Jaguar Electronics, Inc. is a specialized electronics firm located in Charleston, South Carolina in the United States. The company was founded in 1965 and has enjoyed success and modest growth as a supplier of components to large manufacturers of specialty electronic-mechanical devices. Recently the company's management has decided to begin manufacturing and marketing a product called the 'Airflow'. The Airflow is manufactured by assembling two component parts:
(1) mechanical assemblies (MA), which are purchased from a company in Belgium; and
(2) electronic assemblies (EC) manufactured by Jaguar Electronics at its Charleston facility.
Jaguar Electronics has manufactured and supplied the electronic assemblies to several national manufacturers of products similar to the Airflow for several years. Most of the consumer demand for the final products comes from areas enjoying a relatively warm climate throughout the year. Accordingly, the manufacturers of those products have sold their goods with great success throughout the southern and southwest ern United States. The population and economic growth in these areas have contributed greatly to the success of this type of consumer product.
The man largely responsible for Jaguar Electronics' proposed move into manufacturing and marketing Air flow is the company president, Mr Smith. He has spent his entire career in the electronics industry and was with Jaguar Electronics for several years before becom ing its president. His reign as president has been very successful. However, he has viewed the impressive sales growth of EC units with mixed feelings. As a supplier of EC components, Jaguar Electronics has prospered from the growth in sales of products such as Airflow. However, Smith has always felt that his company was not reaping all of the benefits available in sales to the consumers. At the same time he felt that Jaguar Electronics did not have the resources to compete success fully with the large firms that dominate the US market. Smith employed a consultant to determine where increasing consumer demand for Airflow-type products would approach a level sufficiently high to justify entering these smaller markets. After reviewing the consultant's recommendations, Smith decided that Jaguar Electronics should target two of the higher-income countries in Latin America, Country 1 and Country 2. These nations, because of the income levels in particu lar cities, had the potential to be lucrative markets for Airflow. The consultant estimated the potential demand for Airflow to be 20,000 units per year in Country 1, and 40,000 units per year in Country 2.
The consultant had also recommended four options available to Jaguar Electronics as to how the widgets could be produced and distributed to these markets:
Smith held a meeting to brief his production manager, Daphne R. Feldblum, and his distribution manager, Karl Q. Winklepleck, on the proposed Airflow venture and the consultant's recommendations. Both had been with the company for several years.
After briefing the two managers, Smith asked: 'What course of action would you recommend?' Feldblum replied: 'We should probably assemble them where the labor cost would be lowest.' Winklepleck commented: 'We should also consider transportation rates, insurance rates, import duties, and free trade zones.' Smith decided that Feldblum and Winklepleck should work together to compile the information necessary for making the best possible decision.
Two weeks later the information shown in Tables 13.2 and 13.3 had been compiled.
With the data available, Smith had a meeting withFeldblum, Winklepleck, and a member of the corporate legal staff to discuss what should be done. The meeting went poorly. Feldblum still believed that the company should locate assembly in the place with the lowest labor cost. Winklepleck realized that he should have provided a spreadsheet indicating total costs associated with each approach.
Table 13.2 Cost, demand, weight, and tariff data
Annual demand in Country 1 20,000 units
Annual demand in Country 2 40,000 units
Labor costs for assembly
in Charleston $5.00/unit
in Country 1 $4.50/unit
in Country 2 free trade zone $4.00/unit
in Country 3 free trade zone $3.75/unit
Cost of components
MA,FOB Brussels {Belgium) $25.00/unit EC, FOB Charleston $30.00/unit
Product weight
MA 60 lb/ unit
EC 40 lb/ unit
Airflow 100 lb/ unit
Import duties as a percentage of price paid)
|
United States |
5% |
|
Country 1 |
10% |
|
Country 2 |
10% |
|
Country 3 |
25% |
Table 13.3 Combined rates for transportation and insurance between respective points
(Note: Projected sales volumes would justify shipping by container load. Though shipping rates would actually be charged per container load, for ease of calculation the rates below are shown as dollar costs per hundred pounds ($/cwt). If products were shipped in less than-container loads, rates would be much higher.)
|
From |
To |
Rate, $/cwt |
|
Belgium |
us |
1.65 |
|
Belgium |
Country 1 |
3.50 |
|
Belgium |
Country 2 |
3.00 |
|
Belgium |
Country 3 |
3.75 |
|
us |
Country 1 |
2.50 |
|
us |
Country 2 |
2.25 |
|
us |
Country 3 |
3.00 |
|
Country 1 |
Country 2 |
1.25 |
|
Country 2 |
Country 1 |
1.25 |
|
Country 3 |
Country 1 or 2 |
2.00 |
Footnote by Winklepleck: Ocean freight shipments from Belgium to Country 3 are very infrequent.
The total cost figures for assembling in Charleston and Country 3 appeared to be very close. If it was possible to obtain some type of free trade area in Charleston, or if the US government could refund duty on the component MA when the finished product was exported, Charleston would actually be less expensive. In any event, figures for all of the combinations should be carefully calculated.
Winklepleck also had some questions in his mind that he wondered if he should raise. They seemed to be important, but the president might not be pleased to have them brought up. If assembly were to be done overseas, how would quality be controlled? Should the company consider making a product for export that it thought it couldn't market successfully in the United States? Did the company have the resources needed and was it prepared to make the effort required to begin marketing internationally: establishing market ing channels, product promotion, etc.? How Jong would it take to reach the projected sales overseas, and what would be needed to promote the product? How sure could they be that they could ever sell the expected number of units in each of the two overseas markets?
Questions to be Answered: Try Solving Using Excel
In: Finance
2. A corporation must appoint a president, chief executive officer (CEO), chief operating officer (COO), and chief financial officer (CFO). It must also appoint a planning committee with three different members. There are 14 qualified candidates, and officers can also serve on the committee. Complete parts (a) through (c) below.
a. How many different ways can the officers be appointed? There are ...... ? different ways to appoint the officers.
b. How many different ways can the committee be appointed?
There are___different ways to appoint the committee.
c. What is the probability of randomly selecting the committee members and getting the three youngest of the qualified candidates?
P(getting the three youngest of the qualified
candidates)=________
(Type an integer or a simplified fraction.)
| 3. The data represent the results for a test for a
certain disease. Assume one individual from the group is randomly
selected. Find the probability of getting someone who tests
positive, given that he or she did not have the disease. The individual actually had the disease Yes No
The probability is approximately ...... ?(Round to three decimal places as needed.)
|
I need help to answer all of them please !
In: Statistics and Probability
An international travel company wanted to see if the US and Canadian citizens have different holiday preferences. They polled nationals and found:
|
Beach |
Cruise |
|
|
US |
209 |
280 |
|
Canada |
225 |
248 |
Use a chi-square test to test the hypothesis (Ha) that nationality and type of vacation is not independent. Please show all six steps.
In: Statistics and Probability
Who gains and who loses from inflation? Does this change if the inflation is anticipated vs. unanticipated?
In: Economics
Benefits and Cost of Mergers:
Who usually benefits from a merger?
Who usually loses in a merger?
In: Finance
3. a) Who gains and who loses from tariffs? Explain this gain and loss in terms of effect of trade on consumers and producers. Who is the consumer here and who is the producer?
b.) With the help of a graph, clearly explain the effect of tariff on consumers and producers. What is the net effect on the economy’s total welfare? Does the effect on welfare depend on the amount of tariff?
In: Economics
What is the impact on people who are descended from ancestors who experience involuntary migration.
In: Psychology
What is the impact on people who are descended from ancestors who experience voluntary migration.
In: Psychology
What is a government price floor? Who benefits from the floor? Who pays the cost of the floor?
In: Economics
Jacob Weaver is a contractor operating as a sole proprietorship (EIN 12-3456789).
2018 Gross income: $243,322.25.
Business expenses: Fuel for equipment $64,080.00
Repairs and maintenance $17,342.00
Lubricants for Equipment $9,670.00
Insurance $6,500.00
Wages $6,300.00
Vehicles $1,768.00
Legal and Professional Expenses $1,750.00
Taxes and Licenses $1,412.00
Advertising $300.00
Clients owe him a total of $53,000, for work completed in 2018.
2018 estimated tax payments were $25,000.
He is using a bedroom in his house as a home office. (Square footage of home 5,600 Office 240 sq. ft.)
He has one half-time employee, Martin, who had been unemployed since returning
from Afghanistan, and is disabled.
Martin worked for Jacob for 20 hours a week, for 41 weeks of 2018.
He earned $10,500.
Jacob had to spend $7,350 for disabled access equipment for Martin.
--------------------------------
Scenario
Jacob and Taylor Weaver, ages 45 and 42 respectively, are
married and are filing jointly in
2018.
They have three children, Ashley, age 9; Patrick, age 6; and John, age 18.
Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John, 123-45-6789.
Taylor works part-time as a paralegal.
She earned $26,000 in 2018.
Taxes withheld: $4,200 withheld.
Estimated tax payments: $25,000.
$350 paid with their 2017 state tax return.
Jacob and Taylor bought their first house in 2018.
Home mortgage interest: $7,246.
Property tax: $2,230.
Federal income withholding: $2,350.
Charities: $4,500.
$435 to rent a moving truck.
$8,000 to put new siding on the house.
$11,600 for child care expenses ($5,800 for each child).
It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).
Taylor is a part-time student at Ball State University in Muncie.
She received a 1098-T indicating tuition and fees for 2018 in the amount of $6,011.
Health insurance for the family, through Taylor's job, cost $6000 for all 12 months of 2018.
They paid deductibles and co-payments of $550.
QUESTIONS
Please can you show all the exclusions to Taxable income and AGI only on a Form 1040 using above information. I have already completed the other parts of the form, I can do the rest additions and subtractions. Thank you
In: Accounting