Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $120,000 if credit were extended to these new customers. Of the new accounts receivable generated, 6 percent will prove to be uncollectible. Additional collection costs will be 3 percent of sales, and production and selling costs will be 71 percent of sales. The firm is in the 15 percent tax bracket.

a. Compute the incremental income after taxes.

b. What will Johnson’s incremental return on sales be if these new credit customers are accepted? (Input your answer as a percent rounded to 2 decimal places.)

c. If the accounts receivable turnover ratio is 4 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Review the below described Concentration strategies in the textbook. These are strategies that involve trying to successfully compete only within a single industry. There are three concentration strategies:

• Market penetration involves trying to gain additional share of a company’s existing markets using existing products. Often companies will rely on advertising to attract new customers with existing markets.
• Market development involves taking existing products and trying to sell them within new markets. One way to reach a new market is to enter a new retail channel or geographic areas.
• Product development involves creating new products to serve existing markets.

Select one of these and find an article that describes a company that has successfully used this strategy.   Identify the company and provide an analysis of what the company has done. Assess what the company did to make this successful.

Pisa​ Pizza, a seller of frozen​ pizza, is considering introducing a healthier version of its pizza that will be low in cholesterol and contain no trans fats. The firm expects that sales of the new pizza will be

$ 15$15

million per year. While many of these sales will be to new​ customers, Pisa Pizza estimates that

45 %45%

will come from customers who switch to the​ new, healthier pizza instead of buying the original version.  

a. Assume customers will spend the same amount on either version. What level of incremental sales is associated with introducing the new​ pizza?

b. Suppose that

58 %58%

of the customers who will switch from Pisa​ Pizza's original pizza to its healthier pizza will switch to another brand if Pisa Pizza does not introduce a healthier pizza. What level of incremental sales is associated with introducing the new pizza in this​ case?

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks. Sales would increase by $260,000 if credit were extended to these new customers. Of the new accounts receivable generated, 8 percent will prove to be uncollectible. Additional collection costs will be 5 percent of sales, and production and selling costs will be 74 percent of sales. The firm is in the 35 percent tax bracket. a. Compute the incremental income after taxes. b. What will Johnson’s incremental return on sales be if these new credit customers are accepted? (Input your answer as a percent rounded to 2 decimal places.) c. If the accounts receivable turnover ratio is 6 to 1, and no other asset buildup is needed to serve the new customers, what will Johnson’s incremental return on new average investment be? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Please Use your keyboard (Don't use handwriting)

MGT 201

I need new and unique answers, please. (Use your own words, don't copy and paste)

Today, there is a great multitude and varieties of new products available in stores and online, from which consumers can choose. Think about the new products you've seen in the past two or three years, then choose a new product from any category.

Questions       (2×5 = 10 Marks)

1. How would you define the attributes and benefits of the chosen product?
2. Define the core, actual, and augmented product benefits.
3. Briefly describe the steps in the new product development process.
4. Each product will have a life cycle, although its exact shape and length are not known in advance. Explain each step in the PLC.
5. What are the dimensions upon which a company manages its product portfolio?

Amcor is a global leader in responsible global packaging solutions supplying a broad range of rigid & flexible packaging products. It is a large company, with revenues of US$9.5 billion, 27 200 employees, 66 000 shareholders and 180+ sites in 43 countries. Amcor's history dates back to the 1860s when Samuel Ramsden arrived in Australia to seek his fortune in a new land. He established Victoria's first paper mill on the banks of the Yarra River in Melbourne. For most of its life this operation was known as Australian Paper Manufacturers. In the 1970s and 1980s the company added a range of diverse packaging interests to its traditional papermaking activities and in 1986 changed its name to Amcor Ltd. Amcor now serves markets around the globe by pursuing profitable organic growth, strategic acquisitions and divestments and the provision of packaging solutions in Australia, Europe, Latin America, Switzerland and the United States of America.Amcor’s is world’s largest producer of Polyethylene terephthalate (PET) bottles (such as those
used by Coca and many other household and industrial products). Other packaging products
produced include materials for industrial applications such as aerospace, agriculture, automotive,
energy and insulation. Amcor also manufactures flexible and rigid packaging for food, household
items, personal and homecare products, tobacco products, beverages, hospital sterilisation units,
medical devices, and pharmaceuticals. They also provide services in packaging design, materials,
testing and recycling. Amcor is currently structured into three business groups namely, Flexible
Packaging, Rigid Plastics and Tobacco and Specialty Packaging.
Amcor’s main competitors are Ball Corp, Mondi PLC, Sealed Air Corp, UPM Kymmene OYJ and
Weyerhaeuser Co. Amcor is committed to light weight packaging innovations which save
thousands of tonnes of the earth’s resources and reduce CO2 emissions through lower raw
materials usage and reduced fuel consumption for the transport of its products. Efficient use of raw
materials reduces the volume of material that needs to be managed through recycling programs
and reduces the quantity of packaging material sent to landfill. Amcor works strategically with
partners throughout their entire value chain, and is thus able to unlock powerful social,
environmental and economic opportunities throughout a product’s entire life cycle. For example,
Amcor’s rigid plastic bottle value chain starts with packaging planning and design, raw material
(plastic resins) purchase, manufacture and transport, conversion of raw materials into rigid plastic
packaging, establishing targets to reduce waste to landfill, greenhouse gas emissions and municipal
water use, and delivery to customers’ manufacturing sites for use in packaging their products.
The packaged products are then transported through an often-complicated supply chain for
ultimate display and sale by retailers around the world. At the end of the product life cycle
packaging can still add value, as a result of sophisticated re-cycling and energy recovery processes.
Issues: Budgetary control systems dilemma
Sue was learning more about the organisation every day. Her immediate boss was the Chief
Financial Officer, Nick Rafter, who organised a meeting with her. As Sue had a background in
Management Accounting, the CFO felt it was in her best interest to learn the budgetary process
within the organisation. He was one among the many CFOs across Amcor’s global manufacturing
plants. He was the CFO of the Australian business and had the following to say:
“In Australia, we operate over 50 packaging and recycling sites in all States and Territories and
are a leading manufacturer of fibre, metal, flexible plastic and glass packaging with annual sales
of around A $1.9 billion. Amcor Paper is a leading producer of recycled paper, brown liners and
fluting grades for the Australian and Asian markets. With the commissioning of a new Paper
Machine at our Botany site (NSW), Amcor Paper will increase efficacy and capacity to suit
Amcor’s internal and external requirements. As a leading packaging supplier to food, beverage
and industrial manufacturers in Australia and New Zealand, Amcor Corrugated Packaging offers
a full service, from design and testing through to automation and supply chain integration. Amcor
Carton board supplies carton board from its Petrie Mill in Queensland, the only carton board mill
in Australia, to packaging manufacturers across Australia and New Zealand. With eight plants
across Australia and New Zealand, Amcor Folding Cartons has the widest geographical coverage
of any carton manufacturer in the region.”He paused and then said to Sue,
“I can carry on about the Australian operations, but my immediate problem is the annual budget
process. It is a daunting task to bring together the budget for the 50 packaging and recycling sites
across Australia.”
He continued
“We have to identify responsibility centres and it is often confusing to separate out cost centres,
revenue centres, profit centres and investment centres. What we would like to do is to have
operating budgets across the 50 sites and have a consolidated set of financial budgets for the
whole Australian operation.”
At this point Sue interrupted Nick and asked him about the current budgeting process; Nick
explained how each site prepares its own operating budget which is coordinated at the head office.
Nick said:
“Each manager prepares the budget for his responsibility centre within each site, but they don’t
seem to get it right. There seems to be a lot of toing and froing (moving back and forth) after
preparing the initial estimates.
He closed by saying:
“Surely there must be a better way of doing this. What are your ideas about these issues”?
REQUIRED:
Examine and evaluate each of the following FOUR issues and write responses to each of
them in your own words.
5 marks for each issue.
Issue 1
Explain to Nick how the budgeting process at AMCOR can be used to achieve financial
accountability within a responsibility framework.
Issue 2
Explain to Nick how budgets can become more meaningful to the managers when they reflect
the strategic plan of the organisation.
Issue 3
Describe to Nick, with examples, how participative budgeting can give employees the feeling
that ‘this is my budget’, rather than the feeling that ‘this is the budget you can impose on me’.

Issue 4
“It is a daunting task to bring together the budget for the 50 packaging and recycling sites across
Australia,” said Nick to Sue in a conversation above. Write your comment(s) on this statement.

I need answers for d

This question uses the "Morphine" data set, available on Canvas. As usual, you have been randomly assigned one of 10 versions of this data. Your version is 10. On Canvas there is a .pdf document that describes the study this data is based on. You can find this under Additional Class Stuff / Data. Please read this before you start analyzing data. You will be asked some questions that require you to interpret results in light of the study's hypotheses, and these questions will not make sense if you haven't read the study description. 1. Use Analyze / Fit Y by X to tell JMP what your predictor and response variables are. Then select Means / ANOVA from the drop down menu. Report the values of the following statistics: a. SSG (JMP calls this "Treatment sum of squares"): b. SSE: c. MSG: d. MSE: e. The test statistic that tests H0:μM_S = μM_M = μS_S = μS_M = μM_M new: 2. Based on the result of this analysis, we can say (select all that apply): (you have five attempts) We reject H0 and conclude that all group means are equal We reject H0 and conclude that all group means differ from one another We reject H0 and conclude that at least one group mean differs from the rest The test statistic is bigger than we'd expect it to be if all group means were equal The test statistic is smaller than we'd expect it to be if all group means were equal The test statistic is about what we'd expect it to be if all group means were equal The average between group variation is large relative to the average within group variation The average between group variation is small relative to the average within group variation The average between group variation is not very different from the average within group variation 3. From the "Oneway Analysis" drop down menu, select Compare Means / Each Pair, Student's t. a. Select the pairwise comparisons that are significant, using a comparison-wise error rate of α=0.05 (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) b. If we want to use a Bonferroni correction to control the family-wise error rate at α=0.05, what comparison-wise error rate should we use? c. Select the pairwise comparisons that are significant, using a Bonferroni correction to control the family-wise error rate atα=0.05 (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) There is another popular multiple testing adjustment specially designed for cases when you want to compare each group mean to each other group means; i.e. when you want to run "all pairwise comparisons". This adjustment method is called Tukey's HSD (or Tukey-Kramer HSD). It is the option in JMP just underneath the "Each Pair, Student's t" when you select "Compare Means" from the drop down menu. Tukey's HSD lowers the comparison-wise error rate by making p-values larger, rather than by making the significance level smaller. d. Run this function in JMP, and identify which pairwise comparisons are significantly different, using the 0.05 significance level. (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) 4. Now you'll interpret the results in light of the study's hypotheses. a. The researchers predicted that morphine tolerant rats receiving saline when expecting morphine would be extra sensitive to pain. The scientific hypothesis was that the expectation of morphine would cause rats to compensate by increasing their pain sensitivity. What statistical result would constitute evidence for this hypothesis? (you have three attempts) Observing a significant difference in the means of M_M(new) and S_S Observing a significant difference in the means of M_S and S_M Observing a significant difference in the means of M_S and S_S Observing a non-significant difference in the means of M_M and S_S Observing a significant difference in the means of M_M(new) and S_M Observing a non-significant difference in the means of M_M and M_S Observing a non-significant difference in the means of M_M(new) and S_M Observing a non-significant difference in the means of M_M(new) and S_S b. The researchers also predicted that placing morphine tolerant rats in a new environment before administering more morphine would "undo" the effect of morphine tolerance. What two statistical results would be consistent with this hypothesis? (There are two correct answers; select them both) (you have five attempts) Observing a significant difference in the means of S_S and M_M(new) Observing a non-significant difference in the means of S_S and M_M(new) Observing a significant difference in the means of M_M and M_M(new) Observing a significant difference in the means of S_M and M_M(new) Observing a non-significant difference in the means of M_M and M_M(new) Observing a non-significant difference in the means of S_M and M_M(new) c. Which of the following are appropriate interpretations for the comparison of the S_S and M_M groups (There are four correct answers; select them all)? (you have five attempts) The observed data are not inconsistent with the hypothesis that population mean tolerances for the M_M and S_S treatments are equal We FTR H0: μM_M = μS_S The difference in means between morphine tolerant rats who received more morphine and rats who never received any morphine is no bigger than what we'd expect to see by chance alone, if their population means were equal. We have significant evidence that μM_M and μS_S are not equal. We have significant evidence that μM_M and μS_S are equal. Morphine tolerant rats who received more morphine did not have a significantly different average pain tolerance than rats who never received any morphine. The difference in means between morphine tolerant rats who received more morphine and rats who never received any morphine is smaller than what we'd expect to see by chance alone, if their population means were not equal. The observed data are inconsistent with the hypothesis that population mean tolerances for the M_M and S_S treatments are not equal.

Morphine data set:

latency,Treatment

3,M_S

5,M_S

1,M_S

8,M_S

1,M_S

1,M_S

4,M_S

9,M_S

2,M_M

12,M_M

13,M_M

6,M_M

10,M_M

7,M_M

11,M_M

19,M_M

14,S_S

6,S_S

12,S_S

4,S_S

19,S_S

3,S_S

9,S_S

21,S_S

29,S_M

20,S_M

36,S_M

21,S_M

25,S_M

18,S_M

26,S_M

17,S_M

24,M_M(new)

26,M_M(new)

40,M_M(new)

32,M_M(new)

20,M_M(new)

33,M_M(new)

27,M_M(new)

30,M_M(new)

1. Doctors obtained the data below on the number of recovery days in the hospital using the new and old gastric bypass surgery procedures. Using the new and old surgery procedures, do the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new surgery procedure than with the old procedure? Use the appropriate statistical test to determine if using new surgery procedure results in a smaller mean number of recovery days. All appropriate statistical procedures/tests should be done with 5% P-value or 95% Confidence Interval.

Click here for the Bypass_surgery-PA#23 data. (3 points)

• a. P-value = 0.001. We are 95% confident that the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• b. P-value = 0.025. We are 95% confident that the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• c. P-value = 0.156. The test is inconclusive and we cannot conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• d. P-value = 0.078. The test is inconclusive and we cannot conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• e. None of the choices.

1.      Assuming the starting income new College graduates is normally distributed with a mean of $60,000 and standard deviation of $9,000.
A.        What is the probability of selecting a new College graduate at random and finding that he/she has a starting salary of less than $55,000?
B.      What proportion of new College graduates would be expected to have a starting salary of more than $48,000?
C.      What is the probability of randomly selecting a new College graduate with a starting salary between $60,000 and $75,000?
D.     What is the probability of selecting a new College graduate at random with a starting salary of less than $85,000?
E.      What percentage of new College graduates would be expected to have starting salaries between $50,000 and $70,000?

2.      Suppose a company wanted to know if there was a significant in the average income of its male and female customers.  Develop a null and alternate hypothesis for such a problem and give a conclusion based on the p-value results of .04.
Assume you are testing at the .05 level of significance.

3.      A company wants to know the useful life of a new revolutionary lightbulb it has just developed.  A mean of 64 of these bulbs revealed a mean useful life of 30,000 with a standard deviation of 1,500 hours.

A.      Use this information to develop a 95% confidence interval for the mean useful life of all new revolutionary lightbulbs.
B.      Use this information to develop a 98% confidence interval for the mean useful life of all new revolutionary lightbulbs.

4.      A pizza delivery company is concerned that it can no longer count on its average variable cost of $ 4.00 or less.  A sample of 36 pizzas revealed a variable cost of $4.05 and a standard deviation of $.25.  Testing at the .05 level of significance.  Develop null and alternate hypothesis for this claim and give a conclusion if your p-value is .06.

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

New bonds will have a 6% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 25%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Round your answer to the nearest dollar.

   $  

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

     %

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question. Select the correct choice from the options below:

   I. r_s will decrease and the WACC will increase due to the flotation costs of new equity.
   II. r_s and the WACC will not be affected by flotation costs of new equity.
   III. r_s and the WACC will increase due to the flotation costs of new equity.
   IV. r_s and the WACC will decrease due to the flotation costs of new equity.
   V. r_s will increase and the WACC will decrease due to the flotation costs of new equity.