The production of agricultural products like wheat is one of the few examples of a perfectly
competitive industry. In this question, we analyze results from a study released by the
Pakistan Department of Agriculture about wheat production in the Pakistan.
a. The average variable cost per acre planted with wheat was Rs.1070 per acre. Assuming a
yield of 500 bushels per acre, calculate the average variable cost per bushel of wheat.
b. The average price of wheat received by a farmer was Rs.2.65 per bushel. Do you think the
average farm would have exited the industry in the short run? Explain.
c. With a yield of 500 bushels of wheat per acre, the average total cost per farm was Rs.3.80
per bushel. The harvested acreage for rye (a type of wheat) in the Pakistan fell from 418,000
acres in 2004 to 274,000 in 2019. Using the information on prices and costs here and in parts
a and b, explain why this might have happened.
d. Using the above information, do you think the prices of wheat were higher or lower prior
to 2004? Why?

At the beginning of 2003, Firm X paid $80,000 for a piece of property with 1,000 acres of timber. The firm estimated that a total of 30,000 trees could ultimately be removed from this site. They estimated that the land could be sold for $10,000 after completion of the project.

During 2003, Firm X spent $150,000 on labor to help with the cutting and treatment of the timber (intangible development cost). It also purchased a piece of equipment for $20,000 to help with the extraction (tangible development cost). The equipment had a 10‐year life and would be used for a different project after completing work on the current project.

During 2003, the firm extracted 10,000 trees, and sold 8,000 of these trees. At that time, the firm estimated that an additional 20,000 trees could still be extracted.

In 2004, Firm X spent an additional $12,000 to help extract more trees. Firm X extracted an additional 11,000 trees, and sold a total of 5,000 trees. At that time, the firm estimated that an additional 9,000 trees could still be extracted.

Calculate the unit depletion rate for 2003 and for 2004.

Briefly outline the key issues in section 3 in the research report by Drury and El-Shishini (2005) -- link: https://www.cimaglobal.com/Documents/Thought_leadership_docs/2009-12-16-tech_resrep_divisional_performance_measurement.pdf

Focus on the following questions:

• •What is the difference between economic performance and managerial performance?
• •What are the limitations of financial metrics in general? State two ways in which the limitations maybe addressed?
• •Under what conditions may the use of ROI, in particular, lead to ‘under-investment’?
• •How does the use of residual income avoid the ‘under-investment’ problem?
• •Why is ROI the most commonly used financial metric?
• •How does the use of EVA© mitigate some of the shortcomings of traditional financial metrics?

What is the correlation between the number of calories consumed and BMI?

What is the slope coefficient for the linear relationship between the number of calories consumed and BMI, assuming that caloric intake is the independent variable? Round answer to 3 decimal places.

What is the intercept for the linear relationship between the number of calories consumed and BMI, assuming caloric intake is the independent variable?

Which of the following can you conclude based on your analyses?a) consumption of more calories leads to greater BMI b) consuming more calories leads to lower BMI c) calorie consumption has no relationship

2.

Strong corporate culture, ability to adapt is best blueprint for going global: Lenovo

The blueprint for any company that pursues international expansion starts with building a strong entrepreneurial culture that adapts to the times, according to Chinese technology giant Lenovo Group.

It is a business principle that has served Lenovo well in its decades-long transformation from a start-up electronics company in mainland China in 1984 into the world's biggest supplier of personal computers.

"When a company becomes bigger, make sure that there is a unique culture committed to execute its strategy," Ivan Cheung, Lenovo executive director and general manager for Hong Kong, Taiwan and Korea, said in his interview at the South China Morning Post's Game Changers Forum 3 on Tuesday.

Lenovo has been a role model for many Chinese technology companies since it acquired IBM's PC business in 2005. Photo: AFP

Lenovo has been a role model for many Chinese technology companies since it rapidly expanded its international operations after acquiring the personal computer division of IBM for US$1.75 billion in 2005.

The computer giant, which operates in more than 160 countries, has continued its expansion with the purchase last year of Motorola Mobility for US$2.91 billion from Google and the commodity x86 server business of IBM for US$2.1 billion.

"We're trying to replicate our success in the PC industry, in the smartphone and enterprise server businesses," Cheung said.

He pointed out that Lenovo translated the principles of accountability and entrepreneurship into a few action points: "We plan before we commit; we perform as we promise; we prioritise company first; and we practice improving everyday."

In their book The Lenovo Way, authors Gina Qiao and Yolanda Conyers said the strong corporate culture keeps the company prepared to change and diversify.

"The Chinese have a saying: To cultivate trees, you need 10 years. To cultivate people, you need 100 years. That's fine with us because we know how to be patient," the authors wrote.

Amid changes in the global economy and evolving consumer tastes, start-ups must also realise that being adaptable can help them survive tough times.

Lenovo currently finds itself in need to be more nimble as global personal computer sales continue to decline and competition in the smartphone and commodity server businesses intensify.

The company last month announced that it was laying off 3,200 employees in non- manufacturing jobs, out of its total 60,000 worldwide staff, under a sweeping restructuring plan.

That would help the company reduce expenses by US$650 million in the second half of its fiscal year to March and US$1.35 billion on an annual basis.

The restructuring will see Motorola be responsible for designing, developing and manufacturing smartphones. The production supply chain for personal computers and servers will also be integrated.

Yang Yuanqing, the chairman and chief executive at Lenovo, said last month that the company targeted a 30 per cent global market share in personal computers and the turnaround of its mobile devices business in two to three quarters.

Question:

What changes did Lenovo undergo? Process change or strategic cultural change? Explain your answers based on the consideration of the theme of change, driving force, and the degree of the organization changes. What are the reasons for Lenovo’s to success?

Strong corporate culture, ability to adapt is best blueprint for going global: Lenovo

The blueprint for any company that pursues international expansion starts with building a strong entrepreneurial culture that adapts to the times, according to Chinese technology giant Lenovo Group.

It is a business principle that has served Lenovo well in its decades-long transformation from a start-up electronics company in mainland China in 1984 into the world's biggest supplier of personal computers.

"When a company becomes bigger, make sure that there is a unique culture committed to execute its strategy," Ivan Cheung, Lenovo executive director and general manager for Hong Kong, Taiwan and Korea, said in his interview at the South China Morning Post's Game Changers Forum 3 on Tuesday.

Lenovo has been a role model for many Chinese technology companies since it acquired IBM's PC business in 2005. Photo: AFP

Lenovo has been a role model for many Chinese technology companies since it rapidly expanded its international operations after acquiring the personal computer division of IBM for US$1.75 billion in 2005.

The computer giant, which operates in more than 160 countries, has continued its expansion with the purchase last year of Motorola Mobility for US$2.91 billion from Google and the commodity x86 server business of IBM for US$2.1 billion.

"We're trying to replicate our success in the PC industry, in the smartphone and enterprise server businesses," Cheung said.

He pointed out that Lenovo translated the principles of accountability and entrepreneurship into a few action points: "We plan before we commit; we perform as we promise; we prioritise company first; and we practice improving everyday."

In their book The Lenovo Way, authors Gina Qiao and Yolanda Conyers said the strong corporate culture keeps the company prepared to change and diversify.

"The Chinese have a saying: To cultivate trees, you need 10 years. To cultivate people, you need 100 years. That's fine with us because we know how to be patient," the authors wrote.

Amid changes in the global economy and evolving consumer tastes, start-ups must also realise that being adaptable can help them survive tough times.

Lenovo currently finds itself in need to be more nimble as global personal computer sales continue to decline and competition in the smartphone and commodity server businesses intensify.

The company last month announced that it was laying off 3,200 employees in non- manufacturing jobs, out of its total 60,000 worldwide staff, under a sweeping restructuring plan.

That would help the company reduce expenses by US$650 million in the second half of its fiscal year to March and US$1.35 billion on an annual basis.

The restructuring will see Motorola be responsible for designing, developing and manufacturing smartphones. The production supply chain for personal computers and servers will also be integrated.

Yang Yuanqing, the chairman and chief executive at Lenovo, said last month that the company targeted a 30 per cent global market share in personal computers and the turnaround of its mobile devices business in two to three quarters.

Question:

What changes did Lenovo undergo? Process change or strategic cultural change? Explain your answers based on the consideration of the theme of change, driving force, and the degree of the organization changes. What are the reasons for Lenovo’s to success?

Exhibit 3
The management of a department store is interested in estimating the difference between the mean credit purchases of customers using the store's credit card versus those customers using a national major credit card. You are given the following information.

Refer to Exhibit 3. A 95% confidence level the interval estimate for the difference between the average purchases of the customers using the two different credit cards is

Select one:

a. $2.19 to $8.48

b. $2.02 to $7.97

c. $2.56 to $8.41

d. $2.83 to $7.10

On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:

Enter the following transactions on Page 2 of the two-column journal:

Required:

1. Journalize and insert the posting references for each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Post (in chronological order) the journal to a ledger of four-column accounts, inserting appropriate posting references in the general journal as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. If an amount box does not require an entry, leave it blank.

3. Prepare an unadjusted trial balance for Intrex Designs as of October 31, 2018. List all accounts in the order of Assets, Liabilities, Stockholders’ equity, Revenues, and Expenses.For those boxes in which no entry is required, leave the box blank. The first two account titles are filled in as an example.

4. Determine the excess of revenues over expenses for October.
$

5. Why the amount determined in above might not be the net income for October?

1. Because the dividends are declared but not paid
2. Because the cash balance is incorrect.
3. Because the closing inventory balance is missing
4. Because necessary adjustment to expenses, like depreciation has not been made.

Arctic Guide Service provides guided 1–5 day hiking tours throughout the Arctic Mountains. Jungle Tours hires Arctic to lead various tours that Jungle sells. Arctic receives $2,000 per tour day, and shortly after the end of each month Arctic learns whether it will receive a $200 bonus per tour day it guided during the previous month if its service during that month received an average evaluation of “excellent” by Jungle customers. The $2,000 per day and any bonus due are paid in one lump payment shortly after the end of each month.

• On July 1, based on prior experience, Arctic estimated that there is a 30% chance that it will earn the bonus for July tours. It guided a total of 8 days from July 1–July 15.
• On July 16, based on Arctic’s view that it had provided excellent service during the first part of the month, Arctic revised its estimate to an 80% chance it would earn the bonus for July tours. Arctic also guided customers for 12 days from July 16–July 31.
• On August 5 Arctic learned that it did not receive an average evaluation of “excellent” for its July tours, so it would not receive any bonus for July, and received all payment due for the July tours.

Arctic bases estimates of variable consideration on the most likely amount it expects to receive.

Required:

1. Prepare Arctic’s July 15 journal entry to record revenue for tours given from July 1–July 15.
2. Prepare Arctic’s July 31 journal entry to record revenue for tours given from July 16–July 31.
3. Prepare Arctic’s August 5 journal entry to record any necessary adjustments to revenue and receipt of payment from Jungle.