Problem 12-34-1. Gross margin is calculated as gross profit / revenue.

Product a

Product B

Product C

Product D

Gross Margin

12,000 / 32,000 = 37.5%

17,600 / 88,000 = 20%

56,000 / 280,000 = 20%

63,000 / 144,000 = 43.75%

The product that is the most profitable is Product D.

2. The best way to start this question is to figure out the price and COGS per unit for each product. For Product a, the price was $32,000 / 2900 = $11.03 and the COGS per unit is $6.89. For Product B, the price per unit is $20.46 and the COGS per unit is $16.37. For Product C. The price per unit is $51.37 and the COGS per unit is $41.10. For Product D. The price per unit is $90 and the COGS per unit is $50.63.

The next step is to produce an income statement for each customer type.

Problem 12-34

Product a

B

C

D

Price

$11.03

$20.47

$51.38

$90.00

COGS

$6.90

$16.37

$41.10

$50.63

Customer a

Customer B

Customer C

Revenue

$42,822

$141,384

$359,793

COGS

$25,322

$91,759

$278,319

Gross Profit

$17,501

$49,625

$81,474

Gross Margin

40.87%

35.10%

22.64%

The most profitable customer is….

33%
400000

53.33%

480000

53.33%

FM

125,000

125,000

125,000

FSA

25,000

25,000

25,000

Net Income

170,000

28.33%

250,000

33.33%

330,000

36.67%

2. The manager's tabulation is incorrect because the manager has set $2 as the fixed cost per unit. This is only true at the 200,000 unit level. At the other levels, the fixed cost per unit will be lower, as fixed costs do not increase with production volume.

6-47. 1. In order to make this assessment, Dana needs to calculate which method is cheaper. The accounting for producing the parts itself has been noted as $1,100,000, which equates to $22 per unit. The cost of the units from the other company is $20, but fixed costs will still be incurred. The fixed costs are $300,000 less the $150,000 that will be saved, so $150,000. For 50,000 units, this is $3 per unit. Thus, the total cost per unit will be $20 + $3 = $23. This is higher than it would cost Dana to produce the units itself -- in….

The passenger miles would be (1,500,000 * 1.1) = 1,650,000. The revenue per passenger mile would be $0.20 -- (.08*.2) = $0.184
So the actual revenue was (.184)*(1,650,000) = $303,600.

Now we can calculate Flex for Actual Level, the third column. This is based on the flex budget figures, which were $0.20 in revenue per passenger mile. Variable expenses were 195,000 / 1,500, 000 = $0.13 per passenger mile in the flex budget. Fixed costs were $80,000 and that should not change.

The results Flex for Actual Level shows that the actual performance was lower than what would have been expected given the actual sales levels recorded and the figures listed in the static budget. This is to be expected, because the actual revenue per passenger mile was decreased in order to achieve those higher passenger mile figures.

The columns 2 and 4 can now be filled in, according to the formulas presented….

3) to determine if the firm should increase market share by lowering the price, total revenue must be considered. At $5.00, the firm sells 17650 units for total revenue of $88,250. At $4.99, the firm sells 17,692 units for a total profit of $88,283.08. Thus, the firm gains addition revenue by lowering its price to sell more units, at least to a point. At some point, lowering the price will result in a decrease in total revenue.

4) to calculate the portion of sales that is reliant on the independent variables, set the variables to zero. The sales remaining will be the portion that is not dependent on these variables. The base market is negative in total, so these variables determine all of the sales. To determine how much each individual variable contributes, they can be set to zero one at a time. Thus, there are 38,650 potential sales available if….

Under the first scenario, the ideal price point is only the maximum profit point for children, but it not for adults.
Chapter 11, p. 449, Q2.

An adverse selection problem is defined in the textbook as "a situation resulting from asymmetric information in which parties may not come to an agreement on a transaction because of distrust on the part of the party with incomplete market information…" in the scenario presented, the credit card company would normally set credit rates based on the creditworthiness of the customer. Because the credit card company cannot do this, it must find a price point that will allow it to generate a profit commensurate with the risk it undertakes. The problem is that consumers with good credit may find these rates unpalatable if they know their own worth in the credit markets. Good consumers may therefore avoid the credit card companies, leaving only the bad….

4) Consider a firm that has just built a plant, which cost $20,000. Each worker earns $5.00 per hour.
a)

Based on this information, fill in the table below.

Number of Worker Hours

Output

Marginal Product

Fixed

Cost

Variable

Cost

Total

Cost

Marginal

Cost

Average

Variable

Cost

Average

Total

Cost

0

0

20,000

50

8

20000

20,250

5

5

10

20000

20,500

5

5

8

20000

20,750

5

5

6

20000

21,000

5

5

4

20000

21,250

5

5

85

1900

2

20000

21,500

5

5

71.67

1950

1

20000

21,750

5

5

62.14

b)

In the example above, what price must the firm receive in order to keep producing in the short run?

The price the firm must receive in the short run is the price that covers the variable cost, so the firm must receive at least $5 per unit in the short run. In the long run, of course, the firm has to pay down the $20,000 facility.

c)

In the example above, assume that there is a maximum of 350 worker hours available (that is, there are no possibilities beyond the 350 worker hours shown in the table). What product price must the firm receive in order to remain in this industry in the long run?

In the long run, the firm needs to….

change: for question 4e, find the new equilibrium P. And Q, but you do NOT need to answer the questions - What is the effect on supply?
0=3000-10p

p=300

0=-1000+10p

1000=10p

p=1000

3000-10p=-1000+10p

4000=20p

p=200

3500-10p=-1000+10p

4500=20p

p=225

Chapter 3,-Page 71 Number 6.

Q=200-300p+120i+65t-250 Ac+400 Aj

3750 + 4000 = 5100 cups demand curve Q=200-300P+120(10)+65(60)-250(15)+400(10)

The effect is to raise the y-intersect of the demand curve by 5000 units, but not to change the slope of the demand curve.

250(5000)=400(Aj)

Aj= 3125

She would have to expend $3,125 to counteract the competitors advance.

Chapter 4,-Page 106 Number 6.

=%change in quantity / percentage change in price

((x- 4000)/4000)/((70-63)/70)

((x-4000)/4000)*10=2.5

.25=x-4000/4000

1000=x-4000

x=5000

will revenue increase

Yes -- revenue will increase. Why?

The initial condition, with price at 70, yields 70(4000)=280000

The next condition, with price at 63, yields 63(5000)=315000

4) Chapter 4,-Page 107 Number 15.

a. 20

(3.5-3)/(3)

.20/.1666

- 1.25

b. Sales of chocolate syrup increased because chocolate syrup is a complementary good to vanilla ice cream. The more people eat vanilla ice cream, the more they eat chocolate syrup. You would measure….

So for the 70,000 units completed in July: (70,000)(15 + 10.65) = $1,795,500

2. The ending works in progress is 20,000. The total cost should be (20,000)(25.65) = 513,000

Note: These figures represent the total cost of the goods, not the total cost in July of the goods. The question is worded a little bit funny so I wasn't sure which one it was intended to be.

Problem 14-21.

Problem 14-21

1

2

3

4

DM Inv, 2010

8

8

5

2

Purchased

5

9

10

8

Used

7

11

7

3

DM Inv, 2011

6

6

8

7

Problem 14-22-1.

Goods Completed

72,000

WIP Inventory

72,000

Goods Completed

56,000

WIP Inventory

56,000

2. The WIP inventory at the end of the month would reflect the following:

Beginning WIP 12,000 + 50 + 25 + 55 = 142

Less completed orders (72,000) + (56,000) = 128

So Ending WIP inventory = 142 -- 128 = 14

3.

Accounts Receivable

101,000

Sales

101,000

Cost of Goods Sold

72,000

Finished Inventory

72,000

Problem 14-25.

1.a) September 30 would be jobs 53,61,62,71,81 so 200 + 115 + 180 +….

b) 1) ($20-$5) = $15; $1,200,000 / 15 = 80,000 units

2) if the company wants to sell just 70,000 units, then the price needs to be calculated again using the same formula as was used above:

70,000P -- (70,000*5) -- 1,200,000 = 0

70,000P = 1,550,000

P = $22.15

c) 1) This question is a bit silly. The formula would have one variable, x, to represent both the old and new sides:

19x -- 5x -- 1,200,000 = 20x -- 8x -- 840,000

14x -1,200,000 = 12 x -- 840,000

2x = 360,000

x = 180,000 units should give the same level of profit for either plant. The profit at this level would be:

19(180,000) -- (5)(180,000) -- 1,200,000 = $1,320,000

2) the formula for the degree of operating leverage is: % in EBIT / % in sales. The best to calculate this is to start by computing the profit for the….

beta statistic is a coefficient of risk that investors use in order to determine whether or not an equity security is more or less risky than the market. This, in turn, is used to decide the ideal rate of return that the issue should maintain in order to warrant investment. If beta is one, then an issue is as risky as the market, and if it is zero, it is as risky as a risk-free rate that is usually represented in practiced by 30-year treasury bonds. The required rate of return on equity is always simply beta multiplied by the difference between the market's rate of return and the risk-free rate, added to the risk-free rate.
In modern portfolio theory, beta is often thought of as a measure of risk that cannot be eliminated through diversification. Beta statistics are determined for sectors and industries because portfolio managers often favor broader….

Strategi Management
[Book Manusript Draft]

The New Business Environment

Globalization

Expansion and Benhmarking

Organizational Mission

Nature of Human Behavior

Human Networking & Human Capital

Rules and Priniples of Management

Total Quality Management

Innovation

Cultural Barriers

Strategi Management Rooted in Eduation

Change in Today's Organization

Transformation

Transformational Change

Transformational Leadership

Tehnology to Enable Strategi Management

Strategi Management

Strategi management is an elusive term that has as its basis various theories of leadership and the assoiated various fators that omprise the leader that is effetive in leading the organization to suess. This hapter provides a review of previous examinations of leadership theory and the formation of leaders in today's organizations as well as providing a brief review of the fators that impat strategi leadership in the organization. This hapter sets the stage for a study of what fators and elements serve to formulate, affet, and drive strategi management within the organization and more importantly how these fators, elements, and drivers affet strategi management in the globalized and highly tehnologially enabled ontemporary….

Instrument Measures Nurse Practice
In a hospital or any medical care setting, nurses make up the majority of the environment, and are the backbone of facilitating patient care between physicians. However, between meeting the demands of the patients and following through doctors' orders, the roles nurses play are a high-stressed one, which influences on his or her overall well-being. The purpose of this paper is to display the findings from a study led by Pisanti (2008) regarding the relationship between nurses and their abilities to cope with environmental demands with the use of the Occupational Coping Self-Efficacy for Nurses (OCSE-N) Scale.

In order to gain a better understanding about the investigation, it is significant to comprehend about the foundation on which the study was based on, which is the Lazarus cognitive-medication theory of stress and Bandura's social cognitive theory. The former is about certain cognitive appraisals regarding one's work provokes stress and….

Few issues could be more important in this era of school shootings and violence. Therefore, it is positive to note a Very Good rating directly on the mark, the best overall composite score of the five scales considered here. This denotes that the schools observed have done relatively well in preventing security breach of staff or student property, that vandalism and destruction of school property are effectively prevented, that the grounds are kept in presentable condition, that a school is a generally safe environment for all in attendance and that the school provides a fair and reasonable regulatory atmosphere for learning.
Part 3:

Question 1:

Based on the findings from this module, it would make a great deal of sense to initiate a school-wide Positive Behavioral Support System (PBSS). It bears noting that while instructors felt that they were doing a positive job of supporting student needs and that the environment itself….

Plastic Surgery
Teen Plastic Surgery: A Controversial Medical Practice

According to the American Society of Plastic Surgeons, in 2007, more than 87,000 teenagers had cosmetic surgery; and that number has grown exponentially since. Although aesthetic cosmetic surgery is popular amongst United States teens, physicians and plastic surgeons worry that such invasive surgery on teens' still growing bodies can be dangerous. Other developed countries, including Germany and Australia, are considering banning all but medically necessary plastic surgery for anyone under the age of 18. However, the question remains, if such a measure were taken like that in the United States for minors stem the tide of teenagers going under the knife? This paper will address the controversy associated with teenagers and aesthetic cosmetic surgery in the United States, and the business of plastic surgery for teens, from a legal, ethical, and social responsibility standpoint.

Introduction

In a country, and dare say a world where image….

These benefit the local company as well as the entire region.
Leverage financial and other investments in the community. ecause nonprofit organizations mobilize vast reserves of goodwill, corporate investment in the community can have tremendous reach in building a better corporate profile and in strengthening public support of the private sector. (Kanaga, 1998)

The work of Nae and Grigore (nd) entitled: "An Overview of European Multinational Corporations" the social and political changes brought about by globalization have raised new questions as well as expectations about governance and social responsibilities. More and more companies of all sizes and sectors are recognizing the importance of their role in society and the real benefits of adopting a proactive approach to Corporate Social Responsibility (CSR)." (Nae and Grigore, nd)

V. FIDUCIARY DUTIES as a GUIDE to ETHICS

The work of Young (2007) entitled: "Fiduciary Duties as a Helpful Guide to Ethical Decision-Making in usiness" states that the….