Questions
a. Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and...

a. Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:

Proportion of Services Used by
Department Direct Costs Maintenance Cafeteria Machining Assembly
Machining $ 98,000
Assembly 74,400
Maintenance 46,000 — 0.2 0.6 0.2
Cafeteria 37,000 0.6 — 0.1 0.3

Exercise 11-27 (Algo) Cost Allocation: Direct Method (LO 11-2)

Required:

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

b. Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:

Machining Assembly
Job CM-22: Machine-hours 230 60
Labor-hours 20 20
Job CM-23: Machine-hours 20 40
Labor-hours 30 100

Required:
How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23?

In: Accounting

Pizza Hut is facing stiff competition in it pizza delivery service, and you are the owner...

Pizza Hut is facing stiff competition in it pizza delivery service, and you are the owner who is particularly concerned about being able to provide call-in customers with a guarantee as to how quickly their pizza would arrive. You have collected a month’s worth of data that included travel time (y)/ minute and delivery distance (x)/miles. You want to know if you can use delivery distance to predict travel time. You run regression on excel, and get the following output. Answer questions following the output.

1). Using the knowledge you learned from Chapter 3 to summarize Travel time and Delivery distance. What is the characteristics of this sample?

2). Determine the least-squares regression equation for travel time as a function of distance. Interpret the slope.

3). What percentage of the variation in travel time(y) is explained by the delivery distance (x)?

4). Do hypothesis testing to test the significance of slope and follow the 4-step. What does it tell you about the relationship between pizza delivery distance and travel time? (α=0.05)

5. what is the 95% confidence interval for slope? How does it tell you about the significance of the slope? Does this conclusion agree with the conclusion from 4)?

6).What would be the estimated time of travel for a pizza delivery that involved 5-miles? Interpret the result.

7). Calculate the prediction interval for the individual travel time given a pizza delivery distance is 5 miles (Show your calculation details in Excel). Interpret the results. (α=0.05)

8). Calculate the confidence interval for the mean of travel time given a pizza delivery distance is 5 miles (Show your calculation details in Excel). Interpret the results. (α=0.05)

9). Comparing results from 7) and 8), which one is wider? Why?

10). Calculate SSR, SSE and SST for this model.

Travel_Time
6.02
5.47
8.99
7.98
9.01
10.86
6.31
7.87
12.47
7.58
10.65
7.83
6.75
9.59
6.99
8.94
8.38
5.62
5.67
9.18
5.04
8.16
6.81
3.71
6.44
7.98
5.85
4.72
7
8.52
8.48
6.61
8.98
7.93
10.31
4.86
8.9
8.78
6.27
8.83
7.54
10.49
8.33
7.76
8.88
7.17
8.98
7.06
9.86
5.71
7.12
6.08
7.91
6.05
5.91
7.53
6.31
7.37
4.27
7.87
7.11
7.28
9.83
6.28
5.83
5.5
8.89
7.08
5.57
7.83
7.74
11.29
8.72
6.31
9.69
10.02
11.41
5.87
6.64
9.65
10.88
6.43
6.71
4.12
8.88
5.86
10.74
5.83
8.25
6.93
7.81
9.33
6.04
5.6
7.04
9.41
10.93
8.14
6.46
7.79
7.06
4.27
8.87
10.19
8.14
7.91
8.28
4.85
8.02
9.36
8.52
7.35
7.59
8.33
11.22
5.97
8.28
6.63
9.56
6.7
5.83
6.02
6.47
8.16
6.55
7.17
8.62
8.81
9.62
9.39
4.88
9.21
5.18
9.17
7.78
10.49
4.91
8.54
4.07
5.88
7.09
5.8
7.03
7.94
8.45
6.59
10.75
8.68
6.05
8.3
8.53
5.96
8.2
5.67
8.85
9.02
6.65
10.36
7.9
8.51
7.73
9.24
9.91
5.85
4.68
8.47
9.02
10.57
10.71
3.52
10.56
5.09
8.47
6.81
10.84
6.47
7.33
8.82
9.34
8.24
7.54
9.43
11.21
10.67
7.7
6.37
8.14
8.22
9.41
6.62
4.83
6.55
3.12
7.19
9.39
6.9
8.29
11.85
8.83
3.92
12.25
9.9
8.68
8.97
9.56
8.65
10.49
6.87
4.86
11.14
8.76
9.41
3.93
9.98
6.32
9.4
6.54
8.45
5.3
6.96
6.88
8.22
8.06
12.55
9
8.25
12.58
9.63
10.42
7.69
7.88
7.43
6.56
4.72
8.58
8.83
7.65
12.43
6.09
7.79

  

Distance
2.5
3.3
4.9
3.8
4.9
5.3
2.9
3.5
6.4
3.5
5.1
3.7
3.6
5.2
3.4
4.8
3.7
2.4
3.1
4.4
2.2
3.8
3.5
1.7
2.5
4.1
2
1.9
3.6
3.6
3.9
3.3
4.4
3.9
4.8
2.1
4.7
4.6
3.3
3.7
3.6
5.8
4.2
3.6
4
4
4.4
3.8
4.9
2.8
4
3.1
4
3.3
2.7
4.1
3.3
3.9
2.1
4.4
3.8
3.5
4.8
2.9
3
2.9
4.3
3.8
2.8
4.4
3.4
5.3
3.9
3.5
4.9
4.9
5.7
2.9
3.2
5.2
5
3.2
2.9
2.2
4.6
2.7
6.1
2.4
3.4
3.8
3.9
5
3.2
3
3.2
4.9
5.1
4.1
3.2
3.9
3.1
2.3
4.5
4.9
4.8
4.5
4.7
2.5
3.7
5.6
3.8
2.7
4
3.8
5.9
2.6
4.2
3
4.9
3.8
2.6
3
2.6
4.3
3.9
3.4
4.3
4.2
4.6
4.6
2.5
4.7
2
4.7
4.3
5.1
2.4
4.3
1.2
3.7
3.5
2.6
3.4
3.9
4
2.8
5.4
3.6
3
4.2
3.7
2.7
3.2
3.2
4.6
4.5
3.5
5.1
4.4
4.3
4.1
4.3
5.1
2.4
3.1
4.6
4.9
5.2
5.2
1.9
5.8
2.7
4.2
3.4
5.5
3.4
3.5
4.6
4.3
3.9
4.1
5.2
5.5
5.9
3.7
2.8
3.7
3.8
4
3.1
3
3.2
1.7
3.3
5
2.9
3.7
5.8
4.6
2.3
5.5
5.3
4.1
4
4.7
4.6
5.3
3
2.5
6.1
4.6
4.4
2.5
4.2
3.3
4.5
3.3
4.2
2.5
3.6
2.9
4.7
4.1
6.4
4.7
4.1
6.4
5
5
3.8
4
3.6
3.1
2.9
4.9
5.1
4
5.4
2.7
4

In: Statistics and Probability

PLEASE READ AND ANSWER CASE #3 TATA'S TIME(STRATEGIC MANAGEMENT IN ACTION SIXTH EDITION) It holds the...

PLEASE READ AND ANSWER

CASE #3 TATA'S TIME(STRATEGIC MANAGEMENT IN ACTION SIXTH EDITION)

It holds the number 6 spot on the list of the world's most admired companies in the steel industry. The Tata Group, based in Mumbai, India, is the largest conglomerate in that country. Its lat­est revenues are estimated at $67.4 billion, of which 61 percent is from business outside India. Tata has more than 100 operating companies in seven main business groups doing business in 80 countries: chemicals, information systems and communications, consumer products, energy, engineering, materials, and services. Its two largest businesses are Tata Steel and Tata Motors. Its Tata Tea, which owns the valued Tetley brand, also is one of the larg­est tea producers in the world. Ratan Tata, Tata Group's chairper­ son, has forged a strategy that encompasses the globe. In 1999, he issued a "clarion call to push outside India with acquisitions and exports." One of the company's executive directors recalled, "We didn't know what to expect, to be honest."

Today, Tata controls many businesses ranging from Eight O'clock Coffee Co. in the United Sates to the Taj Group of hotels, which took over management of the landmark Pierre Hotel on Central Park in New York City. Tata made its boldest global strategic push, however, in October 2006 when Tata Steel formally proposed buying British steelmaker Corus Group PLC for about $8 billion USD. Corus, which was formed by a merger of British Steel and Hoogovens, was three times the size of Tata Steel. The buyout offer soon turned into a bidding war when Tata Group discovered another company, Companhia Siderùrgica, Nacional of Brazil (CSN), was also preparing a bid and therefore upped its opening offer to $9.2 billion; CSN then raised the stakes by offering to pay $9.6 billion. A Tata Group spokesman said that the company's attempt to acquire Corus was "based on a compelling strategic rationale." Ratan Tata explained further by saying, "The revised terms deliver substantial additional value to Corus shareholders." The increased takeover bid did not impress investors as the company's share price fell 6 percent after the news was announced. Analysts and investors both "expressed concern that Tata is overpricing Corus, whose operating costs are among the highest of any steel maker—something that would affect its profitability and its plans to expand in India." However, Ratan Tata knew that the acquisition could catapult Tata Steel from its mid-50s ranking in the global steel list to the sixth-largest industry competitor. He said, "Analysts were taking a short-term, harsh view of the deal. Hopefully, the market will look back and say it was the right move." By the end of JanuaQi 2007, the U.K. Takeover Panel called an auction in order to end the bidding war and "presided over the contest that started on Tuesday, January 30." The "contest" continued for several hours until CSN pulled out. Tata Steel won its coveted prize for $12.2 billion—a 22 percent premium over what it had originally offered. That acquisition represented the latest consolidation in the global steel industry. The combined Tata-Corus can produce 25 million tons of steel a year. The deal also represented the largest foreign acquisition by an Indian company and made the diversified Tata Group the largest company in India.

In 2008, Tata made an even bigger global splash, at least in terms of recognized consumer brand names. It acquired the Land Rover and Jaguar brands from Ford for an estimated $2.3 billion.

Tata's leaders believe the group "can survive on the world stage only by being both too big to beat and too good to fail." In December 2012, when Chairman Ratan Tata steps down, Cyrus Mistry will take over as chairman of Tata Group and he "faces the daunting challenge of steering a giant, increasingly multinational conglomerate of more than 100 companies through economic headwinds at home and abroad."

DISCUSSION QUESTIONS

4. Do some research on the Tata Group [wvvw.tata.com]. What is its purpose? How would its core values Influence strategic choices? Does its international strategy approach seem to be working?

5. Do you think an international conglomerate would be more difficult or less difficult to strategically manage than a more focused company? Discuss.

6. What Implications does the statement about "surviving on the world stage" have for the future strategies pursued by the Tata Group?

THANK YOU!

In: Operations Management

GTA Construction Corporation constructed two buildings near the San Andreas fault line. The probability that either...

GTA Construction Corporation constructed two buildings near the San Andreas fault line. The probability that either of these buildings will experience an earthquake is 4.6 percent. However, if one building experiences an earthquake, the probability that the second building will experience an earthquake is 57 percent. What is the probability (in percent) that both buildings will experience earthquake damage?

IMB Computing creates motherboards for cellphones at their campuses in Seattle and San Diego. The company is worried about computer hackers and hired a consultant to evaluate their risk. The consultant estimated that the San Diego campus has a 12.1 percent chance of being hacked. The consultant also noted that the Seattle location has a 24.4 percent chance of digital hacking. IMB would asks the consultant, what is the probability (in percent) that both campuses will suffer hacking related crime in any given year?

Hishiba Company assembles hard drives and has plants in both the South and the North, spaced about 3,000 miles apart and connected by light rail. Hishiba is worried about local rain causing flooding at their plants. The probability that in any given year a flood will damage the North plant 5.1 percent. The probability that in any given year a flood will damage the South plant is 13 percent. What is the probability (in percent) that at least one of the plants will be damaged by flood in any given year?

In: Advanced Math

Question: Describe the various methods of solving linear systems. With which method of solving linear systems...

Question: Describe the various methods of solving linear systems. With which method of solving linear systems are you most comfortable, and why?

Hint: First, define a linear system, and give an example. Then, discuss the methods, and show the steps to solve your example. Finally, talk about advantages and drawbacks of each method.

"Real-Life" Relationship: Any relationship where we have a fixed cost and variable cost can be represented by a linear equation.

For instance, the cost of a rental car from Hertz might be $100 plus $0.70 per mile, while Enterprise might charge $80 plus $0.80 per mile. We can solve the following system to find out when the cost is the same (c = cost, m = miles driven)

c = 0.7m + 100 (Hertz)

c = 0.8m + 80 (Enterprise)

It turns out that they are equal when the mileage is m = 200.

Challenge 1: Given two lines in standard form, how can you quickly decide if they have the same slope, simply by using ratios of y and x coefficients?

Challenge 2: What is a quick way (without finding the slope or solving for y) to decide whether the following system has a solution?

2x + 3y = 4

2x + 3y = 5

In: Math

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Cost Amount Cost Behavior Activity Rate
Labor costs for loading and unloading railcars $ 175,582 Variable $46.00 per railcar
Fuel costs      460,226 Variable    12.40 per train-mile
Train crew labor costs      267,228 Variable       7.20 per train-mile
Switchyard labor costs      118,327 Variable     31.00 per railcar
Track and equipment depreciation      194,400 Fixed
Maintenance      129,600 Fixed
Total Amount $1,345,363

Operating statistics from the management information system reveal the following for April:

Atlanta/Baltimore Baltimore/Pittsburgh Pittsburgh/Atlanta Total
Number of train miles 12,835 10,200 14,080 37,115
Number of railcars        425    2,160    1,232    3,817
Revenue per railcar     $600      $275     $440

Instructions

1. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio in whole percents, rounded to one decimal place.

2. Discuss the route performance of the railroad using the above report.

In: Accounting

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs,...

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Cost

Amount

Cost Behavior

Activity Rate

Labor costs for loading and unloading railcars

$ 175,582

Variable

$46.00 per railcar

Fuel costs

     460,226

Variable

   12.40 per train-mile

Train crew labor costs

     267,228

Variable

      7.20 per train-mile

Switchyard labor costs

     118,327

Variable

    31.00 per railcar

Track and equipment depreciation

     194,400

Fixed

Maintenance

     129,600

Fixed

Total Amount

$1,345,363

Operating statistics from the management information system reveal the following for April:

Atlanta/Baltimore

Baltimore/Pittsburgh

Pittsburgh/Atlanta

Total

Number of train miles

12,835

10,200

14,080

37,115

Number of railcars

       425

   2,160

   1,232

   3,817

Revenue per railcar

    $600

     $275

    $440

Instructions

1. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio in whole percents, rounded to one decimal place.

2. Discuss the route performance of the railroad using the above report.

In: Accounting

PLEASE ANSWER #5! thanks! Roadrunner Trucking Company is a nationwide truckload carrier. They operate in a...

PLEASE ANSWER #5! thanks!

Roadrunner Trucking Company is a nationwide truckload carrier. They operate in a highly-competitive market on a very thin margin. Below are the projected figures for 2016: Revenue per mile $5.00 Variable cost per mile $ 4.50 Projected fixed costs $5,000,000 Desired after tax profit $500,000 Tax rate 25%

1. Compute the contribution rate and computation rate margin.

2. Calculate the breakeven in miles and sales dollars based on the information from Question 1.

3. Management is reviewing a proposal from their liability insurance company. The proposal suggests the company change their premium from a fixed to a variable rate. If accepted, this would increase the variable costs by 25 cents per mile and drop the fixed costs by 2%. Should they make the change? Show calculations to support or answer.

4. Shareholders are pressuring management to increase after-tax profit and thus increase the amount of dividends that can be paid. Management thinks they can increase revenue per mile by 5% and with an aggressive cost-cutting program, which will reduce fixed costs by 10%. With this program they project after-tax profits would increase by 15%.

5. Compare the three alternatives. Which is best? Explain your answer.

In: Accounting

Comfort Surroundings is a retail home furnishing retailer. CSI has been located in Jonesboro, GA for...

Comfort Surroundings is a retail home furnishing retailer. CSI has been located in Jonesboro, GA for 25 years and has had general success. CSI’s primary market has been residential customers located within 15 miles of Jonesboro. CSI considers itself to be a full-service provider, including delivery and installation services. The owner is Eric Watson and most of the management and staff leaders are family members.

Presently, CSI product lines are:

  • Kitchen appliances (such as stoves and refrigerators)
  • Kitchen and dining sets
  • Living and family room
  • Bedrooms

Summary of recent business trends:

Year

Sales

Profit

# of Customers

Marketing Dollars

2018

$5,675,750

$1,702,725

2,011

$25,000

2017

$5,900,500

$1,593,135

2,318

$20,000

2016

$7,978,950

$2,234,106

1,955

$17,500

2015

$7,350,900

$2,205,270

2,405

$15,000

2014

$6,975,900

$2,092,770

2,700

$12,000

Mr. Watson has contacted you to assist him in understanding the trends and to develop a marketing strategy to increase sustainability and reverse what appears to negative trends.

1. Discuss any need for exploratory research. What types of exploratory research would you recommend? Explain your recommendations

2. What would be the research plan?

Please answer in-depth and great detail.

In: Statistics and Probability

France stands as one of the world's leading economic powers, possessing large agricultural, industrial and service...

France stands as one of the world's leading economic powers, possessing large agricultural, industrial and service sectors. France operates a mixed economy that combines capitalist and socialist characteristics. Capitalism involves private ownership of capital and other means of production. Under socialism, the government directs economic activity and owns all or part of most industries. Despite extensive reforms over the years that have reduced government intervention in the economy, the French government still exercises great control over the economy, owning shares in many of the country's largest companies.

Quick Facts:

  • French Republic
  • Capital: Paris
  • Population 63.5 million
  • Area 543,965 sq km (210,026 sq miles)
  • Major language French
  • Major religion Christianity
  • Life expectancy 78 years (men), 85 years (women)
  • Currency Euro
  • President: Emmanuel Mac

How does the French anti-globalization movement make sense given their culture and economic system? Why?

  • How do these article relate other countries with anti-globalization sentiments like Great Britain, India, and the United States or do they?
  • What current economic and cultural influences will effective globalization in the near future? Are these factors going to have a positive or negative effect? Why?
  • In your opinion, is globalization beneficial?

In: Economics