AnyCo is a US consumer product company enjoying broad distribution and dominant market share in its domestic market. An opportunity exists to penetrate and perhaps dominate an offshore market, PseudoLand, worth an estimated $20 million in sales per year. Domestically, however, each dollar of revenue consistently produces the following income statement (P/L):

Sales   $1.00

    Delivered Cost of Goods      .55

   Gross Profit   $ .45

   Selling Expns      .06

   General & Admin Expns       .30

   Operating Profit   $ .09

AnyCo has already begun exporting to PseudoLand and, as expected, commissions (selling expenses) are higher overseas. AnyCo’s board of directors is committed to maintaining the company’s current capital costs, and is attracted to this opportunity because it returns nearly the same operating profit (as a % of sales) as its current business in the US. However, the company’s managers want to diversify the offshore distribution strategy in order to maximize penetration. Three modes of distribution have been identified:

1. An export company has taken charge of the effort to date, but this arrangement is not exclusive.

2. Selling directly to PseudoLand consumers over the internet

3. Using a local distribution company to sell products in PseudoLand

Through research, Anyco has come to believe that the current export company can, at best, effect 50% penetration of the PseudoLand marketplace. The internet could add an additional 20%. A local distribution company would be a bit more powerful, capturing as much as 30%. Selling expenses are 7% for the export company and 4% over the internet. However, the local distributor has balked at Anyco’s standard 6% commission, and is demanding 10%. Negotiations with the local distributor look inevitable.

Determine the best alternative to a negotiated agreement (BATNA) and a reservation sales commission above which, the company would walk away without an agreement. Using not more than one typed page (single spaced) and one spread sheet, explain your findings.

* Please elaborate reasoning!

an us company has two manufacturing plants one in UAE and one in another country. Both produce the same items,eath for sale in their perspectives countries. However their productivity figures are quite different. The analyst thinks this is because the UAE plan uses more automated equipment for processing while the other uses a high percentage for labor.
1-explain how that factor can cause productivity figures to be misleading.
2-Is there another way to compare the two plants that would be more meaningful?

Consider the following rates of return: Year / Large Company Stocks / US Treasury Bill 1 3.99 % 4.59 % 2 14.16 4.94 3 19.25 3.86 4 –14.43 6.99 5 –31.92 5.30 6 37.49 6.20 a. Calculate the arithmetic average returns for large-company stocks and T-bills over this period. b. Calculate the standard deviation of the returns for large-company stocks and T-bills over this period. c-1 Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the arithmetic average risk premium over this period? c-2 Calculate the observed risk premium in each year for the large-company stocks versus the T-bills. What was the standard deviation of the risk premium over this period?

Use the following information to answer the next four questions.

Your business (US company) will receive a payment of 150,000 British pounds. You have decided to fully hedge your company’s foreign exchange risk with futures contracts. Each futures contract for British pounds has an initial margin of $1500 and a maintenance margin of $1100. Each futures contract has 25,000 British pounds attached. You open your position on 11/30/2018 when the futures price was $1.955 per pound. The table below shows the futures prices for the three days immediately after you opened your position.

1) Find your initial margin balance on the day you opened your position.

2) Find your ending margin balance on 12/1. Assume any deficits are eliminated to keep the position open and any excesses remain in the account.

3) Find your ending margin balance (in dollars) on 12/3.  Assume deficits are eliminated to keep the position open and excesses remain in the account. Do not use currency symbols or words when entering your response.

4) Find the total amount of variation margin that occurred from 11/30-12/3.

US Auto Company would like to offer rebates to its customers in order to increase sales. If it lowers prices sales will increase.    This will depend on the price elasticity of demand. Assume that the price elasticity of demand is 1.5. This firm is considering a $400 rebate on its cars. Also assume the following information on prices and costs before the rebates:

          Average price per car                                   $9,000 per car

          Expected sales volume at $9,000) per car     1,000,000 cars

          Average total costs per car                           $8,200 per car

          Total variable cost                                         $6,400,000,000

• Calculate the present total fixed costs, average variable costs and average fixed costs.
• What is the present breakeven point?
• What is the change in revenue resulting from the $400 price reduction?
• What is the effect on the cost per car after the change? In other words what is the average cost per car after the change?
• Should the change be made?

Please show the calculation. Thank you.

1. The University is interested in determining if the number of people coming to work by pedal bicycle has changed from 2016 to 2017. Over the course of a week (Mon-Sun) they count the number of cyclists who enter campus at the North campus cycle path entrance between 8am-10am each day. The University have data from the same week in 2016. The counts for each day of the week for 2016 and 2017 are given in Table:

   	Mon	Tues	Wed	Thurs	Fri	Sat	Sun
   2016	243	175	255	187	241	53	32
   2017	254	242	250	263	235	51	35

   1. Describe one positive and one negative aspect of the University's sampling strategy
   2. Explain why a paired approach is appropriate for this test
   3. Write down appropriate null and alternative hypotheses for this test.
   4. Calculate the mean and variance of the differences di=xi-yi.
   5. What assumptions are required to conduct your hypothesis test from (c), does this data satisfy them?
   6. Using your answer to part (d), or otherwise, calculate a 90% confidence interval for the difference in the average number of cyclists.
   7. Using your answer to part (f), or otherwise, test your hypothesis from (c)  at the 10% level. You should clearly state the conclusion of your test.
   8. From Table 1 it looks like Tuesday and Thursday have the largest difference from one year to the next.  Why is it wrong to now testing the hypothesis  “2017 has more cyclists on Tuesdays and Thursdays than in 2016”?

Please explain part h) more details, thanks a lot.

Calculate the present worth of all costs for a newly acquired machine with an initial cost of $28,000, no trade-in value, a life of 14 years, and an annual operating cost of $17,000 for the first 5 years, increasing by 10% per year thereafter. Use an interest rate of 10% per year.

The present worth of all costs for a newly acquired machine is determined to be

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

a. State income taxes of $4,400. Federal tax withholding of $21,000.
b. Alimony payments to John's former wife of $10,000. (divorced on 12/31/2014).
c. Child support payments for John's child with his former wife of $4,100.
d. $12,200 of real property taxes.
e. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
f. $3,600 to Kid Care daycare center for Samantha's care while John and Sandy worked.

g. $14,000 interest on their home mortgage ( $400,000 acquisition debt).

h. $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and a new car.
i. $15,000 cash charitable contributions to qualified charities.
j. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

Required:
What is the Fergusons's 2020 federal income taxes payable or refund, Including any self-employment tax and AMT, if applicable?

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to John’s former wife of $10,000 (divorced on 12/31/2014). Child support payments for John’s child with his former wife of $4,100. $12,200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha’s care while John and Sandy worked. $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?

BUSI 1110

Summer 2020 Weekly Assignment

Assignment number

9
General Information

Description

Chapter

Motivating Satisfying and Leading Employees

Due date

Prior to start of following week’s session

Students will answer a list of assigned questions. In order to receive full credit for each question, students need to sufficiently support answers with relevant application of course concepts and theories. All sources should be correctly cited using APA guidelines.

Report guidelines

Students will require to submit their weekly assignments online (Moodle) on or before the due date to location created under each week. All files should be submitted using pdf extension labelling the file name using the format <last name>_<first name>_<assignment number>.pdf. Students could also create other modes of submission such as power point, graphics, video clips etc..., in such events please speak to the instructor for uploading instructions. All submissions should be properly formatted, checked for spelling, grammar and use professional language. Students will use Font style Times New Roman and size 11 with a spacing of 1.5

Assignment – Week 9

1. Reflecting the motivation theories discussed, which theory do you think is most suitable to motivate?

a. Fast food chain employee b. Accountant

Explain your reasoning by applying to the motivational theory for positions a) and b)? (8 points)

2. Identify the hygiene and motivational factors for following positions

   1. Accountant (3)

   2. University student following BUSI 1110 (3)

   3. Cashier at a super market (3)

3. Following assignment guidelines, reliable and sufficient research performed to support the argument. Sources cited to support statements. Clear and concise writing (5 points)

Total Points 22 – (Percentage 5%)

Revision May 2020

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