Small, energy-efficient, Internet-centric, new computers are increasingly gaining popularity (The New York Times, July 20, 2008). Some of the biggest companies are wary of the new breed of computers because their low price could threaten PC makers’ already thin profit margins. An analyst comments that the larger companies have a cause for concern since the mean price of these small computers has fallen below $350. She examines six popular brands of these small computers and records their retail prices as: (You may find it useful to reference the appropriate table: z table or t table).

a. What assumption regarding the distribution of the price of small computers is necessary to test the analyst’s claim?

b. Select the appropriate null and alternative hypotheses to test the analyst’s claim.

• H₀: μ ≥ 350; H_A: μ < 350

• H₀: μ = 350; H_A: μ ≠ 350

• H₀: μ ≤ 350; H_A: μ > 350

c-1. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

c-2. Find the p-value

• p-value < 0.01

• 0.01 ≤ p-value < 0.025

• 0.025 ≤ p-value < 0.05

• 0.05 ≤ p-value < 0.10

• p-value ≥ 0.10

d-1. What is the conclusion at the 5% significance level?

• Reject H₀ since the p-value is greater than significance level.

• Reject H₀ since the p-value is smaller than significance level.

• Do not reject H₀ since the p-value is greater than significance level.

• Do not reject H₀ since the p-value is smaller than significance level.

d-2. Should the larger computer companies be concerned?

• Yes, since we reject H₀.

• Yes, since we do not reject H₀.

• No, since we reject H₀.

• No, since we do not reject H₀.

Question 1: Austin v. New Hampshire (P&I Clause) New Hampshire, which levies no personal income taxes, adopted an income tax that effectively applied only to nonresidents. The Commuters Income Tax was imposed on the income of nonresidents earned in New Hampshire. The state also levied a tax on residents income earned outside the state, but immediately nullified its effect through another provision that exempted such income from tax. Does the New Hampshire Commuters Income Tax violate the Privileges and Immunities Clause? Why or why not?

Question 2: Michelin Tire Corp v. Wages (I&E Clause) Michelin stored tires and tubes imported from France and Nova Scotia in a warehouse in Georgia while they were awaiting distribution to franchised dealers throughout the Southeast. The county assessed ad valorem property taxes against the tires and tubes, and the taxpayer challenged the assessment under the Import-Export Clause. What was the ruling of the Court and why?

If the hospital keeps and overhauls its present generator, then the generator will be usable for eight more years. If a new generator is purchased, it will be used for eight years until a new hospital building is opened. The new generator would be diesel-powered resulting in a substantial reduction in annual operating costs as shown above.

The hospital computes depreciation on a straight-line basis. All purchases are evaluated using a 16% discount rate.

Required:

Determine the net present value for each option.

What option would you advise be selected and why?

You have recently started working as a product analyst at a company that manufactures and sells a variety of soft drink products. One of your first jobs is to categorize each of the firm's new products for the upcoming year into the appropriate new product category for a presentation you are putting together for your manager. A new product is one that is new to a company in any way. If a product is functionally different from existing products in the market or is not marketed in its current form or manner by the company, it can be considered a new product. We categorize new products in the following four ways: New-to-the-market products New category entries Product line extensions Revamped products A company's core competencies and strengths influence its strategy toward developing new products. Firms that have a strong research and development (R&D) department will focus on developing new-to-the-market products to beat the competition, while firms that have a strong brand and company image can take advantage of existing products to extend or revamp their current product lines with similar but somehow differentiating attributes. Match the new product with the appropriate new product category. 1. Smartphone app that can scan any beverage and show you the exact nutritional components in detail. 2. Candles that make your home smell like your favorite cola. 3. Selling a more caffeinated version of your traditional cola targeted at younger consumers. 4. A 5-ounce package of your popular cola product that is better for the environment. 5. New beverage that can be made from concentrate for international consumers in a way that has never been done. 6. Selling suntan lotion that has the scent of your favorite cola. 7. New 10-calorie version of the company's cola product that is targeted to male consumers. 8. Diet soda product using a new type of artificial sweetener.

College students nationwide crave and rave about the sandwiches served up at their campus Jimmy John's Gourmet Sandwiches, but what they likely don't know is that the restaurant's founder was merely a fresh-faced high school graduate when he opened the chain's first location.

Using a loan of $25,000 from his father, Jimmy John Liautaud planned to open a Chicago-style hot dog stand in Charleston, Ill. But when he realized the equipment involved exceeded his budget, the 19-year-old turned his attention to dell-style sandwiches, opening the first Jimmy John's outlet in 1983 on the campus of Eastern Illinois University in Charleston.

Liautaud worked open to dose, usually by himself, in what was then a single-unit restaurant serving four sandwiches and 25-cent sodas. He has since grown the Champaign, Ill.-based brand into the second fastest-growing sandwich chain in the United States based on percentage growth in systemwide sales, according to Nation's Restaurant News' Top 200 census. In 2011 systemwide sales reached $1.01 billion, a 30-percent increase from the prior year.

The company currently has 26 corporate units and 1,415 franchised locations, and it continues to expand, opening approximately one new store every day.

Liautaud, who refers to himself as "a 30-year overnight success," didn't have a business plan when he started, and he claims he still doesn't. He attributes the brand's success to keeping it simple and staying informed.

"I didn't have a business philosophy or plan," he said. "What I did do was balance the checkbook every day and keep a bank balance. I was very keen on understanding what drove that balance up and down."

He grew that understanding by listening to Jamie Coulter, then a Pizza Hut franchisee who would go on to lead Lone Star Steakhouse. In 1987, after opening his second and third Jimmy John's units on the campus of Western Illinois University, Liautaud began attending monthly operations-review meetings that Coulter was holding for Pizza Hut franchisees.

"I told him to take notes and not ask any questions," said Coulter, chief executive and chairman of Coulter Enterprises Inc. "After the fourth meeting he did ask me some questions and showed me a financial statement. I was impressed with his numbers. He left with a lot of confidence, and he has just grown into a giant."

As he continued to expand the brand, Liautaud sold the first Jimmy John's franchise in 1994 and made a point to put his time and energy into developing a strong system of franchisees, which he maintains to this day with an intense hands-on approach.

"From my experience, Jimmy's attention to detail is without comparison," said Peter Fox, a Jimmy John's franchisee and part owner of the company, which he bought into when Liautaud sold a 33-percent stake to private equity firm Weston Presidio in 2007.

Fox, who was formerly a Wendy's franchisee and partner at Bear Steams, explained that corporate officials audit each franchised unit every 28 days. That audit includes the findings of a full day spent in the store rating and evaluating every detail. It is a process that Fox cited as drastically different and more involved than the one at Wendy's, and one that Liautaud himself continues to take part in because of mistakes made early in his career.

"I didn't lead by example and set people up to fail," he said. "I thought the definition of a good employee was someone that you didn't have to tell what to do and they just did it. Now I realize a good employee does exactly what you tell them to do."

Meticulous standards outlining how restaurants appear and are managed have helped Liautaud move closer to his goal of having every outlet, regardless of location, provide the same experience, environment and product.

"I really want them to be the same all the time, and I really want to be good at what I do," he said.

For this reason he sticks to a core menu and follows his guiding principles no matter what his competition is doing. While the product line has grown beyond the four original sandwiches--the cold-cut deli sandwich and sub remain the chain's bread and butter--Liautaud has resisted the temptation to add items such as hot sandwiches to better compete with brands like Potbelly Sandwich Shop and Subway.
"He's never deviated from trying to keep it simple," Fox said.

In line with its slogan, "Subs so fast you'll freak," Jimmy John's has also differentiated itself from competitors in the sandwich segment by investing time, training and money in its POS system to make sure that delivery is as quick and efficient as possible.

Liautaud claims to not know how he stands out from his competitors, who he says "are all great." He said he does not spend a lot of time thinking about what others in the business are doing. However, the difference is evident to those around him.

"I talk to Jimmy several times a week," Coulter said. "He just seems to have acquired more knowledge about the restaurant business than most of his competitors, and he executes his concept."

In addition to finance, Liautaud said he learned from Coulter that surrounding himself with good people was as important as anything else. That lesson has prompted Liautaud to eschew large development deals and big money and instead to focus on growing intelligently.

"I have no interest in being the biggest; I want to be the best," he said. "I'm going to focus on the people, focus on the team and focus on the franchisees being successful."

The company, which expanded outside of college campuses in the late 1990s, currently has more than 2,000 units in development. Despite that apparent success, however, Liautaud said he remains focused on keeping his business simple and developing strong business relationships.

"It's kind of old school, and it's not sexy," Liautaud said. "I wish I had a big, macro, super Harvard-Stanford-Yale plan to tell you about, but I just don't have one."

This case is about Jimmy John Liautaud, the founder and CEO of Jimmy John’s Gourmet Sandwiches and the evolution of his business. He began in 1983 with a single store. During the 1980s, the number of company owned stores grew, and in 1994, he began franchising. He shares how he built a strong brand so the in-store experience is consistent.

Answer the following questions: When he started his business, did Jimmy have a business plan? What was his focus to ensure success in the beginning? How has Jimmy built such a strong brand such that the customer experience is consistent regardless of location? What types of control are evident in the company’s franchise system?

import javax.swing.*;

modify the above Java program to include the following: - When the user clicks on the help menu, a drop-down list will appear with an item called About, then when the user clicks on it, the window will show some instructions about the functionality of the menu, e.g, what the edit menu does, etc. - When the user clicks on the File menu, a drop-down list will appear with one item called Show Picture, and when the user clicks on it, a picture of your choice will appear.

E7-5 Analyzing Special-Order Decision, E7-6 Analyzing Make-or-Buy Decision, E7-7 Analyzing Keep-or-Drop Decision, E7-8 Analyzing Sell-or-Process-Further Decision

[The following information applies to the questions displayed below.]

Morning Sky, Inc. (MSI), manufactures and sells computer games. The company has several product lines based on the age range of the target market. MSI sells both individual games as well as packaged sets. All games are in CD format, and some utilize accessories such as steering wheels, electronic tablets, and hand controls. To date, MSI has developed and manufactured all the CDs itself as well as the accessories and packaging for all of its products.

The gaming market has traditionally been targeted at teenagers and young adults; however, the increasing affordability of computers and the incorporation of computer activities into junior high and elementary school curriculums has led to a significant increase in sales to younger children. MSI has always included games for younger children but now wants to expand its business to capitalize on changes in the industry. The company currently has excess capacity and is investigating several possible ways to improve profitability.

References

Section BreakE7-5 Analyzing Special-Order Decision, E7-6 Analyzing Make-or-Buy Decision, E7-7 Analyzing Keep-or-Drop Decision, E7-8 Analyzing Sell-or-Process-Further Decision

5.

Required information

E7-6 Analyzing Make-or-Buy Decision [LO 7-2, 7-4]

MSI is considering outsourcing the production of the handheld control module used with some of its products. The company has received a bid from Monte Legend Co. (MLC) to produce 8,000 units of the module per year for $18.00 each. The following information pertains to MSI’s production of the control modules:        

MSI has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. At this time, MSI has no specific use in mind for the space that is currently dedicated to the control module production.

Required:
1. Compute the difference in cost between making and buying the control module.

2. Should MSI buy the modules from MLC or continue to make them?

3-a. Suppose that the MSI space currently used for the modules could be utilized by a new product line that would generate $40,000 in annual profit. Recompute the difference in cost between making and buying under this scenario.

3-b. Does this change your recommendation to MSI?

no

yes

6.

value:
2.00 points

Required information

E7-7 Analyzing Keep-or-Drop Decision [LO 7-2, 7-5]

MSI is considering eliminating a product from its ToddleTown Tours collection. This collection is aimed at children one to three years of age and includes “tours” of a hypothetical town. Two products, The Pet Store Parade and The Grocery Getaway, have impressive sales. However, sales for the third CD in the collection, The Post Office Polka, have lagged the others. Several other CDs are planned for this collection, but none is ready for production.

MSI’s information related to the ToddleTown Tours collection follows:

      
*Allocated based on total sales dollars.

MSI has determined that elimination of the Post Office Polka (POP) program would not impact sales of the other two items. The remaining fixed overhead currently allocated to the POP product would be redistributed to the remaining two products.

Required:
1. Calculate the incremental effect on profit if the POP product is eliminated.

2. Should MSI drop the POP product?

3-a. Calculate the incremental effect on profit if the POP product is eliminated. Suppose that $1,000 of the common fixed costs could be avoided if the POP product line were eliminated.

3-b. Should MSI drop the POP product?