Questions
Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a...

Solutions Plus is an industrial chemicals company that produces specialized cleaning fluids and solvents for a wide variety of applications. Solutions Plus just received an invitation to submit a bid to supply Great North American railroad with a cleaning fluid for locomo- tives. Great North American needs the cleaning fluid at 11 locations (railway stations); it provided the following information to Solutions Plus regarding the number of gallons of cleaning fluid required at each location (see Table 6.8). Solutions Plus can produce the cleaning fluid at its Cincinnati plant for $1.20 per gal- lon. Even though the Cincinnati location is its only plant, Solutions Plus has negotiated

TABLe 6.8 GALLONS OF CLEANING FLUID REQUIRED AT EACH LOCATION

Location

Gallons Required

Location

Gallons Required

Santa Ana

22,418

Glendale

33,689

El Paso

6,800

Jacksonville

68,486

Pendleton

80,290

Little Rock

148,586

Houston

100,447

Bridgeport

111,475

Kansas City

24,570

Sacramento

112,000

Los Angeles

64,761

Table 6.9

Freight Cost ($ Per Gallon)

Cincinnati Oakland
Santa Ana 0 0.22
El Paso 0.84 0.74
Pendleton 0.83 0.49
Houston 0.45 0
Kansas City 0.36 0
Los Angeles 0 0.22
Glendale 0 0.22
Jacksonville 0.34 0
Little Rock 0.34 0
Bridgetport 0.34 0
Sacramento 0 0.15

with an industrial chemicals company located in Oakland, California, to produce and ship up to 500,000 gallons of the locomotive cleaning fluid to selected Solutions Plus customer locations. The Oakland company will charge Solutions Plus $1.65 per gallon to produce the cleaning fluid, but Solutions Plus thinks that the lower shipping costs from Oakland to some customer locations may offset the added cost to produce the product. The president of Solutions Plus, Charlie Weaver, contacted several trucking companies to negotiate shipping rates between the two production facilities (Cincinnati and Oakland) and the locations where the railroad locomotives are cleaned. Table 6.9 shows the quotes received in terms of dollars per gallon. The “—” entries in Table 6.9 identify shipping routes that will not be considered because of the large distances involved. These quotes for shipping rates are guaranteed for one year. To submit a bid to the railroad company, Solutions Plus must determine the price per gallon it will charge. Solutions Plus usually sells its cleaning fluids for 15% more than its cost to produce and deliver the product. For this big contract, however, Fred Roedel, the director of marketing, suggested that maybe the company should consider a smaller profit margin. In addition, to ensure that if Solutions Plus wins the bid, it will have adequate capacity to satisfy existing orders as well as accept orders for other new business, the management team decided to limit the number of gallons of the locomotive cleaning fluid produced in the Cincinnati plant to 500,000 gallons at most.

3. If Solutions Plus wants to use its standard 15% markup, how much should it bid?

In: Finance

Assume that you are a manager in a factory and your supervisor has asked you increase...

Assume that you are a manager in a factory and your supervisor has asked you increase productivity without hiring additional workers or incurring overtime. Describe how you could motivate the existing workers using one content perspective and one process perspective. Support your answer.

In: Operations Management

How the pay as you go social security system increase or may not increase the social...

How the pay as you go social security system increase or may not increase the social welfare and how the fully funded social security system increase or  may not increase the social welfare

In: Economics

Which of the following statements about the sticky wage theory of the short-run aggregate supply curve...

Which of the following statements about the sticky wage theory of the short-run aggregate supply curve (SRAS) is (are) correct?
(x) Wages are “stuck” because contracts typically require that input prices must change at the same rate as output prices in order to keep firms from increasing profits as they increase production.
(y) Wages and other input prices are “sticky” because contracts fix some input prices and firms are unable to change the input prices they face as output prices are changing.
(z) The sticky wage theory of the short-run aggregate supply curve says that when the price level rises
more than expected, real wages fall because nominal wages are increasing at a slower rate than the price level.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

Which of the following statements about the sticky price theory of the short-run aggregate supply curve (SRAS) is (are) correct?
(x) Because not all prices adjust instantly to changing conditions, an unexpected fall in the price level leaves some firms with higher-than-desired prices, and these higher-than-desired prices depress sales and induce firms to reduce the quantity of goods and services they produce.
(y) The sticky price theory of short-run aggregate supply says that when the price level falls unexpectedly, some firms will have higher than desired prices which depresses their sales.
(z) An increase in aggregate demand will cause an increase in price in the output market. Sticky input prices will force firms to take losses since they can’t increase the prices of inputs that are used in the production of the output.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (x) only

4. Which of the following statements about the misperceptions theory of the short-run aggregate supply curve (SRAS) is (are) correct?
(x) The theory is used to explain the upward sloping SRAS curve since an increase in prices, ceteris paribus, will increase the output supplied in the short run.
(y) The theory says that if the price level increases more than people expect, firms believe that the relative price of what they produce has increased, so they increase production.
(z) Suppose the price level falls but suppliers only notice that the price of their particular product has fallen. Thinking there has been a fall in the relative price of their product, they cut back on production of their product.
A. (x), (y) and (z) B. (x) and (y) only
C. (x) and (z) only D. (y) and (z) only
E. (z) only

In: Economics

1) write three paragraph some of the greatest in science and society of the end of...

1) write three paragraph some of the greatest in science and society of the end of the 19th and the beginning of the 20th century. then choose one of the discussed luminaries (Either Albert Einstein, Charles Darwin, Marie Curie, OR Sigmund Freud) write what they did to change the world. ( this is a history question )

In: Economics

How does money make an economy more productive?

How does money make an economy more productive?

In: Economics

XYZ Company is a reputable manufacturer of various especially electronic items. Jay Carter, a recent MBA...

XYZ Company is a reputable manufacturer of various especially electronic items. Jay Carter, a recent MBA graduate, has been hired by the company in its finance department.

On of the major revenue-producing items manufactured by the XYZ is smartphone. The company currently has one smartphone in the market and sells has been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models.

The company can manufacture the new smartphone for $300 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 unit per year for the next five years, respectively.

The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $31 million and will be depreciated on a seven-year MACRS schedule (Use Table A-1 below). It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smartphones will be one time at $5,000,000 at the beginning of the project (time zero). XYZ has a 35% corporate tax rate and required return of 12%.

Jay was asked to prepare a report that answer the following questions:

  1. What is the project NPV?
  2. What is the Project IRR?
  3. What is the payback period of the project?
  4. What is profitability index of the project?
  5. How sensitive is the NPV to change in the price of the new smartphone (assume that the price goes done to $370)?
  6. How sensitive is the NPV to change in the quantity sold (assume that quantity reduce by 10%)?

Part 2- (25 Points)

  1. What is a break-even (quantity)?
  2. If the total interest payment be $150,000, what are the degrees of operating and financial leverage?

Assume that the company has the following capital structure:

Debt

$15,000,000

Preferred stock

$7,500,000

Common stock

$27,500,000

What will be the cost of capital if the company decide to raise the needed capital proportionally and with following costs? Please use the following information to calculate the weighted cost of capital:

  1. Bond:

A 30-year bond with a face value of $1000 and coupon interest rate of 13% and floatation cost of $20 (Tax is 35%)

  1. Preferred stock:

Face value of $35 that pays dividend $5 and floatation cost of $2

  1. Common stock:

Market value of $54 with floatation cost of $3.5. Last dividend was $6. The dividend will expect to grow at 7%.

Uses the new cost of capital, calculate the NPV and IRR?

In: Finance

List and summarize the community corrections programs that address minimizing risk to public safety. What are...

List and summarize the community corrections programs that address minimizing risk to public safety. What are some of the graduated sanction options available for probation violators? How can residential community corrections facilities use technological advances to monitor offenders when they leave the facility? Do you believe that monitoring using GPS may one day replace prisons? Why or why not?\

In: Psychology

Subject: Cognitive Psychology Scenario: Recall a favorite vacation/trip. Someone wants to visit the same location. As...

Subject: Cognitive Psychology

Scenario:

Recall a favorite vacation/trip. Someone wants to visit the same location. As a first time traveler, they are very apprehensive and your information may help ease the fear. S/he or they want to know specific details about the following: travel to that destination, the hotel you stayed at, your favorite restaurant(s), and popular venues from that destination. They also want to know the distance from the hotel to each restaurant and venue, to plan accordingly.

S/he requests that you draw out a map of the environment When remembering your vacation details for your friend, incorporate the information below in your response. Please define terms in your own words (do not copy and paste) using complete sentences

Components:

Describe the complexity of the problem. How did you use visual and auditory imagery to help resolve the problem? How did you use cognitive mapping to resolve the problem? What types of problem-solving approaches did you attempt in solving the problem? How will you apply visual and auditory imagery to problems in the future?

In: Psychology

5. The amount of imports under completely free international trade can be calculated as: A. quantity...

5. The amount of imports under completely free international trade can be calculated as:

A. quantity supplied minus quantity demanded, at the domestic market equilibrium price.

B. quantity demanded minus quantity supplied, at the prevailing world price.

C. quantity demanded minus quantity supplied, at the domestic market equilibrium price.

D. domestic quantity supplied minus quantity demanded, at the prevailing world price.

6. A tariff is a _______, and it is shown on the demand and supply diagram as _______.

A. tax on imports; an upward shift of the world supply curve

B. tax on exports; an upward shift of the world supply curve

C. tax on exports; a downward shift of the world supply curve

D. tax on imports; a downward shift of the world supply curve

7. Which of the following is NOT one of the results of a tariff?

A. The domestic quantity supplied rises.

B. The domestic quantity demanded falls.

C. The total gains from trade rises.

D. The amount of imports falls.

8. A tariff is a tax that consumers pay to the government. What impact does the act of paying this tax have on total gains from trade?

A. It reduces total gains from trade because consumer surplus falls as a result of the tax payment.

B. It has no impact because tariffs are also paid by producers, so the two payments cancel each other out.

C. It has no impact because the gains from trade are transferred from consumers to the government.

D. It increases total gains from trade because the government earns tax revenue.

9. As a result of a tariff, domestic consumption _______, and this causes total gains from trade to _______.

A. rises; fall

B. rises; rise

C. falls; fall

D. falls; rise

In: Economics

Porovide a summary of How to Think Like a Roman Emperor - The Stoic Philosophy of...

Porovide a summary of How to Think Like a Roman Emperor - The Stoic Philosophy of Marcus Aurelius. Provide major ideas and themes proving yih read the book.

In: Psychology

Here's a question or three to start off the discussion on I, Tituba, Black Witch of...

Here's a question or three to start off the discussion on I, Tituba, Black Witch of Salem:

Though Tituba is born into slavery, she is set free after her mother Abena is hanged and her "father" Yao commits suicide. Seven or eight years later, after her adoptive mother Mama Yaya dies, Tituba meets and quickly falls in love with John Indian. She is so infatuated with John Indian that she is willing to move in with him and thus, in effect, resubjugate herself to slavery, since she now must answer to Susanna Endicott. Were you surprised that she was willing to surrender her freedom so quickly? How would you explain her decision to do so? And what do you think about her relationship with John Indian and the different ways each one approaches the condition of slavery and racial oppression?

In: Computer Science

Using the following information ... to forecast the incremental expected Profit or Loss from the new...

Using the following information ... to forecast the incremental expected Profit or Loss from the new clinic.

Generic Hospital is contemplating the opening of a clinic in an underserved rural community. The marketing people project 5,000 office visits in year one with an average charge of $100 per clinic visit. The consensus is that half of the visits will be Medicare patients with an average payment of $50 per visit. Thirty percent (30%) of the visits are expected to be from patients insured with BC with the expectation for payment set at 80% of the average charge. Another 15% of the patients will have some form of Medicaid coverage with an expected payment of $20 per visit. The remaining patients are expected to be bad debt and charity care with no payment. The expenses consist of $120,000 for salary and benefits. This covers one nurse practitioner and one all purpose assistant. The office lease, insurance, and other fixed costs are projected to be $60,000 per year. The hospital would borrow $20,000 (Debt) from the Bank to buy used Equipment to outfit the office. The interest on the loan would be $1,500 in year one. The equipment to outfit the space cost $20,000 and has an expected useful life of 5 years. The variable cost for such items as supplies, forms, and postage is estimated at $10.00 per visit. Assuming no allocation of any corporate overhead, compute the forecasted year 1 profit or loss.

(do not to confuse Balance Sheet items with those needed to prepare a forecasted P&L)

In: Accounting

Prompt 1: What do you personally want to see in an organization's culture? This can be...

Prompt 1: What do you personally want to see in an organization's culture? This can be written in first person. Explain the type of environment you personally think would represent a positive, successful organizational culture, where you would want to work and, if you were, manager, what would do to create that desired culture.

In: Operations Management

Topic: “Is there a different between teacher’s and parents’ perceptions of what constitutes effective school-to-home communication?”...

Topic: “Is there a different between teacher’s and parents’ perceptions of what constitutes effective school-to-home communication?”

Ho: this is the currently accepted statement that there is no significant difference between teachers and parents’ perceptions of what constitutes effective school-to home communication.

Ha: this is my research hypothesis that is making the statement that there is a significant difference between teacher’s and parents’ perceptions of what constitutes effective school-to-home communication.

Ho & Ha are opposite mathematically, thus the possible outcomes of this investigation is to

  1. Reject the null hypothesis
  2. Fail to reject the null hypothesis

How do the findings fail to reject or reject the null hypothesis?

  1. Test Statistic- to calculate from sample data
  2. Statistically Significant- making a decision
  3. Level of Confidence- C- 95% , 99%


In: Math