Questions
Alan owes Brian HK$5,000, which is due on 31 March. On 15 March, he sought Brian’s...

  1. Alan owes Brian HK$5,000, which is due on 31 March. On 15 March, he sought Brian’s consent to accept a lesser sum of US$600 on 24 March (i.e., one week in advance of the due date) to discharge the whole debt. Brian agreed to this arrangement. Alan then made a bank loan of US$600 at an annual interest rate of 5% with a view to paying Brian. Today is 24 March, Brian has now changed his mind. He insists to revert to the previous position of full payment HK$5,000 to be paid on 31 March. Advise Alan if his part payment is able to discharge the whole debt in such case. [ Discuss the doctrine of promissory estoppel.]

2       Milky entered into a contract for the hire of 6 rooms in New Castle Hotel in    Kowloon West. The purpose of the contract was to watch the fireworks gala in the Victoria Harbour on the 1st July (Reunification Day) through the windows of the rooms. Milky planned to invite her close friends and their families to stay in the 6 rooms to enjoy the fireworks. Just two hours before start of the fireworks, the Hong Kong Police Force received a serious threat from some terrorist organizations that they would launch large scale attack to the crowds who gathered to watch the fireworks. The Hong Kong Government immediate ordered the cancellation of the fireworks and gave an order that this kind of gala will not be launched at least for five years. Milky, having already paid a deposit, refused to pay the balance of the room charges. The hotel took legal action to recover the balance.

        

Required:

Analyse the chance of success by the hotel and explain in detail the legal principles that you base on for analysis.

3      Devil Computers Ltd (DCL) produces hard disks for installing in computers. The Hong Kong Land Bank (HKLB) would like to purchase new computers for its new computer room situate at the fourth floor of its headquarters in Homantin. HKLB asked DCL for their hard disks which could survive in good conditions for at least 3 years. DCL sold some of their “long life” hard disks to HKLB.

         In fact, the “long life” hard disks only survived for 6 months and the staff of HKLB complained about the performance and quality of the hard disks.

Required:

Advise whether HKLB could claim damages and repudiate the contract of sale with DCL under the provisions of the Sale of Goods Ordinance. Detail explanation of that specific provision is necessary.     

In: Accounting

Using the below data calculate the quadratic formula. Then calculate the following: i) Fixed cost ii)...

Using the below data calculate the quadratic formula.

Then calculate the following:

i) Fixed cost

ii) Average total cost

iii) Marginal cost

d) Using your answers from part c) calculate fixed cost, average total cost, and marginal cost if 25 units

Coefficient

Std. Error

t-ratio

p-value

const

2.22486

2.29906

0.9677

0.3347

q

0.00434763

0.000230941

18.83

<0.0001

sq_q

1.63160e-08

2.79915e-09

5.829

<0.0001

In: Economics

Flexible Overhead Budget Leno Manufacturing Company prepared the following factory overhead cost budget for the Press...

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Variable overhead cost:
   Indirect factory labor $81,900
   Power and light 3,870
   Indirect materials 25,200
      Total variable overhead cost $110,970
Fixed overhead cost:
   Supervisory salaries $38,840
   Depreciation of plant and equipment 24,410
   Insurance and property taxes 15,540
      Total fixed overhead cost 78,790
Total factory overhead cost $189,760

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours 7,000 9,000 11,000
Variable overhead cost:

Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Variable overhead cost:
   Indirect factory labor $81,900
   Power and light 3,870
   Indirect materials 25,200
      Total variable overhead cost $110,970
Fixed overhead cost:
   Supervisory salaries $38,840
   Depreciation of plant and equipment 24,410
   Insurance and property taxes 15,540
      Total fixed overhead cost 78,790
Total factory overhead cost $189,760

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours 7,000 9,000 11,000
Variable overhead cost:

In: Accounting

Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement

In 20x2, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

20x1 20x2
Number of units produced 510,000 420,000
Labor hours used 170,000 210,000
Materials used (lbs.) 2,550,000 1,400,000
Unit selling price $21 $23
Wages per labor hour $13 $15
Cost per pound of material $3.70 $3.80

Required:

1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials   
Total PQ cost $

2. Calculate the actual cost of inputs for 20x2. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials   
Total current cost $

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

Labor productivity change $
Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 20x1 to 20x2 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

In: Accounting

Profit-Linked Productivity Measurement In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement

In 2015, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

2014 2015
Number of units produced 570,000 480,000
Labor hours used 114,000 120,000
Materials used (lbs.) 1,900,000 1,200,000
Unit selling price 25 27
Wages per labor hour 16 18
Cost per pound of material 3.70 3.80

Required:

1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials    
Total PQ cost $

2. Calculate the actual cost of inputs for 2015. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials    
Total current cost $

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

Labor productivity change $
Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

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In: Accounting

Profit-Linked Productivity Measurement In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement

In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued:

                                                           2014                    2015

Number of units produced             510,000                420,000

Labor hours used                          170,000                 210,000

Materials used (lbs.)                      1,700,000           1,050,000

Unit selling price                                     22                         24

Wages per labor hour                            12                          14

Cost per pound of material                    3.50                     3.60

Required:

1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. If required, round your answers to the nearest dollar.

Cost of labor $

Cost of materials

Total PQ cost $

2. Calculate the actual cost of inputs for 2015. If required, round your answers to the nearest dollar.

Cost of labor $

Cost of materials $

Total current cost $

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.

$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

Labor productivity change $

Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery? Calculate the total profit change.

$

Calculate the price-recovery component.

$

In: Accounting

Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement In 20x2, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued: 20x1 20x2 Number of units produced 570,000 480,000 Labor hours used 190,000 240,000 Materials used (lbs.) 2,850,000 1,600,000 Unit selling price $20 $22 Wages per labor hour $13 $15 Cost per pound of material $3.40 $3.50

Required: 1. Calculate the cost of inputs in 20x2, assuming no productivity change from 20x1 to 20x2. If required, round your answers to the nearest dollar. Cost of labor $ Cost of materials Total PQ cost $

2. Calculate the actual cost of inputs for 20x2. If required, round your answers to the nearest dollar. Cost of labor $ Cost of materials Total current cost $ What is the net value of the productivity changes? If required, round your answers to the nearest dollar. $ How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate. Labor productivity change $ Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 20x1 to 20x2 is attributable to price recovery? Calculate the total profit change. $ Calculate the price-recovery component. $

In: Accounting

Profit-Linked Productivity Measurement In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw Company provides the following information so that total productivity can be valued: 2014 2015 Number of units produced 510,000 420,000 Labor hours used 102,000 105,000 Materials used (lbs.) 1,700,000 1,050,000 Unit selling price 24 26 Wages per labor hour 14 16 Cost per pound of material 3.90 4.00

Required: 1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. If required, round your answers to the nearest dollar.

Cost of labor $

Cost of materials

Total PQ cost $

2. Calculate the actual cost of inputs for 2015. If required, round your answers to the nearest dollar.

Cost of labor $

Cost of materials

Total current cost $

What is the net value of the productivity changes? If required, round your answers to the nearest dollar. $

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

Labor productivity change $

Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery?

Calculate the total profit change. $

Calculate the price-recovery component. $

In: Accounting

Question 2 (20 Marks) Nimbus Inc. makes brooms and then sells them door-to-door. Below you will...

Question 2

Nimbus Inc. makes brooms and then sells them door-to-door. Below you will find the relationship between the number of workers and Nimbus’s output in a given day.

Workers

Output

Marginal Product

Total Cost

Average Total Cost

Marginal Cost

0

0

-

200

-

1

20

20

300

15

5

2

50

30

400

8

3.33

3

90

40

500

5.56

2.5

4

120

30

600

5

3.33

5

140

20

700

5

5

6

150

10

800

5.33

10

7

155

5

900

5.81

20

  1. Fill in the column for marginal products. What pattern do you see?

  1. A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to fill in the total cost column, consult your notes for the formula.

  1. Fill in the column for average total cost. What pattern do you see?

  1. Now fill in the column for marginal cost. Consult your notes for the formula. What pattern do you see?

  1. Compare the column for marginal product and the column for marginal cost. Explain the relationship.

  1. Compare the column for average total cost and the column for marginal cost. Explain the relationship.

please use word to answer the questions. thank you

In: Economics

Profit-Linked Productivity Measurement In 2015, Choctaw Company implements a new process affecting labor and materials. Choctaw...

Profit-Linked Productivity Measurement

In 2015, Choctaw Company implements a new process affecting labor and materials.

Choctaw Company provides the following information so that total productivity can be valued:

2014 2015
Number of units produced 570,000 480,000
Labor hours used 114,000 120,000
Materials used (lbs.) 1,900,000 1,200,000
Unit selling price 25 27
Wages per labor hour 16 18
Cost per pound of material 3.70 3.80

Required:

1. Calculate the cost of inputs in 2015, assuming no productivity change from 2014 to 2015. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials    
Total PQ cost $

2. Calculate the actual cost of inputs for 2015. If required, round your answers to the nearest dollar.

Cost of labor $
Cost of materials    
Total current cost $

What is the net value of the productivity changes? If required, round your answers to the nearest dollar.
$

How much profit change is attributable to each input's productivity change? If an item is negative, use a minus (-) sign to indicate.

Labor productivity change $
Materials productivity change $

3. What if a manager wants to know how much of the total profit change from 2014 to 2015 is attributable to price recovery? Calculate the total profit change.
$

Calculate the price-recovery component.
$

In: Operations Management