1 )Why, historically, has the soft drink industry been so profitable?

Soft drink plays an important role in the people’s daily life. There is no doubt that this industry is profitable. The soft drink can be found in everywhere in the world, and the reasons of its high profit have several aspects.

The first aspect is a little capital investment and material cost. They include that machinery, overhead, labor, and materials. The machinery, overhead, and labor are the basic requirements and for soft drink industry, the levels of these conditions are not very high. So the cost of those is low and reasonable. On the other hand, the manufacturers add the concentrate flavors to the drink and improve people’s desire for the soft drink. Of course, the concentrate flavors are not expensive, just like caramel coloring, phosphoric or citric acid, natural flavors and caffeine.

What’s more, the marketing channels are increased in a way. People can buy the soft drink in different channels, and they can enjoy the drink everywhere. For example, they can buy them throughvending machines, in fast food chains, in supermarkets or other restaurants. It is convenient for people to solve the thirsty problem so that the soft drink manufacturer can get profits from it.

The last reason is that high consumption needs in the market. The manufacturers increased the advertising budgets for a soft drink. It is easy for people to know that what the soft drink is and the characters of soft drink. The soft drink became a household word in people’s life, and everyone knows that they can try the drink with low cost.  The increased sales volume makes the soft drink manufacturers get more benefits from the marketing.

2) Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different?

The reasons for the differences can be explained in these aspects: a barrier to entry; substitutes; suppliers, buyers, rivals, etc. This question can be explained more clearly through giving a metaphor between cola war and real war. In the army, some troops’ position is at front-line, like sales in cola business. And other troops’ position is at base or logistic line, like the concentrate business or bottling business in cola-biz. The barrier to entry means quantity advantages and business secret in a way. The barrier to entry is the key to deal with this problem. Another important reason is business secret, the cola formula. Substitutes and rivals are the financial leverage. So it is the second reason why the concentrate industry has higher profitability than the bottling industry because of the interest expense which is from financial leverage. Suppliers and buyers are duopoly and competition market. In conclusion, duopoly even pure monopoly is a real dream for every firm or industry, just on profit margin section. But for consumers, it is a real nightmare.

On the other hand, this question can be explained like this. Concentrate manufacturers had supplier power: they could decide the price of sweeteners. However, bottling manufacturers had the buyers’ poweron bargaining leverage. Concentrate manufacturers still want bottling manufacturers to buy and carry their product. Therefore, although concentrate manufacturers can decide some prices about sweetener costs, they still had to make attractive prices for the bottling manufacturers buy their product.

3) How has the competition between Coke and Pepsi affected the industry’s profits?

The war between the Coke and Pepsi adjusted operations or branding properly to increase theefficiency of deliveries to markets. Advertising budgets increased obviously. Initially, the budget was usedto sales and made Pepsi and Coke knew by consumers, but now after the two giants established, the budgetallocation has shifted to the branding and marketing. It affects sales directly because it influences people tobuy the products.

Therefore, the effects can be summarized in three points. The first key point is vertical integration. Concentrate producer to build a nationwide franchise bottling network, Coke was the first mover and Pepsi followed it. New franchise agreements allowed bottlers to handle the non-cola brands of other concentrate producers. Bottlers could not carry directly competing for brands. The second point is the details of effects on industry’s profits. Throughout the 1980s, the growth of Coke and Pepsi put a squeeze on smaller concentrate producers. Shelf space for small brands declined and shuffled from one owner to another. The third point is acquisition during the Cola Wars. For example, in a five years period, Dr. Pepper was sold several times, Canada Dry twice, Sunkist once, Shasta one, and A&W once. Phillip Morris acquired Seven-UP in 1978 for a big premium, but racked up huge losses in the early 1980s, and then left the CSD business in 1985.

4. Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of on-CSDs?

There is no doubt that Coke and Pepsi can sustain their profits in the wake of flattening demand and the growing popularity of on-CSDs. At first, they focus their strength on the local market. They can improve recognition and brand awareness of their products, pay attention to substantial managerial influence in bottling and the distribution network by anchor bottling model and deepen their traditional products as well as introduce a variety of new products. Secondly, the overseas expansion also has an important position. Global soft drink sales growth slowed in the 2000s, but emerging markets such as China, India were still growing rapidly. Therefore, the Giants make a large investment overseas to develop new bottling plants, constructing more distribution channels, sales and marketing efforts as well as product research and development.

Please answer the question by using the above informations.

1) Why, historically, has the soft drink industry been so profitable?

2) Compare the economics of the concentrate business to that of the bottling business: Why is the profitability so different?

3) How has the competition between Coke and Pepsi affected the industry’s profits?

4) Can Coke and Pepsi sustain their profits in the wake of flattening demand and the growing popularity of non-CSDs?

Instructions

• Please answer all questions
• Use the given dataset “Homework_EX_1”.
• Please include the relevant SPSS output (such as tables and graphs).
• Include the screen snapshots of how you specify the model in SPSS (use the “Print_screen” function in your keyboard to capture each screen and paste it in the word document).

Please provide a clear WELL-WRITTEN interpretation for each question.

Objective 1: To assess relationship of body mass index (BMI) and relevant variables using dataset (Homework_EX_1). Data were collected on 2763 female to assess their risk of metabolic conditions. The variable Age, smoking, race, exercise, physical activity, alcohol, glucose, statins and diabetes are included in the given dataset.

Q1. First, determine the relationship between body mass index, BMI (dependent variable) and Blood glucose, glucose only (independent variable).

1. What is the null and alternative hypotheses?
2. Comment on the fit of the model? How much variability does it explains?
3. Is there a significant relationship between these two variables?        
4. Interpret the blood glucose coefficient?
5. Are the assumptions of the linear regression model satisfied?

Q2. First, determine the relationship between body mass index, BMI (dependent variable) and diabetes only (independent variable).

1. Is there a significant relationship between these two variables?
2. Interpret the diabetes coefficient?

Q3. Next, determine the relationship between body mass index, BMI (dependent variable) and glucose (independent variable) while including Age, diabetes, smoking, alcohol or physical activity variables in the model.

1. Fit regression model for body mass index using enter method for all these variables. If Age, diabetes, smoking, alcohol or physical activity are significant variables to keep in the model. If yes, then please specify the nature of this relationship i.e. confounder or effect modifier and also include interaction term, if appropriate.
2. Now, fit regression model for body mass index using different selection methods (stepwise, backward, forward) and compare their results?
3. Comment on the fit of the final chosen model using different selection methods? How much variability does it explains?
4. Is there significant relationship between these independent and the dependent variable? Which variables are significant and interpret these coefficients?
5. Are the assumptions of the linear regression model satisfied for your final chosen model?

Q4. Now, Compare the fit of the first model in Q1 and the final model in Q3? Does the inclusion of these variables improve the model? Should all of them be included in the model? Explain your reasoning?

Objective 2: To assess relationship of diabetes and relevant variables using dataset (Homework_EX_1). Data were collected on 2763 female to assess their risk of metabolic conditions. The variable Age, smoking, race, exercise, physical activity, alcohol, glucose, statins and body mass index are included in the given dataset.

Q5. To assess relationship between diabetes as dependent variable and other variables as independent variable.

1. Run a regression model to test for association between diabetes and blood glucose. Does this suggest that blood glucose is associated with diabetes? How do you interpret the effect size and 95% CI? Now, also include race variable in the model, does this suggest that race is associated with diabetes? How do you interpret the effect size and 95% CI of variable race when adjusted for blood glucose level?

2. Run a regression model to test for association between diabetes and independent variables (body mass index and blood glucose) and also their interaction term (body mass index and blood glucose). Is the interaction term significant? How do you interpret the interaction co-efficient effect sizes and their 95% CI?

3. Run a regression model to test for association between diabetes and statins. Does this suggest that statins are associated with diabetes? How do you interpret the effect size and 95% CI?

4. Run a regression model to test for association between diabetes and exercise. Does this suggest that blood glucose is associated with diabetes? How do you interpret the effect size and 95% CI?

5. Run a regression model to test for association between diabetes and Smoking. Does this suggest that smoking is associated with diabetes? How do you interpret the effect size and 95% CI?

6. Run a regression model to test for association between diabetes and alcohol. Does this suggest that alcohol is associated with having diabetes? How do you interpret the effect size and 95% CI?

Q6. Use forward LR method and enter method to assess relationship between diabetes as a dependent variable and all other co-variates (Age, blood glucose, race, smoking, alcohol, exercise, physical activity, and body mass index). Also include in the models to assess the following three mentioned interaction terms; body mass index and blood glucose, alcohol and smoking and finally body mass index and physical activity. Which variables and their interaction terms are statistically associated with diabetes and only include Interaction terms which are appropriate? Choose your final model between enter and forward LR method and then perform model diagnostics. How do you interpret the effect size and 95% CI of your final model?

Note: This problem is for the 2018 tax year.

Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund.

The following information is shown on Beth's Wage and Tax Statement (Form W–2) for 2018.

During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099–INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099–DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer.

Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2018, Beth sold the stock for $14 a share.

Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500.

On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. Both stock transactions were reported to Beth on Form 1099–B; basis was not reported to the IRS.

During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business.

Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of § 179. These items were placed in service on January 15, 2018, and used 100% in her business.

Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350.

Beth paid estimated taxes of $1,000.

Required:

Beth is anticipating significant changes in her life in 2019, and she has asked you to estimate her taxable income and tax liability for 2019.

Beth just received word that she has been qualified to adopt a 2-year-old daughter. Beth expects that the adoption will be finalized in 2019 and that she will incur approximately $2,000 of adoption expenses.

In addition, she expects to incur approximately $3,500 of child and dependent care expenses relating to the care of her new daughter, which will enable her to keep her job at Mesa Manufacturing Company. However, with the additional demands on her time because of her daughter, she has decided to discontinue her two part-time jobs (i.e., the part-time tax practice and her software business), and she will cease making estimated income tax payments. Beth expects her interest income to increase from $1,700 to $2,050.

In your computations, assume that all other 2019 income and expenses will be the same as 2018 amounts. There no personal or dependency exemptions allowed in 2019. Medical deductions are subject to a 10% reduction of AGI in 2019. Beth's rate for the child an dependent care credit is 20% and she is entitled to the full child tax credit and adoption credit as well.

Click here to access the 2019 Tax Rate Schedules to use for this part of the problem.

For 2019, determine the following for Beth:
Filing status:  
Total gross income: $
Adjusted gross income: $
The greater of total itemized deductions or standard deduction: $
Taxable income: $
Total tax credits: $
Net tax liability (after credits but before any tax withholdings or payments):  

Case 63: Pray With Me

You are the Vice President of Nursing Services in a nondenominational community hospital, and you receive a complaint from a patient, who is a Wiccan. The patient and her primary care nurse, Penny Baker, were discussing her religious practices and how she prays, when another nurse, Ruth Goose, walked into the room, stated, “Thou shalt not suffer a witch amongst you,” and told Penny not to discuss the “satanic religion” with the patient any more. The patient demands an apology and threatens to go to the media. She feels she has been discriminated against because she is a Wiccan and that her patient care experience was poor during her hospitalization because of her spiritual beliefs. You convene a meeting with Penny and her immediate supervisor, Ruth Goose.

Ruth Goose is wearing a large gold cross on her neck. Penny wears no jewelry and is dressed in her blue scrubs. When you ask Penny what happened, Ruth answers for her. “She did the right thing. We don’t have to pray with witches. They worship Satan. It’s blasphemy. What’s next? Human sacrifice?” Penny can’t get a word in edgewise. Ruth keeps repeating “Thou shalt not suffer a witch amongst you, it says so in Leviticus!”

What should you do?

USE INFORMATION FROM CASE TO DO A WRITE UP (PLEASE INCLUDE DETAILED EXPLANATION AND COMPLETE ALL 6 STEPS)

1 - Write a background statement

2- What are the major problems and secondary issues?

3- Your Role

4- Organizational Strengths and Weaknesses

5- Alternatives and Recommended Solution

6- Evaluation

THEIR IS AN EXAMPLE BELOW OF HOW THIS SHOULD LOOK!!!!

Case Write-Up

Background Statement

A Wiccan patient who visited a nondenominational community hospital was discussing her religious beliefs with her primary care nurse, Penny Baker, when suddenly another nurse, Ruth Goose, walked into the conversation and rudely stated, “Thou shalt not suffer a witch amongst you.” The Wiccan nurse felt offended and complained that she was discriminated in the hospital because of her religious beliefs.

Major Problems and Secondary Issues

The major problem is that the two nurses, Penny Baker and Ruth Goose, made the patient feel unwelcomed in the nondenominational community hospital because of her Wiccan religious beliefs. The secondary issues that the nondenominational community hospital may face is that the Wiccan patient is threatening to go to the media. This means that there may be news coverage that your hospital engages in religious discrimination. This may make people, especially Wiccans, look down on your medical services.

Your Role

In this case, I am the Vice President of Nursing Services. As stated in the text, it writes, “You are the Vice President of Nursing Services in a nondenominational community hospital, and you receive a complaint from a patient, who is a Wiccan.” The advantages of this role are that I can sit down with Penny and Ruth to let them know that religious discrimination is not to be tolerated while we are caring for the patients. The disadvantages of this role are that I must decide how I am going to discuss this matter with Penny and Ruth because they’re passionate about being against the Wiccan patient. I need to let Penny and Ruth know that our patient’s care matters above everything else, not what religion they practice.

Organizational Strengths and Weaknesses

As the Vice President of Nursing Services, my strengths are that I can hold a training on racial, ethnic, and religious diversity. This training can supplement nurses with the information they need to work in a diverse environment. Nurses need to know that they must treat their patients justly despite their identity. The weaknesses I may face are that the two nurses are very religious themselves. They may not listen to what I have to say about religious discrimination because the two nurses try to justify their act by saying, “She did the right thing. We don’t have to pray with witches. They worship Satan. It’s blasphemy. What’s next? Human sacrifice?”

Alternatives and Recommended Solution

As a solution for this problem, I will make sure to provide all the nurses working in the hospital with diversity training. It is important that I sit down with the nurses and make it clear that discrimination will not be tolerated while they are working in our hospital. I can also offer every patient visiting the hospital with a survey. The patient can fill out the survey to let us know how they felt about their stay. Nurses who’ve been accused of any sort of discrimination, will have to speak with management. We would keep these incidences of discrimination in a file, and it the dilemma does not change, I would have to begin writing up the nurses. Discrimination would not be tolerated while the patient is in the hospital trying to recover from a medical condition. I would also recommend Penny and Ruth write an official letter of apology to the Wiccan patient before she decides to go to the media. Writing the official letter of apology would be my first recommended solution to Penny and Ruth, so that the patient does not feel unwelcomed to our hospital’s services in the future.

Evaluation

If there are enough surveys to prove that our medical treatment is getting better and there are less patients coming from the patients about discrimination, then I would know that the instances of discrimination have stopped. The goal is to aid in the medical recovery of patients. Patients must also feel welcomed to our hospital services despite their identity. By getting fewer, or even better, no discrimination complaints, I would know that my diversity trainings and meetings have worked.

In 2004 David Lee started Lee Manufacturing, a company dedicated to manufacturing simple yet efficient gas barbecues. The barbecues are made of aluminum and stainless steel and are priced at the middle of the market. David’s goal has always been to make a barbecue that cooks great food. This means, good quality parts, simple construction, even heat, no hot or cold spots, and a barbecue that will hold temperature from the lowest setting to the highest setting. David’s motto is “high quality for a fair price”. The company offers four basic grill sizes (models) and several options and accessories that can be added on to each model. Lee’s barbecues have been well received. Revenue and profits have grown steadily.

Based on the recommendation from his sales and marketing department Mr. Lee is considering broadening his product line by adding a new product line of Lee charcoal barbecues. These barbecues would be ideal for those cooks that like that distinct charcoal flavor or the nostalgia of barbecuing the old fashioned way. Mr. Lee has asked his sales and marketing team to come up with a sales forecast for units and pricing. He has also asked his manufacturing team to come up with alternatives for the production of the charcoal barbecues including what equipment is needed and what the projected costs would be.

The sales and marketing team hired Advanced Marketing Consultants to conduct a market survey. The total cost for this consulting was $37,500. The initial model would be a mid-sized kettle barbecue. Eventually, two more models would be added, a smaller version ideal for camping or apartment patios and a larger model for the serious cooks.

Based on the survey and their own experience the sales and marketing team has provided a sales forecast. The suggested price of the initial barbecue is $46.90 per barbecue. They would be sold to retailers with a suggested retail price of $69.95. This would provide retailers with a target margin of 33%. The barbecues would be sold by the company’s existing sales force to its existing customer base. Unit sales are forecast at 2,500 in year 1, 5,000 in year 2, 6,500 in year 3, 8,000 in year 4, and then increasing by 1,000 each year thereafter. Sales and marketing expenses are expected to be 10% of total revenue.

The production team forecasts that the fixed costs needed for the charcoal barbecue production line will be $65,000 per year. Variable costs for materials (sheet aluminum, grills, handles wheels, etc.) is expected to be $15.50 per unit. The variable labor costs will vary based on what equipment will be purchased.

There are two brands of equipment that could be purchased to manufacture the lids and bowls of the barbecue. The first is made by the Strong Metal Equipment company. The second is made by the Precision Industrial company.

The Strong brand is more expensive, but higher quality and more efficient. It will cost $125,000 plus an additional $9,000 for shipping and installation. The equipment would be depreciated to zero over 5 years using straight line depreciation. It is expected that the equipment would last for 8 years at which time it would be sold then for $27,500. Maintenance of the Strong equipment would cost $5,000 per year. Since the Strong equipment is more efficient the variable labor cost would be $9.00 per barbecue.

The Precision brand is less expensive. It will cost $95,000 plus an additional $8,000 for shipping and installation. The equipment would be depreciated to zero over 5 years using straight line depreciation. It is expected that the equipment would last for 8 years and would then be sold for $22,000. Maintenance of the Precision equipment would cost $8,000 per year. The variable labor cost with the Precision brand equipment would be $9.75 per barbecue.

The increase in working capital (accounts receivable and inventory) is expected to be $35,000 at the beginning of the project and will be the same for both machines. The company’s cost of capital is 14% and its tax rate is 40%. Since Mr. Lee’s production team believes that both brands of equipment will last for eight years David wants this analyzed as an eight year project.

David has always believed in buying quality so he is leaning towards the Strong brand equipment. But after hearing that you have learned about capital budgeting in your Finance class at UVU he wants to take advantage of your expertise. David has asked you to analyze his choices and give him some advice on which option would provide the best financial outcome for Lee Manufacturing.

Prepare an analysis and professional report for Mr. Lee. The report should be professionally written and include a letter (single spaced), plus attached schedules. The letter should explain what analytical techniques you are using, why you are using those techniques, what the results show, what you would recommend to Mr. Lee and why. Make sure that the letter is well organized and professionally written. Also make sure that the letter includes the following:

1. The cash flows associated with the different equipment brands for each year of the project.

2. The PB period, Discounted PB, IRR, MIRR, and NPV for the two alternatives.

3. Your recommendation of which brand of equipment should be purchased.

4. Attach to your letter schedules that show your analysis and your work. Ideally you will submit two files. A Word file with your letter and an Excel file with your analysis.

By and large, the features observed in animals, plants, fungi, and biological organisms, in particular, are representative of their function and shaped by natural selection in the context of their environment. When we, as scientists, observe forms in nature, such as differing limb structures in vertebrates, varying tooth shapes in mammals, a diversity of leaf shapes in trees, or even the different shapes and sizes of cell types, we see both the function of the trait in question as well as the constraints, and possibilities, of living in the physical world. In this lab, you will take some moments to observe a variety of structures representative of the Animal kingdom that have been shaped by natural selection, and whose function may be represented, and therefore inferred, by their form.

During this lab, we will investigate anatomy (form) to understand the physiology (function). Our investigation will begin at the cellular level, comparing cellular shapes and structures of various tissues, allowing us to understand their purpose. We will then bring our focus to an organismal level, using clues of morphology to conclude habits and even behaviors of different species of fish. We will also focus on a specific characteristic, dentition in mammals, to help us to determine their dietary type.

In particular, we will be looking at the relationship between the form and function of:

1) Cells - different cells and a virus

2) Tissues- representatives of animal tissue types,

3) Body Morphology- various fish species

3) Dentition - a variety of vertebrate skulls and the teeth that they possess.

Cells and Viruses

Observe and draw the following cells.  

Plant cell (slide) – Note cell wall, chloroplast

What does this tell you about the functions of this cell?

Pancreatic cell (slide) – Note large amounts of endoplasmic reticulum and ribosomes.

What do these structures reveal about its function?

Virus (Electron micrograph) – Note the lack of organelles. Why do viruses need to infect a host cell to reproduce?

  Table 1

Tissues

Tissues are groups of cells that have similar structure and function together. In this lab, we will investigate the anatomy of various tissue types and investigate the relationship between their structure and function.

Types of tissues we will investigate in this lab include:

• Epithelial – squamous, cuboidal, and columnar
• Connective tissues – connective tissue proper and muscle

Future labs will investigate additional tissue types study different organismal systems.

Epithelial Tissues

Epithelial tissues are comprised of tightly packed cells enabling them to form barriers:

- between the body and the outside world

- to line organs

- to line cavities.

In this exercise, you will be observing three different types of epithelial tissue squamous, cuboidal, and columnar, so named because of their shape.

Squamous

The cells of squamous tissue are flat and thin to allow for the critical diffusion of nutrients and gases in the alveoli of lungs and blood vessels.

(Think of the word squashed to remember the shape.)

Cuboidal

The cells of cuboidal tissue are, as the name implies, shaped like cubes.

Cuboidal cells are found in tubules throughout the body.

Observe the individual cells surrounding the tubules. Notice that when cuboidal cells form the circumference of the tube, they have a slightly trapezoidal shape, allowing the cells to form a tight seal around the tube, and to distribute the force, further supporting its integrity. Think of the keystone of a free-standing arch.

Columnar cells

Columnar epithelial cells are long and often found where large amounts of secretions or active absorption are essential.

Columnar tissue can be found in the intestines secreting enormous amounts of digestive enzymes and absorbing nutrients. They are also located in the trachea of the respiratory tract, where large quantities of mucus are created to help trap particles before they enter the lung.

In the columnar epithelium of the respiratory tract, you can see goblet cells that release mucus and cilia at the apical surface of many of the cells.

How do cilia and mucus in the respiratory tract protect provide protection?

Many columnar epithelial cells produce mucus. These cells are called goblet cells. (To remember their name, think of goblets filled with white mucus.) Look for goblet cells in your intestinal slide.

Table 2 Summary of Epithelial Tissue Analysis

Connective tissue

Connective tissue is so named because it connects tissues and organs throughout the body together.

Connective tissue contains:

• Cells
• Matrix (may be solid or liquid)
• Sometimes fibers are present to enhance strength, resilience, or elasticity.

Examples of connective tissue include:

• Blood
• Bone
• Cartilage
• Adipose (fat)
• Connective tissue proper

Dense regular connective tissue

Ligaments and tendons – are composed of fibers that attach muscle to bone (tendons) or bone to bone (tendons)

You can determine function from the types and placement of the fibers. Look at the two slides.

Slide 1 – Dense regular unilateral fibers

Slide 2 – Dense regular fibers swirl in more than one direction.

Which do you think undergoes forces in many directions?

Which supports forces in predominantly one direction?

Examine the slide below.

Note the direction of the collagen fibers. Do you feel that the fibers reinforce strength laterally or vertically? Why?

QUESTIONS POSTED BELOW, BASED ON THIS CASE STUDY:

"Case Studies for Part III The Four Zones of Social Media: Case Study 5—Native Advertising: Novel or Deceptive?

Jennifer Zarzosa, Henderson State University and Sarah Fischbach, California Lutheran University Lisa attentively pays attention to the posts her network of friends and family have posted today on Facebook. After all, this is the best way of getting her news and connecting with what’s going on in the world. In fact, Lisa usually only gets her news from Facebook and Twitter anyways. She always makes sure to stay connected with her favorite brands and publishers. Lisa loves when she gets live updates—it makes her feel like an insider. Today’s feed features the usual content: cute dog videos, funny memes, happy birthday wishes, inspirational quotes, vacation pictures, and how-to-cook videos. As Lisa scrolls down her Facebook feed, she watches a cute dog video (of course), shares the funny meme, comments “Happy b-day!” and loves the inspirational quote. Then, Lisa comes across a suggested post by The Gap. Lisa notices her friends Amanda and Marc both like The Gap. The post features the top five fashion trends for the summer. The post has many likes, loves, wows, and even angry faces as well as comments and shares. Eager for more information, she clicks the “learn more” button. Lisa loves the styles she sees on the landing page and adds a pair of denim jeans and a bright yellow crop top to her cart and checks out shortly. Online advertising has come a long way since the early days when banners, pop-ups, and pop-unders were the prominent form of online advertising. Critics argue banner ads cause wear-out and banner blindness while pop-ups and pop-under ads are usually blocked. Critics claim this type of online advertising is intrusive and therefore ineffective. Consumers have become mobile first, decreasing the use of desktops, which makes desktop online advertising formats obsolete. In response, advertisers have developed new ways to engage with consumers and facilitate interaction. Native advertising blends organic and commercial content seamlessly in order to break through the clutter. According to the Federal Trade Commission, native advertising—sometimes called sponsored content—is the practice of blending advertisements with news, entertainment, and other content in digital media. It refers to advertisements that more closely resemble the content in which they are embedded. Native advertising represents more than a third of its advertising revenue for many publishers. Advocates of native advertising maintain consumers have been conditioned to ignore traditional online advertising. Therefore, advertisers can use native ads to better engage the reader by mixing commercial content with organic content creatively. Social media in-feed ads have distinct benefits over traditional online advertising. Many times in-feed ads have engagement markers (e.g. comments, likes, loves), blend well with organic content, and are endorsed by those in one’s network through online word-of-mouth; all of which increase the likelihood of engagement. As a result, publishers also benefit by receiving more advertising revenue. Social media in-feed ads such as Facebook-sponsored posts and Twitter-promoted tweets comprise about 39% of native advertising. Additionally, publishers such as Forbes, The New Yorker, Fast Company, and The Atlantic use advertorials or branded content, another form of native advertising. Critics of native advertising contend consumers cannot identify native advertising as advertising clearly. While social media in-feed ads are effective, in that they blend well with organic content, it is unclear whether consumers can recognize the in-feed ad as an advertisement with commercial intent. Therefore, native advertising could be a form of deceptive advertising. Is the in-feed ad novel or deceptive? The FTC recommends clear and prominent advertising disclosures using visual cues such as shading and borders, and text labels that are explicit, large, and visible to avoid deceptive advertising. Despite this, there is no consensus on disclosure language and visual cues to signal native advertising for publishers. Consequently, publishers use different disclosure language varying in ambiguity—sponsored, suggested, promoted, branded content, and presented. When consumers are unable to recognize native ads, opponents of native advertising claim it violates trust between the reader and the publisher. Historically, there has been a divide between editorial and advertising content. The line is now blurred."

1. How would you classify social media in-feed ads?

2. How are social media in feed ads different from display ads and organic social ads

3. Why is lisa more likely to click on the call to action for a social media in feed ad than a display ad

4. Do you think lisa noticed the facebook suggested post by the gap was a native ad? why? if she did, do you think she thought it was deceptive?

5. Based on your own experiences with native advertising, how do you believe native advertising should be regulated?

6. Imagine you are creating disclosure language standards. Describe how you would create the disclosure language standards in terms of visual cues and text labels

If someone could give me some ideas to discuss, that would be great! Particularly anyting to do with access.

Introduction

The internal auditor of Missouri State University was in a quandary. Several retail items from a major supplier were on clearance; and the paper trail led to a check from the supplier that had not been cashed (in situations where merchandise is on clearance the supplier often provides a check to help offset the loss to the bookstore). The auditor decided to call the manager of the bookstore, Mark Brixey.

Brixey was on vacation, but the auditor was able to contact him. Brixey confirmed that the bookstore did receive a check from the supplier, but the check was locked in his desk. Brixey said not to worry; he would deposit the check as soon as he got back from vacation. The auditor was not comfortable with this, and decided to unlock the desk and retrieve the check. Once the desk was unlocked, the internal auditor found the check….and over $80,000 in cash.

In August of 2012, the Missouri State University Bookstore fraud was discovered during the routine internal audit. The former bookstore manager, Mark Brixey, was charged with embezzling more than $1.1 million dollars from the bookstore mostly from the textbook buyback program. Brixey was the bookstore manager from 1998 to 2012 and he began embezzling the money in 2003. The first year he stole $29,000; the amounts he stole steadily increased each year. Once the fraud was discovered he was placed on administrative leave by the University and then later resigned. He was later found guilty in federal court of illegal wire transfers and was sentenced to federal prison.

The Fraud

   The internal audit department at Missouri State University discovered the fraud during the internal audit while the bookstore manager was on vacation. The internal audit team found inventory markdowns that had a reference to a specific check that should have been accounted for by the University. The team then contacted the director and found out the check was in his desk, and then they decided to get access to his desk to account for the check. When searching through his desk they did not find the check, however they did find over $81,000 in cash (McHaney), and when Brixey returned from his vacation he could not explain what happened to the missing check (Grant). After this was discovered, the internal audit was extended to further investigate the fraud.

The main sources of missing funds discovered in which Brixey was responsible for include:

Checks from textbook companies payable to the University or University Bookstore for purchase of wholesale inventory;

Buy-back or commission checks and cash from Follett payable to the University or University Bookstore;

Checks payable to the University or University Bookstore from Follett from the purchase of University Athletic Department owned textbooks which were returned by student athletes to the Athletics Office;

Checks payable to the University or University Bookstore from Follett for shared expenses during the buy-back process;

Checks payable to the University or University Bookstore from Follett for online sales of textbooks (McHaney).

The total of these missing funds amounted to $1,324,280.68, but the net amount of missing funds was $1,210,701.18 after the internal audit team discovered the cash in Brixey’s desk (McHaney).

Most of the money that Brixey stole was through the textbook buy-back programs conducted on campus twice a year at the end of each fall and spring semester and the sale of wholesale textbooks to textbook companies. The University would bring in an outside company, Follett Educational Services, to operate the buy-back programs. Brixey was in charge of handling all interactions with Follett. At the end of each buyback period, a Follett representative would write a commission check to the University for allowing them to conduct the program on campus. The check was given directly to Brixey, and he would then take the check to the Bursar’s Office to be cashed, claiming that he needed the cash in order to pay students for textbooks (“Former Bookstore Manager Sentenced…”). The Bursar’s Office took Brixey’s word and did not question him whenever he cashed the checks. The bookstore would also sell textbooks to Follett that were no longer used by professors; the University would receive a check from Follett for these textbooks and Brixey would go cash these in the same manner as he did the commission checks. During the last two years that Brixey was the director, the Follett representative had started paying the University in cash instead of writing a check. The total of the missing funds for the buy-back process amounted to $275,555.64, and the total of missing funds for the sale of wholesale textbooks to textbook companies was $645,732.71.

The checks payable to the University for the Athletics Department owned textbooks were also given to Brixey. Brixey never accounted for the checks, and never transferred the funds to the Athletics Department either. The total of the missing funds to the Athletics Department was $385,294.

The rest of the missing funds were from Follett checks that were for shared expenses amounting to $5,155.03, and for the online sales of textbooks totaling $12,543.30.

   After Brixey cashed the checks or received the checks he failed to record these transactions in the University’s accounting system; he would keep the cash from the checks and the cash from the Follett representative for his own personal use (“Former Bookstore Manager Sentenced…”).

Solving the Problem

The disclosure of the fraud provided unwanted negative publicity for the university; along with the realization that the bookstore was financially vulnerable. The internal audit group at Missouri State University decided to extend their internal audit and prescribe additional controls that would help prevent this type of fraud from occurring in the future.

List and discuss some controls or policies that should have been in place over cash at the University Bookstore.... If someone could give me some ideas to discuss, that would be great!

Hi, I need to "make a recommendation as to whether the company should continue to use sales agents...or employ its own sales force" and write a 500 word evaluation logically supporting my position. I have solved the problem portion of it already, now having a hard time to put my thoughts together on which side to support. This is my first time asking any questions here so not sure how these things work. I have only attach the Degree of operating leverage results that I got for my answers and they are all correct but please let me know if you need to see any other part of the problem results. Thanks!

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold.

Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows:

*Primarily depreciation on storage facilities.

As Barbara handed the statement to Karl Vecci, Pittman’s president, she commented, “I went ahead and used the agents’ 15% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 20%.”

“That’s the last straw,” Karl replied angrily. “Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 20% commission rate?”

“They claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit,” replied Barbara.

“I say it’s just plain robbery,” retorted Karl. “And I also say it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?”

“We’ve already worked them up,” said Barbara. “Several companies we know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase by $3,600,000 per year, but that would be more than offset by the $4,800,000 (20% × $24,000,000) that we would avoid on agents’ commissions.”

The breakdown of the $3,600,000 cost follows:

“Super,” replied Karl. “And I noticed that the $3,600,000 equals what we’re paying the agents under the old 15% commission rate.”

“It’s even better than that,” explained Barbara. “We can actually save $110,400 a year because that’s what we’re paying our auditors to check out the agents’ reports. So our overall administrative expenses would be less.”

“Pull all of these numbers together and we’ll show them to the executive committee tomorrow,” said Karl. “With the approval of the committee, we can move on the matter immediately.”

Required:

1. Compute Pittman Company’s break-even point in dollar sales for next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

2. Assume that Pittman Company decides to continue selling through agents and pays the 20% commission rate. Determine the dollar sales that would be required to generate the same net income as contained in the budgeted income statement for next year.

3. Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force.

4. Compute the degree of operating leverage that the company would expect to have at the end of next year assuming:

a. The agents’ commission rate remains unchanged at 15%.

b. The agents’ commission rate is increased to 20%.

c. The company employs its own sales force.

Use income before income taxes in your operating leverage computation.

Compute the degree of operating leverage that the company would expect to have at the end of next year assuming: (Use income before income taxes in your operating leverage computation.) (Round your answers to 2 decimal places.)

Developing a Master Budget- Please answer the bottom bolded "ANSWERS" at the bottom.
for a Merchandising Organization
Peyton Department Store prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for 2010.

Actual and forecasted sales for selected months in 2010 are as follows:

Monthly operating expenses are as follows:

Cash dividends of $17,000 are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. Rent is paid during the following month. The prepaid insurance is for five more months. Cost of goods sold is equal to 50 percent of sales. Ending inventories are sufficient for 120 percent of the next month's sales. Purchases during any given month are paid in full during the following month. All sales are on account, with 50 percent collected during the month of sale, 40 percent during the next month, and 10 percent during the month thereafter. Money can be borrowed and repaid in multiples of $1,000 at an interest rate of 12 percent per year. The company desires a minimum cash balance of $2,000 on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

(a) Prepare a purchases budget for each month of the second quarter ending June 30, 2010.

(b) Prepare a cash receipts schedule for each month of the second quarter ending June 30, 2010. Do not include borrowings.

(c) Prepare a cash disbursements schedule for each month of the second quarter ending June 30, 2010. Do not include repayments of borrowings.

(d) Prepare a cash budget for each month of the second quarter ending June 30, 2010. Include budgeted borrowings and repayments.

Only use negative signs, if needed, for: excess receipts over disbursements, balance before borrowings and cash balances (beginning and ending).

(e) Prepare an income statement for each month of the second quarter ending June 30, 2010.

Only use negative signs to show net losses in income.

(f) Prepare a budgeted balance sheet as of June 30, 2010.