Suppose that the US produces two goods, X and Y, with capital and labor. The US is relatively abundant in capital, and X is relatively capital-intensive. In the short-run, neither capital nor labor can move between the X and Y industries. In the medium-run, labor is mobile but capital is specific to each industry. In the long run, both capital and labor are mobile. If the US decides to withdraw from its free trade agreements and impose much higher tariffs, what happens to real incomes in the U.S.? Who wins and who loses in the short run? Who wins and who loses in the medium run? Who wins and who loses in the long run?

How do competing airline carrier fares compare?  A frequent flyer investigated round-trip fares for non-stop travel from Philadelphia to 10 different U.S. destinations on Southwest Airlines and US Airways. The following data was collected:

a.  At the .05 level of significance, is there evidence of a difference in the mean round-trip fare between Southwest Airlines and US Airways?

b.  What assumption is necessary about the population distribution in order to perform this test?

Unions represent under 7% of the private sector work force, perhaps 1/3d of public sector employees, down from a peak of union representation in the 1950’s.   Some argue that unions are necessary, and the decline of unionization is a root cause of the economic decline in the US middle class for several decades.   Have unions outlived their usefulness in the US economy, should be shut down as a right of employees to bargain with their employers?   Or do unions have an important role in the economy, ensuring that the economic pie is shared among everyone who helps “bake” that pie?   What public policies would you advocate, based on your view of the future role of unions in the US?

Buffalo Ranch & Farm is a distributor of ranch and farm equipment. Its products include small tools, power equipment for trench-digging and fencing, grain dryers, and barn winches. Most products are sold direct via its company Internet site. However, given some of its specialty products, select farm implement stores carry Buffalo’s products. Pricing and cost information on three of Buffalo’s most popular products are as follows.

Respond to the requirements related to the following independent revenue arrangements for Buffalo Ranch & Farm. IFRS is a constraint.

On January 1, 2020, Buffalo sells augers to Mills Farm & Fleet for $39,360. Mills signs a six-month note at an annual interest rate of 12%. Buffalo allows Mills to return any auger that it cannot use within 60 days and receive a full refund. Based on prior experience, Buffalo estimates that 5% of units sold to customers like Mills will be returned (using the most likely outcome approach). Buffalo’s costs to recover the products will be immaterial, and the returned augers are expected to be resold at a profit. Prepare the journal entries for Buffalo on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

On August 10, 2020, Buffalo sells 19 mini-trenchers to a farm co-op in western Canada. Buffalo provides a 4% volume discount on the mini-trenchers if the co-op has a 15% increase in purchases from Buffalo compared with the prior year. Given the slowdown in the farm economy, sales to the co-op have been flat, and it is highly uncertain that the benchmark will be met.

Prepare the journal entries for Buffalo on August 10, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Buffalo sells three grain/hay dryers to a local farmer at a total contract price of $38,000. In addition to the dryers, Buffalo provides installation, which has a stand-alone sales value of $520 per unit installed. The contract payment also includes a $1,170 maintenance plan for the dryers for three years after installation. Buffalo signs the contract on June 20, 2020, and receives a 20% down payment from the farmer. The dryers are delivered and installed on October 1, 2020, and full payment is made to Buffalo.

Prepare the journal entries for Buffalo in 2020 related to this arrangement as well as any adjusting journal entries at its December year end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

On April 25, 2020, Buffalo ships 80 augers to Farm Depot, a farm supply dealer in Alberta, on consignment. By June 30, 2020, Farm Depot has sold 50 of the consigned augers at the listed price of $984 per unit. Farm Depot notifies Buffalo of the sales, retains a 10% commission, and remits the cash due to Buffalo.

Prepare the journal entries for Buffalo and Farm Depot for the consignment arrangement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

On 1 July 1987 Charles acquired a leather sofa for $30,000. Charles borrowed $29,000 of the money from Corp Bank. The loan was a fixed interest loan on which Charles paid interest of $19,000. Charles sold it in September 2018 for $61,000.

Required: Calculate the indexed cost base for Capital Gains Tax purposes.

For which one of the following observations were both Lamarck's hypothesis and Darwin's hypothesis in complete agreement?

Objective

This assignment examines the importance of the cost of quality to an organization. Through this, we will gain a better understanding of how we can measure the cost of quality in an organization and what benefits can be gained from the cost of quality.

Scenario

This is a true story that dominates the global media in 2019/20 and shook an established and trusted company to its core. More details are easily available online but the following summary was taken from Wikipedia.

The Story

Boeing is a major airline manufacturer. The introduction of it’s new Boeing 737 Max plan resulted in 346 deaths.

The Challenge

In March 2019, aviation authorities around the world grounded the Boeing 737 Max passenger aircraft after two new airplanes crashed within five months of each other, killing all 346 people aboard. After the first accident, Lion air Flight 610 on October 29, 2018, investigators determined that the MAX's new Maneuvering Characteristics Augmentation System  (MCAS), which was omitted from flight manuals and crew training, automatically and repeatedly forced the aircraft to nosedive.

The Response

In April 2019, Boeing admitted that MCAS played a role in both accidents. In October, the Indonesian authorities concluded that problems with airplane design, certification, maintenance, and flight crew actions contributed to the Lion Air accident. In November 2019, the FAA revoked Boeing's authority to issue airworthiness certificates for individual MAX airplanes. In December 2019, the U.S. House of Representatives criticized the FAA and Boeing for their inaction despite known risks.

in December 2019, Boeing ousted its CEO over mismanagement of the crisis. Airlines canceled 183 orders for the MAX in 2019. In January 2020, Boeing halted production until regulators clear the airliner to fly again. Boeing revealed derogatory messages between its employees, sent during certification, about the MAX design, FAA regulation, and Lion Air's request for flight simulator training. Boeing estimated the grounding and production suspension will result in an additional $6.3 billion to produce the aircraft, reducing the margin of the 737 program in the future, with $18.4 billion in total future losses arising from the grounding.

Deliverables

Analyze the above scenario using the 4 Costs of Quality given below:

• Appraisal cost
• Prevention cost
• Internal failure cost
• External failure cost

Your detailed analysis and report should reflect:

• Root cause(s) of the issue
• What should have been done to prevent the current situation?
• What was done to turn the situation around?
• How did Boeing officials manage this crisis?

Think of the snack foods you eat most often. What type of snacks does that include? For many of us, those we frequently eat are salty snacks, which include chips of various ingredients and flavours, pretzels, cheese curls, crackers, and nuts( hint: nuts are the most healthy of this bunch). Another option might be sweet snack such as cookies, candy bars, other chocolate-based snacks, and cereal bars. Behind these various snack options are some of the largest companies in the food industry including behemoths such as Frito Lay, Kellogg, Hershey, Mars, General Mills, and Nabisco among others. All of these companies utilize immense resources to implement their marketing strategies in an effort to not only gain market share from competitor but also prevent others from entering the market.

So, if the competitive environment for the market is as described above, what in the world would make a firm think it could start a totally new snack food company and be successful? Apparently Daniel Lubetzky, founder of KIND Healthy Snacks, had a different idea of what it took to be competitive in the snack food market when he decided to enter it way back in 2003. Lubetzky looked at the playing field and decided that the competition was, in fact, not impenetrable. He found an opportunity to develop a product with all natural, healthy ingredients. In fact, a mantra of his organization is to put “ nothing in the product that the typical consumer cannot pronounce.” As a result, the ingredient list is an exercise in simplicity with easy-to-understand components that promote healthfulness in everyone who eats them.

Lubetzky also found opportunity in the packaging of his products. Instead of the typical opaque packaging for snack or candy bars that prevents one from viewing the actual physical product, KIND Healthy Snack uses proprietary technology to produce clear wrappers for its snack items. Using this type of package distinguishes KIND from its competitors because it allows consumers to see what they will eat and not just assume the bar inside will look like the picture on the wrapper.

Another opportunity area for lubetzky was the trend toward consumer supporting products that have the betterment of society as part of their mission. Visit the KIND website and you will find a quote by Henry James that reads, “ Three things in human life are important: the first is to be kind; the second is to be kind; and the third is to be kind.” Lubetzky’s company operationalizes this quote by allowing users to post on their website their individual acts of kindness and the number of people impacted by those acts. In addition to giving exposure to individual acts of kindness(get it – KIND-ness), KIND itself supports one project each month with $10,000.   Whether it’s rebuilding a New Jersey firefighter’s house after Hurricane Sandy, supporting Big Brothers and Big Sisters, or working with a nonprofit agency to fly soldiers home from overseas for the holidays, KIND is working to have a social impact on the communities it serves.

Clearly, KIND has embraced the concept of “Marketing” with all of its activities, institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. Evidence of this buy – in is the result the company has achieved. From the end of 2008 to the end of 2012, KIND’S sales went from $15 million to $120 million, an 800 percent increase in just four years. This growth occurred despite losing Starbucks as a distributor of its snack items in all of its U.S. based cafes.

By continuing to connect with its customers through its high-quality, all-natural-ingredient products; its innovative packaging; and its commitment to the betterment of society, KIND hopes to continue to dynamically grows its business well into the future.

• 1 (a) What other aspects of the American Marketing Association(AMA) definition of marketing might KIND exploit in the future to continue to grow its business and do consumers supporting brands and companies that strive to benefit society are a trend that will continue?
• (b) What other industries might be especially prone to entry by a smaller, more nimble, and more socially conscious competition and what are the prospects for a competitor being successful in those industries.

On December 31, 2020, Teal Company signed a $1,137,500 note to Flint Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Teal’s financial situation worsened. On December 31, 2022, Flint Bank determined that it was probable that the company would pay back only $682,500 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,137,500 loan.

Determine the amount of cash Teal received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)

eTextbook and Media

• eTextbook

Prepare a note amortization schedule for Flint Bank up to December 31, 2022. (Round answers to 0 decimal places, e.g. 5,275.)

eTextbook and Media

Determine the loss on impairment that Flint Bank should recognize on December 31, 2022. (Round present value factors to 5 decimal places, e.g. 0.52500 and final answer to 0 decimal places, e.g. 5,275.)