A professor challenged your international business student organization to prepare a position paper on BPO practices. Her main question is: if cultural identity loss is occurring, do the financial benefits to the workers and employers make its loss worthwhile? Should the loss of cultural identity by BPO workers be a real social concern, or it is just a natural outcome of changes in the global economy? What are the main points you will bring to this project?

Your US based company exports drendels to the rest of the world. The world market for drendles is highly competitive (so competitive that changes in production in the US do not impact the world price). The current price of a drendle is €100/drendle. Company's cost fix is C(q) =50,000+50q+0.02q² in US dollars. If the exchange rate is $1.20/€ how much profit in US dollars does your firm make?

10:2 DB Food

Topic 2: Quality and Performance

You are the new assistant to the Food and Beverage Director for a major hotel with 250 guest rooms. The Food and Beverage Director has asked for your assistance to develop a plan for continuous improvement of the quality of food, and the performance of the kitchen staff. Discuss the key factors in productivity improvement and how you will implement the changes you are proposing in your new plan.

In 1995, Mexico maintained a fixed exchange rate regime relative to the US dollar. In the six months prior to the Mexican national elections in October 1995, the public debt increased by 30%.

a) Use the TB/Y diagram to explain the effects of the increase in public debt. Be specific; highlight the effect of changes in the trade balance and output.

b) Why do you think the Mexican debt increased? Use a graph.

The economy is estimated to be growing at .02% annually, what policy will keep the economy out of a recession? Use the three economic variables: Government spending, Taxes, and Money supply in your reasoning. Your goal variables are: Real Gross Domestic Product, Prices, Interest rates, wages, and employment. Describe your proposed policy changes, how they might be implemented, and what effect they are expected to have on various sectors of the economy.

Describe how the following transactions affect the balance sheet, income statement, and statement of cash flows of Askins, Inc.

You should specify the name of the account / accounts in the balance sheet that is / are affected by the transaction as well as the magnitude of change / changes in the account / accounts. Also, specify the magnitude of changes in both total assets,total liabilities and total equity.

For the income statement effect, provide the dollar amount and the category (i.e. revenue of expense). For the cash flow statement effects, you need to provide the dollar amount as well as the category of cash flow (i.e. operating/investing/financing activity)

a) On 2/1/XXX1, Askins purchased for cash, in the open market, 1,000 shares of its own common stock at $40 per share.
b) On 7/1/XXX1, 200 of the shares purchased on 2/1/XXX1 were sold at $43 per share.

c) On 8/1/XXX1, $0.25 per share cash dividend was declared by the board of directors and the dividends are payable on 8/31/XXX1. There are 10,000 shares outstanding for Askins, Inc. on this date (You need to provide the answer only for the transaction on 8/1/XXX1)

Kaelea, Inc., has no debt outstanding and a total market value of $165,000. Earnings before interest and taxes, EBIT, are projected to be $9,900 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 24 percent higher. If there is a recession, then EBIT will be 31 percent lower. The company is considering a $46,500 debt issue with an interest rate of 5 percent. The proceeds will be used to repurchase shares of stock. There are currently 5,500 shares outstanding. Ignore taxes for this problem.

a. Calculate earnings per share, EPS, under each of the three economic scenarios before any debt is issued.(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. Calculate the percentage changes in EPS when the economy expands or enters a recession. (A negative answer should be indicated by a minus sign.

Assume the company goes through with recapitalization.
c. Calculate earnings per share, EPS, under each of the three economic scenarios after the recapitalization.

d. Calculate the percentage changes in EPS when the economy expands or enters a recession.

We are evaluating a project that costs $936,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 100,000 units per year. Price per unit is $41, variable cost per unit is $26, and fixed costs are $850,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.

a) Calculate the accounting break-even point. What is the degree of operating leverage at the accounting break-even point?

b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

c. What is the sensitivity of OCF to changes in the variable cost fi gure? Explain what your answer tells you about a $1 decrease in estimated variable costs.

d. In the above problem, suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent. Calculate the best-case and worst-case NPV figures.