The profit or loss from purchasing a put option can be calculated by subtracting the strike price from the stock price at the time of expiration. The loss is $12 .The answer is a.
To calculate the profit or loss, we subtract the strike price from the stock price: $343 - $331 = $12
Since the stock price is higher than the strike price, the put option is out of the money and the profit would be $12. Therefore, the correct answer is A.
It's important to note that the profit or loss from an option can also be influenced by the premium paid for the option and any transaction costs involved. The loss is answer A.
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Write down the two decision variables of a household or the two goods (including both market and non-market goods) in a one-period RBC model
In a one-period RBC (real business cycle) model, there are two decision variables of a household or two goods, including both market and non-market goods. These two decision variables are consumption and leisure.
Consumption and leisure are the two decision variables of a household or two goods in a one-period RBC model.
In an RBC model, consumption and leisure are the two decision variables that a household must make to maximize its utility. The utility function of a household is expressed as U(C, L), where C represents consumption, and L represents leisure time. By solving the optimization problem, households determine how much they should consume and how much time they should devote to leisure.
C is a market good, which can be purchased by households at the market price. L is a non-market good, which cannot be purchased in the market. Instead, leisure time is earned by households by working less. The more time households spend working, the less leisure time they have. The opportunity cost of leisure is the wage rate, which is the amount of money households can earn by working an extra hour.
The optimization problem that households must solve can be written as:
Max U(C, L) subject to Y = C + S
where Y is income, S is saving, and Y - C is consumption. Households must decide how much to consume and how much to save in the current period. They also must decide how much leisure time to take and how much to work. The amount of saving in the current period will be used to finance consumption in the next period.
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Primare Corporation has provided the following data concerning last month's manufacturing operation= Purchases of raw materials Indirect materials used in production Direct labor Manufacturing overhead applied to work in process Underapplied overhead. Inventories Raw materials. Work in process Finished goods Beginning $ 10,400 $ 54,200 $ 33,500 Ending $19,200 $ 68,200 $ 42,300 $ 30,000 $4,880 $58,400 $ 87,200 $ 4,120 Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied ove Goods Sold. ook Hint Ask Print ferences Primare Corporation Schedule of Cost of Goods Sold Beginning finished goods inventory Add: Cost of goods manufactured $ < Required 1 33,500 147,920 123,456 Required 2
1. Schedule of Cost of Goods Manufactured Direct materials: Beginning Raw materials inventory $10,400Add: Purchases of raw materials $19,200Raw materials available for use $29,600
Less: Ending Raw materials inventory $ 4,880 Raw materials used in production $24,720. Direct labor: Direct labor costs $33,500; Manufacturing overhead: Indirect materials used in production $54,200; Add: Manufacturing overhead applied to work in process $68,200Total manufacturing costs $146,120; Add: Beginning Work in process inventory $42,300; Less: Ending Work in process inventory $68,200; Cost of goods manufactured $120,2202. Schedule of Cost of Goods SoldBeginning finished goods inventory $30,000 Add: Cost of goods manufactured $120,220Goods available for sale $150,220Less: Ending finished goods inventory $58,400; Cost of goods sold $91,820Note: Since underapplied overhead is given, it should be closed to Cost of Goods Sold. Therefore, no adjustment will be required.
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Wolfgang Kersten Mfg. Intends to increase capacity through the addition of new equipment. Two vendors have presented proposals. The fixed costs for proposal X are $150,000, and for proposal Y, $170,000. The variable cost for X is $120. 00, and for Y, $100. 0. The revenue generated by each unit is $200. 0.
a) If the expected volume is 28,500 units,
▼
proposal X
proposal Y
with a total
profit=$enter your response here
should be chosen (enter your response as a whole number).
b) If the expected volume is 15,000 units,
▼
proposal X
proposal Y
with a total
profit=$enter your response here
should be chosen (enter your response as a whole number)
a) At an expected volume of 28,500 units, Proposal X should be chosen as it yields a total profit of $1,920,000. b) At an expected volume of 15,000 units, Proposal Y should be chosen as it yields a total profit of $1,670,000.
(a): To determine the total profit for each proposal, we calculate the revenue and subtract the total cost. Proposal X has fixed costs of $150,000, a variable cost of $120.00 per unit, and an expected volume of 28,500 units. The total cost for Proposal X is $1,920,000, resulting in the highest total profit.
(b): Using the same calculations, at an expected volume of 15,000 units, Proposal Y has a lower total cost compared to Proposal X, resulting in a higher total profit of $1,670,000.
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Through an illustrative diagram, show all steps common to conducting audits as stipulated by ISO 19011:2018.
ISO 19011:2018 provides guidelines for conducting audits. The steps involved in conducting audits, as stipulated by ISO 19011:2018, can be illustrated in the following diagram:
1. Planning: - Define the audit objectives, scope, and criteria. - Identify the auditee and the audit team. - Establish the audit plan and schedule. 2. Initiation: - Notify the auditee about the audit. - Confirm the audit scope and objectives. - Conduct an initial meeting with the auditee. 3. Preparation: - Review relevant documents and information. - Develop an audit checklist or questionnaire. - Plan the audit activities, including interviews and site visits. 4. Execution: - Conduct opening meetings with the auditee and relevant stakeholders. - Collect and review evidence during interviews, observations, and document reviews. - Verify the conformity of the auditee's processes with the defined criteria. - Document audit findings, including non-conformities and observations. 5. Reporting: - Prepare an audit report, including the objectives, scope, findings, and conclusions. - Share the audit report with the auditee and relevant stakeholders. - Seek clarifications, if necessary, from the auditee. - Obtain the auditee's response to the audit findings. 6. Follow-up: - Monitor the implementation of corrective actions by the auditee. - Verify the effectiveness of the corrective actions. - Close the audit and communicate the final findings to the auditee. This diagram illustrates the common steps involved in conducting audits as stipulated by ISO 19011:2018.
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1/ Compute and justify a fair and reasonable rental fee.
2/ what two financial ratios would you recommend? Why?
3/ what is sunk cost and opportunity cost?
1. To compute and justify a fair and reasonable rental fee, the following points need to be considered: First, consider the market rental prices in the area where the property is situated.
Compare the rent charged by similar properties nearby.Second, look at the property's features and amenities. The size, number of rooms, and whether the property is furnished or unfurnished can all influence the rental fee.Third, check the supply and demand in the area. The rental fee should reflect the demand in the area.
2. There are several financial ratios that can be used in the analysis of an investment property. Two financial ratios that would be recommended are:Capitalization rate (Cap rate) - A Cap rate is used to determine the property's potential return on investment. It considers the net operating income (NOI) and the market value of the property.
The Cap rate is expressed as a percentage. It is calculated as:Cap rate = (Net operating income/ Market value of property) * 100Debt service coverage ratio (DSCR) - A DSCR ratio indicates the property's ability to generate sufficient cash flow to meet its debt obligations. It is calculated by dividing the net operating income by the total debt service.
3. Sunk cost is a cost that has already been incurred and cannot be recovered. It is a cost that has already been paid and is irrelevant to future decisions. For example, if a property owner has invested a large amount of money in a property, this amount cannot be recovered if the property is sold.
Opportunity cost is the cost of the best alternative that is foregone when a decision is made. It is the value of the next best option that could have been selected. For example, if a property owner decides to rent out a property, the opportunity cost is the rental income that could have been earned if the property was sold instead.
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The cost function of a drycleaner is given as: C=100+50Q−11Q 2
+Q 3
. Obtain equations for the firm's Average Cost, Marginal Cost, Average Fixed Cost and Average Variable Cost functions. ii. Now suppose the fixed cost rises to $200 for the drycleaner. Write equations for the firm's marginal cost and average variable cost functions now? iii. Fireside Company Ltd. produces 1,000 wood cabinets and 500 wood desks per year, the total cost being $30,000. If the firm produced 1,000 wood cabinets only, the cost would be $23,000. If the firm produced 500 wood desks only, the cost would be $11,000. Is there an opportunity for the firm to exploit economies of scope? If so, what percentage of cost saving will result from exploiting economies of scope?
The firm's Average Cost, Marginal Cost, Average Fixed Cost, and Average Variable Cost functions are represented by the following equations:
Normal Expense (AC) = Complete Expense (TC)/Amount (Q)
AC = (100+50Q−11Q2+Q3)/Q
Peripheral Expense (MC) = ΔTC/ΔQ
MC = 50-22Q+3Q^2
Normal Fixed Cost (AFC) = Fixed Cost (FC)/Amount (Q)
AFC = 100/Q
Normal Variable Expense (AVC) = Variable Expense (VC)/Amount (Q)
AVC = 50-11Q+Q^2
The new condition for the association's minimal expense capability is:
The new equation for the company's average variable cost function is MC = 50-22Q+3Q2.
For part iii, we can determine that the cost of producing one cabinet is $23,000 divided by 1,000, or $23; AVC = 200/Q plus 50-11Q+Q2.
One desk costs $11,000 divided by 500, or $22.
$231,000 x $22,500 = $28,500 if we add up the costs of producing each separately. This indicates that the company can take advantage of scope savings. The savings in cost percentage will be:
[(30,000−28,500)/30,000] ×100%≈5%
The change in total cost that arises from increasing the quantity produced in economics is known as the marginal cost, sometimes known as the cost of producing more. It can refer to an increase of one unit of production in certain contexts and to the rate of change of the total cost when output grows slightly in others.
The total cost is depicted in dollars whereas the marginal cost is depicted in dollars per unit. The marginal cost is the slope of the total cost, or the rate at which it increases with output. Marginal cost is different from average cost, which is calculated by dividing the total cost by the number of units produced.
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Briefly explain which stage of the life cycle you believe it is
in for the following products/ service and why.
1) FedEx Express
2) FedEx Ground
3) FedEx Freight
Here is the stage of the life cycle I believe FedEx Express, FedEx Ground, and FedEx Freight are in:
1) FedEx Express:
FedEx Express is a service that offers express shipping and delivery. I believe it is in the maturity stage of the life cycle. This is because FedEx Express has been around for many years and has established itself as a leader in the industry. It has a well-established customer base and operates in many countries. While there may be some room for growth and improvement, the service is generally stable and well-known.
2) FedEx Ground:
FedEx Ground is a service that provides ground shipping and delivery. I believe it is in the growth stage of the life cycle. This is because FedEx Ground has been expanding its operations and market presence in recent years. It has been investing in infrastructure and technology to improve its efficiency and service offerings. The demand for ground shipping services is also increasing due to the growth of e-commerce, which presents opportunities for FedEx Ground to expand further.
3) FedEx Freight:
FedEx Freight is a service that specializes in freight shipping and delivery. I believe it is also in the growth stage of the life cycle. This is because FedEx Freight has been making strategic acquisitions and expanding its network to serve more customers. It has been investing in technology and services to meet the evolving needs of its customers. The freight shipping industry is competitive, and FedEx Freight is actively working to capture a larger market share.
Overall, FedEx Express is in the maturity stage, and FedEx Ground and FedEx Freight are in the growth stage of the life cycle.
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How do I calculate each step of the questions and redo the same question with different numbers?
To calculate each step of a question and redo the same question with different numbers, follow these steps:
Understand the problem and identify the given quantities, which is essentially the starting point of the problem.Make a plan to solve the problem, which involves understanding the steps to be followed.Solve the problem using the appropriate formulas or methods, which typically involves some arithmetic or algebraic operations.Check your answer to make sure it is reasonable and consistent with the given quantities and the problem statement.Redo the same question with different numbers by substituting the new values into the problem and repeating the steps above.Let's consider an example of how to calculate each step of a question and redo the same question with different numbers. Example: The perimeter of a square is 20 cm.
Solution:1. Given quantities: Perimeter of a square = 20 cm2. Plan to solve the problem: The perimeter of a square is given by the formula P = 4s, where P is the perimeter and s is the side length of the square.
We can solve this equation for s and then use the formula for the area of a square A = [tex]s^2[/tex].
3. Calculation steps:P = 4s, so s = P/4 = [tex]20/4 = 5 cmA = s^2 = 5^2 = 25 cm^2[/tex]
4. Check your answer: Since the perimeter is 20 cm, the side length of the square is 5 cm, which gives an area of [tex]25 cm^2[/tex], as expected.
5. Redo the same question with different numbers: Suppose the perimeter of a square is 32 cm. The perimeter of a square = 32 cm. Plan to solve the problem:P = 4s, so s [tex]= P/4A = s^2[/tex].
Calculation steps:s = [tex]P/4 = 32/4 = 8 cmA = s^2 = 8^2 = 64 cm^2[/tex].Check your answer. Since the perimeter is 32 cm, the side length of the square is 8 cm, which gives an area of [tex]64 cm^2[/tex], as expected.
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Yarkee Autletic Club has preferred stock with a par value of $100 and an annual 7% cumulative dividend Given the folowing prices for the preferred stock, what is eoch imvestor seeking for his of hec retum? a. A Mexis wiling to pay $35 b. Derok la wiling to pay $25. c. Marcia is willing to pay $15 d. Johriny is wiling to pay 35 : a. If Alex is wling to pay $35 for the preferred stock, what rate of tetum is he seeking? is (Round to tho decimal places)
Alex is seeking a rate of return of 20% for his investment in the preferred stock. So, option a is correct.
To calculate the rate of return that Alex is seeking, we need to use the formula:
Rate of Return = Dividend / Price
Since the preferred stock has a par value of $100 and an annual 7% cumulative dividend, the dividend amount would be $100 * 7% = $7 per year.
For Alex, who is willing to pay $35 for the preferred stock, the rate of return would be:
Rate of Return = $7 / $35 = 0.2 or 20%
Therefore, Alex is seeking a rate of return of 20% for his investment in the preferred stock. So, option a is correct.
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American political history can be understood as a perennial battle between state power and national power. In recent times, the COVID-19 pandemic is perhaps the greatest instance of this conceptual struggle. Refer to the case analysis from the reading material "Federalism in Action: Case Studies". Should more or less power be given to the national government than currently exists? Explain your answer using relevant topics and arguments (for example, debates over gay marriage, gun control, educational standards, environmental protections, COVID-19, etc.).
Here are some key concepts that are helpful for you to draft your post: dual federalism, cooperative federalism, new federalism, The Tenth Amendment and state power, reserved powers, concurrent powers, enumerated power, Supremacy Clause.
The COVID-19 pandemic has caused the ongoing power struggle between state power and national power to come to the forefront. More power should be given to the national government than currently exists.
Others, however, believe that more power should be given to the states. This debate highlights the ongoing tension between dual federalism, cooperative federalism, and new federalism. Dual federalism, also known as layer cake federalism, refers to the idea that the national government and state governments should operate independently of one another.
In contrast, cooperative federalism, also known as marble cake federalism, emphasizes the collaboration between the national government and state governments. The argument for giving more power to the national government centers around the idea that the national government is better equipped to handle large-scale crises, such as the COVID-19 pandemic.
On the other hand, opponents of giving more power to the national government argue that the Tenth Amendment and state power should be respected. The Tenth Amendment establishes that all powers not specifically granted to the national government are reserved for the states. Supporters of this view argue that the states are better equipped to handle issues that are specific to their localities.
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Dell uses the CR5 chip in some of its laptop computers. The prices for the chip during the past 12 months were as follows. This exercise contains only parts a,b, and c. a) Using a 2-month moving average, the forecast for periods 11 and 12 is: (Round your responses to two decimal places.) b) Using a 3-month moving average, the forecast for periods 11 and 12 is: (Round your responses to two decimal places.) c) The mean absolute deviation based on a 2-month moving average of March through December is $ (Round your response to three decimal places.) The mean absolute deviation based on a 3-month moving average of April through December is $ (Round your response to three decimal places.)
Dell uses the CR5 chip in some of its laptop computers. The prices for the chip during the past 12 months were as follows:MonthPrices11132111365121426133571221365113671211825123766212471223474213567212958a) Using a 2-month moving average, the forecast for periods 11 and 12 is: (Round your responses to two decimal places.)
To get the 2-month moving average for the 11th month, we sum the prices for the 10th and 11th month, and divide by 2. Thus;2-month moving average for month 11 = (1135 + 1261) / 2= $11982-month moving average for month 12 = (1261 + 1357) / 2= $1309b) Using a 3-month moving average, the forecast for periods 11 and 12 is: (Round your responses to two decimal places.)
To get the 3-month moving average for the 11th month, we sum the prices for the 9th, 10th, and 11th month, and divide by 3. Thus;3-month moving average for month 11 = (1321 + 1135 + 1261) / 3= $12393-month moving average for month 12 = (1135 + 1261 + 1357) / 3= $1251c) The mean absolute deviation based on a 2-month moving average of March through December is $ (Round your response to three decimal places.)The calculation of MAD based on the 2-month moving average is shown in the table below:MonthPrices2-Month moving averageForecastErrorMADMAR211332-MAY11352MAR-
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1.- Why is Strategic Planning important?
2.- Why companies do Centralization and Decentralization?
1. Strategic planning is important for many reasons. Some of the key reasons include the following:i. Helps organizations achieve their long-term goals. Provides a framework for decision-making
iii. Facilitates resource allocation. Helps in identifying and managing risks
v. Provides a basis for performance management
vi. Promotes communication and coordination
vii. Helps organizations respond to changes in their external environment
viii. Helps to align the organization's activities with its mission, vision, and values
ix. Helps organizations to anticipate and respond to changes in their internal environment
x. Provides a mechanism for monitoring progress and making adjustments when necessary
2. Companies do centralization and decentralization for a variety of reasons. Some of the reasons why companies choose to centralize their operations include the following:
i. To achieve economies of scale
ii. To improve efficiency and productivity
iii. To standardize operations and ensure consistency across different business units or regions
iv. To improve control and reduce the risk of fraud and other forms of malfeasance
v. To facilitate communication and coordination
vi. To take advantage of synergies between different parts of the organization
vii. To reduce duplication of effort and eliminate waste
On the other hand, some of the reasons why companies choose to decentralize their decentralization include the following:
i. To improve responsiveness to local customer needs
ii. To increase innovation and creativity
iii. To empower local managers and employees
iv. To encourage entrepreneurship and risk-taking
v. To facilitate adaptation to local market conditions
vi. To improve customer service and satisfaction
vii. To attract and retain talent in different parts of the organization.
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Strengths:
Shoprite prioritises organic goods compared to other discount stores
Shoprite provides other amenities such as pharmacies and liquor stores
Shoprite offers a large variety of products, and product mix options that cater to various customer segments in the retail industry
Shoprite’s lowest price promise provides customers with the lowest prices in quality food, as well as other products -such as liquor and medication, as well as in-store services that provide customers with a convenient shopping experience
Shoprite has strong brand recognition
Weaknesses:
The business model of Shoprite Holdings Limited can be easily imitated by competitors
Shoprite faces difficulties in sustaining its pharmacy business
ShopRite has limited retail formats, specifically in South Africa, and an increased dominance of companies like Amazon -that have a strong online presence- pose a threat to both physical and online stores.
Shoprite Holdings history of coming up with new innovations, and subsequently driving down prices in the supply chain has resulted in a low loyalty among its suppliers
Customers are not able to easily navigate Shoprite Holdings website and find desired information in just a few clicks
One thing to take note is
that a customer is not able to navigate easily and find the information they are looking for with a
few clicks.
One thing to take note is
that a customer is not able to navigate easily and find the information they are looking for with a
few clicks.
One thing to take note is
that a customer is not able to navigate easily and find the information they are looking for with a
few clicks.
Opportunities:
Increased demand for organic food segments
e-retailing and retail franchising
Shoprite can use advances in digital technology to deliver more value to customers
Shoprite Holdings can capitalise on the accelerated technological innovations and advances -that are improving industrial productivity- to significantly venture into adjacent products.
Social commerce can be used to promote and sell Shoprite Holdings products and services
Threats:
Dedicated stores for organic products, pharmacies, toy stores, etc
Highly competitive market in food retail business
Stores with greater online presence
Changing demographics can pose a threat to Shoprite Holdings Limited as people are becoming more open to experimentation, and thus less brand loyal
Commoditization of the product segment
Using the SWOT analysis above develop a SPACE Matrix for Shoprite Holdings Limited. Include at least 4 variables that fit under the four dimensions, namely, financial strength, competitive advantage, environmental stability, and industry strength. Then allocate a value ranging from 1 (worst) to 6 (best) to each of the variables.
SPACE matrix is an analytical technique utilized in strategic management and planning to decide on the business direction that the company should go. In creating the SPACE Matrix for Shoprite Holdings Limited, the first step is to allocate the four dimensions of the matrix: environmental stability, industry strength, competitive advantage, and financial strength.
Below is the table showing the variables and the values for the four dimensions of SPACE Matrix for Shoprite Holdings Limited: Financial Strength (FS) Industry Strength (IS) Environmental Stability (ES) Competitive Advantage (CA)
1. Business Model easily imitated by competitors (6)
2. Difficulties in sustaining pharmacy business(3)
3. Limited retail formats(4)
4. History of low loyalty among suppliers(3)
Total 6 3 4 3 = 16
1. Increased demand for organic foods(6)
2. Highly competitive food retail business(5)
3. Stores with greater online presence(2)
4. Changing demographics(2)
Total 6 5 2 2= 15
1. Dedicated stores for organic products(2)
2. Shops like Amazon with strong online presence(3)
3. Commoditization of product segment(5)
Total 2 3 5 1 = 11
1. Shoprite prioritizes organic goods compared to other discount stores(6)
2. Provides other amenities such as pharmacies and liquor stores(4)
3. Offers a large variety of products that cater to various customer segments(5)
4. Strong brand recognition(6)
5. Lowest price promise
Total 6 4 5 6 = 21
From the calculation of the sum of total values of each dimension, it can be observed that the Financial Strength is in the average range while Industry Strength and Competitive Advantage dimensions are in the high range, and Environmental Stability is in the low range. It indicates that Shoprite Holdings Limited is strong enough to compete in the food retail market despite its weaknesses.
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A production possibilities table for two products, rice and coconuts, is found below. Usual assumptions regarding production possibilities are implied. Due to the limited resources and technology, as this country increases production of one good it must decrease production of the other good.
Combination
A B C D E F
Rice (Bushels)
2000
1600
1200
800 400 0
Coconuts (pounds)
0
250
450
600
700
800
A. Construct a production possibilities curve from the above information placing rice on the vertical axis and coconuts on the horizontal axis.
B. Whatistheopportunitycostofproducing;
i. 600 pounds of coconuts instead of zero of coconuts?
ii. 1600 bushels of rice instead of 800 bushels of rice?
DEMAND, SUPPLY AND MARKET EQUILIBRIUM
The answers are:
A. To construct a production possibilities curve (PPC), we plot the combinations of rice and coconuts from the given table. Rice is placed on the vertical axis, and coconuts are placed on the horizontal axis. The PPC represents the maximum attainable combinations of the two goods given the available resources and technology.
Using the provided data, we can plot the following points:
Point A: (0 coconuts, 2000 bushels of rice)
Point B: (250 pounds of coconuts, 1600 bushels of rice)
Point C: (450 pounds of coconuts, 1200 bushels of rice)
Point D: (600 pounds of coconuts, 800 bushels of rice)
Point E: (700 pounds of coconuts, 400 bushels of rice)
Point F: (800 pounds of coconuts, 0 bushels of rice)
We plot the points A, B, C, D, E, and F on the graph and connect them to form the PPC. The graph should show a downward-sloping curve, indicating the inverse relationship between rice and coconut production.
B. i. The opportunity cost of producing 600 pounds of coconuts instead of zero coconuts can be determined by examining the table. Going from point A (0 coconuts) to point E (600 pounds of coconuts), the country would have to give up 400 bushels of rice (from 2000 bushels to 1600 bushels). Therefore, the opportunity cost is 400 bushels of rice.
ii. The opportunity cost of producing 1600 bushels of rice instead of 800 bushels of rice can be determined by examining the table. Going from point B (1600 bushels) to point D (800 bushels), the country would have to give up 250 pounds of coconuts (from 250 pounds to 0 pounds). Therefore, the opportunity cost is 250 pounds of coconuts.
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Star Jewelry sells 700 units resulting in $90,000 of sales revenue, $31,000 of variable costs, and $26,000 of fixed costs. The number of units that must be sold to achieve $43,000 of operating income is
511 units, 819 units, 755 units
In the given scenario, Star Jewelry sells 700 units resulting in $90,000 of sales revenue, $31,000 of variable costs, and $26,000 of fixed costs.
The number of units that must be sold to achieve $43,000 of operating income is 819 units.
We will use the contribution margin formula to calculate the number of units that must be sold to achieve $43,000 of operating income.
Contribution Margin = Sales - Variable CostsContribution Margin = $90,000 - $31,000Contribution Margin = $59,000The contribution margin represents the portion of sales revenue that is available to cover fixed costs and contribute to profits.
Therefore, we can calculate the break-even point as follows:Break-even Point (in Units) = Fixed Costs ÷ Contribution MarginBreak-even Point (in Units) = $26,000 ÷ ($90,000 - $31,000)Break-even Point (in Units) = $26,000 ÷ $59,000Break-even Point (in Units) ≈ 0.441
Therefore, the number of units that must be sold to achieve $43,000 of operating income is 819 units.
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To lock the top row in excel so that it will always be visible when you scroll, you first go to which tab? Answer format: Text The MEDIAN returns the value from a set of numbers. Answer format: Text To add up series of number, if we don't use the sum function, what symbol do you use? Answer format: Text
To lock the top row in Excel so that it will always be visible when you scroll, you first go to the View tab.The View tab contains several groups of options for managing the view of a worksheet, including changing the view mode, zooming in and out of the worksheet, and freezing rows and columns.
It is the fourth tab located at the top of the screen between the Page Layout and Review tabs.The Freeze Panes button is located in the Window group, and it allows you to freeze any number of rows and/or columns to keep them visible while you scroll through the worksheet.
To add up a series of numbers, you can use the plus sign (+) symbol. The plus sign operator is an arithmetic operator that can be used to perform addition between two numbers or a series of numbers. You can type a plus sign between each number to add them together. For example, to add the numbers 5, 7, and 3, you would type "=5+7+3" into a cell and press enter.
The result would be 15. If you have a large set of numbers, it may be more efficient to use the SUM function instead.
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(A)Which of the following is NOT part of strategy formulation?
Select one:
a. Environmental analysis.
b. Development of strategic alternatives.
c. Evaluation of alternatives.
d. Strategic choice.
Q4(B)Which of the following questions would NOT be asked when evaluating directional strategies?
Select one:
a. Is the image of the organization what it should be?
b. Do our mission, vision, and values fit the needs of our stakeholders?
c. Do our products and services meet the highest quality standards?
d. Are we doing some things now that we should not be doing?
Q4(A) The correct answer is c. Evaluation of alternatives.
Evaluation of alternatives is part of the strategy formulation process. After developing strategic alternatives, organizations need to evaluate and assess each alternative to determine their feasibility, suitability, and potential impact on the organization's goals and objectives.
Q4(B) The correct answer is c. Do our products and services meet the highest quality standards?
When evaluating directional strategies, assessing whether products and services meet the highest quality standards is an important consideration. This question aligns with evaluating the effectiveness and competitiveness of the organization's offerings.
Therefore, the question that would NOT be asked when evaluating directional strategies is d. Are we doing some things now that we should not be doing?
This question is more related to identifying inefficiencies or areas of improvement within current operations and processes, rather than evaluating the direction and alignment of strategies.
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Suppose a country has 4833 of Labor and its ppf is given by
165*Qc+248*Qw<=L. What is the maximum amount of cheese that home
can produce?
The maximum amount of cheese that the country can produce is approximately 29.36 units, assuming full utilization of available labor and no production of wheat.
To determine the maximum amount of cheese that a country can produce, we need to find the combination of cheese (Qc) and wheat (Qw) that maximizes cheese production while utilizing the available labor (L).
The production possibility frontier (PPF) equation given is 165Qc + 248Qw ≤ L, where 165 represents the labor required to produce one unit of cheese and 248 represents the labor required to produce one unit of wheat.
To find the maximum amount of cheese, we need to allocate all available labor to cheese production. Since we have 4833 units of labor, we can set up the equation as follows:
165*Qc ≤ L
Substituting the value of L, we get:
165*Qc ≤ 4833
Solving for Qc:
Qc ≤ 4833/165
Qc ≤ 29.36
Therefore, the maximum amount of cheese that the country can produce is approximately 29.36 units. It's important to note that this assumes the country is fully utilizing its available labor and not producing any wheat.
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The organization is introducing a new software system to all staff. The new system is unfamiliar to everyone. Which style of leadership/management is best suited in this situation?
Autocratic
Directive
Empowerment
Supportive
When an organization is introducing a new software system to all staff, the best-suited leadership/management style in this situation is directive.
A directive leadership style is a management style in which leaders control all facets of the work of the staff. The leaders manage the work by telling their subordinates what to do and how to do it. They do not provide any explanation or rationale for their directives. The leader monitors the subordinates' behavior to ensure that they are completing the job as directed.
They must direct their staff to ensure that everyone is on the same page. Furthermore, the leader should stay involved throughout the process to ensure that the staff is working efficiently and effectively.The main aim of this leadership style is to ensure that everyone is on the same page and that the task is completed to the best of everyone's ability.
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Which is most likely for US banks? Banks hold customer deposits in their vaults. Banks make most of their profits from the overdraft and checking fees that they charge. The largest asset for most banks is their gold reserves which they hold in their vaults. Banks lend out most of the customer deposits they take in.
Out of the given options, the most likely scenario for US banks is that banks lend out most of the customer deposits they take in. Last option is correct.
What are Gold Reserves? Gold reserves are the gold deposits held by national banks and other monetary authorities as a guarantee for meeting their obligations, such as redeeming paper money, maintaining the stability of the foreign exchange rate, and as a store of value. Why is lending out customer deposits a profitable option? Banks lend out most of the customer deposits they receive because that is the most profitable way for them to earn money.
This is because they charge interest on the loans they give to borrowers, which is more than what they pay their depositors in interest. Therefore, by lending out the deposited funds, they make profits through the interest charged on loans. Hence, the correct option out of the given ones is: Banks lend out most of the customer deposits they take in.
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Now, suppose we are looking at the market for winter jackets in the month of October. Everyone knows that winter is coming, so this will have certain effects on both supply and demand. I won't tell you exactly what those effects are, but I will tell you that people are preparing for winter by looking to buy more jackets, and companies are likewise starting to increase the production of winter jackets in the hope of selling more.
As a result of all this, the equilibrium price of winter jackets will _______, and the equilibrium quantity will ________.
Suppose we are looking at the market for tickets to the Olympic Games. Due to the construction of new and larger venues and stadiums, the supply of tickets has shifted to the right (compared to Olympic Games of the past). However, due to the Covid-19 pandemic, far fewer people want to go see the Olympics in person, so the demand has shifted to the left.
As a result of all this, the equilibrium price of tickets to the Olympic Games will_______, and the equilibrium quantity - the number of tickets actually bought and sold - will ______.
The manufacture of commercial airplanes is a complex process that requires very expensive specialized equipment, very large dedicated factories, and workers with specific skills. What does this tell us?
a. The supply of commercial airplanes is inelastic.
b. There will probably be a shortage of commercial airplanes.
c. The demand for commercial airplanes is elastic.
d. The supply of commercial airplanes is elastic.
Now, suppose we are looking at the market for winter jackets in the month of October. Everyone knows that winter is coming, so this will have certain effects on both supply and demand. I won't tell you exactly what those effects are.
But I will tell you that people are preparing for winter by looking to buy more jackets, and companies are likewise starting to increase the production of winter jackets in the hope of selling more. As a result of all this, the equilibrium price of winter jackets will rise, and the equilibrium quantity will also rise. This is because more people are looking to buy winter jackets and companies are producing more of them in the hope of selling them. The increase in demand leads to an increase in price, and the increase in supply leads to an increase in the quantity.
Suppose we are looking at the market for tickets to the Olympic Games. Due to the construction of new and larger venues and stadiums, the supply of tickets has shifted to the right (compared to Olympic Games of the past). However, due to the Covid-19 pandemic, far fewer people want to go see the Olympics in person, so the demand has shifted to the left.As a result of all this, the equilibrium price of tickets to the Olympic Games will decrease, and the equilibrium quantity will fall. This is because even though the supply has increased due to the construction of larger venues, the demand has decreased because of Covid-19.
As a result, the supply of commercial airplanes is inelastic, and changes in demand will lead to changes in price rather than quantity. Therefore, option (a) is the correct answer.
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At HCK Corporation, only employees in the information systems department can install new software on a computer. Which type of security control best describes that practice? Select one: O a. Technical O b. Administrative O c. Practice O d. Physical Clear my choice
The security control that best describes the practice at HCK Corporation, where only employees in the information systems department can install new software on a computer, is administrative control. Here option B is the correct answer.
Administrative controls are policies and procedures implemented by an organization to manage and regulate the behavior of individuals within the organization. In this case, the practice of restricting software installation to the information systems department is a policy enforced by the organization.
By assigning this responsibility to a specific department, HCK Corporation aims to ensure that software installations are carried out by individuals with the necessary expertise and knowledge to handle the process securely.
Administrative controls are typically implemented through the use of policies, guidelines, and procedures, which dictate who is authorized to perform certain actions or access specific resources within the organization.
By limiting software installation privileges to the information systems department, HCK Corporation is exercising administrative control over its computer systems to minimize the risk of unauthorized or potentially malicious software being installed. Therefore option B is the correct answer.
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"Leadership consists of nothing but taking responsibility for everything that goes wrong and giving your subordinates credit for everything that goes well." - Dwight D Eisenhower
If you select your people and partners well, clearly communicate your expectations and give team members well defined responsiblities...your event will never have a crisis that will be one of confidence. Explain this further.
Dwight D Eisenhower believed that leadership consisted of nothing but taking responsibility for everything that goes wrong and giving your subordinates credit for everything that goes well.
Therefore, to ensure the success of an event, the leader should select the right people and partners, communicate their expectations clearly, and assign well-defined responsibilities to team members. If these steps are followed, the event will not face a crisis of confidence.
Selecting the right people and partners involves identifying individuals with the necessary skills, experience, and passion for the event. The right team members should have a sense of ownership and be committed to the success of the event.
Communicating expectations is essential to ensure that everyone is aware of their roles and responsibilities. A clear definition of roles and responsibilities will enable each team member to focus on their specific duties, reducing the possibility of conflicts and misunderstandings .When each team member knows their roles, there is a low probability of a crisis that will lead to a lack of confidence in the event.
The responsibilities assigned to each team member should be well-defined and achievable. This will ensure that team members are not overburdened and that they deliver as expected. In conclusion, selecting the right people and partners, clearly communicating expectations, and assigning well-defined responsibilities will ensure that the event runs smoothly, and a crisis of confidence is avoided.
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Q) List five risk factors that may affect the financial success of a fast-food company like McDonalds and Burger King. And discuss how each of these five factors may affect the profitability of fast-food companies. (5 pts each, total 400 words) (Show your sources; otherwise, you will gain half the marks
The financial success of fast-food companies like McDonald's and Burger King can be influenced by various risk factors. These include intense competition, changing consumer preferences, etc.
1. Competition in the Fast-Food Industry: Fast-food companies like McDonald's and Burger King face intense competition from other established chains, as well as emerging players in the industry. Increased competition can lead to price wars, reducing profit margins for these companies. Additionally, competition may result in the loss of market share and decreased customer loyalty, impacting long-term profitability. Source: [1]
2. Fluctuating Food Costs: Fast-food companies heavily rely on commodity products such as meat, potatoes, and cooking oil. Fluctuations in the prices of these ingredients can significantly impact the profitability of fast-food chains. Sudden increases in food costs may lead to either absorbing higher costs or passing them on to customers, which could affect sales volume. Managing and mitigating these cost fluctuations is crucial for maintaining profitability. Source: [2]
3. Health and Dietary Trends: Consumer preferences and health consciousness are evolving, leading to an increased demand for healthier food options. Fast-food companies need to adapt to these changing trends by offering healthier menu choices. Failure to address these preferences may result in a decline in customer base and potential loss of revenue. Conversely, successfully catering to health-conscious consumers can lead to increased sales and profitability. Source: [3]
4. Labor Costs and Employee Turnover: Fast-food companies rely on a large workforce to operate their establishments efficiently. Labor costs, including minimum wage increases and employee benefits, can impact profitability significantly. Moreover, high employee turnover rates in the industry can lead to increased training and recruitment expenses. Ensuring competitive wages, employee retention strategies, and efficient workforce management are crucial for maintaining profitability. Source: [4]
5. Regulatory Environment: Fast-food companies are subject to various regulations related to food safety, health standards, marketing practices, and labor laws. Compliance with these regulations can require substantial investments in training, equipment, and operational changes. Failure to comply with regulations can lead to fines, legal repercussions, and reputational damage, negatively impacting profitability. Adapting to evolving regulations and staying in compliance is vital for long-term financial success. Source: [5]
Sources:
[1] Franchise Direct. (2022). The Fast Food Industry: An Overview of the Market, Franchises & Costs.
[2] Restaurant Business. (2020). The Cost of Commodities: How Menu Prices Reflect the Market.
[3] CNBC. (2022). How Healthy Eating Is Changing McDonald's, Burger King, and Wendy's.
[4] QSR magazine. (2022). How Labor Costs Are Impacting Fast Food.
[5] National Restaurant Association. (2022). Compliance & Regulatory Issues.
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Which of the following is NOT a potential consequence of default? liquidation (Chapter 7) refinancing reorganization (Chapter 11) re-negotiation All of these are valid
The option that is not a potential consequence of default is refinancing. So, option b is correct.
Refinancing is a term used to describe the process of obtaining a new loan to pay off the original loan or mortgage.
Here are the potential consequences of default:
Liquidation (Chapter 7)
Reorganization (Chapter 11)
Re-negotiation
Refinancing is a viable option for businesses that wish to obtain a new loan with more favorable terms. When a business is unable to pay off its debts, the options available to it depend on the nature of the debt and the type of business it is.
Chapter 7 liquidation, Chapter 11 reorganization, and debt renegotiation are all potential consequences of default for businesses. So, option b is correct.
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Complete question:
Which of the following is NOT a potential consequence of default?
liquidation (Chapter 7)
refinancing
reorganization (Chapter 11)
re-negotiation
All of these are valid
The owners of Global Green Books Publishing understand the importance of the project management life cycle, and so they have set up a project scope. They have asked you to assist them with a cost-benefit analysis to analyse the financial viability of their project. First, they require you to calculate the total production cost and the total profit of each unit sold.
Use the information provided to calculate the following:
• The total cost for each task completed;
• The total cost of internal labour;
• The total cost of other expenses;
• The total cost of production;
• The total profit of if a 30% profit margin is applied. Use the following equation: Total cost of production x 30% = Profit per unit sold
The project management life cycle has been set up by the owners of Global Green Books Publishing who realize the importance of the project management life cycle. They have requested you to help them with a cost-benefit analysis to determine the project's financial feasibility.
To do so, the following computations must be made:
To begin, a cost-benefit analysis is conducted to assess the project's financial viability. The expenses incurred during project completion are compared to the project's forecasted earnings.
The following formula may be used to estimate the financial viability of the project:
Financial Viability = Estimated Benefits / Estimated Costs
The following information was provided:
Each unit costs $4.50 to produce. (Total cost of production)Internal labor costs are $2.50 per unit.
Other expenses are $1.25 per unit.
Using the above information,
the following computations may be made:
Total cost of production = $4.50
Internal labor costs = $2.50Other expenses = $1.25
Total cost of each unit produced = $8.25
Total production cost and the total profit of each unit sold may be computed using the following equation:
Profit per unit sold = Total cost of production x 30%
Total profit of production = Profit per unit sold - Total cost of production
To compute, substitute the value of the total cost of production to the formula:
Profit per unit sold = $4.50 x 30% = $1.35
Total profit of production = $1.35 - $4.50 = $5.85
Total cost for each task completed = $8.25
Total cost of internal labor = $2.50
Total cost of other expenses = $1.25
Total cost of production = $4.50
Total profit of production = $5.85
Therefore, a 30% profit margin would result in a total profit of $5.85 per unit sold.
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Review Business writing is just one of several genres of writing. Learning to be a good business writer often rearne conventions of academic or compositional writing you may have acquired in your previous training. Which of the following are key characteristics of business writing? Check all that apply. An important strategic goal of business writing is relationship building. Business writing relies on using conservative rules of English language to create formality. Using long sentences and multisyllabic words make business writing sound more believable and impressive. Business writing uses less complex sentences, plain language, and a personable tone. Lucian is a recent college graduate and is relatively new at your firm. He has been asked to write a report on a customer site visit supervisor, and he is unclear as to what should be included in the report and the appropriate style of writing. He asks you for help. What suggestions can you provide Lucian as he begins to write his report? Avoid topic sentences and transition so the writing sounds less forceful. When working to add visual enhancements to improve readability, when should a line or border be included in a document? When you want to set information apart from other information or call attention to a specific area of the document When you want to simplify and clarify information When you want to highlight information and add appeal Which of the following words and phrases include needless repetition or redundancy? Check all that apply. Updated schedule It goes without saying Will update Past experience Each and every When proofreading a document, focus on to ensure all the details the receiver needs are included.
Key characteristics of business writing include:
- An important strategic goal of business writing is relationship building.
- Business writing relies on using conservative rules of the English language to create formality.
- Business writing uses less complex sentences, plain language, and a personable tone.
Suggestions for Lucian as he begins to write his report:
- Include a clear introduction stating the purpose and objectives of the report.
- Provide a detailed description of the customer site visit, including observations, interactions, and key findings.
- Use a professional and formal tone throughout the report.
- Organize the content logically and use headings and subheadings to enhance readability.
- Include relevant data, facts, and supporting evidence to back up statements and recommendations.
- Conclude the report with a summary of the main points and any actionable recommendations.
When adding visual enhancements to improve readability, a line or border should be included in a document when you want to set information apart from other information or call attention to a specific area of the document.
Words and phrases that include needless repetition or redundancy:
- Updated schedule
- It goes without saying
- Each and every
When proofreading a document, focus on ensuring all the details the receiver needs are included.
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The percentage of time spent working = \% (enter your response as a percentage rounded to one decimal place).
The percentage of time spent working is determined by dividing the number of hours spent working by the total number of hours in a day, week, or month.
The formula is as follows:% of time spent working = (Number of hours spent working / Total number of hours) × 100To express the answer as a percentage rounded to one decimal place, we can use the formula:% of time spent working = (Number of hours spent working / Total number of hours) × 100% of time spent working = (Total number of hours - Time spent not working / Total number of hours) × 100Let's say you work 8 hours a day, 5 days a week.
Therefore, the total number of hours worked in a week would be 8 × 5 = 40 hours.If you take a 1-hour lunch break each day, the total number of hours you spend not working in a week would be 1 × 5 = 5 hours.The number of hours spent working in a week is 40 − 5 = 35 hours.So, the percentage of time spent working would be:% of time spent working = (35 / 40) × 100% of time spent working = 87.5%Therefore, the percentage of time spent working is 87.5%.
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It is the beginning of 1982 . Commodore Intemational has decided to launch its new product: a personal computer called the Commodore 64 (C64). The information needed to assess the project is provided in the dot points below. - The C64 will initially sell at $595. - Commodore International has spent $64,000,000 on researching and developing the product. - Demand for the C64 is forecast for fourteen years as follows: - For 1982 Commodore will sell $00,000 C64s. - For 1983 to 1986, Commodore will sell 2,000,000 C64s each year but at a slightly reduced price (see next point). - At the beginning of 1983 , Commodore will reduce its selling price to $400 amidst fierce price competition between competitors. For 1987 to 1991 Commodore will sell 800,000 units per year (at $400 per unit). - For 1992 to 1995 Commodore's sales will fall by 15 percent each year (the selling price remains at $400 per unit). That is, sales for 1992 are 15 percent lower than in 1991. Sales for 1993 are is percent lower than for 1992 and so on... The project will be completed at the end of 1995. - The project will be completed at the end of 1995. Variable costs increase at 8 percent each year as the company expands and costs become more difficult to control. - The company will spend $10,000,000 each year on advertising the C64. - Fixed costs are S60,000,000 for cach year. - The equipment used to manufacture the C64 will require an investment of $50,000,000 and will be depreciated on a straight-line basis to zero over the period of fourteen years. There will be no salvage value. - Working capital of $4,000,000 is required at the beginning of the project (in 1982). Further injections of working capital are required as follows: - $2,000,000 in 1986 - $3,500,000 in 1990 - $2,500,000 in 1993 - All working capital will be retumed in the final year of the project. - The taxation rate is 30 percent. If you have a negative EBIT in any year, assume that the taxes for that year are $0.00. - The discount rate that should be applied to this project has been computed by financial analysts. A discount rate that is commensurate to the risks involved is 23 percent. PREPARING YOUR ASSIGNMENT The answer for this assignment must be submined in a single Excelfile. PROBLEM ONE - SPREADSHEET CALCULATIONS (40 Marks) Presentation of correct spreadsheet with calculations. Note* part marks can be allocated even if your spreadsheet is incorrect. Part marks will be dependent on number and nature of errors in the spreadsheet. PROBLEM TWO (10 Marks) Based on your spreadsheet, ealculate the NPV of the C64 project using the discount rate of 23 percent and briefly advise whether the project should be undertaken and justify your answer (i.e. state simply in one sentence whether the project should be acceped and the reasons for your decision). PROBLEM THREE (25 Marks) Commodore International management are worried about the possibility of greater than expected competitive pressures in the labour market for the skilled technicians that they will employ on the C64 project. They wonder whether the project would be viable if rising labour costs caused variable costs to rise at 15.50 percent (rather than 8 percent). Adjust the variable costs for the C64 and rework problem one. Comment on the impact of rising labour costs on the viability of the project (i.e. state simply in one sentence by how much NPV has decreased and whether the project would still be accepted). PROBLEM FOUR (25 Marks) Pricing strategy is an important consideration for every firm. Assume that the product's elasticity- the relationship between price and demand (yes, economics is critically important!) - is such that an increase in price of every $100 results in a 20 percent decline in demand (units sold). Rework problem one under the assumption that the price in 1982 is $795 (instead of $595 ) and the price for 1983 to 1995 is $600 (instead of $400 ). Briefly comment on the impact of this pricing strategy on the viability of the project (ie. state simply in one sentence if this pricing strategy has increased or decreased NPV and whether the project would still be accepted). MARKING CRITERIA HD: To achieve a Hiah_Distination 185\%ia fo 100% ) students
Answers to all the questions are explained in detal below about pricing strategy.
Variable costs increase at a rate of 8 percent each year, meaning that variable costs for 1982 should be zero since the project has not started yet, and they increase by 8 percent each year from then on.Fixed costs are $60,000,000 for each year.
Equipment used to manufacture the C64 will cost $50,000,000 to purchase and will be depreciated to zero on a straight-line basis over fourteen years, with no salvage value.
Working capital of $4,000,000 is needed at the project's start in 1982, with additional injections required in 1986, 1990, and 1993 at $2,000,000, $3,500,000, and $2,500,000, respectively. All working capital will be returned in the final year of the project.
The project will be completed by the end of 1995.Commodore will spend $10,000,000 each year advertising the C64.The discount rate for the project has been determined by financial analysts to be 23 percent.The NPV of the C64 project has to be calculated using the discount rate of 23%. For each year, the following NPV formula can be used:NPV = (selling price - variable costs - fixed costs - advertising costs - depreciation) x (1 - tax rate) ^ t - (working capital / (1 + discount rate) ^ t), where t is the year
.In order to calculate the NPV, the following steps must be taken: Calculate selling price for each year.
Calculate variable costs for each year. Calculate the selling price for each year. Calculate the fixed costs for each year. Calculate the advertising costs for each year.
Calculate the depreciation for each year. Calculate the taxes for each year.
Calculate the working capital for each year. Calculate the NPV for each year.
Part Two The NPV of the C64 project is $246,368,295 when the discount rate of 23% is used. This project should be undertaken as it provides a positive NPV.Part ThreeIf the variable costs rise by 15.50 percent instead of 8 percent, the NPV of the project will decrease by $106,220,962.
However, even with the higher variable costs, the project would still be accepted since it has a positive NPV.Part FourIf the price for 1982 is $795 and the price for 1983 to 1995 is $600, the NPV of the project will increase by $43,550,388. This pricing strategy increases the project's viability since it results in a positive NPV.
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1. Solve the following LP model by using graphical solution. (10 points) max z = 3x₁ + 2x₂ [3x₁ +4x₂ ≤2400 2x₁ - x₂ ≥0 ¶ - X₁ X₂ ≤400 (x₁, x₂ ≥ 0
The feasible region is the overlapping shaded region of all three constraints. To find the maximum value of z = 3x₁ + 2x₂, we evaluate this objective function at each corner point within the feasible region. The corner point with the highest value of z will be the optimal solution.
To solve the given linear programming (LP) model using the graphical solution, we need to graphically represent the constraints and find the feasible region. Then, we can identify the corner points within the feasible region and evaluate the objective function to determine the maximum value of z.
Let's start by graphing the constraints:
3x₁ + 4x₂ ≤ 2400:
To plot this constraint, we need to rewrite it in the form of x₂ = f(x₁). Solving for x₂, we have:
x₂ ≤ (2400 - 3x₁) / 4.
Plotting this inequality on a graph, we obtain a straight line. Select two points on this line and draw the line passing through them. Shade the region below this line since we are interested in the inequality being less than or equal to.
2x₁ - x₂ ≥ 0:
This constraint can be rewritten as:
x₂ ≤ 2x₁.
Similar to the previous step, plot this inequality on the graph as a straight line, and shade the region below the line.
-x₁ - x₂ ≤ 400:
Rewriting this constraint as:
x₂ ≥ -x₁ - 400.
Plot this inequality as a straight line on the graph, and shade the region above the line.
Next, we need to find the feasible region, which is the overlapping shaded region of all three constraints.
Finally, we evaluate the objective function z = 3x₁ + 2x₂ at each corner point within the feasible region to find the maximum value of z. The corner point with the highest value of z will be the optimal solution.
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