Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.

$2,260

$3,180

$1,860

$3,580

$2,100

Situation for Analysis: Grayslake Novelty produces and sells a small novelty item through tourist shops in Chicago and other northern Illinois locations. Last year the company sold 198,400 units. The income statement for Grayslake Novelty for last year is shown below:

While the company has been profitable, as shown in the above income statement, sales began falling near the end of last year and have continued to decline this year. There is concern that new competitors are beginning to take market share from Grayslake Novelty. As a result, Sarah Burroughs, the company president, has asked you to provide some information to assist her in making decisions about the company’s strategy for this product. These alternatives should be evaluated individually as stated. You are free and encouraged to offer your own alternative based on any of the parameters given in the data.   

Required:

a. While the company is currently profitable, the president wants to know the contribution margin and the breakeven in both units and dollars using last year’s level of sales. Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

b. One of the possible strategies (Alt 1) is to reduce the current price by 8%. Using last year’s level of sales, what is the new contribution margin and break-even in units and dollars based on the price reduction? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

c. A second strategy (Alt 2) is to reduce the current variable cost by 0.20 per unit. The company has identified available efficiencies that can be implemented without any additional changes to the current cost. What is the new contribution margin and break-even in units and dollars based on the variable cost reduction of 0.20 per unit? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

d. A third strategy (Alt3) is to decrease the current price by 8% and reduce the variable cost per unit by 0.20. What is the new contribution margin and break-even in units and dollars based on making both changes? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

e. A fourth strategy (Alt 4) under consideration is to invest in more automated equipment for the manufacturing process. This investment will reduce variable costs by 0.65 per unit, primarily reducing the direct labor. At the same time, this will increase the fixed costs by $50,000. What is the new contribution margin and break-even in units and dollars based on this change in operating structure? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

f. A final strategy (Alt 5) is to change the current structure for the company’s sales person. The current fixed cost includes the salary of Grayslake’s one sales person at $60,000 per year. The company’s marketing study suggests that sales could be increased by 20% if the company hired an additional sales person; paid both individuals $40,000 fixed salaries; and a 0.25 commission per unit sold. What is the new contribution margin and break-even in units and dollars based on this change? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales as the starting point for this change.

This is a writing question:

Instructions:

Write a business memo addressed to the president recommending the best course of action based on your analysis. In your memo, discuss changes in break-even points, and impacts to the operating leverage. Including a table summarizing your findings would be appropriate. The company’s long-range plan is to grow sales to 250,000 units in the next two to three years. In your memo, summarize the advantages and disadvantages of each of the alternatives. Critically evaluate the alternatives based on current market conditions and any impact each alternative may have on the long-range plan.

Clearly state your recommended course of action explaining why your recommendation is the best for the company. Your memo should be at least one page, but no longer than two full pages. You should also attach an Excel spreadsheet that documents all your calculations. The calculations supporting your data and analysis must be included.

Situation for Analysis: Grayslake Novelty produces and sells a small novelty item through tourist shops in Chicago and other northern Illinois locations. Last year the company sold 198,400 units. The income statement for Grayslake Novelty for last year is shown below:

While the company has been profitable, as shown in the above income statement, sales began falling near the end of last year and have continued to decline this year. There is concern that new competitors are beginning to take market share from Grayslake Novelty. As a result, Sarah Burroughs, the company president, has asked you to provide some information to assist her in making decisions about the company’s strategy for this product. These alternatives should be evaluated individually as stated. You are free to offer your own alternative based on any of the parameters given in the data.

Required:

a. While the company is currently profitable, the president wants to know the contribution margin and the breakeven in both units and dollars using last year’s level of sales. Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

b. One of the possible strategies (Alt 1) is to reduce the current price by 8%. Using last year’s level of sales, what is the new contribution margin and break-even in units and dollars based on the price reduction? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

c. A second strategy (Alt 2) is to reduce the current variable cost by 0.20 per unit. The company has identified available efficiencies that can be implemented without any additional changes to the current cost. What is the new contribution margin and break-even in units and dollars based on the variable cost reduction of 0.20 per unit? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

d. A third strategy (Alt3) is to decrease the current price by 8% and reduce the variable cost per unit by 0.20. What is the new contribution margin and break-even in units and dollars based on making both changes? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

e. A fourth strategy (Alt 4) under consideration is to invest in more automated equipment for the manufacturing process. This investment will reduce variable costs by 0.65 per unit, primarily reducing the direct labor. At the same time, this will increase the fixed costs by $50,000. What is the new contribution margin and break-even in units and dollars based on this change in operating structure? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales.

f. A final strategy (Alt 5) is to change the current structure for the company’s sales person. The current fixed cost includes the salary of Grayslake’s one sales person at $60,000 per year. The company’s marketing study suggests that sales could be increased by 20% if the company hired an additional sales person; paid both individuals $40,000 fixed salaries; and a 0.25 commission per unit sold. What is the new contribution margin and break-even in units and dollars based on this change? Additionally, compute the margin of safety, margin of safety ratio, and degree of operating leverage based on last year’s sales as the starting point for this change.

Submission Instructions:

Write a business memo (format is in the second document of this assignment) addressed to the president recommending the best course of action based on your analysis. In your memo, discuss changes in break-even points, and impacts to the operating leverage. Including a table summarizing your findings would be appropriate. The company’s long-range plan is to grow sales to 250,000 units in the next two to three years. In your memo, summarize the advantages and disadvantages of each of the alternatives. Critically evaluate the alternatives based on current market conditions and any impact each alternative may have on the long-range plan.

Clearly state your recommended course of action explaining why your recommendation is the best for the company. Your memo should be at least one page, but no longer than two full pages. You may also attach an Excel spreadsheet that shows all your calculations or you may embed your computations into the memo using tables. The calculations supporting your data and analysis must be included.

Match each of the following activities with the appropriate quality cost classification (a–d).

Group of answer choices

Disposing of scrap

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Recalling defective products

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Performing warranty work

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Testing products

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Controlling vendor quality

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Processing returned merchandise

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Maintaining equipment

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

Training operators  

      [ Choose ]            Appraisal cost            External failure cost            Internal failure cost            Prevention cost      

10. Suppose the development of new drought-resistant hybrid seed corn leads to a 50% increase in the average yield per acre without increasing the cost to the farmers who use the new technology. If the conditions in the corn industry are approximated by the price-taker model, which of the following will be likely to occur? (More than one answer is correct, list all correct answers) a. The market supply of corn will increase. b. The supply of soybeans (a close substitute for corn) will decrease. c. The price of corn will fall and the quantity demanded for corn will increase. d. The demand for corn will increase. e. The price of soybeans (a close substitute for corn) will decrease.

12. Assume that "PC Clone" computer makers are price takers operating in an increasing cost industry. If demand increases, initially the PC manufacturers will be able to make economic profits. What is likely to happen to these profits with the passage of time? (There is more than one correct answer). a. They will persist as long as the demand for personal computers is high. b. As computer makers compete for inputs (chips, disk drives, engineers, etc.), they will bid up input prices, which will increase costs and reduce their profitability. c. Once consumers know that the computer makers are earning profits, they will reduce their purchases, which will lead to a reduction in demand and a lower market price. d. New PC manufacturers will enter the industry over time, which will lead to an increase in supply and a reduction in computer prices until the profits are eliminated.

13. Which of the following statements is true when long-run equilibrium conditions are present in price-taker and competitive price-searcher markets? (Note for this problem, there is more than one correct answer). a. P= MC for price-taker, and P > MC for competitive price-searcher markets. b. P = MC in both price-taker and competitive price-searcher markets. c. P = ATC in both price-taker and competitive price-searcher markets, and at a point where ATC is at a minimum for price- taker markets but not at a minimum for price-searcher markets. d. Economic profits are zero for both price-taker and competitive price-searcher markets. e. Total Revenue = Total Cost for both competitive price-taker and price-searcher markets.

14. Which of the following statements about price discrimination is correct (more than one answer is correct)? a. A price discriminating firm will want to charge a higher price to the consumer group with the more elastic demand. b. A firm can usually increase its profits by price discriminating rather than charging the same price to all customers. c. Some consumers will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price. d. Compared to a single-price strategy, a firm that engages in price discrimination usually produces and sells a larger output. e. For price discrimination to be successful, firms generally have to be able to prevent re-sale of their products and control resentment.

15. Which of the following is a true statement about the difference between a price-taker firm and a competitive price-searcher firm in the long run (more than one answer is correct)? a. Both will sell their products at a price equal to average total cost, but only the price-searcher will produce at minimum average total cost. b. Both will sell their products at a price equal to marginal cost, and only the competitive price searcher will produce at minimum average total cost. c. Only the price-taker will sell its product at a price equal to marginal cost. d. Only the competitive price searcher will sell its product at a price equal to marginal cost. e. Both will sell their products at a price equal to average total cost, but only the price-taker will produce at minimum average total cost.

16. In some industries where firms experience declining average total costs over the full range of output that consumers are willing to buy (more than one answer is correct): a. a larger firm will very likely have lower per-unit costs. b. many rival firms will tend to emerge from the competitive process. c. a single large firm will likely develop, and it will have cost advantages that may protect it from potential rivals. d. a single large firm will develop and it will buy out any smaller rival firms because the small firms can produce at a lower per-unit cost. e. smaller firms will likely have per-unit costs that are similar to large firms.

17. In sparsely populated areas of the western United States, physicians often have some local monopoly power since the nearest doctor may be a hundred miles (or more) away. Physicians confronting this circumstance may be able to practice price discrimination, for example, by charging richer families more than poorer ones for the same services. If one such physician is willing to stay in the area only if he or she can earn at least $150,000 per year, and if price discrimination permits him or her do so, then economic reasoning suggests that such price discrimination would most likely (more than one answer is correct): a. make residents of the area worse off with regard to the purchase of physician services. b. make residents of the area better off with regard to the purchase of physician services. c. increase the number of physicians practicing in such sparsely populated areas. d. increase the options available to both the rich and poor families in the community.

19. Given that the short-run cost and demand conditions shown above for a competitive price-searcher firm are representative for all firms in the industry, which statements accurately describe this firm and industry (more than one answer is correct)? a. The firm’s Price will exceed ATC and it will be able to make short-run economic profits. b. The firms will face competition from new entrants into the industry, causing this firm's demand to decline until zero economic profits are restored. c. The firms will face competition from new entrants into the industry, causing this firm's demand to increase until it earns positive economic profits. d. The firm will see some of its competitors exit from the industry, causing this firm's demand to increase until zero economic profits are restored. e. The firm’s Total Revenue (TR) will exceed its Total Costs (TC) in the short-run.

20. If the government grants a single firm the patent right (monopoly) for the production of a good, such as a new cancer drug, then compared to the competitive outcome for such a good: a. the price of the cancer drug will be higher, less of the cancer drug will be produced, and the firm will earn positive profits. b. the price of the cancer drug will be lower, less of the cancer drug will be produced, and the firm may be able to earn positive economic profits. c. the price of the cancer drug will be higher, more of the cancer drug will be produced, and the firm may be able to earn positive economic profits. d. the price of the cancer drug will be higher, less of the cancer drug will be produced, and the firm will earn zero economic profits. e. none of the above

21. Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency? (More than one answer is correct.) a. The output of the monopolist will be too small and the price too high, compared to ideal market efficiency. b. The output of the monopolist will be too large and the price too high, compared to ideal market efficiency. c. The output of the monopolist will be too small and the price too low, compared to ideal market efficiency. d. The monopolist’s price will be too high, but the impact of monopoly on output is indeterminate. e. The unregulated monopolist will be in a position to charge a price greater than its ATC of production in the long-run.

22. Suppose that price is below the minimum average total cost (ATC) but above the minimum average variable cost (AVC) and that the market price is expected to rise at least to ATC in the near future. In the short run, a firm that is a price-taker would: a. immediately shut down and get out of the industry. b. continue to produce a quantity of output such that its marginal revenue equals marginal cost. c. shut down temporarily, in hopes of restarting in the near future. d. cut price and expand output in hopes of achieving economies of scale. e. None of the above.

23. Even though a cartel is often profitable for its members, cartel arrangements contain the seeds of their own disintegration because (more than one answer is correct): a. a price maintained above each cartel member's average variable cost provides each member with an incentive to offer secret price reductions to attract additional customers. b. the profits earned by cartel members will induce and attract new firms to enter the industry. c. cartel members will attempt to garner more of the total profit for themselves by cheating on their agreement with other members. d. cheating on cartel agreements by individual members may be difficult to detect and enforce. e. the demand for the products of cartels is inherently unstable relative to the demand for the products of non-cartel industries.

24. Suppose the airline industry is an oligopolistic market with significant barriers to entry. If this is true, we would expect that (more than one answer is correct): a. each airline will strategically set its own price and output by considering how other airlines might respond. b. if the number of airlines declined because of a series of mergers between major airlines, then collusive behavior in the industry leading to higher prices would be more likely. c. the airfares being charged will be greater than what would be charged in a competitive price-taker market with no entry barriers but less than what would be charged by a pure monopolist. d. the firms in the industry will not attempt to maximize profit.

26. People can travel within Washington, D.C., via the Metro subway system or by taxicabs. Suppose that taxi fares (prices) remain the same, while subway fares (prices) increase for the Metro system. How will the total revenue from subway and taxi travel be affected by the increase in subway fares? The total revenue (more than one answer is correct): a. from taxi fares will increase, and revenue from subway fares will increase, but only if demand for the subway is inelastic. b. from taxi fares will increase, and revenue from subway fares will increase, but only if demand is elastic. c. from subway fares will decrease, and revenue from taxi fares might either increase or decrease. d. from taxi fares will decrease, and revenue from subway fares might either increase or decrease. e. from taxi fares will increase, and revenue from subway fares might either increase or decrease.

27. Mexican Hut sells tacos and competes with its main rival Burger Queen, which sells hamburgers. If rising corn prices unexpectedly increase the cost of taco shells for Mexican Hut, which of the following statements are correct in the long run when market equilibrium is restored? (More than one answer is correct. Hint: Use graphs to help answer this question) a. The supply of Mexican Huts tacos will decrease, their price will increase; the demand for Burger Queen’s hamburgers will then increase, and their price will increase. b. The supply of Mexican Hut’s tacos will decrease, their price will increase and the quantity demanded for tacos will decrease. c. The supply of Mexican Hut’s tacos will decrease, while the quantity supplied of Burger Queen’s hamburgers will increase as the price of hamburgers increases; d. The price of tacos will rise and the quantity demanded for tacos will decrease; the price of hamburgers will increase as the supply of hamburgers increases; e. The price of burgers will rise, the demand for tacos will fall, and the quantity of tacos supplied will decrease.

29. If the price of sandals is fixed by law below the market-clearing price (Note: More than one answer is correct): a. a shortage of sandals will result. b. sandal inventories at shoe stores will be smaller than when the market price prevails. c. the quantity of sandals purchased will be less than the quantity purchased at the market price. d. the quantity of sandals supplied will be greater than the quantity supplied at the market price. e. the quantity of sandals demanded will be greater than the quantity supplied.

32. Economic analysis suggests that patent laws that can often be used to limit the entry of potential competitors into an industry (more than one answer is correct): a. redistribute income from consumers to business decision makers without affecting the allocation of resources. b. may be a source of business monopoly power, but they may also encourage innovation and the development of cost- reducing production techniques in the long run. c. encourage product development and the adoption of cost-reducing technologies in the short run but in the long run generally lead to business monopoly. d. help inventors at the expense of consumers in the short run. e. help consumers at the expense of inventors in the long run.

BMI as a vital sign. Insured that all patients in local community clinics had their height and weight measured at each visit through provider education and training and referral system development (reached over 7,500 clinic patients). ? Breastfeeding policy. Implemented policies to promote breastfeeding in clinics, educated patients and clinic employees on the value of breastfeeding, and built capacity for more certified lactation specialists. Documented rates of exclusive breastfeeding from 7.7% in January 2005 to 20.2% in November 2009 (reached 900 staff and patients). ? School menu standards. Improved school meal/menu program during and after school to ensure meal compliance with nutritional standards and needs. Improved menu offerings and ingredients (e.g., added salad bars, changed to baked fries, whole wheat flour, etc). Expanded Universal Breakfast to five schools. Monitored compliance of policies for healthy fundraising, healthy vending, and alternative classroom rewards and incentives (reached over 7,700 students). ? PE standards. Implemented, at five elementary schools, the California standards-based physical activity curriculum and Game Days during school (reached 3,450 students). ? Worksite wellness. Worked with employers to adopt and implement worksite HEAL policies in the workplace; all county departments now have a worksite wellness coordinator. Received the worksite wellness bronze award for its accomplishments. (reached 4,000 employees in several worksites). ? Corner market produce. Implemented a grocery store Healthy Produce Basket project in neighborhood stores. Provided owners with educational materials and free produce in a basket and worked to identify ways to maintain the flow of produce. Some stores began purchasing from distributers. Worked with youth to provide free produce deliveries to these stores from unsold farmers’ market products to assist stores build a customer base for fresh fruits and vegetables (reached 4200 residents). ? Resident gardens. Local women from the Healthy Birth Outcome (HBO) Project grew produce in their backyards. Piloted selling excess produce at a stand in the park with the intention of creating a farmer’s market (reached 160 residents). ? Farmer's market. Organized and developed a four-month annual certified farmers’ market in West Modesto. Worked with Heifer International, a local organization that donated farm land and staff, and Project Uplift, a youth development project, to train youth to grow and sell organic produce with other vendors (reached 625 residents). ? After-school physical activity. Implemented a number of programs to increase the amount of exercise students get in afterschool programs, including the SPARK curriculum (offered daily), Powerplay (offered three times per week), and “Walk It Out” (offered three times per week). Increased daily after-school activity time from 15% to 45% (reached 1800 students). ? Walking school bus. Created a walking school bus at one school that increased the number of students walking approximately one half mile to school each day. Increased safety awareness through adult supervision, influenced traffic abatement, and reduced student tardiness (75 students walking daily). ? BMI counseling. Developed a routine counseling system to promote weight reduction among patients identified as being overweight in health care clinics (reached 140 patients). ? Youth awareness. Promoted student awareness of the importance of healthy eating and physical activity through the Educational Theater Program, Walk to School assemblies and other events (reached 2080 students). ? Community awareness of safe physical activity programs. Developed healthy messages for partners to insert into flyers, newsletters, bus ads, billboards, articles in local newspaper, and events (reached 17,000 residents). ? Worksite wellness promotion. Developed and implemented worksite wellness programs to decrease consumption of unhealthy foods and beverages and promote physical activity among employees. Received a state worksite wellness bronze award for its accomplishments (reached 4,000 employees in several worksites). After reading the description CAREFULLY, please organize the various objectives employed in this evaluation into the "bands" of the social-ecological model. You should briefly indicate WHY you feel these strategies fall within the specific categories of the model. From the list of objectives you have placed in the model, pick one objective from EACH of the "bands" of the model. Describe how you would evaluate that objective. Would you use formative or summative methods (and why)? What types of study design (qualitative or quantitative) and specific techniques would you use to collect the data in order to evaluate that objective? What sort of sampling might you use for each data collection approach? Remember to argue for your choices!

HarLeY-DaViDSOn Founded in 1903 in Milwaukee, Wisconsin, Harley-Davidson has twice narrowly escaped bankruptcy but is today one of the most recognized motor vehicle brands in the world. In dire financial straits in the 1980s, Harley licensed its name to such ill-advised ventures as cigarettes and wine coolers. Although consumers loved the brand, sales were depressed by product-quality problems, so Harley began its return to greatness by improving manufacturing processes. It also developed a strong brand community in the form of an inclusive owners’ club, called the Harley Owners Group (H.O.G.), which sponsors bike rallies, charity rides, and other motorcycle events and now numbers more than 1 million members in some 1,400 chapters. H.O.G. benefits include a magazine called Hog Tales, a touring handbook, emergency road service, a specially designed insurance program, theft reward service, discount hotel rates, and a Fly & Ride program enabling members to rent Harleys on vacation. The company also maintains an extensive Web site devoted to H.O.G. with information about club chapters and events and a special members-only section. Harley is active with social media too and boasts more than 3.3 million Facebook fans. One fan inspired a digital video and Twitter campaign dubbed E Pluribus Unum—“Out of Many, One”—where Harley riders from all walks of life show their diversity and their pride in their bikes. Companies large and small can build brand communities. When New York’s Signature Theatre Company built a new 70,000-square-foot facility for its shows, it made sure there was a central hub where casts, crew, playwrights, and audiences for all productions could mingle and interact.65 Online, marketers can tap into social media such as Facebook, Twitter, and blogs or create their own online community. Members can recommend products, share reviews, create lists of recommendations and favorites, or socialize together online. Online forums can be especially helpful in a business-to-business setting for professional development and feedback opportunities. The Kodak Grow Your Biz blog is a place for members to learn and share insights about how Kodak products, services, and technologies can improve important company or industry business performance.66 The Pitney Bowes User Forum is a place for members to discuss issues related to Pitney Bowes equipment and to mailing and marketing in general. Members often answer each other’s business questions, though Pitney Bowes customer service representatives are available for any particularly difficult support questions.67 maximizing the benefits of branD Communities A strong brand community results in a more loyal, committed customer base. One study showed that a multichannel retailer of books, CDs, and DVDs enjoyed long-term incremental revenue of 19 percent from customers—what the authors called “social dollars”— after customers joined an online brand community. The more “connected” a member of the community was, the greater the likelihood he or she would spend more.68 A brand community can be a constant source of inspiration and feedback for product improvements or innovations. The activities and advocacy of members of a brand community can also substitute to some degree for activities the firm would otherwise have to engage in, creating greater marketing effectiveness and efficiency as a result.69To better understand how brand communities work, one comprehensive study examined communities around brands as diverse as StriVectin cosmeceutical, BMW Mini auto, Jones soda, Tom Petty & the Heartbreakers rock and roll band, and Garmin GPS devices. Using multiple research methods such as “netnographic” research with online forums, participant and naturalistic observation of community activities, and in-depth interviews with community members, the researchers found 12 value creation practices taking place. They divided them into four categories—social networking, community engagement, impression management, and brand use—summarized in Table 5.5. Building a positive, productive brand community requires careful thought and implementation.70 One set of researchers offers these recommendations for making online brand communities more effective:71

1. Enhance the timeliness of information exchanged. Set appointed times for topic discussion; give rewards for timely, helpful responses; increase access points to the community

. 2. Enhance the relevance of information posted. Keep the focus on topic; divide the forum into categories; encourage users to preselect interests.

3. Extend the conversation. Make it easier for users to express themselves; don’t set limits on length of responses; allow user evaluation of the relevance of posts.

4. Increase the frequency of information exchanged. Launch contests; use familiar social networking tools; create special opportunities for visitors; acknowledge helpful members.

Japenese Case Study #1

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This case study is a composite of actual situations. Marianne, who is American, and Ken Shimizu, who is Japanese, have worked in Tokyo for over 30 years as Methodist missionaries. They have annual furloughs and occasional sabbaticals, during which they visit relatives and sponsoring organizations and engage in continuing education in the United States. They met as college students in the United States, and their three grown children have established their own careers in the United States.

Ken’s 98-year-old mother resides with Marianne and Ken. She is not Christian but has always been extremely supportive of Ken and Marianne’s work. Ken teaches at a large Christian university, whereas Marianne has served in various church-related positions over the years. As missionaries, they live in subsidized post–World War II housing near Ken’s university. Marianne has been a frugal housewife, preparing local foods in the Japanese style for her family.

Ken, who is nearly 60, recently learned that he has glaucoma. By the time it was discovered, he had lost a significant amount of peripheral vision. Although Marianne delivered all three children at a Christian hospital in Tokyo, she gets her annual physical examination when visiting relatives in the United States. She has never believed that the Japanese health system is as proactive as that in the United States. On her most recent visit to the United States, Marianne learned that she has hypertension. Her physician prescribed a medication that is readily available in Japan, but the physician was concerned about the level of stress in Marianne’s life. Mother Shimizu is quite confused and requires considerable care, but it is unthinkable for Ken, the only child, to put his mother in a long-term-care facility. Even if he would, the

quality of facilities in Japan leaves much to be desired. Most of the responsibility for Mother Shimizu falls on Marianne, in addition to her work. Marianne’s relatives are urging her to consider placing Mother Shimizu in a church-related life-care community near Marianne’s family in the United States, where Marianne and Ken would like to retire. Marianne’s own parents lived in this facility at the end of their lives. She is considering these issues as she returns to Tokyo.

1. Identify some of the cultural issues that may lead to conflict in this international family.

2. What are the family resources for this international family?

3. What factors within the Japanese health system may account for the late diagnosis of Ken’s glaucoma?

4. What practical issues might arise for the Shimizus if Mother Shimizu were placed in a long-term-care facility in the United States?

5. What dietary factors may contribute to Marianne’s hypertension?

6.In what ways might you consider Ken to be countercultural as a Japanese man? 7.What social pressures might Marianne have faced, given some of her choices, as a housewife in Japan? 8.What pressures will Ken likely experience as he considers how to meet the needs of both his mother and his wife? 9. Compare and contrast the fertility and mortality rates of Japan and the United States. 10.Do the traditional Japanese maintain sustained eye contact with strangers? Why or why not? 11.To which drugs might Japanese people have greater sensitivity than that of white ethnic populations? 12.How do most Japanese people meet their need for calcium?