Deluxe river cruises operates a fleet of river vessels. The fleet has two types of vessels: A type A vessel has 60 deluxe cabins and 160 standard cabins, whereas a type B vessel has 80 deluxe cabins and 120 standard cabins. Under a charter agreement with the Odyssey travel agency, Deluxe River cruises is to provide Odyssey with a minimum of 360 deluxe and 680 standard cabins for their 15-day cruise in May. It costs 44,000 to operate a type A vessel and 54,000 to operate a type B vessel for that period.

a) How many of each type of vessel should be used to keep the operating costs to a minimum?

b)Find the range of values that the cost of operating a type A vessel can assume without changing the optimal solution.

C) find the range of values that the requirement for deluxe cabins can assume.

D)find the shadow price for the requirement for deluxe cabins.

1) A submarine has a total mass of 2.19  10⁶ kg, including crew and equipment. The vessel consists of two parts, the pressure hull, which has a volume of 2.00  10³ m³, and the ballast tanks, which have a volume of 5.10  10² m³. When the boat cruises on the surface, the ballast tanks are filled with air at atmospheric pressure; to cruise below the surface, seawater must be admitted into the tanks. (Neglect the mass of air in the tanks and use 1.025 as the specific gravity of seawater.)

(a) What fraction of the submarine's volume is above the water surface when the tanks are filled with air?
%

(b) How much water must be admitted into the tanks to give the submarine neutral buoyancy?
m³

²⁾ A 59-g ball consists of a plastic spherical shell and a water-filled core. the shell has an outside diameter equal to 46.6 mm and an inside diameter equal to 16.0 mm. What is the density of the plastic?
kg/m³

9. An online site presented this​ question, "Would the recent norovirus outbreak deter you from taking a​ cruise?" Among the 34,592 people who​ responded, 65​% answered​ "yes." Use the sample data to construct a 95​% confidence interval estimate for the proportion of the population of all people who would respond​ "yes" to that question. Does the confidence interval provide a good estimate of the population​ proportion?

____<p<____

​(Round to three decimal places as​ needed.)

11. During a period of 11 years 697 of the people selected for grand jury duty were​ sampled, and 65​% of them were immigrants. Use the sample data to construct a​ 99% confidence interval estimate of the proportion of grand jury members who were immigrants. Given that among the people eligible for jury​ duty, 66.2​% of them were​ immigrants, does it appear that the jury selection process was somehow biased against​ immigrants?

___<p<____

​(Round to three decimal places as​ needed.)

In each of the following cases, do you think the price elasticity of supply is (1) perfectly elastic; (2) perfectly inelastic; (3) elastic, but not perfectly elastic; or (4) inelastic, but not perfectly inelastic?

a. An increase in demand this summer for luxury cruise leads to a huge jump in the sales price of a cabin on the Queen of Oak Bay

b. The price of a kilowatt of electricity is the same during periods of high electricity demand as during periods of low electricity demand.

c. Fewer people want to fly during February than during any other month. The airlines cancel about 10% of their flights as ticket prices fall bout 20% during this month.

d. Owners of cottages on Quadra Island, BC rent them out during summer. Due to the soft economy this year, a 30% decline in the price of a vacation rental leads more than half of homeowners to occupy their vacation home themselves during summer.

In connection with an audit client, for each of the following subsequent events indicate the appropriate treatment from the list below. Assume your client has a December 31 yearend.

1. Adjust the year-end financial statements to reflect the information contained in the event.

2. Disclose the event in the notes to the financial statements and/or in the audit report.

3.         Neither adjustment nor disclosure is necessary.

1. At 11:45 PM on December 31 (the last day of the fiscal year), a cruise ship owned by your client is struck by an iceberg. On January 1, the ship sinks. Luckily, in case you were wondering, all passengers and crew were safely rescued.

2. After year-end, the Vice President for Human Resources resigned to take a job elsewhere.

3. After year-end, a lawsuit is filed regarding a defect in one of your client’s products that the client was not previously aware of. It seems likely that this will be a costly lawsuit to defend and/or settle.

true or false

7) A challenge with all of the data sources available today is that so much data is now available, it requires people with the knowledge to properly synthesize and analyze the correct data, or else the models produced will not properly answer the question trying to be asked.   True: _____ False: _____

8) The Emergency Locator Transmitter activates and sends out a pinging signal making it easier to find wreckage in the case of an accident. However, there are still limitations in the technology as the battery typically only is designed to last a few days at best.   
True: _____ False: _____

9) Despite ICAO embracing a liberalization of skies, in Doc 9626, the organization still hesitates to promote the idea of a “flag of convenience” the same way they are used in the shipping and cruise industries “in order to ensure an orderly economic regulatory regime.”   True: _____ False: _____

10) The FAA has lost the battle over control of Commercial Space policy because of the new creation of the United States Space Force.   True: _____ False: _____

American Textile has the following issues to resolve to locate a new plant to manufacture towels for the growing US market:

• In Vietnam, 6 laborers, each making $2/day, can produce 48 towels per day
• In the Philippines, 3 laborers, each making $5/day, can produce 50 towels per day
• In the Dominican Republic, 10 laborers, each making $2/day, can produce 80 towels per day
• In Tupelo, Mississippi, 2 laborers, each making $58/day, can produce 290 towels per day

(Note: All money is in equivalent US Dollars and all laborers are working an 8-hour day)

1. Based on LABOR COSTS alone, which location would be the most economical to produce the towels and open a new plant? Show your work, summarize in a paragraph, and provide your decision.

The production in Vietnam, the Philippines, and the Dominican Republic is labor intensive while Tupelo has some newer equipment to make production easier. However, the education system in each country is different and repair costs for equipment vary by the education of the workforce and the ability to obtain spare parts. So, the FIXED COSTS for all equipment, rent (building – the only one owned by American Textile is in Tupelo, MS), and repair/maintenance for each location per year includes:

LOCATION

EQUIPMENT

RENT

REPAIR/MAINT.

TOTAL FIXED COSTS

2. Calculate the TOTAL FIXED COSTS for each location then set up an equation for each showing TOTAL FIXED COSTS + VARIABLE COSTS (in this instance LABOR COSTS PER UNIT only) and TOTAL COSTS based on 200,000 towels per year. Draw a CROSSOVER CHART based on this number. What is the best location to choose?
3. Calculate the TOTAL COSTS and the best location to manufacture towels if the total volume increases to 500,000, and 1,000,000 (this can be placed in a graph – show me your calculations). What is this telling us about the cost to manufacture?
4. If each towel is selling for $5.00 a piece, what is the TOTAL REVENUE at each location for 200,000, 500,000 and 1,000,000 towels?
5. Is there a crossover point where it is better to move production based upon volume?
6. What does this tell me about global competition and what is needed for nations to compete? What is the driving factor based solely upon this model? What needs to change to make those who are not competitive more competitive? Do they have an advantage if the market is North America – and what is the advantage of one over another?

Scott Mcnealy and Sun Microsystems

Abstract:

Scott McNealy had been the CEO of Sun Microsystems, a company that he had co-founded in 1984, for 22 years. In April 2006, he announced his decision to step down in favor of Sun's president and COO Jonathan Schwartz.

This case study discusses the various events at Sun under McNealy's leadership. It traces the company's growth from a small startup in the mid 1980s to one of the driving forces behind the internet economy in the 1990s. It also talks about the events that led to Sun's decline in the early 2000s, and McNealy' failure to arrest this decline. The case concludes with a discussion of the leadership change at Sun and whether Schwartz was the right person to give the ailing company a new lease of life.

Questions:

1. Assuming that you were hired as a consultant to the Sun board of directors, describe what should be done with the Sun management team.  Make it clear whether the management team should be changed or whether economic and technological circumstances have caused the problems at Sun, meaning the current management team can still lead Sun to success.

INTRODUCTION

"Scott (McNealy) is kind of like Moses. (He) led the world to the land of milk and honey, but he got left behind."

- Paul Saffo, director, Institute for the Future,1 in 2004.2

"Sun has been a labor of love for me for since 1982 and it has been an honor and privilege to serve as its CEO for the past 22 years. We've helped shape the industry as it is today, and the opportunities before us are immense."2

- Scott McNealy, co-founder, chairman and former CEO of Sun Microsystems, in 2006.3

The End of an ERA

In April 2006, Scott McNealy (McNealy), the co-founder of Sun Microsystems, Inc. (Sun), announced that he would step down as the CEO of Sun in favor of the company's president and Chief Operating Officer (COO) Jonathan Schwartz (Schwartz). This was significant news for the IT industry, as McNealy had been at the helm of Sun for the last 22 years and had steered the company through a series of ups and downs in the industry.

The announcement was made on the same day that Sun announced a loss of $217 million4 for the quarter ended March 31st 2006, (taking the company's cumulative losses since 2002 to a staggering $4.5 billion).

It was not a surprise as Wall Street had been calling for McNealy's resignation since the early 2000s when Sun first went into decline following the bursting of the dotcom and telecom bubbles in 2000 and 2001 respectively. Between fiscal years 2001 and 20055, Sun saw its sales fall 39 percent and its share price plummet from a peak of $64 in mid 2002 to around $4 by 2005. Following the announcement of McNealy's exit, the stock gained 8.6 percent in extended trading and reached its highest level of the year at $5.41 (Refer Exhibit I for Sun's share prices).

McNealy said that the leadership change was a part of the company's succession planning efforts, and that he was looking forward to playing the role of 'chief evangelist' within Sun. However, some analysts felt that that the board had forced McNealy to step down under intense pressure from Wall Street over the company's poor financial performance.

McNealy was to continue as the chairman of Sun's board as well as chairman of the board of Sun Federal, Inc.6 McNealy was as well known in the IT industry for his visionary leadership of Sun in the 1980s and 1990s, as for his witty takes on competitors, especially Microsoft Corp. (Microsoft)...

He was one of the most controversial leaders in the industry, but even his harshest critics could not deny that he played a pivotal role in shaping the future of computing. It was not surprising therefore that when the leadership change at Sun was announced, analysts said it was 'the end of an era'in the history of the IT industry.

Background

McNealy was born on November 13, 1954 in Indiana. His father, William McNealy was vice chairman at American Motors Corp. (AMC).7 As a child, McNealy took an avid interest in the auto industry - an interest encouraged by his father, who often discussed business with the youngster and allowed him to accompany him when he went to play golf with people like Lee A. Iacocca.8

After attending Cranbrook Kingswood School, a preparatory school near Detroit, McNealy was accepted at Harvard University, from where he graduated with a degree in Economics in 1976. He then tried for a place at Stanford Graduate School of Business (Stanford) but was rejected.

While trying for an admission into Stanford, McNealy took up a job as foreman at the Rockwell International Corp. (Ohio), which made body panels for trucks. When he eventually got into Stanford in 1978, he chose to specialize in manufacturing rather than the more popular finance. He was not a dedicated student and later admitted that he spent more time 'goofing off' than in classes.

One of his classmates recalled that McNealy never bothered to attend any class that he did not think would help him get a job. At that point McNealy was not ambitious. Reportedly, his ambition was to start a small machine shop that he could leave to his children, and then, to retire early. After graduating in 1980, he worked in the manufacturing departments of FMC Corp. (which made tanks for the US army) and of minicomputer maker Onyx Systems. In 1982, Vinod Khosla (Khosla), McNealy's classmate at Stanford, asked him to join him, Andy Bechtolsheim (Bechtolsheim) and Bill Joy (Joy) in starting a computer manufacturing unit to make and sell workstations operating on UNIX.

The Golden Years

It was McNealy's dynamism and vision that were largely responsible for Sun's rapid growth in the first two decades of the company's existence. When McNealy first joined Sun, he was in charge of manufacturing, but later became responsible for sales as well. This helped him develop a good understanding of different areas of the business. After McNealy became CEO in 1984, he played an important role in shaping Sun's vision that 'The Network is the Computer'. Sun was committed to developing technologies that would allow computers to connect seamlessly over a network, thus increasing their power tremendously. Networking would allow computing to be provided like a utility, just like electricity and telecommunications..

The Decline

The beginning of the new millennium turned out to be inauspicious for the US economy. The collapse of several dotcom and telecom companies combined with the September 11 terrorist attacks on the US sent the economy into a decline, and one of the worst affected by these adversities was the IT industry...

Conclusion

According to analysts, Sun could have become one of the giants of the IT industry, on par with IBM and Microsoft. Many concepts that had become the standard in the early 2000s, like networking and open source, were first popularized by Sun. But the company took some missteps along the way, which did not allow it to take advantage of its resources. "They've (Sun) always had lots of great things on paper. But when it comes to execution, they're lacking. They always seem to be behind where they need to be" said Gary Feierstein, vice-president for information technology at Premier Inc., a hospital management company.

Schutz Building Services is a fast-growing business in the housing industry. Johan Schutz started the business three years ago and has worked hard to establish the firm. Johan has no accounting knowledge and simply keeps his invoices and receipts in a shoebox that he takes to his accountant once a year to be sorted out and turned into financial statements for tax purposes. Johan does not use financial statements for decision making. So long as he has cash in the bank, Johan is satisfied with how his business is operating. Unfortunately, Johan’s accountant has suddenly left the country and retired to South America. Johan is negotiating a contract with a supplier of building materials who wants to see his financial statements to ensure that Johan can meet his payments each month. Johan has asked you to prepare financial statements. Based on his last tax return and the contents of his shoebox for this year, you have established the following items.

Cash in the shoebox (with the receipts and invoices) $500

Cash in the bank account $3800

Building services provided $550,000

Amount owed by customers $80,000

Wages paid to employees $150,000

Wages owed to the employees $3500

Equipment $68,000, Building supplies used $310,000

Building supplies on hand $18,000

Amounts owed to suppliers $30,000

Motor Vehicle $32,000

Motor vehicle expenses $5600

Electricity and telephone expenses $4000

Cash used by Johan for personal expenditure $5700

Question 1: Using the information, provide a profit and loss statement and a balance sheet in narrative form for Schutz Building Services for the current period. Complete the statements in the forms provided below.

Question 2: How would the financial statements you produce help the supplier of building materials decide whether to trade with Johan? What parts of the financial statements would be positive indicators that Schutz Building Services would pay for supplies on time and what items may cause some concern for the supplier?

About 3 million years ago, the Isthmus of Panama (a narrow strip of land connecting North and South America) formed, dividing marine organisms into Pacific and Caribbean populations. Researchers have examined species of snapping shrimp on both sides of the isthmus. Based on the morphological species concept, there appeared to be seven pairs of closely related species, with one species of each pair in the Pacific and the other in the Caribbean. The different species pairs live at different depths in the ocean. Using mitochondrial DNA sequences, the researchers estimated phylogenies and found that each of these species pairs (sister species), separated by the isthmus, were indeed each other's closest relatives. The researchers investigated mating in the lab and found that many species pairs were not very interested in courting with each other, and, any that did mate, almost never produced fertile offspring.

1. These species are distinctive species under all three species concepts.

a. Likely

b. Not Likely

2. Sympatric speciation caused the difference between the seven species on the Pacific side.

a. Likely

b. Not Likely

3. Sympatric speciation caused the differences between the sets of sister species on either side of the Isthmus.

a. Likely

b. Not likely

4. If sea levels rises enough to cover the isthmus, the sister species on either side of the isthmus will likely undergo fusion.

a. Likely

b. Not likely

5. Habitat isolation is the only reproductive isolating barrier preventing the formation of hybrid from the different sister species.

a. Likely

b. Not likely

6. If sea levels rise enough to cover the isthmus, the frequency of hybrid offspring would decrease.

a. Likely

b. Not likely

7. What other type of reproductive isolating barrier is creating the reinforcement of differences between the sister (closely related) shrimp species pairs?

a. Behavioral isolation

b. Gametic isolation

c. Temporal isolation

d. Reduced hybrid fertility

e. Both A and D