The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 0.75 direct labor-hours, and direct laborers are paid $16 per hour.

Required:

1. Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor time per unit (hours)" answers to 2 decimal places.)

2. Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 8,000 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 8,000 hours anyway. Any hours worked in excess of 8,000 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor. (Input all amounts as positive values.)

Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series:

Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4.


Furthermore, suppose that the estimated coeffcients from a regression of the deseasonalized series on Time are given below:

What is the trend projection of the series for period 43? (please round your answer to 1 decimal place)

5 points

Question 28

Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series:

Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4.


Furthermore, suppose that the estimated coeffcients from a regression of the deseasonalized series on Time are given below:

What is the forecast for period 111, if period 111 is a Q1? (please round your answer to 1 decimal place)

There are two types of consumers of Sony PlayStation video game consoles. The first type of consumer is highly eager to purchase the newest game consoles (early adopters). Their inverse demand is:

P = 600 - 0.01Q_E

After the first quarter the new PlayStations are on the market, early adopter demand goes to zero at any price. The second type of consumer is more sensitive to price and will be the same one quarter after the consoles are on the market (late adopters). Their inverse demand is:

P = 300 - 0.01QL
The marginal cost to the manufacturer is constant at $100.

a) If Sony initially sets the system price at $400, calculate their producer surplus.  (Round to the nearest whole number, do not use commas or dollar signs)

b) Do any second type customers purchase the new PlayStations at the initial release?  (yes or no)

c) Sometime after the initial release, the manufacturer lowers the price to $200. If only late adopters purchase the console at this later date, calculate producer surplus from these sales.  (same rounding rules)

(Think about why Sony has an incentive to charge a high relative price at initial release and then lower the price considerably sometime later.)

Production Budget and Direct Materials Purchases Budgets

Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows:

Company policy requires that ending inventories for each month be 10% of next month's sales. At the beginning of January, the inventory of peanut butter is 31,000 jars.

Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1.

Required:

1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total.

2. Prepare a direct materials purchases budget for jars for the months of January and February.

3. Prepare a direct materials purchases budget for peanuts for the months of January and February.

Production Budget and Direct Materials Purchases Budgets

Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows:

Company policy requires that ending inventories for each month be 25% of next month's sales. At the beginning of January, the inventory of peanut butter is 32,000 jars.

Each jar of peanut butter needs two raw materials: 24 ounces of peanuts and one jar. Company policy requires that ending inventories of raw materials for each month be 20% of the next month's production needs. That policy was met on January 1.

Required:

1. Prepare a production budget for the first quarter of the year. Show the number of jars that should be produced each month as well as for the quarter in total.

2. Prepare a direct materials purchases budget for jars for the months of January and February.

Prepare a direct materials purchases budget for peanuts for the months of January and February.

Read the adapted article below from BBC News and answer the following questions.

FAST FASHION: ZARA PROMISES ALL ITS CLOTHES WILL BE SUSTAINABLE BY 2025

Zara - and other brands like Pull & Bear and Bershka - have promised to only sell sustainable clothes by 2025. The company that owns these shops says all cotton, linen and polyester they sell will be organic, sustainable or recycled. Zara has 64 UK stores, and its parent company has 7,490 shops worldwide.

From next year, containers will appear in Zara stores to collect your old clothes so they can be reused or recycled into new items. Some people in the fashion industry have been calling for more clothes recycling in order to protect the environment - while politicians think brands and shops should fund clothes recycling. People in the UK send 235 million items of clothing to landfill each year, according to the most recent figures.

Zara is one of the stores not to currently use plastic bags and Inditex, the company that owns the chain, says that by 2020 it will eliminate the use of plastic bags across all of its brands. Primark and Boots are among the big-name shops that have switched from plastic to paper bags. By 2023 Inditex promises it will have fully eliminated single use plastic in its stores.

Inditex also has a scheme called Join Life running in its shops, which identifies clothes which are made with more environmentally friendly materials than conventional high street stores. These are made from things like organic cotton and recycled polyester.

The boss of Inditex revealed the company's plans at its annual general meeting this week. "Sustainability is a never-ending task in which everyone here at Inditex is involved and in which we are successfully engaging all of our suppliers," said Pablo Isla, in front of shareholders and company executives.

Source: BBC (July 10, 2019). Fast fashion: Zara promises all its clothes will be sustainable by 2025. BBC News. Retrieved from https://www.bbc.com/news/newsbeat-49022453

a. Identify the market structure for clothing stores, like Zara. Justify the reasons for such

a structure to exist.

[5 marks]

b. Do firms within similar market structure as in (a) have a supply curve and market

power? Comment.

[4 marks]

c. Distinguish the demand elasticity between firms, like Zara, and firms that belong to the

other market structures. Provide justification for each structure.

[8 marks]

d. Discuss specifically on the efficiency of the market structure in (a) (a diagram is not

needed here).

[6 marks]

e. Determine with justification the type of long run profit made by similar firms in the

market structure in (a). When will these firms cease production in the long run?

[7 marks]

Industries manufactures a popular interactive stuffed animal for children that requires

two

computer chips inside each toy. The company pays

$ 1

for each computer chip. To help to guard against stockouts of the computer chip,

McKnightMcKnight

Industries has a policy that states that the ending inventory of computer chips should be at least

20 %

of the following month's production needs. The production schedule for the first four months of the year is as follows:

LOADING...

(Click the icon to view the production schedule.)

Requirement

Prepare a direct materials budget for the first quarter that shows both the number of computer chips needed and the dollar amount of the purchases in the budget.

Prepare the direct materials budget by first calculating the total quantity needed, then complete the budget.

1) What is the instantaneous velocity of a freely falling object 14 s after it is released from a position of rest?

2) What is its average velocity during this interval?

3) How far will it fall during this time?

Percentage of scores falling below a z of -.24

Student provided the following answer: 9.48% of scores fall below a z-score of -.24

Is the students answer correct?  If not, what did they do wrong and what is the correct answer?