1. You are a project manager at a construction company that specializes in building office buildings. You were approached by a representative of a company that was interested in your company’s services. He told you that their company was growing and they decided to build a new office building to address their needs. Then he told you that they already started the process with another construction company. They signed a contract with the other construction company and they started the building process.  Unfortunately, the other construction company experienced financial problems and went out of business. Now they were facing a problem. They have already sold the old office building and committed to a date they would move out. They asked you for a proposal for completing the building process.

As a project manager, you realized that it could be a very good opportunity. This is a win case for you and a lose case for them. Since they must move out of their old office building, they are probably very vulnerable.  Therefore, you can inflate the price, compromise on the specifications and still get the job. You think about how impressed your boss will be.

How will you handle this case?  What will you offer the potential client with respect to the price for completing the project and the specifications you will guarantee?  Please present the different alternatives you have, explain the advantages and disadvantages to each alternative, select the alternative you recommend, and justify your recommendation.

Which of the following statements about quantity discounts is false? A) The cost-minimizing solution may or may not be where annual holding costs equal annual ordering costs. B) In inventory management, item cost becomes relevant to inventory decisions only when a quantity discount is available. C) If carrying costs are expressed as a percentage of value, EOQ is larger at each lower price in the discount schedule. D) The larger the annual demand, the less attractive a discount schedule will be. E) When quantity discounts are allowed, the cost-minimizing order quantity minimizes the sum of holding, ordering, and product costs

1. How does translation exposure affect a business with a high percentage of business conducted by subsidiaries? What factors come into play?

2. Answer the following questions regarding DFI strategy.
(a) Bronco Corp. has decided to establish a subsidiary in Taiwan that will produce stereos and sell them there. It expects that its cost of producing these stereos will be one third the cost of producing them in the United States. Assuming that its production cost estimates are accurate, is Bronco's strategy sensible? Explain. (10 points)
(b) Once an MNC establishes a subsidiary, DFI remains an ongoing decision. What does this statement mean?

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your "Predetermined Overhead Rate" answers to 2 decimal places and all other answers to the nearest whole dollar.)

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates:

During the year, Job 550 was started and completed. The following information is available with respect to this job:

Required:

1. Assume that Landen has historically used a plantwide predetermined overhead rate with direct labor-hours as the allocation base. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

2. Assume that Landen’s controller believes that machine-hours is a better allocation base than direct labor-hours. Under this approach:

a. Compute the plantwide predetermined overhead rate.

b. Compute the total manufacturing cost of Job 550.

c. If Landen uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 550?

(Round your intermediate calculations to 2 decimal places. Round your Predetermined Overhead Rate answers to 2 decimal places and all other answers to the nearest whole dollar.)

8. Explain how the movement of the convection fluid as it heated up relates to masses of heated air.

9. What do you expect will occur as air masses move over cold locations? Hot locations? Explain how this movement of air masses influence climate.

10. Describe how the qualities of air masses differ depending on whether they form over land or over an ocean.

11. What climate would regions where air masses from the equator and the poles collide probably have?

12. Carbon dioxide is a greenhouse gas that causes excess solar energy to be trapped in the form of heat in the atmosphere. Discuss how carbon dioxide may affect convection currents.

13. Although it is near the Atlantic Ocean, the northwest coast of Africa is characterized by hot, dry deserts. However, the Caribbean, at approximately the same latitude, possess a hot, moist climate and even supports rainforests. Using knowledge of the Coriolis Effect and air currents explain why this is true.

14. Describe how rising and sinking air (high and low pressure) in the atmosphere explains deserts near 30°N and 30°S.

15. Air in the troposphere is heated from the bottom up by heat given off by the surface of the earth. If the sun shines equally on Seattle (near water) and Bismarck, North Dakota, explain which would get hotter during the day.