Consider the following situations and determine whether they exhibit simultaneous consumption, network effects, x-inefficiency or rent-seeking behavior. Assume the businesses referenced function as monopolies.
(a) A pharmaceutical company discovers a vaccine for the common cold. The company puts a significant effort into tests to get it FDA-approved and into hiring lawyers to obtain a patent.
(b) An Internet service provider adds thousands of new customers.
(c) The head of a family-owned, major hotel chain decides to hire his wild, socialite niece to work as an executive of the company after her reality TV career ends.
(d) An online profile company helps college and high school students from across the country to connect with each other.
In: Economics
c) The runoff volume from a rainfall of 3.25 inches (watershed inches) =
d) The runoff volume from a rainfall of 0.47 inches (watershed inches) =
In: Civil Engineering
You are an event management company. Your customers want you to create an event with the 'wow' factor was the brief given to you by North Cypriot Young Businessman Association who were looking to hold a conference followed by an evening of entertainment for 200 guest with overnight accommodation with Palm Beach Hotel. They are going to invite investors from Turkey to make them invest in North Cyprus by the means of Tourism. As an event management company what kind of solutions can you offer them. Design an event and make your customers happy. You have a 100.000 USD budget. Just give a tentative budget doesn’t have to be too detailed. -WRITE MAXIMUM 500 WORDS
In: Operations Management
4. Which of the following pricing practices represents price discrimination? Explain.
a. Local businesses in a small college town offer a 10% discount to anyone showing a student ID card.
b. Fred’s Fridges advertises a one-day sale on refrigerators. The ad specifies that no phone orders are accepted and that the buyer must transport the refrigerator.
c. A hardback copy of the last Harry Potter book sold for $30 at an independent bookstore; but for $25 at the local outlet of a national bookstore chain.
d. Freshman tuition and fees at Penn State-University Park for academic year 2018-2019 was about $18,000 for Pennsylvania residents and $35,000 for out-of-state students (a pricing pattern that is typical of state universities.)
In: Operations Management
Question 5
You visit the new Chaco Hotel rooftop bar in old town. You're taking pictures of the fabulous views using your new $1,000 phone. Oops! The phone slips out of your hands plummeting to the ground 60 feet below. Ignoring air resistance. how fast is your phone traveling by the time it hits the ground ? [ Hint: 1 meter = 3.28 feet ] ( Circle one answer)
A.) 19mph
B.) 42 mph
C.) 37mph
D.) 602 mph
I am doing test corrections for my physics exam I put C(37mph and that was incorrect. Can you please help with this question very confused about it.
In: Physics
For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
|
Indigo Company |
|
Comparative Income Statement |
|
For the Years Ended December 31, 2016 and 2015 |
|
1 |
2016 |
2015 |
|
|
2 |
Sales |
$950,000.00 |
$680,000.00 |
|
3 |
Cost of goods sold |
323,000.00 |
244,800.00 |
|
4 |
Gross profit |
$627,000.00 |
$435,200.00 |
|
5 |
Selling expenses |
$180,500.00 |
$115,600.00 |
|
6 |
Administrative expenses |
47,500.00 |
47,600.00 |
|
7 |
Total operating expenses |
$228,000.00 |
$163,200.00 |
|
8 |
Income from operations |
$399,000.00 |
$272,000.00 |
|
9 |
Other income |
76,000.00 |
54,400.00 |
|
10 |
Income before income tax |
$475,000.00 |
$326,400.00 |
|
11 |
Income tax expense |
275,500.00 |
197,200.00 |
|
12 |
Net income |
$199,500.00 |
$129,200.00 |
| Required: | |
| 1. | Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round your percentages to one decimal place. Enter all amounts as positive numbers. |
| 2. | To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1). |
Income Statement
1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers.
|
Indigo Company |
|
Comparative Income Statement |
|
For the Years Ended December 31, 2016 and 2015 |
|
1 |
2016 |
2016 |
2015 |
2015 |
|
|
2 |
Amount |
Percent |
Amount |
Percent |
|
|
3 |
Sales |
$950,000.00 |
$680,000.00 |
||
|
4 |
Cost of goods sold |
323,000.00 |
244,800.00 |
||
|
5 |
Gross profit |
$627,000.00 |
$435,200.00 |
||
|
6 |
Selling expenses |
$180,500.00 |
$115,600.00 |
||
|
7 |
Administrative expenses |
47,500.00 |
47,600.00 |
||
|
8 |
Total operating expenses |
$228,000.00 |
$163,200.00 |
||
|
9 |
Income from operations |
$399,000.00 |
$272,000.00 |
||
|
10 |
Other income |
76,000.00 |
54,400.00 |
||
|
11 |
Income before income tax |
$475,000.00 |
$326,400.00 |
||
|
12 |
Income tax expense |
275,500.00 |
197,200.00 |
||
|
13 |
Net income |
$199,500.00 |
$129,200.00 |
Final Question
2. Comment on the significant relationships revealed by the vertical analysis prepared in (1).
The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.
In: Accounting
Hy’s is a nationwide hardware and furnishings chain. The manager of the Hy’s Store in Boise is evaluated using ROI. Hy’s headquarters requires an ROI of 8 percent of assets. For the coming year, the manager estimates revenues will be $4,720,000, cost of goods sold will be $2,973,600, and operating expenses for this level of sales will be $472,000. Investment in the store assets throughout the year is $3,440,000 before considering the following proposal.
A representative of Ace Appliances approached the manager about carrying Ace's line of appliances. This line is expected to generate $1,420,000 in sales in the coming year at Hy’s Boise store with a merchandise cost of $1,079,200. Annual operating expenses for this additional merchandise line total $150,000. To carry the line of goods, an inventory investment of $1,020,000 throughout the year is required. Ace is willing to floor-plan the merchandise so that the Hy store will not have to invest in any inventory. The cost of floor planning would be $124,500 per year. Hy’s marginal cost of capital is 8 percent. Ignore taxes.
Required:
a. What is Hy’s Boise store's expected ROI for the coming year if it does not carry Ace's appliances? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)
b. What is the store's expected ROI if the manager invests in Ace's inventory and carries the appliance line? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)
c. What would the store's expected ROI be if the manager elected to take the floor plan option? (Enter "ROI" answer as a percentage rounded to 2 decimal places (i.e., 32.16).)
d. Would the manager prefer (a), (b), or (c) if evaluated using ROI?
| The case where the manager elected to take the floor plan option. | |
| The case where Hy's Boise store does not carry Ace's appliances. | |
| The case where the manager invests in Ace's inventory and carries the appliance line. |
e-1. What is Hy’s Boise store's expected EVA for the coming year if it does not carry Ace's appliances?
e-2. What is the store's expected EVA if the manager invests in Ace's inventory and carries the appliance line?
e-3. What would the store's expected EVA be if the manager elected to take the floor plan option?
e-4. Would the manager prefer (a), (b), or (c) if evaluated using EVA?
| The case where the manager elected to take the floor plan option. | |
| The case where Hy's Boise store does not carry Ace's appliances. | |
| The case where the manager invests in Ace's inventory and carries the appliance line. |
In: Accounting
For 2016, Indigo Company initiated a sales promotion campaign that included the expenditure of an additional $39,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement:
|
Indigo Company |
|
Comparative Income Statement |
|
For the Years Ended December 31, 2016 and 2015 |
|
1 |
2016 |
2015 |
|
|
2 |
Sales |
$890,000.00 |
$600,000.00 |
|
3 |
Cost of goods sold |
320,400.00 |
228,000.00 |
|
4 |
Gross profit |
$569,600.00 |
$372,000.00 |
|
5 |
Selling expenses |
$142,400.00 |
$84,000.00 |
|
6 |
Administrative expenses |
62,300.00 |
54,000.00 |
|
7 |
Total operating expenses |
$204,700.00 |
$138,000.00 |
|
8 |
Income from operations |
$364,900.00 |
$234,000.00 |
|
9 |
Other income |
80,100.00 |
54,000.00 |
|
10 |
Income before income tax |
$445,000.00 |
$288,000.00 |
|
11 |
Income tax expense |
231,400.00 |
156,000.00 |
|
12 |
Net income |
$213,600.00 |
$132,000.00 |
| Required: | |
| 1. | Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Round your percentages to one decimal place. Enter all amounts as positive numbers. |
| 2. | To the extent the data permit, comment on the significant relationships revealed by the vertical analysis prepared in (1). |
Income Statement
1. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages to one decimal place. Enter all amounts as positive numbers.
|
Indigo Company |
|
Comparative Income Statement |
|
For the Years Ended December 31, 2016 and 2015 |
|
1 |
2016 |
2016 |
2015 |
2015 |
|
|
2 |
Amount |
Percent |
Amount |
Percent |
|
|
3 |
Sales |
$890,000.00 |
$600,000.00 |
||
|
4 |
Cost of goods sold |
320,400.00 |
228,000.00 |
||
|
5 |
Gross profit |
$569,600.00 |
$372,000.00 |
||
|
6 |
Selling expenses |
$142,400.00 |
$84,000.00 |
||
|
7 |
Administrative expenses |
62,300.00 |
54,000.00 |
||
|
8 |
Total operating expenses |
$204,700.00 |
$138,000.00 |
||
|
9 |
Income from operations |
$364,900.00 |
$234,000.00 |
||
|
10 |
Other income |
80,100.00 |
54,000.00 |
||
|
11 |
Income before income tax |
$445,000.00 |
$288,000.00 |
||
|
12 |
Income tax expense |
231,400.00 |
156,000.00 |
||
|
13 |
Net income |
$213,600.00 |
$132,000.00 |
Final Question
2. Comment on the significant relationships revealed by the vertical analysis prepared in (1).
The vertical analysis indicates that the costs other than selling expenses (cost of goods sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales by 2 percentage points. The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.
In: Accounting
Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage
Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows:
| Estimated Fixed Cost |
Estimated Variable Cost (per unit sold) |
||||||
| Production costs: | |||||||
| Direct materials | $30 | ||||||
| Direct labor | 20 | ||||||
| Factory overhead | $219,300 | 15 | |||||
| Selling expenses: | |||||||
| Sales salaries and commissions | 45,600 | 7 | |||||
| Advertising | 15,400 | ||||||
| Travel | 3,400 | ||||||
| Miscellaneous selling expense | 3,800 | 6 | |||||
| Administrative expenses: | |||||||
| Office and officers' salaries | 44,600 | ||||||
| Supplies | 5,500 | 3 | |||||
| Miscellaneous administrative expense | 5,120 | 3 | |||||
| Total | $342,720 | $84 | |||||
It is expected that 7,480 units will be sold at a price of $168 a unit. Maximum sales within the relevant range are 9,000 units.
Required:
1. Prepare an estimated income statement for 20Y7.
| Belmain Co. | |||
| Estimated Income Statement | |||
| For the Year Ended December 31, 20Y7 | |||
| $ | |||
| Cost of goods sold: | |||
| $ | |||
| Total cost of goods sold | |||
| Gross profit | $ | ||
| Expenses: | |||
| Selling expenses: | |||
| $ | |||
| Total selling expenses | $ | ||
| Administrative expenses: | |||
| $ | |||
| Total administrative expenses | |||
| Total expenses | |||
| Income from operations | $ | ||
2. What is the expected contribution margin
ratio? Round to the nearest whole percent.
%
3. Determine the break-even sales in units and dollars.
| Units | units |
| Dollars | units |
4. Construct a cost-volume-profit chart on your
own paper. What is the break-even sales?
$
5. What is the expected margin of safety in dollars and as a percentage of sales?
| Dollars: | $ | |
| Percentage: (Round to the nearest whole percent.) | % |
6. Determine the operating leverage. Round to one decimal place.
Break-Even Sales and Cost-Volume-Profit Chart
For the coming year, Cleves Company anticipates a unit selling price of $140, a unit variable cost of $70, and fixed costs of $749,000.
Required:
1. Compute the anticipated break-even sales in
units.
units
2. Compute the sales (units) required to
realize income from operations of $378,000.
units
3. Construct a cost-volume-profit chart, assuming maximum sales of 21,400 units within the relevant range. From your chart, indicate whether each of the following sales levels would produce a profit, a loss, or break-even.
| $2,100,000 | |
| $1,876,000 | |
| $1,498,000 | |
| $1,120,000 | |
| $896,000 |
4. Determine the probable income (loss) from
operations if sales total 17,100 units. If required, use the minus
sign to indicate a loss.
$
In: Accounting
In: Finance