Questions
2. Risk of Loss. Facts: Harold Shook agreed with Graybar Electric Co. to purchase three reels...
2. Risk of Loss.
Facts: Harold Shook agreed with Graybar Electric Co. to purchase three reels of burial cable for use in Shook’s construction work. When the reels were delivered, each carton was marked “burial cable,” although two of the reels were in fact aerial cable. Shook accepted the conforming reel of cable and notified Graybar that he was rejecting the two reels of aerial cable. Because of a trucker’s strike, Shook was unsuccessful in arranging for the return of the reels to Graybar. He stored the reels in a well-lighted space near a grocery store owner’s dwelling, which was close to his work site. About four months later, he noticed that one of the reels had been stolen. On the following day he notified Graybar of the loss and, worried about the safety of the second reel, arranged to have it transported to a garage for storage. Before the second reel could be transferred, however, it was also stolen, and Shook notified Graybar of the second theft. Graybar sued Shook for the purchase price, claiming that Shook had agreed to return to Graybar the nonconforming reels and had failed to do so. Shook contended that he had agreed only to contact a trucking company to return the reels and that, because he had contacted three trucking firms to no avail (owing to the strike), his obligation had been fulfilled.
ISSUE: Discuss who bears the risk of loss for the stolen reels.
RESOLUTION: [Graybar Electric Company v. Shook, 195 S.E.2d 514 (NC, 1973)] How did the court answer the questions? What did the court decide?
EXPLANATION-Do you agree with the court? Why or why not? Can you change any facts to give a different result?
In: Operations Management
As the manager of We Do It Right Construction, you need to make a decision on...
As the manager of We Do It Right Construction, you need to make a decision on how many home to build in a new residential area. The firm has some monopoly power in its local market. Its inverse demand curve is estimated to be P=300-3Q. Its cost function is 500+20Q+0.5Q^2. (Price and cost are in thousands, quantity is in units.)
a.) What is the revenue-maximizing price and quantity? Explain.
b.) What is the profit-maximizing price and quantity? How much profit can this firm make?
c.) Can you recommend any pricing strategy that would further improve profits for this firm beyond the profit-maximizing level you calculated in part (b)? If yes, explain the strategy and conditions necessary for its implementation.
d.) What market structure (perfect competition, monopolistic, oligopoly, etc.) is this market likely to have? What changes to price, quantity, and profits do you expect to happen in the long-run?
In: Economics
Momomo is a construction company in Japan. Momomo is concerned on the depreciation of Japanese Yen...
Momomo is a construction company in Japan. Momomo is concerned on the depreciation of Japanese Yen in the future. The company expected to pay its supplier EUR 950,000 in Germany in three months. At the same time, Momomo is expected to receive a payment of USD1,500,000 from its customer, three months from now. The cost of capital for Sakura is 7.5%.
The current spot rate is at JPY 109/USD and JPY120/EUR The following information was given by Momomo’s bank.
| Exercise Price | premium | |
| Call option on Yen | JPY 115/USD | 1.25% |
| Call option on Yen | JPY 126/EUR | 0.95% |
| Put Option on Yen | JPY118/USD | 1.23% |
| Put Option on Yen | JPY127/EUR | 1.00% |
a. How much is the minimum receipt that Momomo able to get if the company decides to perform option market hedge of its account receivable? State your answer in JPY
b. Calculate the maximum cost that Momomo has to bear if the company decides to hedge its account payable using option. State your answer in JPY.
In: Finance
1) To determine the price elasticity of demand for donuts in Denver, we compare the percentage...
In: Economics
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The...
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Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: |
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 231,000 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 180,000 | 300 | setups |
| Production design | Number of products | $ | 94,000 | 2 | products |
| General factory | Direct labor-hours | $ | 260,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machining | 8,000 | 3,000 |
| Number of setups | 60 | 240 |
| Number of products | 1 | 1 |
| Direct labor-hours | 9,000 | 1,000 |
1.
value:
10.00 points
Required information
| Required: |
| 1. | What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) |
2.
value:
10.00 points
Required information
| 2. |
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
3.
value:
10.00 points
Required information
| 3. |
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
4.
value:
10.00 points
Required information
| 4. |
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
5.
value:
10.00 points
Required information
| 5. |
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
6.
value:
10.00 points
Required information
| 6. |
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
7.
value:
10.00 points
Required information
| 7. | Which of the four activities is a batch-level activity? | ||||||||
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8.
value:
10.00 points
Required information
| 8. | Which of the four activities is a product-level activity? | ||||||||
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9.
value:
10.00 points
Required information
| 9. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
k
10.
value:
10.00 points
Required information
| 10. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
11.
value:
10.00 points
Required information
12.
value:
10.00 points
Required information
| 12. |
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
13.
value:
10.00 points
Required information
| 13. |
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
14.
value:
10.00 points
Required information
| 14. |
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
15.
value:
10.00 points
Required information
| 15. |
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
In: Accounting
Prepare journal entries, income statement, statement of retained earnings and analysis for the following: One Trick...
Prepare journal entries, income statement, statement of retained earnings and analysis for the following:
| One Trick Pony (OTP) incorporated and began operations near the end of the year, resulting in the following post-closing balances at December 31: |
| Cash | $ | 18,620 |
| Accounts Receivable | 9,650 | |
| Allowance for Doubtful Accounts | 900* | |
| Inventory | 2,800 | |
| Unearned Revenue (30 units) | 4,350 | |
| Accounts Payable | 1,300 | |
| Notes Payable (long-term) | 15,000 | |
| Common Stock | 5,000 | |
| Retained Earnings | 4,520 | |
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* credit balance. |
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The following information is relevant to the first month of operations in the following year: |
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OTP will sell inventory at $145 per unit. OTP’s January 1 inventory balance consists of 35 units at a total cost of $2,800. OTP’s policy is to use the FIFO method, recorded using a perpetual inventory system. |
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In December, OTP received a $4,350 payment for 30 units to be delivered in January; this obligation was recorded in Unearned Revenue. Rent of $1,300 was unpaid and recorded in Accounts Payable at December 31. |
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OTP’s note payable matures in three years, and accrues interest at a 10% annual rate. |
| January Transactions | |
| 1. |
Included in OTP’s January 1 Accounts Receivable balance is a $1,500 balance due from Jeff Letrotski. Jeff is having cash flow problems and cannot pay the $1,500 balance at this time. On 01/01, OTP arranges with Jeff to convert the $1,500 balance to a 6-month note, at 12% annual interest. Jeff signs the promissory note, which indicates the principal and all interest will be due and payable to OTP on July 1 of this year. |
| 2. |
OTP paid a $500 insurance premium on 01/02, covering the month of January; the payment is recorded directly as an expense. |
| 3. |
OTP purchased an additional 150 units of inventory from a supplier on account on 01/05 at a total cost of $9,000, with terms 2/15, n/30. |
| 4. |
OTP paid a courier $300 cash on 01/05 for same-day delivery of the 150 units of inventory. |
| 5. |
The 30 units that OTP’s customer paid for in advance in December are delivered to the customer on 01/06. |
| 6. |
On 01/07, OTP paid the amount necessary to settle the balance owed to the supplier for the 1/05 purchase of inventory (in 3). |
| 7. |
Sales of 40 units of inventory occuring during the period of 01/07 – 01/10 are recorded on 01/10. The sales terms are 2/10, n/30. |
| 8. |
Collected payments on 01/14 from sales to customers recorded on 01/10. The discount was properly taken by customers on $5,800 of these credit sales; consequently, OTP received less than $5,800. |
| 9. | OTP paid the first 2 weeks wages to the employees on 01/16. The total paid is $2,200. |
| 10. |
Wrote off a $1,000 customer’s account balance on 01/18. OTP uses the allowance method, not the direct write-off method. |
| 11. |
Paid $2,600 on 01/19 for December and January rent. See the earlier bullets regarding the December portion. The January portion will expire soon, so it is charged directly to expense. |
| 12. |
OTP recovered $400 cash on 01/26 from the customer whose account had previously been written off on 01/18. |
| 13. | An unrecorded $400 utility bill for January arrived on 01/27. It is due on 02/15 and will be paid then. |
| 14. | Sales of 65 units of inventory during the period of 01/10 – 01/28, with terms 2/10, n/30, are recorded on 01/28. |
| 15. |
Of the sales recorded on 1/28, 15 units are returned to OTP on 01/30. The inventory is not damaged and can be resold. |
| 16. | On 01/31, OTP records the $2,200 employee salary that is owed but will be paid February 1. |
| 17. |
OTP uses the aging method to estimate and adjust for uncollectible accounts on 01/31. All of OTP’s accounts receivable fall into a single aging category, for which 8% is estimated to be uncollectible. (Update the balances of both relevant accounts prior to determining the appropriate adjustment, and round your calculation to the nearest dollar.) |
| 18. | Accrue interest for January on the note payable on 01/31. |
| 19. |
Accrue interest for January on Jeff Letrotski’s note on 01/31 (see 1). |
For Analysis
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In: Accounting
For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.
For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.
True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
In: Economics
Which of these risks would most likely be a diversifiable risk for investors? A. The US...
Which of these risks would most likely be a diversifiable risk for investors?
A. The US dollar strengthens, making exports more expensive for non-US customers
B. Congress passes legislation that raises the corporate tax rate.
C. A hurricane damages factories near the Gulf Coast.
D. The Federal Reserve increases the interest rate.
In: Finance
What is the current in a wire of radius R = 3.58 mm if the magnitude...
What is the current in a wire of radius R = 3.58 mm if the magnitude of the current density is given by (a) Ja = J0r/R and (b) Jb = J0(1 - r/R) in which r is the radial distance and J0 = 5.08 × 10^4 A/m^2? (c) Which function maximizes the current density near the wire’s surface?
In: Physics
Which human resource management function/functions do you consider will affect you in the near future and late future?
Which human resource management function/functions do you consider will affect you in the near future and late future? Please answer the queston based on the career stages?
hint: please create a table to answer the question. The career stages and hr functions can be either row or column based on your idea generation.
In: Economics