Questions
Question 1 – CVP Analysis Brandon Manufacturing provides the data below relating to its single product...

Question 1 – CVP Analysis

Brandon Manufacturing provides the data below relating to its single product for 2020:

  • Selling price per unit $20
  • Annual fixed costs $280,800
  • Variable costs per unit $14
  • Annual sales volume expected in 2020: 52,000 units

Required:

  1. Complete the following table calculating each requirement listed in the table.
  1. Contribution margin per unit
  1. Contribution margin ratio
  1. Breakeven point in units
  1. Breakeven point in sales dollars
  1. Firm’s profit if 46,800 units are sold
  1. Firm’s profit if 52,000 units are sold

  1. Break even point (in units) if variable costs decreased by $2 per unit

  1. Using the original data, what is the Break even point (in units) if variable costs increased by $2 per unit (from the original cost) and fixed costs decreased by $100,000 (from the original cost)
  1. What would be the expected profit in 2020 if fixed costs increased by $20,000?

  1. Prepare a Contribution Margin Income Statement for the expected sales in 2020: (given the original data)

In: Accounting

Consider the leadership dynamics of the several types of change illustrated in Chapter 9 (Leadership, Enhancing...

Consider the leadership dynamics of the several types of change illustrated in Chapter 9 (Leadership, Enhancing the Lessons ofExperience), then answer the following questions:

Share your own experience with one of the types of change—anticipatory, reactive, or crisis—from either a leader or follower perspective.

What can you learn from this experience and the lessons acquired from the Chapter 9 reading on how to initiate positive change in an organization?

In: Operations Management

Company Overview United Parcel Service, Inc. (UPS or 'the company') is one of the largest package...

Company Overview

United Parcel Service, Inc. (UPS or 'the company') is one of the largest package delivery companies in the world. It provides various logistics services, including less-than-truckload services as well as supply chain management operations in more than 220 countries and territories. The company operates globally with major presence in North America and Europe. It is headquartered in Atlanta, Georgia.

The company reported revenues of (US Dollars) US$60,906 million for the fiscal year ended December 2016 (FY2016), an increase of 4.4% over FY2015. In FY2016, the company’s operating margin was 9%, compared to an operating margin of 13.1% in FY2015. In FY2016, the company recorded a net margin of 5.6%, compared to a net margin of 8.3% in FY2015.

Given your understanding of the company described in the handout, address the following.

a) Briefly discuss the company’s business-level strategy and describe its target market. Take care to share how the company is able to pursue this business-level strategy .

b) Briefly discuss the corporate-level strategy pursued by the company. Take care to discuss the level of diversification the company uses .

c) Identify and describe one weakness, opportunity, and threat (three in total) the company should address to achieve its desired performance goals. Take care to offer two potential strategic solutions for each item identified in part c (six in total) .

In: Operations Management

It’s All in the Family What company wouldn’t want a “leg up” in obtaining contracts for...

It’s All in the Family

What company wouldn’t want a “leg up” in obtaining contracts for lucrative new business? Seeking to gain an advantage in the competitive world of investment banking led J.P. Morgan Chase & Company officials to seek out and hire the children of prominent Chinese officials. The individuals hired may have had the knowledge or skills needed to fulfill the jobs for which they were hired. But their most valuable qualification was something in their genes—being related to an influential member of the political or business elite in China. Having a connection to someone with decision-making authority to grant business opportunities to J.P. Morgan might have been the distinct factor that resulted in them getting the job.

The purposeful targeting of well-connected sons and daughters with the express purpose of driving business contracts might be considered bribery under federal law. The U.S. Justice Department has launched an investigation to determine if these hiring decisions violate the Foreign Corrupt Practices Act. In fact, the chief executive of J.P. Morgan’s China operations has voluntarily resigned. J.P. Morgan isn’t alone in using such a practice. Citigroup, Goldman Sachs, Morgan Stanley, UBS, and others are also said to have done so.

Company executives at J.P. Morgan were aware of the program as well as broad anticorruption measures several years before the Securities and Exchange Commission began its investigation. Claiming that this preferential hiring is “the norm of business” in China, J.P. Morgan’s top leaders believe they acted according to accepted standards. J.P. Morgan’s business acquisition in China did indeed improve after it launched the selective hiring program.

The bank developed a spreadsheet detailing potential recruits along with their “valued” connections or business-enhancing prospects. They also created a special internship to accommodate some applicants who were screened less stringently than other job applicants. So, the candidates were given particular attention and a smooth path to employment. Government officials aren’t stating that the employees are not qualified. They are more interested in the reason each was selected from the applicant pool. A finding that any of the banks involved intentionally hired the sons and daughters to win business might result in bribery charges.

The banks are scrutinizing their hiring practices as they respond to the government investigators’ inquiries. This practice highlights differences in cultures, norms, and laws among nations. What might be considered an expected and completely acceptable practice in China might be deemed illegal—or at very least, unethical—in the United States.

J.P. Morgan Chase & Company wanted to hire the children of prominent Chinese officials. Considering legal and ethical standards for hiring in the United States, which of the following questions would be most appropriate for an interviewer in the United States to ask during a structured interview to explore an applicant's family connections?

a. Does anyone in your family work for the Chinese government?
b. Are your parents politicians in China?
c. Do you have any experience working with the Chinese government?
d. Are you from China?

Which of the following selection factors for global employees did J.P. Morgan Chase & Company consider when hiring personnel with political connections in China?

a. Cultural adjustment
b. Communication skills
c. Personal characteristics
d. Personal/family concerns

Which of the following steps in the hiring process would most likely reveal an applicant's family political connections to J.P. Morgan Chase & Company?

a. Test
b. Background investigation
c. Interview
d. Application form

In: Operations Management

Question 4: Following are the values for US. Apparel Limited: (5 marks) Company’s Ratio Industry Average...

Question 4: Following are the values for US. Apparel Limited: Company’s Ratio Industry Average Days Sales Outstanding 45 days 52 days Credit Terms 50 days 60 days a. Analyze the DSO of the company internally. b. Analyze the DSO of the company externally. What advice will you give to the competitor firm (consider industry average value)?

In: Accounting

Gnomes R Us is considering a new project. The company has a debt-equity ratio of .78....

Gnomes R Us is considering a new project. The company has a debt-equity ratio of .78. The company’s cost of equity is 14.6 percent, and the aftertax cost of debt is 7.9 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +2 percent.         What discount rate should the firm use for the project?

In: Finance

Six Key Financial Assumptions Startup cost – $350,000 $150,000 to purchase building $10,000 for renovations $75,000...

Six Key Financial Assumptions

  • Startup cost – $350,000
    • $150,000 to purchase building
    • $10,000 for renovations
    • $75,000 for supplies
    • $115,000 for additional expenses
  • Sales and Revenue - $600,000
    • $50,000 in sales per month
    • Based on 50 jobs at $250 per job
  • Operating costs - $156,000
    • $13,000 per month
    • Based on supplies, utilities, and staff
  • Borrowing - $350,000
    • Based on money needed for startup cost
    • Interest owed to bank 6%
  • Equity returns – 2% compounding annually
    • Based on 2% real estate growth assumption
  • Company value ???

Balance sheet

31-Dec-2020

Assets

Cash :                                                  $000,000

Accounts Receivable:                          $000,000

Long Term Assets:                              $000,000

Total:                                                   $000,000

Liabilities & Equity

Accounts Payable:                              $000,000

Borrowing:                                          $000,000

Retained Earnings:                              $000,000

(First year so no retained earnings from first year)

Earnings:                                             $000,000

Total:                                                   $000,000

Using the information from the key assumptions please solve the company value portion as well as the balance sheet for the first year of the start up company.

In: Accounting

On July 31, 2020, Sandhill Co. had a cash balance per books of $6,340.00. The statement...

On July 31, 2020, Sandhill Co. had a cash balance per books of $6,340.00. The statement from Dakota State Bank on that date showed a balance of $7,890.80. A comparison of the bank statement with the Cash account revealed the following facts.

1. The bank service charge for July was $21.00.
2. The bank collected $1,720 for Sandhill Co. through electronic funds transfer.
3. The July 31 receipts of $1,397.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $374.00 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $347.00.
5. Checks outstanding on July 31 totaled $2,051.10.
6. On July 31, the bank statement showed an NSF charge of $775.00 for a check received by the company from W. Krueger, a customer, on account.

Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first. Round answers to 2 decimal places, e.g. 52.75.)

In: Accounting

Suppose you plan to backpack around Europe after you graduate from the university in 4 years...

Suppose you plan to backpack around Europe after you graduate from the university in 4 years (t=4). You have estimated it will cost you $15,000 to pursue your dream. How much do you need to invest into a saving account today (t=0) to reach your goal in 4 years? Assume your saving account earns 6% per annum. Round your answer to three decimal places.

a.

$13,349.946

b.

$12,358.959

c.

$11,881.405

d.

$13,350.946

e.

$11,208.872

In: Finance

Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager...

Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business school.​ Specifically, she is evaluating an investment in a portfolio comprised of two​ firms' common stock. She has collected the following information about the common stock of Firm A and Firm​ B:

Expected Return Standard Deviation

Firm A Common Stock .16 .17

Firm B Common Stock .17 .24

Correlation Coefficient .50

a. If Mary invests half her money in each of the two common​ stocks, what is the​ portfolio's expected rate of return and standard deviation in portfolio​ return?

b. Answer part a where the correlation between the two common stock investments is equal to zero.

c. Answer part a where the correlation between the two common stock investments is equal to +1.

d. Answer part a where the correlation between the two common stock investments is equal to −1.

e. Using your responses to questions a—d​, describe the relationship between the correlation and the risk and return of the portfolio.

In: Finance