3) Volare, Inc. has decided to introduce a new product. The product can be manufactured using either a capital-intensive or labor-intensive method. The manufacturing method will not affect the quality or sales of the product. The estimated manufacturing costs of the two methods are as follows: Capital-Intensive Variable manufacturing cost per unit $ 14.00 Fixed manufacturing cost per year $ 2,440,000 Labor-Intensive $ 17.60 $ 1,320,000 The company's market research department has recommended an introductory selling price of $30 per unit for the new product. The annual fixed selling and administrative costs of the new product are $500,000. The variable selling and administrative costs are $2 per unit regardless of how the new product is manufactured. Required: a. Calculate the break-even point in units if Volare, Inc. uses the: 1. capital-intensive manufacturing method. 2. labor-intensive manufacturing method. b. Determine the unit sales volume at which the operating profit is the same for the two manufacturing methods. c. What is your recommendation to management concerning which manufacturing method to use? please type on word not by writing hands

Assignment # 2 - Individual effort

Video Case Study-- Rise Luggage -- Dragon's Den

BUSN BA532 Spring-Summer 2020    Weight 15% overall    Total possible Points—10

Objective

Please watch the Dragons Den video Rise Luggage video.

This segment is about two brothers who have an entrepreneurial spirit, and have developed a new product for the luggage industry. They need funding to get their product to market and have elected to present to the Dragons Den panel for funding.

Your objective is to write a one-page summary of what you learned from this video. Consider the money that may be required. Consider the distribution channels that they can choose from as presented by the Dragons.

There is no right or wrong answer, however, use your critical thinking skills to demonstrate your understanding of the business decisions the two brothers must make.

• Format- WORD Doc only—Drop Box
• 10 possible points
• Your summary of what you have learned One Page - 8 points
• Grammar, spelling, professional report     - 2 points
• Overall 10 points

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Part 9

If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to deposit ratio is 0.09, then:

a) Calculate the total demand for high powered money.

b) Calculate the money multiplier.

(1 mark each for sub-parts a and b (no word count requirement applies) - Part 9 worth 2 marks)

Additional Requirements

1. Honesty pledge that you have completed the Course Experience Survey (CES).

Note: We value your feedback and want to encourage students to provide their feedback especially this semester when things have been so different (e.g. fully online classes, shift to final assessment as assignment instead of exam). Your responses on the CES are confidental, all you need to be to earn 0.5 mark for this is pledge that you have completed the CES. While there is no way we can in fact check this we hope you will be honest and motivated to complete the CES which you can access on Canvas via Student Surveys in the navigation menu.

(0.5 marks)

2. Include a Reference list to acknowledge sources used and cited within your assignment

(1 mark)

4. Complete the following table and answer the accompanying questions. Note: The missing variables can be computed using the mathematical definitions. This computation is best completed in MS Excel. Copy and paste the resulting table into this Word document.

A. At what level of labor (control variable) is profit (net benefit) maximized?

Your answer:

B. What is the relation between marginal revenue and marginal cost at this level of the control variable?                       

Your answer:

C. Graph Profit, Marginal Revenue, and Marginal Cost in a single line graph. Note that marginal revenue equals marginal cost where profit is maximized.

Suppose that you are an elementary school teacher and you are evaluating the reading levels of your students. You find an individual that reads 60.3 word per minute. You do some research and determine that the reading rates for their grade level are normally distributed with a mean of 100 words per minute and a standard deviation of 23 words per minute.

a. At what percentile is the child's reading level (round final answer to one decimal place).

b. Create a graph with a normal curve that illustrates the problem.

For the graph do NOT make an empirical rule graph, just include the mean and the mark off the area that corresponds to the student's percentile.

c. Make an argument to the parents of the child for the need for remediation. Structure your essay as follows:

1. A basic explanation of the normal distribution
2. Why the normal distribution might apply to this situation
3. Describe the specific normal distribution for this situation (give the mean and standard deviation)
4. Interpret the answer to part a. including a definition of percentile.
5. Explain how the graph created in part b. represents the child's reading level.
6. Use the answers to parts a. and b. to emphasize the gravity of the situation.
7. Give a suggested course of action.

Cost behavior is the term used to summarize the impact of costs that are influenced by volume. On a financial statement, these costs are identified as variable costs. Understanding the role of both fixed and variable costs in a health care organization is key to targeting profitability centers.

Assume the role of a financial consultant. You have been hired by a small non-profit hospital, struggling with profitability. You have been given full access to all financial and operational information to perform your research and analysis.

• Create a one-page outline of the work you will be performing. This outline will be given to the CFO.
• On a separate page, using fictional information, depict the hospital's cost behavior.
  • You may include graphics, such as pie charts or graphs, to illustrate.
  • Cost drivers should be clearly defined
  • One-page in length
• On a separate page, provide a recommendation summary for the CFO. This should include specific areas of concern to address, as well as areas of strength to continue supporting. Your wording should be professional and concise.
• Include a minimum of three references in APA style on a separate page
• Submit all four pages as part of one Word document

Now that we have seen Euler in action, let's return to examining the content of the M-File Euler.m. We have already explained the first line, where we defined the parameters our function takes. To see the meaning behind the third and fourth lines, type:

>> x = zeros(10,1);
y = zeros(10,1);
[x,y]

Thus we can see that the third and fourth lines of our M-File zero out the contents of our arrays x and y before we begin. Now, you'll continue examining our code.

Question: In your Word document, briefly explain what is happening in each remaining line of the M-File Euler.m.

The M-File is:

function [x,y] = Euler(h, x0, y0, interval_length, func)
nsteps = floor(interval_length/h) + 1;
x = zeros(nsteps,1);
y = zeros(nsteps,1);
x(1) = x0;
y(1) = y0;
for i=2:nsteps
    y(i) = y(i-1) + h* func(x(i-1), y(i-1));
    x(i) = x(i-1) + h;
end

You are a senior manager at Airbus and have been authorized to spend up to €200,000 for projects. The three projects you are considering have the following characteristics:

Project A: Initial investment of €158,000. Cash flow of €52,000 at year 1 and €108,000 at year 2. This is a plant expansion project, where the required rate of return is 9 per cent.

Project B: Initial investment of €200,000. Cash flow of €200,800 at year 1 and €113,000 at year 2. This is a new product development project, where the required rate of return is 19 per cent.

Project C: Initial investment of €104,000. Cash flow of €104,400 at year 1 and €102,000 at year 2. This is a market expansion project, where the required rate of return is 19 per cent. Assume the corporate discount rate is 9 per cent.

Required; Please offer your recommendations following your investment appraisal using Payback period, IRR, Incremental IRR, PI and NPV backed by your analysis of 1000 words. All calculations should be attached in an appendix at the end of your report (and do not form part of the word count).

Wenatchee is a town on a large river. On the other side of the river is East Wenatchee (since the river is the county line, these are in two different counties and thus, two different cities.) Wenatchee (which I refuse to call "West Wenatchee") is pretty much hemmed in on all sides by mountains. East Wenatchee, on the other hand, sits on a large plateau surrounded by wheat fields.

Assume that housing in Wenatchee and housing in East Wenatchee are what economists call "perfect substitutes." This means basically that people don't care whether they live in Wenatchee or East Wenatchee. Then imagine that in the nearest big city there is a pandemic followed by a bunch of riots. Part of the town is taken over by Marxists revolutionaries. The city starts dismantling the police and raising taxes because they have no money. (Just try to imagine it!) and this causes a lot of people to decide it would be nice to live in a smaller town on the other side of the mountains.

Which will grow more, Wenatchee or East Wenatchee? Why? Your answer should include econ words like "supply," "demand," "quantity supplied," "quantity demanded," and a certain important word from chapter 5. It should also probably include a graph or two.