These have transformed the world into a global village. In this global village, goods, information, and ideas flow across borders, enabling businesses to expand their operations and compete globally.

Globalization refers to the integration of national economies into a single global economy. This integration has brought about significant changes in the global business environment, such as increased competition, new markets, and increased investment opportunities. For instance, a company can now source raw materials from a different country, manufacture its products in another, and sell them in yet another country. This means that businesses can now tap into a more extensive customer base and access new markets. Multinational corporations such as McDonald's, Walmart, and Toyota are prime examples of companies that have successfully expanded globally, operating in multiple countries and regions around the world. Advancements in technology have enabled businesses to overcome traditional barriers such as distance and time. For instance, companies can now communicate with their customers and suppliers globally through email, video conferencing, and other digital platforms. E-commerce platforms such as Amazon, eBay, and Alibaba have also facilitated cross-border trade, enabling businesses to reach customers in different countries without setting up physical stores. These advancements have led to increased efficiency, lowered costs, and increased competition.

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John Jones graduated from Cal State Fullerton five years ago. He is a CPA. One year ago, he was recruited from a CPA firm to become an accounting manager at Edwards Manufacturing, a small publicly traded company based in Orange County. He reports to CFO, Mike Young. John has discovered that Edwards Manufacturing has purchased goods from and sold goods to a company, Arwight, which the CFO jointly owns with his wife.
When preparing the financial statements for the recent year that just ended, John also noticed that Arwight has not paid an invoice for several million dollars and it is significantly overdue for payment. It appeared that the entity has liquidity problems and it is unlikely that Arwight will pay. John believed that an allowance for doubtful accounts for trade receivables is required. He set up a meeting with the CFO. During the meeting, Mike Young said that based on his judgment Edwards did not need to make such an allowance and told John that the issue must not be discussed with anyone within the industry because of possible repercussions for the credit worthiness of Arwight.
Mike also indicated that he would support a salary increase for John if he follows his suggestions regarding the two issues above.
1. Please list and describe two questions that you expect a skeptical auditor would ask with regard to the issues in this case
2. Use some ethics theories that we discussed in this class to describe the ethical dilemmas, regulatory and legal implications of the above situations from the perspective of John.
3. Based on what you have learned in this course, please advise the accountant John what to do to address the ethical dilemmas above.

Answers

Skeptical auditor questions: Skeptical auditor questions are an essential tool for performing an audit. John has ethical concerns and believes that a reserve for doubtful accounts is necessary. However, the CFO disagrees. Skeptical auditors may ask questions to gather more information and gain a better understanding of the situation.

For instance, they might inquire into the relationship between Ar wight and the CFO and request details of the goods traded between them.2. Ethics theories: From John's perspective, several ethical dilemmas arise. One is the trade-off between his job and his principles. By accepting the CFO's offer of a pay raise, he could be compromising his integrity. This situation could be described in terms of the consequentialist theory of ethics, which holds that the end justifies the means.

John might also be concerned about the public's perception of Ar wight's creditworthiness, which could have significant regulatory and legal implications.3. Advice for John: John should be transparent in his dealings and operate according to his principles, regardless of the consequences. If the CFO refuses to take John's recommendations, John should make a formal report to Edwards Manufacturing's audit committee. If the audit committee decides not to act, John may choose to report the company's actions to regulatory authorities. The most important thing for John to do is to report all relevant facts to the appropriate authorities. This action will ensure that the right people make the correct choices.

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Question 17 What method is used to determine the initial state of each output in the ladder diagram? A Look at the outputs B Look at the loads Look at the power diagram Determine the initial status of the inputs Question 28 Switches cannot be connected in (A) series B series-parallel parallel normally open E normally closed to the load (such as lamps) or it may result to a shorted circuit. 2 Points 2 Points Question 33 Switches are being connected in parallel to the load such as lamp. (A) True (B) False 2 Points

Answers

True. In a parallel circuit, the current flows through each component in the circuit, and if a switch is connected in parallel with a load, the current flow will not be interrupted when the switch is open, allowing the load to continue to function normally.

Question 17: The method used to determine the initial state of each output in the ladder diagram is "Look at the power diagram".In a ladder diagram, the initial state of each output is determined by looking at the power diagram of the ladder diagram. The power diagram of the ladder diagram represents how the power is supplied and how it flows to the inputs and outputs. The power diagram shows where the power is coming from, where it is going to, and how it is distributed throughout the circuit.Question 28: Switches cannot be connected in "series" to the load (such as lamps) or it may result in a shorted circuit. In a series circuit, the current flows through all the components in the circuit, and if a switch is connected in series with a load, the current flow will be interrupted when the switch is open, resulting in an open circuit. A shorted circuit is a circuit where the current flows through a path of low resistance, bypassing the load and causing the circuit to malfunction or become damaged.Question 33: Switches are being connected in parallel to the load such as a lamp. This statement is "True". In a parallel circuit, the current flows through each component in the circuit, and if a switch is connected in parallel with a load, the current flow will not be interrupted when the switch is open, allowing the load to continue to function normally.

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Identify and analyses any strategies that the firm has
pursued to manage its financial market risks.
The company is Microsoft

Answers

Microsoft employs a range of strategies, including hedging techniques, cash flow management, and investment diversification, to effectively manage financial market risks.

One of the key strategies utilized by Microsoft is the implementation of hedging techniques. Hedging involves using financial instruments such as options, futures contracts, and derivatives to offset potential losses due to fluctuations in exchange rates, interest rates, and commodity prices. By engaging in hedging activities, Microsoft aims to mitigate the impact of adverse market movements on its financial performance.

Additionally, Microsoft actively manages its cash flow and liquidity position to minimize financial market risks. The company maintains a strong balance sheet with substantial cash reserves, enabling it to navigate market uncertainties and fund its operations efficiently. Microsoft also employs cash management strategies, such as optimizing working capital and cash conversion cycles, to ensure sufficient liquidity and reduce exposure to market risks.

Moreover, Microsoft diversifies its investments and funding sources to manage financial market risks. The company strategically allocates its investments across various asset classes and geographical regions to minimize concentration risk. By diversifying its investment portfolio, Microsoft aims to reduce vulnerability to market-specific risks and enhance overall financial resilience.

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Explain why standard costing is more suitable for controlling
the cost of unit-level activities

Answers

Standard costing is a cost accounting technique that involves setting predetermined standards for the cost of producing a unit of product or delivering a service. These standards serve as benchmarks against which actual costs can be compared, allowing for cost control and performance evaluation.

Standard costing is particularly suitable for controlling the cost of unit-level activities due to the following reasons:

Consistency and uniformity: Unit-level activities are typically repetitive and standardized, involving the production of a large number of identical units or the performance of similar tasks. Standard costing provides a consistent and uniform basis for measuring and controlling the cost of these activities. By establishing standard costs for unit-level activities, organizations can ensure consistency in cost measurement across different units or tasks.

Cost predictability: Unit-level activities often have a direct and predictable relationship with the quantity of output or volume of activity. For example, the cost of direct materials per unit or the direct labor cost per hour of production may remain relatively constant. Standard costing allows organizations to establish standard costs based on historical data and expected levels of activity. This helps in predicting and planning for the cost of unit-level activities, facilitating budgeting and cost management.

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Behind the Supply Curve — End of Chapter Problem
VC
Quantity of trucks FC 20 orders 40 orders 60 orders
2 $6,000 $2,000 $5,000 $12,000
3 7,000 1,800 3,800 10,800
4 8,000 1,200 3,600 8,400
Daniella owns a small concrete-mixing company. Her fixed cost is the cost of the concrete-batching machinery and her mixer trucks. Her variable cost is the cost of the sand, gravel, and other inputs for producing concrete; the gas and maintenance for the machinery and trucks; and her workers. She is trying to decide how many mixer trucks to purchase. She has estimated the costs shown in the accompanying table based on estimates of the number of orders that her company will receive per week.
a. For each level of fixed cost (i.e., for each number of mixer trucks), calculate Daniella's total cost of producing 20, 40, and 60 orders per week.
TC, 20 orders, 2 trucks: $
TC, 40 orders, 2 trucks: $
TC, 60 orders, 2 trucks: $
TC, 20 orders, 3 trucks: $
TC, 40 orders, 3 trucks: $
TC, 60 orders, 3 trucks: $
TC, 20 orders, 4 trucks: $
TC, 40 orders, 4 trucks: $
TC, 60 orders, 4 trucks: $
b. If Daniella is producing 20 orders per week, how many trucks should she purchase, and what will her average total cost be? Round average total cost to the nearest dollar.
Daniella should buy
trucks.
Her average total cost will be $
per order.
If Daniella is producing 40 orders per week, how many trucks should she purchase, and what will her average total cost be? Round the average total cost to the nearest dollar.
Daniella should buy
trucks.
Her average total cost will be $
per order.
If Daniella is producing 60 orders per week, how many trucks should she purchase, and what will her average total cost be? Round the average total cost to the nearest dollar.
Daniella should buy
trucks.
Her average total cost will be $
per order.

Answers

If Daniella is producing 60 orders per week, she should buy 4 trucks.  Her average total cost will be $350 per order. For each level of fixed cost (i.e., for each number of mixer trucks).

Daniella's total cost of producing 20, 40, and 60 orders per week is shown below:

TC, 20 orders, 2 trucks: $8,000TC,

40 orders, 2 trucks: $15,000TC,

60 orders, 2 trucks: $24,000TC,

20 orders, 3 trucks: $8,600TC,

40 orders, 3 trucks: $16,400TC,

60 orders, 3 trucks: $26,400TC,

20 orders, 4 trucks: $10,200TC,

40 orders, 4 trucks: $19,200TC,

60 orders, 4 trucks: $30,000b.

If Daniella is producing 20 orders per week, she should buy 2 trucks.

Her average total cost will be $400 per order.

If Daniella is producing 40 orders per week, she should buy 3 trucks.

Her average total cost will be $375 per order.

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Other Questions
42. Please describe, in your own words, how the unemployment rate, inflation rate and GDP growth rate give us an overall perspective on the health of the economy. 43. Please share in a few words, why Section A (40 Marks. Please answer all 1i-iv questions in this section. 1i) What is discretionary fiscal impulse? - (5 marks) ii) Assuming the UK economy taxes and government spending at equilibrium level of output for 2021 is each 10 trillion, use the cyclically adjusted budget deficit formula [G(ye) T(ye) = [G(yd) T(y)] alye - y)] to work out questions a to d' below. (Hint: T = taxes net of transfers; and alpha (a) = 1; consumption and investment are assumed unchanged): ii(a) Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is 18.0 trillion (show all workings) - (10 marks) ii(b) Derive and explain the kind of budget implemented by the UK government and by how much if actual output generated is 6.Otrillion (show all workings) (10 marks) (iii) Using the debt dynamics equation: b = d + (r Yy)b, discuss three options available to the government to balance the question 'ii(b) economy: (12 marks; i.e., 4 marks each) (iv) what is the least painful option in the answer you gave for question 'iii', and why? - (3 marks) A company that sells frozen pizza to stores in four markets (cities A, B, C, and D) wants to examine the prices that the stores charge for pizza slices. To the right are boxplots comparing data from a sample of stores in each market. 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