course : IT project management

_{Project Title : Online Book Store}

Scenario Overview :The business-to-consumer aspect of electronic commerce (e-commerce) is the most visible business use of the World Wide Web. The primary goal of an e-commerce site is to sell goods and services online. This project deals with developing an e-commerce website for Online Book Sale. It provides the user with a catalog of different books available for purchase in the store. In order to facilitate online purchase a shopping cart is provided to the user.

question: Use Earned Value Management to find out: Cost performance index (CPI).

Jared Tustin is the sole proprietor of Pretty Pets, a business specializing in the sale of high-end pet gifts and accessories. PrettyPets sales totalated $1,125,000 during the most recent year. During the year, the company spent $58,000 on expenses relating to website maintenance, 32,500 on marketing, and $28,500 on wrapping, boxing, and shipping the goods to customers. Pretty Pets also spent $636,000 on inventory purchases and an additional $22,000 on freight in charges. The company started the year with $18,000 of inventory on hand and ended with $16,000 of inventory. Prepare Pretty's pets income statement for the recent years. Please provide the answer in Exel sheet.

Exercise 2:

Pillows Unlimited makes decorative throw pillows for home use. The company sells the pillows to home décor retailers for $14 per pillow. Each pillow requires 1.25 yards of fabric, which the company obtains at a cost of $6 per yard. The company would like to maintain an ending stock of fabric equal to 10% of the next month’s production requirements. The company would also like to maintain and ending stock of finished pillows equal to 20% of the next month sales.

Sales (in units) are projected to be as follows for the first 3 months of the year:

Requirements:

1- Prepare the following budgets for the first three months of the year, as well as a summary budget for the quarter:

2- Prepare the sale budget, including a separate section that details the types of sales made. For this section, assume that 20% of the company’s pillows are cash sales, while the remaining 80% are sold on credit terms.

3- Prepare the production budget. Assume that the company anticipates selling 240,000 units in April.

4- Prepare the direct materials purchase budget assume that the company need 300,000 yards of fabric for production in April.

Note :the Answer Should be computerized

Pillows Ltd.Pillows Ltd.

makes decorative throw pillows for home use. The company sells the pillows to home? décor retailers for

$ 20$20

per pillow. Each pillow requires

1.101.10

yards of? fabric, which the company obtains at a cost of

$ 9$9

per yard. The company would like to maintain an ending stock of fabric equal to

1010?%

of the next? month's production requirements. The company would also like to maintain an ending stock of finished pillows equal to

2525?%

of the next? month's sales. Sales? (in units) are projected to be as follows for the first three months of the? year:

January. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

180,000

February. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

200,000

March. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

215,000

Prepare the following budgets for the first three months of the? year, as well as a summary budget for the? quarter:

5. Ulanda U. Lucky is an air traffic controller who is paid $14,000 per month. Use the FICA rate is 6.2% on the first $127,200 of earnings and the Medicare tax rate is 1.45% on all earnings.

1. How much FICA tax should be withheld from Ms. Lucky’s paycheck for the month of March?

                                                                                                                        ________________________

2. How much Medicare tax should be withheld from Ms. Lucky’s paycheck for the month of March?

                                                                                                                        ________________________

3. How much FICA tax should be withheld from Ms. Lucky’s paycheck for the month of October?

                        ________________________

4. How much Medicare tax should be withheld from Ms. Lucky’s paycheck for the month of October?

                                                                                                                        ________________________

For Questions 12 – 13, find the FICA and Medicare tax for each of the following self-employed people. Assume that none of them has earned over $127,200 for the year. Use a FICA rate of 12.4% and a Medicare rate of 2.9%.

6. Lois Steem is a self-employed assertiveness training coach. Her adjusted income is $19,500 for the first quarter.

1. FICA tax        ________________________

2. Medicare tax ________________________

7. The employees of the Hadley-Newham Funeral Home paid a total of $678.15 in Social Security tax, $158.60 in Medicare, and $21858 in federal withholding. Find the total amount the company should send the IRS.

1.Which of the following do not affect the amounts collected on accounts receivables?

a.credit policy

b.returns policy

c.discounts policy

d.the allowance for doubtful accounts

2.Which of the following would most likely use a periodic inventory system?

a.car dealership

b.heavy metal distributor

c.computer dealership

d.local handcrafted furniture store

3.Which of the following is NOT an inventory account in a manufacturing company?

a.Raw Material

b.Work-in-Process

c.Goods Available For Sale

d.Finished Goods

4.Effective inventory management would have one person place the order for new inventory, a second person check it against the purchase order when it arrives, and a third person record the receipt of inventory in the accounting records. The purpose of this system is

a.to reduce spoilage.

b.to reduce storage costs.

c.to guard against stockouts.

d.to guard against internal theft and collusion.

5.Management may use the cost formula decision tree when determining which cost formula to use. If goods are not interchangeable, management’s options are

a.weighted-average.

b.FIFO.

c.Just-in-time.

d.specific identification.

6.When a company is evaluating whether or not to use a perpetual vs. a periodic inventory system the following statement is most accurate.

a.A perpetual inventory system provides far superior information and should be used at any cost.

b.A periodic system is inferior and should never be used if possible.

c.The cost of the system used should be measured against the benefits it provides.

d.Both systems are equally good.

The following table reports the operating cycle, cash conversion cycle, and current ratio for three apparel retailers all having year-ends at January 31, 2015. Aeropostale, which was originally owned by Macy’s, is a specialty retailer of casual apparel and accessories targeting 14- to 17-year olds. The GAP built its brand name on basic, casual clothing and expanded its market by opening Banana Republic and Old Navy Stores. Ross Stores operates Ross Dress for Less^® stores, which primarily target middle-income households.

All three companies follow the industry practice of including occupancy costs in cost of goods sold.

Required:

Do any of these companies appear to have a short-term liquidity problem?

How does the industry practice of including occupancy costs in cost of goods sold affect the statistics presented in the above table?

What is the most likely explanation for Ross Stores’ 2.2 days accounts receivable outstanding?

What is the most likely explanation for 0.0 days accounts receivable outstanding at Aeropostale and The GAP?

Compared to the case of perfect competition, a monopolist is more likely to: a) Charge a higher price b) Produce a lower quantity of the product c) Make a greater amount of economic profit d) All of the above

46. Which of the following is true about the way by which SDG&E has been regulated by the PUC? a) SDG&E has been allowed to earn very high economic profits b) The profits of SDG&E are calculated as a percent of the value of the capital goods c) When the demand for electricity would fall, the price of electricity would also fall d) All of the above

47. Which of the following best defines price discrimination? a) Charging different prices on the basis of race b) Charging different prices for goods with different costs of production c) Charging different prices based on cost-of-service differences d) Selling a certain product of given quality and cost per unit at different prices to different buyers

48. In order to practice price discrimination, which of the following is needed? a) Some degree of monopoly power b) An ability to separate the market c) An ability to prevent reselling d) All of the above

49. In price discrimination, which section of the market is charged the higher price? a) The section with the richest people b) The section with the oldest people c) The section with the most inelastic demand d) The section with the most elastic demand

50. Right to wealth is with Government/state is a) Islamic Economic System b) Capitalism c) Socialism d) All of the above

The Supreme Court ruled that Eastman Kodak Company must stand trial in an antitrust suit that has important implications for the ability of manufacturers to control the markets for the parts and servicing of the products they make. Independent servicing companies that sell replacement parts and service for Kodak's line of sophisticated business machines contend that Kodak was trying to force them out of business by restricting their access to replacement parts and by trying to insure that customers for its business machines either service the machines themselves or buy service directly from Kodak. The service companies' lawsuit accused Kodak of two violations of the Sherman Antitrust Act: unlawfully tying the sales of service for Kodak machines to the sale of parts, and unlawfully trying to monopolize the market for service. Kodak controls nearly the entire market for its replacement parts -- which are not interchangeable with the parts for other manufacturers' machines -- and between 80 and 95-percent of the service market. But it has only about a 20-percent share of the overall market for the machines at issue in the case: high volume copiers and equipment used for microfilm and microfiche. There is significant competition in that market with Kodak having a smaller market share than IBM and Xerox. Kodak contended that it could not be found to be exercising monopoly power in the parts and service market in the absence of market power in sales and basic equipment. It asked the Court to adopt a rule that a parts and service business cannot be considered a monopoly as long as there is competition in the sales and manufacture of the machines. Kodak also asked the Court to rule that the market for a single brand of a product or service -- such as its own replacement parts -- can never be a "market" for assessing monopoly behavior under the Sherman Act. The company said its power in the parts market should be judged not by the fact that it controlled nearly 100-percent of the market for its own parts, but by the much smaller portion it controlled of the market for parts of all the competing machines. (New York Times, June 9, 1992, p. C1)

(a) Carefully explain in what "market" Kodak has a monopoly given that it does not have a significant share of the primary market in which it sells its basic equipment. If Kodak required purchasers of its equipment to agree to purchase Kodak servicing at the time the equipment was purchased, how would your monopoly argument be affected? Note that Kodak charges more for servicing than the independent servicing companies.

(b) Assuming that the basic equipment market is competitive, explain under what conditions Kodak's restrictive policy with respect to exclusive servicing would not be a monopolizing restraint. That is, would competition in the servicing of a durable producer good imply a jointly nonoptimal outcome for the buyer and manufacturer of the durable good?

Members of the board of directors of Security First Security First have received the following operating income data for the year ended: May 31, 2018:

Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $ 80,000 and decrease fixed selling and administrative expenses by $ 10,000.

Read the requirements:

1. Prepare a differential analysis to show whether Safety Point Safety Point should drop the industrial systems product line.

2. Prepare contribution margin income statements to show Safety Point's Safety Point's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1.

3. What have you learned from the comparison in Requirement 2?

.

Requirement 1. Prepare a differential analysis to show whether

Security First Security First

should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.)

Requirement 2. Prepare contribution margin income statements to show First's Security First's Security

total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.)