Exercise 10-17 (Video)

The South Division of Wiig Company reported the following data for the current year.

Top management is unhappy with the investment center’s return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action.

(a) Compute the return on investment (ROI) for the current year. (Round ROI to 2 decimal places, e.g. 1.57%.)

(b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 2 decimal places, e.g. 1.57%.)

1. Suppose a country's production function is
Y = 4 + 9*K.
If the level of capital (K) is 17, then what is the marginal productivity of the 18 unit of capital?  

2. Suppose a country's production function is
Y = 4 + 9*K^0.5
If the level of capital (K) is 17, then what is the marginal productivity of the 18 unit of capital?  


3. Assume the production function for a small country is
Y = 7*K^0.5.
If 20% of capital is lost to depreciation every year and the country uses 24% of output as investment, what is the level of investment if K= 35?  


4. Assume the production function for a small country is
Y = 5*K^0.5.
Also assume that 24% of capital is lost to depreciation every year and the country uses 19% of output as investment. What is the steady state level of K?  



5. North Solonia has 96 machines (K=96).
South Solonia's output is twice that of North Solonia.
How many more machines does South Solonia have? The production function for each country is Y = 3*K^0.5.  

President Cyril Ramaphosa officially opened and addressed the first 4th Industrial Revolution SA - Digital Economy Summit. The Summit was hosted by the 4th Industrial Revolution South Africa partnership (4IRSA), an alliance between partners from the public and private sectors, academia and civil society. The 4IRSA partnership seeks to develop Human Resource practices that will enhance training and development in South Africa. Furthermore, the summit presented plans to develop training procedures that will be inclusive, coherent and responsive to the 4IR in the country. The president was quoted saying "Training programmes must allow learner's to be evaluated in the workplace after a period of approximately 6 months to determine whether their performance has improved and whether these improvements contributed to the achievement of objectives".

Use the statement above to identify the training level of needs the summit intended to highlight as well as the evaluation method the President suggested during the summit. Furthermore, briefly analyse the potential impact of the 4IR on the following classrooms.

 Interactive television classroom

 Distance learning

 Computer based training (20)

President Cyril Ramaphosa officially opened and addressed the first 4th Industrial Revolution SA - Digital Economy Summit. The Summit was hosted by the 4th Industrial Revolution South Africa partnership (4IRSA), an alliance between partners from the public and private sectors, academia and civil society. The 4IRSA partnership seeks to develop Human Resource practices that will enhance training and development in South Africa. Furthermore, the summit presented plans to develop training procedures that will be inclusive, coherent and responsive to the 4IR in the country. The president was quoted saying "Training programmes must allow learner's to be evaluated in the workplace after a period of approximately 6 months to determine whether their performance has improved and whether these improvements contributed to the achievement of objectives". Use the statement above to identify the training level of needs the summit intended to highlight as well as the evaluation method the President suggested during the summit. Furthermore, briefly analyse the potential impact of the 4IR on the following classrooms.  Interactive television classroom  Distance learning  Computer-based training (20

Trees Unlimited has one greenhouse located in each of Corner Brook, Grand Falls, and Conception Bay South. Operating results of the past year for each location are in the following table:

Required

a. Compute the margin, turnover and rate of return for each location.

b. Trees Unlimited required rate of return is 30%. Compute the residual income for each

      location.

c.   Trees Unlimited would like to expand the market coverage in each community by opening

retail store. The opportunity will require an investment in operating assets of $500,000. It is expected sales will be $350,000 operating expenses of $180,000.   Based on residual income which community would be interest in retail store opportunity? Which would be interested if evaluated based on return on investment?

Two cars collide at an intersection. Car A, with a mass of 1900 kg , is going from west to east, while car B , of mass 1500 kg , is going from north to south at 12 m/s . As a result of this collision, the two cars become enmeshed and move as one afterwards. In your role as an expert witness, you inspect the scene and determine that, after the collision, the enmeshed cars moved at an angle of 65 ∘ south of east from the point of impact. Part A Part complete How fast were the enmeshed cars moving just after the collision? Express your answer using two significant figures. v = 5.8 m/s Previous Answers Correct Part B How fast was car A going just before the collision? Express your answer using two significant figures. How fast were the enmeshed cars moving just after the collision and how fast was car A going just before the collision?

The district manager of basketball officials has to assign each team of officials to one game on Friday night. There are four sites for games. So each site needs one group of officials. Below are the distances in miles each group of officials is from each site.

Formulate the linear programming problem to minimize distance traveled by the groups of officials in this assignment problem.

--create an Excel file to solve the problem and solve the problem – attach the file when you submit answer
--- type out what is the minimum distance and where each group is assigned

-- explain how the distance changes if Group A goes to Wayne, Group B goes to South Sioux City, Group C goes to Winnebago, and Group D goes to Wakefield.

Hot & Cold and Caldo Freddo are two European manufacturers of home appliances that have merged. Hot & Cold has plants in France, Germany, and Finland, where Caldo Freddo has plants in the United Kingdom and Italy. The European market is divided into four regions: North, East, West, and South. Plant capacities (millions of units per year), annual fixed costs (millions of euros per year), regional demand (millions of units), and variable production and shipping costs (euros per unit) are listed in the following table.

Each appliance sells for an average price of 300 euros. All plants are currently treated as profit centers, and the company pays taxes separately for each plant. Tax rates in the various countries are as follows: France, 0.25; Germany, 0.25; Finland, 0.3; UK 0.2; Italy, 0.35.

1. Before the merger, what is the optimal network for each of the two firms if their goal is to minimize costs? What is the optimal network if the goal is to maximize after-tax profits?

1. Which of the following exemplifies location-based advantage for the companies competing on an international basis?

A. Hyundai signs a memorandum of understanding with the government of South Korea to halt exports.
B. Samsung diversifies and ventures into textiles and food processing.
C. RBC Wealth Management closes operations in South Florida.
D. Microsemi Corporation acquires California-based Actel Corporation.
E. De Beers sets up operations in the mining region of South Africa.

2. Which of the following statements regarding multidomestic competition is false?

A. Winning in one country market does not necessarily signal the ability to fare well in other countries.
B. The benefits from global integration and standardization are high.

C. Buyers in different countries are attracted to different product attributes.
D. Industry conditions and competitive forces in each national market differ in important respects.
E. The mix of competitors in each country market varies from country to country.

3. Companies operating in an international marketplace have to respond to all of the following, EXCEPT

A. Whether to buy a struggling competitor at a bargain price or pay a premium to gain entry to the local market.
B. The tensions between market pressures to localize a company's product offerings country by country and the competitive pressures to lower costs through greater product customization.
C. How much to customize their offerings in each different country market to match the tastes and preferences of local buyers.
D. whether to customize their offerings in each different country market to match the tastes and preferences of local buyers.

E. Whether to pursue a strategy of offering a mostly standardized product worldwide

Revenue and cash receipts journals; accounts receivable subsidiary and general ledgers

Transactions related to revenue and cash receipts completed by Crowne Business Services Co. during the period April 2–30 are as follows:

Required:

1. Insert the following balances in the general ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, total each of the columns of the special journals, and post the individual entries and totals to the general ledger. Insert account balances after the last posting. When posting to the general ledger, post in chronological order. However, if there is more than one entry on the same date, be sure to post transactions from the revenue journal before posting transactions from the cash receipts journal.

If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

2. Insert the following balances in the accounts receivable subsidiary ledger as of April 1:

After completing the recording of the transactions in the journals in part 3, post to the accounts receivable subsidiary ledger in chronological order, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer's account before recording a cash receipt. If an amount box does not require an entry, leave it blank. In CNOW, Journal pages begin with “J”, Cash Receipts begin with “CR” and Cash Receipts begins with “R”. For example journal/ Cash Receipts/ Cash Receipts, page 1/36/40 respectively. POST. REF. is simply J1, CR36, and R40.

3. Prepare a single-column revenue journal (p. 40) and a cash receipts journal (p. 36). Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. The Fees Earned column is used to record cash fees.

4. Using the two special journals and the two-column general journal (p. 1), journalize the transactions for April. Post to the accounts receivable subsidiary ledger, and insert the balances at the points indicated in the narrative of transactions. Determine the balance in the customer’s account before recording a cash receipt.

5. Total each of the columns of the special journals and post the individual entries and totals to the general ledger. Insert account balances after the last posting.

If an amount box does not require an entry, leave it blank.

6. What is the sum of the customer balances?
$

Does the sum of the customer balances agree with the accounts receivable controlling account in the general ledger?
   

7. Would an automated system omit postings to a controlling account as performed in step 5 for Accounts Receivable?