On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $25 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 an 9% 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 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. 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.
   I. r_s and the WACC will decrease due to the flotation costs of new equity.
   II. r_s will increase and the WACC will decrease due to the flotation costs of new equity.
   III. r_s will decrease and the WACC will increase due to the flotation costs of new equity.
   IV. r_s and the WACC will not be affected by flotation costs of new equity.
   V. r_s and the WACC will increase due to the flotation costs of new equity.
   -Select-IIIIIIIVVItem 3

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $25 million in new projects. The firm's present market value capital structure, shown below, is considered to be optimal. Assume that there is no short-term debt.

New bonds will have an 7% 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 $1.20/$30 = 4%.) The marginal corporate tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000. Round your answer to the nearest dollar. Do not round intermediate calculations.

   $  

2. Assuming there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places. Do not round intermediate calculations.

   %

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?

   _____IIIIIIIVV

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

Please study the article below and answer to the following questions: 1. As an operation manager for a service company (Amazon, FedEx, UPS, pizza shop, pharmaceutical services, resident manager, coffee shops and bank tellers) what safety plan do you need to implement to minimize the risk for the delivery workers during the pandemic corona virus and also for “Safety stock versus MRP” 2. Do you think the employees in these businesses should continue to work during the “shelter in place” and restrictions now in March-April 2020 due to corona virus impact?

Workers push for more safety measures

Grocery delivery startup Instacart's delivery workers were set to begin a work stoppage Monday to press safety demands, as a walkout was planned by employees at an Amazon warehouse said to be the site of coronavirus infections. - Agence France-Presse

Under normal circumstances, delivering pizza, filling prescriptions or making bubble tea might not seem heroic. But when workers across the country are being told to stay at home, service workers and pharmacists are putting themselves at risk just by doing their jobs. - The New York Times

"This sounds dramatic, but I think people are really scared for their lives," said Sarah Clarke, an organizer with the group behind the Instacart strike.

They Are Still Working During the Coronavirus Outbreak

On March 20, in an effort to control the growing number of coronavirus cases in New York — New York City in particular — Gov. Andrew M. Cuomo issued an executive order requiring all nonessential businesses to keep their workers at home. Restaurants, grocery stores, pharmacies, convenience stores and hardware stores are all deemed essential, and all are allowed to remain open.

Damon Winter walked one block in Manhattan — on 72nd Street between Broadway and Columbus Avenue — to conduct an informal photographic census of the businesses still open and the people who were working in the hours before Governor Cuomo’s order went into effect.

Under normal circumstances, delivering pizza, filling prescriptions or making bubble tea might not seem heroic. But when workers across the country are being told to stay at home, service workers and pharmacists are putting themselves at risk just by doing their jobs. Simple actions like commuting to work or opening a door could expose them to the coronavirus.

In the past few weeks, New York City, a massive city by any measure, has shrunk. The block is one’s village. These are the people who make it tick.

Emdadul Chowdhury has worked at Gray’s Papaya, a city institution selling hot dogs and tropical drinks, since 2008, preparing food or tending the register. Only four people are working there now (compared with seven before the executive order), and it has gone from being a 24-hour operation to being open just six hours a day.

“Compared to last week, less and less people are coming into the store,” Mr. Chowdhury said. His main fear is of contracting the coronavirus on his commute from the Bronx, on a mostly empty D train. He wears gloves and a mask and washes his hands.

Chow Mok owns Zen Medica, a nutritional supplement store. “Every time people come in, we’re trying to tell them to stay calm, to relax. Stress is going to compromise the immune system,” she said.

“Protecting ourselves is helping to manage and support our own body’s defense, which is the immune system,” Ms. Mok added. “I get nervous too but having more freak-out attacks is not going to help anybody.”

She has a shipment of organic hand sanitizers, medicinal mushrooms and immune-support nutrients coming in. With fewer people walking through the door, most of her business has transitioned to shipments.

Donna Schofield owns Stationery and Toy, which sells office and school supplies, party supplies, board games and, lately, a lot of toilet paper, hand sanitizer and Clorox wipes.

“It’s kind of hard to stay afloat,” Ms. Schofield said. “I might be able to manage it. I’m just going day by day right now.”

“We leave the front door open so that nobody has to touch the handle,” she added. “We’re just going with the flow. I survived Sandy. I can probably survive this, too.”

Andrew Greaves has delivered packages for FedEx for five years. His route extends on 72nd Street from Riverside Drive to Central Park West. “It’s like Christmas all over again,” he said. “The more people are staying home, the more they order.”

Although the volume of packages has gone up during the pandemic, some aspects of his job are easier. “The more deserted the streets are, the easier it is to deliver a package in Manhattan,” Mr. Greaves said. Another good thing is that almost everyone is at home to accept a package.

“The only thing that is weird and different is the part where someone would have to sign for a package,” he said. People are hesitant to touch the scanner. Instead, FedEx is allowing him to write “C-19” in place of a customer’s signature.

“I’m thankful to still be working, that’s for sure,” Mr. Greaves said.

Sherif Eltahawy is a pharmacist and the owner of two pharmacies on 72nd Street: Joseph Pharmacy and Wellness Pharmacy. In addition to shortening his stores’ hours, he has asked all his workers to use masks and gloves and allows no more than five customers into each store at once.

“A lot of people are more panicked than is necessary,” he said. “It is understandable, but a lot of people are afraid that there’s going to be a shortage of their medications.”

Acetaminophen, hand sanitizer and cough medications are in short supply. “We’re trying to order from different vendors, different suppliers, to do the best we can to stock,” he said, “but it’s very limited.”

Althea Gordon has worked for nine years as a teller at Citibank. “I’m holding on to what’s going on,” she said. “It’s hard. It’s stressful. I’m taking precautions.” At work, she says, she is using a lot of hand sanitizer. “We wash our hands often and we use Lysol inside and outside.”

Citibank has shortened her branch’s hours, but it is still open six days a week. “People are nice when they come in,” Ms. Gordon said. “They tell us that they appreciate us.”

“I love to help people and I love to work with people,” she added. “That’s why I get up every day.”

Not surprisingly, Babacar Fall, the manager of Gartner’s Hardware, has seen an uptick in sales of face masks, gloves, cleaning supplies, hand sanitizers and thermometer batteries.

“The business never goes down, honestly. I have very good customers,” he said. “We’re doing better, compared to neighbors and everybody.” He came to New York from Senegal in 1984.

As the resident manager of an apartment building on the block, Blerim Havolli maintains and cleans the building. He has been doing this job for eight years. With the coronavirus, “I have to clean more than any other time,” he said.

He worries about people who enter the building to deliver food or packages. “You don’t know if one of them is infected or not,” he said.

“I’m trying to be very careful because I’m the guy who has responsibility of the building at this time,” Mr. Havolli said. “If I get sick, the building isn’t going to fall down, but nobody can clean up.”

Mr. Havolli has lived in New York City since 1999. Now a U.S. citizen, he immigrated from Kosovo as a refugee.

Juan Gutierrez has worked for three years as a chef at Friedmans. Normally he works 40 hours a week, but that has been reduced to 15 or 20.

“The business has gone down, I imagine, by 85 percent,” he said. “It’s difficult because the store used to have a lot of employees, and many of them are without work and they have families and kids.”

Before the executive order, there would be four or five others with him in the kitchen, but for now, he cooks alone, mostly for delivery. One of his colleagues started a GoFundMe page for his co-workers who are without work.

Rachel Pellerin moved from Florida a month and a half ago to start a church for deaf people with her husband. She works at Coco Fresh Tea & Juice to help finance that dream.

“We stayed open and so far we have been getting a lot of delivery orders,” she said. “I’m grateful to still be able to get paid, but at the same time it can be a little nerve-racking because I know the danger of being outside.”

She and her co-workers disinfect the shop at least once an hour.

Tahmid Khan worked at Dunkin’ Donuts for two years before quitting on Monday. He is a student in computer science at City College.

“I think that it’s irresponsible to keep the store open given the circumstance right now,” he said. “It’s not safe for me or for the customers. It was a $15-an-hour job. I don’t care if I lose it.” He moved to New York three years ago from Bangladesh.

“I think the Dunkin’ Donuts franchise should be more responsible about their operations,” he said. “I just don’t think that they don’t care about the workers or the customers at all. They just care about the money.”

Jayang Tenzin works at Pho Shop, a Vietnamese restaurant. “I’m just a server doing my work from my heart,” he said. “Times like this you have to be there for each other.” Mr. Tenzin moved to New York from Tibet eight years ago. “Got to chase the American dream,” he said.

He commutes an hour on the No. 2 train from Brooklyn. “It’s very quiet. It’s like a ghost town,” he said. “I come out of work, I don’t see anybody.”

Issouf Mande has delivered for Domino’s on an e-bike for two years. “I am scared of the virus because I’m going everywhere, opening every kind of door, going to any kind of house, meeting any kind of people,” he said.

“Most deliveries I deal with the doorman or just call the person and leave it in front of the door.”

Mr. Mande moved to New Jersey three years ago from Burkina Faso. He doesn’t understand why Domino’s is still open. “I think it’s not safe,” he said. “We meet so many people in deliveries. I don’t see enough protection.”

Benjamin Loucks has been homeless for two years. “There is no money to be made,” he said. “No traffic.”

Harvey Hogan was in his 31^st year as Director of Athletics at Wilson College, a coeducational, private liberal arts college that offered 16 sports and was a member of the Champions Intercollegiate Athletics Conference (CIAC). Mr. Hogan was proud of the fact that, although his budget was the smallest in the conference (which consisted of 10 schools), he had always operated in the black.

    However, the college faced some serious financial issues in the current school year due to a drop in enrollment during the spring semester. As a result, the Chief Financial Officer (CFO) told all department heads that their individual budgets could NOT go over what had been appropriated at the start of the year.

     Mr. Hogan met with the coaching staff and apprised them of the financial crisis that faced the college. He asked for their help but really did not foresee a problem since the Athletics Department had never gone over budget in his previous 30 years.

     On June 30^th, the fiscal year ended and the CFO (Ms. Newman) put an emergency call into Mr. Hogan. She scheduled a meeting with him so he could explain why he was over budget by $12,000.00. She told him that 4 sports had exceeded their budgets—men’s lacrosse, women’s volleyball, men’s tennis, and football.

     When Mr. Hogan returned to his office he immediately called each coach and scheduled meetings with them. According to the women’s volleyball coach, she had failed to check her monthly computer printouts because she was “too busy coaching and recruiting” to spend time on the printout. She said she was sure she stayed within her budget and did not overspend. After some investigating by Mr. Hogan, the coach admitted that she had been asked to serve as a chaperone for the intramural flag football team which travelled to New Orleans for the national tournament. She had transferred some volleyball funds to their account to help them cover their costs. She also paid for their uniforms, but indicated that it was the first time she had ever gone over budget.

     The football coach was also shocked to learn he was over budget by $5000.00. He discovered that the company that washed the team practice and game uniforms failed to send a monthly statement as he had requested. Instead, the owner of the cleaning company waited until the end of the school year to send a bill for $5000.00. Moreover, in previous years several football student athletes who were offered grants-in-aid did not report for practice choosing to enroll at other institutions. The coach assumed this would happen again. However, every scholarship athlete reported for practice which put him over by two grants ($40,000.00). While he was still in compliance with the conference, he was above the institutions limit.

     The men’s tennis coach has always ignored Ms. Newman’s directive to turn in all receipts by June 1^st. Instead, he regularly procrastinated until as late as mid-July when he would turn in receipts for the national tournament held in May. He was $2000.00 over budget.

     Men’s lacrosse exceeded its budget because the coach, who had built a nationally ranked team, had decided to take a trip north to play several games over spring break. He had no other excuse except that he felt the tough competition would help his national ranking and bring good publicity to the college and help his recruiting.

     In addition to these problems, another serious one surfaced. The track and field coach wanted a new computer. When he was told that the request would not be approved until the next year, he worked out a deal with a local computer store. The salesperson agreed to let him get a computer and hold the bill until the next year when he was told he could purchase the computer. Unfortunately, the salesperson was fired and the store owner demanded payment immediately.

     The final frustration came when 12 dozen pairs of athletic socks arrived. The bill had no identifiers on it so Mr. Hogan could not tell who ordered them. No one would admit it and it was a mystery as to how the purchase order got through the business office without the approval of the Athletics Director, Mr. Hogan.

     In the next meeting that Ms. Newman had with Mr. Hogan, she was furious. She asked Mr. Hogan “who is in control of the Athletics Department budget—you or your coaches!” What should Mr. Hogan do?

Questions for Discussion

1. It’s now the middle of July. What can Mr. Hogan do, if anything, about what happened in the last fiscal year? (5 pts.)

2. Make a list of all of the problems you see in the situation above. (10 pts.)

3. Describe how Mr. Hogan can remedy those problems to prevent them from happening in the future. (20 pts.)

Harvey Hogan was in his 31^st year as Director of Athletics at Wilson College, a coeducational, private liberal arts college that offered 16 sports and was a member of the Champions Intercollegiate Athletics Conference (CIAC). Mr. Hogan was proud of the fact that, although his budget was the smallest in the conference (which consisted of 10 schools), he had always operated in the black.

    However, the college faced some serious financial issues in the current school year due to a drop in enrollment during the spring semester. As a result, the Chief Financial Officer (CFO) told all department heads that their individual budgets could NOT go over what had been appropriated at the start of the year.

     Mr. Hogan met with the coaching staff and apprised them of the financial crisis that faced the college. He asked for their help but really did not foresee a problem since the Athletics Department had never gone over budget in his previous 30 years.

     On June 30^th, the fiscal year ended and the CFO (Ms. Newman) put an emergency call into Mr. Hogan. She scheduled a meeting with him so he could explain why he was over budget by $12,000.00. She told him that 4 sports had exceeded their budgets—men’s lacrosse, women’s volleyball, men’s tennis, and football.

     When Mr. Hogan returned to his office he immediately called each coach and scheduled meetings with them. According to the women’s volleyball coach, she had failed to check her monthly computer printouts because she was “too busy coaching and recruiting” to spend time on the printout. She said she was sure she stayed within her budget and did not overspend. After some investigating by Mr. Hogan, the coach admitted that she had been asked to serve as a chaperone for the intramural flag football team which travelled to New Orleans for the national tournament. She had transferred some volleyball funds to their account to help them cover their costs. She also paid for their uniforms, but indicated that it was the first time she had ever gone over budget.

     The football coach was also shocked to learn he was over budget by $5000.00. He discovered that the company that washed the team practice and game uniforms failed to send a monthly statement as he had requested. Instead, the owner of the cleaning company waited until the end of the school year to send a bill for $5000.00. Moreover, in previous years several football student athletes who were offered grants-in-aid did not report for practice choosing to enroll at other institutions. The coach assumed this would happen again. However, every scholarship athlete reported for practice which put him over by two grants ($40,000.00). While he was still in compliance with the conference, he was above the institutions limit.

     The men’s tennis coach has always ignored Ms. Newman’s directive to turn in all receipts by June 1^st. Instead, he regularly procrastinated until as late as mid-July when he would turn in receipts for the national tournament held in May. He was $2000.00 over budget.

     Men’s lacrosse exceeded its budget because the coach, who had built a nationally ranked team, had decided to take a trip north to play several games over spring break. He had no other excuse except that he felt the tough competition would help his national ranking and bring good publicity to the college and help his recruiting.

     In addition to these problems, another serious one surfaced. The track and field coach wanted a new computer. When he was told that the request would not be approved until the next year, he worked out a deal with a local computer store. The salesperson agreed to let him get a computer and hold the bill until the next year when he was told he could purchase the computer. Unfortunately, the salesperson was fired and the store owner demanded payment immediately.

     The final frustration came when 12 dozen pairs of athletic socks arrived. The bill had no identifiers on it so Mr. Hogan could not tell who ordered them. No one would admit it and it was a mystery as to how the purchase order got through the business office without the approval of the Athletics Director, Mr. Hogan.

     In the next meeting that Ms. Newman had with Mr. Hogan, she was furious. She asked Mr. Hogan “who is in control of the Athletics Department budget—you or your coaches!” What should Mr. Hogan do?

Questions for Discussion

1. It’s now the middle of July. What can Mr. Hogan do, if anything, about what happened in the last fiscal year? (5 pts.)

2. Make a list of all of the problems you see in the situation above. (10 pts.)

3. Describe how Mr. Hogan can remedy those problems to prevent them from happening in the future. (20 pts.)

Shaleen: Pregnancy & Lactation Case Study (10 pts.) Instructions: This case study assignment should be treated as a short paper, including a cover page, a heading, and page numbers. Set up the paper with one-inch margins, double-spacing, with the font set at 12-point Times New Roman. The introduction to the paper should summarize the case you have chosen to discuss. Responses to the case study questions should be written in paragraph form. Each paragraph in the case study should begin with an introductory statement that lets the reader know what topic you will be addressing in the paragraph. For example, if the case study question asks, “What nutrients are deficient in Shaleen’s diet, based on her current diet history?” You might start the discussion in this paragraph by indicating: “Shaleen has X nutritional deficiencies, based on her diet history. Her current diet consists of XXXXX. She is deficient in XXXXX.” The paragraph would continue with the explanation (or rationale) for your response: “According to Rolfe et al. (2012), a 16-year-old requires XXXXX. Because she is pregnant, she also XXXXX and so on. Scenario: Shaleen is a 16-year-old inner-city youth and high school student. She requests a pregnancy test at the Public Health Clinic. The pregnancy test is positive and she informs the clinic that her last menstrual period was 8 weeks ago. Previous History: Shaleen has had two previous pregnancies, one a stillbirth in which she gained 15 pounds and the baby weighed 4 pounds at term. The other ended due to a miscarriage at 9 weeks gestation and occurred 6 months ago. Her first pregnancy was at the age of 13. Social History: Lives at home with her mother and 5 siblings. Her mother provides the only income as a third shift waitress at a local 24-hour restaurant. The family receives $200 per month in food stamps. You speak with Shaleen at the Public Health Clinic after she receives the positive results of her pregnancy test. A brief diet and health history indicates the following information. She is a three-year smoker and is constantly concerned about her weight. Her diet consists mainly of diet cola, pizza, burgers, hot dogs, and convenience pasta dishes like Spaghetti-Os. She does get school lunch for free because of her family income level but rarely eats the fruits and vegetables or drinks the milk. Since Shaleen is the eldest sibling, she prepares meals for her younger siblings and sometimes does not have time herself to eat what has been prepared. Physical Exam: Ht = 5’6” Usual Wt = 108 lbs. Present Wt = 110 lbs. BMI = BP = 118/76 Blood glucose = 100 Shaleen’s pregnancy progresses without any problems until at 30 weeks her physician becomes concerned because her blood pressure has risen to 140/95, her blood glucose is 180, and she has gained 7 lbs. in two weeks. She is showing signs of generalized edema and she has protein and ketones in her urine. Her weight at this time is 118 lbs. Questions:

1) Based on her current diet, identify 5 nutrients she is likely to be deficient in and why they are important during pregnancy.

2) Suggest general changes Shaleen should have made in her diet at the start of her pregnancy. Use the MyPlate Food Guide as your reference.

3) Evaluate her weight gain at 8 weeks and 30 weeks of gestation. What do her current weight gain pattern, blood glucose levels, and BP indicate? How much total weight should Shaleen have tried to gain with this pregnancy? What pattern of weight gain would you recommend for the remainder of the pregnancy?

4) Calculate her approximate caloric and protein needs at 30 weeks.

5) Using the MyPlate system as a basis, outline a diet regimen that Shaleen should follow to achieve the weight gain recommendations from #4 above.

6) As a teenager, Shaleen is probably exposed to the peer pressure of alcohol consumption. What types of concerns should you make Shaleen aware of with alcohol intake during pregnancy? What is the recommendation for alcohol intake during pregnancy for any woman?

7) How could Shaleen best ensure adequate nutrition for her newborn? What arguments would you use in favor of this method when consulting with Shaleen?

8) How would her caloric and nutrient needs change if she decided to breastfeed? What general dietary recommendations should be given to ensure that these nutrient changes are met?

9) If she decides to formula feed, how much should she offer and are there any cautionary points that she should be concerned about with this method of feeding? How does this food choice differ from breast milk?

10) At what point should her infant be introduced to solid foods? Outline a timeline for the introduction of these foods with appropriate suggestions for each new food.

Item 1

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Hints

Item 2

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Hints

Item 3

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Hints

Item 4

In the case below, the original source material is given along with a sample of student work. Determine the type of plagiarism by clicking the appropriate radio button.

Which of the following is true for the Student Version above?

Word-for-Word plagiarism

Paraphrasing plagiarism

This is not plagiarism

Hints

Crystal is a happy 8‐year‐old who is just finishing Grade three. Like most parents, Crystal’s parents were worried about how she would react to school and how others would respond to her. They did not have to be worried as Crystal adjust well and she made many friends. She is also succeeding academically, not only fulfilling the curriculum objectives but also surpassing them. For example, Crystal began reading in pre‐primary, an activity that usually begins in Grade one. Part of the reason that Crystal does so well in school is because her parents are quick to praise her scholastic efforts and help her with schoolwork if she has difficulty. Crystal has always been a relatively easy child to take care of. When she was a baby, her mother nursed her on demand and found that she did not demand to be fed often. Even after waking up in the morning, Crystal did not cry hysterically for food and her mom met her needs efficiently. Potty training was not terribly stressful either. Neither Crystal’s mother nor her father felt that they should rush the child into potty training. They believed that the child would eventually learn control and it was the parent’s role to introduce the idea of using the potty to the child and to encourage her, but not force her into using it if she was not ready. Crystal’s parents tried not to embarrass her when she had accidents, instead they reminded her to try and remember to use the potty the next time. This approach worked well for Crystal and she learnt to use the potty when she was about two‐and‐a‐half years old without much hassle. Crystal’s parents took this approach for helping her reach her other milestones. They encouraged her to do things like walk, hold a spoon and feed herself. They tried to make the activities easier for her by practicing the activities with her and showing her how to do something and sometimes buying things that would make it easier for her to learn new skills, such as a curved spoon that allowed her to feed herself without making too much of a mess. Crystal’s parents did not rush her into learning new skills, although sometimes it was difficult not to. When an activity was too difficult for her, they would put it aside and allow her to try again at a later stage. As Crystal got older, her parents tried not to dictate her play activities. Instead they gave her a couple of choices and let her choose what she preferred. Many times her parents did not even need to do this, because often, Crystal would go off on her own and amuse herself. Sometimes she would go and look at pictures in her books, or play with her dolls or her Legos. The only time Crystal’s parents had some trouble with her was when her younger sister was born. Crystal’s younger sister was a demanding baby born via Cesearean section so her mother had been limited psychically in what she could do with Crystal and in the time she could spend with her. Crystal tried to express affection towards the baby but sometimes would hug her too hard. Crystal’s mother was not sure if this was done on purpose or not but she would tell Crystal that she was being too rough and show her how to hold the baby. She thought Crystal was jealous of the baby as she would say things like “ Mommy, you are always holding the baby.” Crystal also started to stutter. Crystal’s mother would reassure her by saying “I know you feel like the baby has all of Mommy’s attention but I held you this much when you were a baby too.” Her mother tried to be understanding of Crystal’s jealousy and did not try to make her feel bad about it. When her mother was feeling better, she was able to spend more time with Crystal and the stuttering eventually went away. Crystal also became gentler with the baby. Using Erikson’s psychosocial stages of development analyse Crystal’s life by answering the following questions with reference to each of the four stages: Q.5.1 Providing examples from the case study, identify and explain what is the crisis experienced by Crystal in Q.5.1.1 Erikson’s first stage of psychosocial development? (4) Q.5.1.2 Erikson’s second stage of psychosocial development? (4) Q.5.1.3 Erikson’s third stage of psychosocial development? (4) Q.5.1.4 Erikson’s fourth stage of psychosocial development? (4) Q.5.2 Based on the case study provided, identify and define the parenting styles and attachment styles employed by Crystal’s parents and detail whether these had favourable or unfavourable outcomes on Crystal’s behaviour. Use examples from the case study.

1.) SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 7,000 of these meals using 2,700 direct labor-hours. The company paid its direct labor workers a total of $27,000 for this work, or $10.00 per hour.

According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.30 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 7,000 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 7,000 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

(For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

2.)

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,800 per month plus $40 per course plus $6 per student. The company’s sales should average $860 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below:

Required:

1. Prepare the company’s planning budget for September.

2. Prepare the company’s flexible budget for September.

3. Calculate the revenue and spending variances for September.

3.)

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:

Direct materials: 7 microns per toy at $0.34 per micron

Direct labor: 1.2 hours per toy at $7.20 per hour

During July, the company produced 4,900 Maze toys. The toy's production data for the month are as follows:

Direct materials: 70,000 microns were purchased at a cost of $0.32 per micron. 27,125 of these microns were still in inventory at the end of the month.

Direct labor: 6,280 direct labor-hours were worked at a cost of $49,612.

Required:

1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answers to the nearest whole dollar amount.)

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.

4.)

You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 15,000 machine-hours and produced 9,000 units. The company had originally planned to work 17,000 machine-hours during March.

Required:

1. Prepare a flexible budget for March.

2. Prepare a report showing the spending variances for March.