Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each.

Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company’s container plant, which is a part of Container Division. Mixing Division uses all of the container plant’s production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division.

At your request, Container Division’s general manager asked other bottle manufacturers to quote a price for the number and sizes demanded by Mixing Division. These competitive prices follow.

^a An equivalent case represents 24 bottles.

Container Division's cost analysis indicates that it can produce bottles at these costs.

These costs include fixed costs of $860,000 and variable costs of $4.60 per equivalent case. These data have caused considerable corporate discussion as to the proper price to use in the transfer of bottles from Container Division to Mixing Division. This interest is heightened because a significant portion of a division manager’s income is an incentive bonus based on profit center results.

Mixing Division has the following costs in addition to the bottle costs.

The corporate marketing group has furnished the following price–demand relationship for the finished product:

Required:

a. Amazon Beverages has used market price–based transfer prices in the past. Using the current market prices and costs and assuming a volume of 1.38 million cases. Calculate operating profits for Container Division, Mixing Division, Amazon Beverages. (Enter your answers in thousands of dollars.)

b-1. Calculate operating profits for Container, Mixing and Amazon Beverages for volumes of 460,000, 920,000 and 1,380,000 cases. (Enter your answers in thousands of dollars.)

b-2. Which volume of production is the most profitable for Container, Mixing and Amazon Beverages?

Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each.

Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company's container plant, which is a part of Container Division. Mixing Division uses all of the container plant's production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division.

At your request, Container Division's general manager asked other bottle manufacturers to quote a price for the number and sizes demanded by Mixing Division. These competitive prices follow:

Volume Total Price Price per Case 580,000 equivalent cases^a $ 5,220,000 $ 9.00 1,160,000 9,280,000  8.00 1,740,000 12,528,000  7.20  

^a An equivalent case represents 24 bottles.

Container Division's cost analysis indicates that it can produce bottles at these costs:

Volume Total Cost Cost per Case 580,000 equivalent cases $ 4,344,000 $ 7.49 1,160,000 7,708,000  6.64 1,740,000 11,072,000  6.36  

These costs include fixed costs of $980,000 and variable costs of $5.80 per equivalent case. These data have caused considerable corporate discussion as to the proper price to use in the transfer of bottles from Container Division to Mixing Division. This interest is heightened because a significant portion of a division manager's income is an incentive bonus based on profit center results.

Mixing Division has the following costs in addition to the bottle costs:

Volume Total Cost Cost per Case 580,000 equivalent cases $ 1,980,000 $ 3.41 1,160,000 2,780,000  2.40 1,740,000 3,580,000  2.06  

The corporate marketing group has furnished the following price-demand relationship for the finished product:

Sales Volume Total Sales Revenue Sales Price per Case 580,000 equivalent cases $ 12,644,000 $ 21.80 1,160,000 22,968,000  19.80 1,740,000 29,232,000  16.80  

Required:

a. Amazon Beverages has used market price-based transfer prices in the past. Using the current market prices and costs and assuming a volume of 1.74 million cases (Enter your answers in thousands of dollars.)

a-1. Calculate operating profits for Container Division.

a-2. Calculate operating profits for Mixing Division.

a-3. Calculate operating profits for Amazon Beverages.

b-1. Calculate operating profits for Container for volumes of 580,000, 1,160,000 and 1,740,000cases. (Enter your answers in thousands of dollars.)

b-2. Calculate operating profits for Mixing for volumes of 580,000, 1,160,000 and 1,740,000cases. (Enter your answers in thousands of dollars.)

b-3. Calculate operating profits for Amazon Beverages for volumes of 580,000, 1,160,000 and 1,740,000cases. (Enter your answers in thousands of dollars.)

Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each.

Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company’s container plant, which is a part of Container Division. Mixing Division uses all of the container plant’s production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division.

At your request, Container Division’s general manager asked other bottle manufacturers to quote a price for the number and sizes demanded by Mixing Division. These competitive prices follow:

^a An equivalent case represents 24 bottles.

Container Division's cost analysis indicates that it can produce bottles at these costs:

These costs include fixed costs of $850,000 and variable costs of $4.50 per equivalent case. These data have caused considerable corporate discussion as to the proper price to use in the transfer of bottles from Container Division to Mixing Division. This interest is heightened because a significant portion of a division manager’s income is an incentive bonus based on profit center results.

Mixing Division has the following costs in addition to the bottle costs:

The corporate marketing group has furnished the following price–demand relationship for the finished product:

Required:

a. Amazon Beverages has used market price–based transfer prices in the past. Using the current market prices and costs and assuming a volume of 1.35 million cases (Enter your answers in thousands of dollars.)

a-1. Calculate operating profits for Container Division.

a-2. Calculate operating profits for Mixing Division.

a-3. Calculate operating profits for Amazon Beverages.

b-1. Calculate operating profits for Container for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Container?

b-2. Calculate operating profits for Mixing for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Mixing?

b-3. Calculate operating profits for Amazon Beverages for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Amazon Beverages?

Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. The finished product is packaged in a company-produced glass bottle and packed in cases of 24 bottles each.

Because the appearance of the bottle heavily influences sales volume, Amazon developed a unique bottle production process at the company’s container plant, which is a part of Container Division. Mixing Division uses all of the container plant’s production. Each division (Mixing and Container) is considered a separate profit center and evaluated as such. As the new corporate controller, you are responsible for determining the proper transfer price to use for the bottles produced for Mixing Division.

At your request, Container Division’s general manager asked other bottle manufacturers to quote a price for the number and sizes demanded by Mixing Division. These competitive prices follow:

^a An equivalent case represents 24 bottles.

Container Division's cost analysis indicates that it can produce bottles at these costs:

These costs include fixed costs of $850,000 and variable costs of $4.50 per equivalent case. These data have caused considerable corporate discussion as to the proper price to use in the transfer of bottles from Container Division to Mixing Division. This interest is heightened because a significant portion of a division manager’s income is an incentive bonus based on profit center results.

Mixing Division has the following costs in addition to the bottle costs:

The corporate marketing group has furnished the following price–demand relationship for the finished product:

Required:

a. Amazon Beverages has used market price–based transfer prices in the past. Using the current market prices and costs and assuming a volume of 1.35 million cases (Enter your answers in thousands of dollars.)

a-1. Calculate operating profits for Container Division.

a-2. Calculate operating profits for Mixing Division.

a-3. Calculate operating profits for Amazon Beverages.

b-1. Calculate operating profits for Container for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Container?

b-2. Calculate operating profits for Mixing for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Mixing?

b-3. Calculate operating profits for Amazon Beverages for volumes of 450,000, 900,000 and 1,350,000cases. (Enter your answers in thousands of dollars.)

Which volume of production is the most profitable for Amazon Beverages?

Victoria Co. is a small textile manufacturer using machine-hours to calculate the single indirect-cost rate to allocate manufacturing overhead costs to various jobs contracted during the year. The following estimates are provided for the coming year for the company to manufacture 1,000 jackets and for the 100 jackets to be custom made for Victoria High School Science Olympiad.

  Company        Victoria High School Job

Direct materials                                $25,000                      $2,700

Direct manufacturing labor              $15,000                      $1,500

Manufacturing overhead costs         $40,000

Machine-hours (mh)                              500 mh                    60 mh

Required:

a. Determine the annual manufacturing overhead cost-allocation rate per machine hour for the Victoria Co.

b.   Determine the amount of manufacturing overhead costs allocated to the Victoria High School job.

c.   Determine the estimated total manufacturing costs for the Victoria High School job.

d.   Determine the estimated manufacturing costs for a jacket to be used in Victoria High School Olympiad.

e.   Determine the estimated manufacturing costs for Victoria Co. to make a jacket. Explain why the average cost of a jacket to manufacture by Victoria Co. is different from the custom made jacket for Victoria High School Olympiad.

1. Consider a wholesaler and a retailer selling designer handbags. Each has market power. The wholesaler sells designer handbags to the retailer, which then sells the handbags to consumers. The demand for handbags is captured by P = 24-Q. Assume that the marginal cost of producing a handbag is constant (MC=$8). Consider the following scenarios: a. Suppose that the retailer is the only firm and that it can produce the handbags it sells (there is no wholesaler here). How many handbags will be produced and what price will be charged? Draw a graph and show these points on the diagram. b. Now suppose that the retailer cannot produce handbags and must instead buy them from the wholesaler. The wholesaler charges the downstream firm $16 per handbag. How many handbags will the retailer purchase and sell, and what price will the retailer charge? 2. If the wholesaler and retailer in problem 1 merged, what would be the effect on overall social surplus?

Jim is the owner and managing director of Colours Ltd, a company selling eco-friendly paints in Ireland. The company has ten stores around the country and is the dominant player in its marketplace.

Bulldog Paints is an AIM listed UK company. It sells eco-friendly and premium paints,

owning 120 stores and operating mainly in the competitive UK market. It has recentlyundertaken a policy of international expansion.

Bulldog Paints has recently suggested merging the two companies. Under the terms of the merger, Jim will receive 10% of the shares of the merged company and will act as manager for the Irish operations.

Jim is unsure whether to accept the offer. You are required to prepare a report outlining the costs and benefits of the merger. The report should distinguish between the costs and benefits that accrue to Jim personally as owner and manager of the company and those that affect the future operation of Colours Ltd.

Read the scenario and then answer the question that follows.

Recology CleanScapes, formed when CleanScapes of Seattle merged with San Francisco–based Recology, provides recycling services to about 800,000 residential and commercial customers in four western states. The employee-owned company’s motto is “WASTE ZERO,” and it is an industry leader in the waste reduction and recovery industry. Recology CleanScapes has credited much of its financial success, low employee turnover, and high customer satisfaction to open-book management.

If you were hired as a manager at Recology CleanScapes, which of the following would be parts of your job? Check all that apply.

1) Help employees think like owners, taking responsibility for the financial success of the company

2) Encourage employees to focus on their individual job performance and reward them for individual results

3) Share financial measures such as revenues, expenses, and profits with your employees

Question: In MATLAB, Implement a hybrid clustering algorithm which combines hierarchical clustering and k-means clustering. The hybrid algorithm will use hierarchical clustering to produce stable clusters and k-means clustering will initialize seeds based on the centroids of the produced stable clusters (instead of randomly initialized seeds)

Background Information: Both hierarchal clustering and k-means clustering group similar data objects into clusters. However, the two algorithms have their pros and cons. For example, hierarchical clustering produces stable clusters while k-means clustering generates instable clusters due to random initial centroids(seeds). In hierarchal clustering once data objects are wrongfully merged, the data objects cannot be moved to another group while k-means clustering can re-assign data objects to a different group.

An investor observes that there is no car polish service available in the town that he has recently moved to and decides to open a shop offering this service. The estimated market demand for the car polish service is given by P = 300 – 5Q. The total cost of the car polish service is TC = 5Q2 +100 and the marginal cost is MC = 10Q.

If the investor engages in perfect price discrimination, how many car polish services will he offer? What would be the deadweight loss?

What will be will be the profit maximizing price and quantity if the investor is not allowed to price discriminate, and is forced to charge a uniform price to all the customers? What will be the profit, deadweight loss and consumer surplus?