William can sue the real estate agent for their statements about the restaurant, it would be necessary to evaluate whether there was a breach of duty, causation, and damages, which are key elements in a negligence claim under Australian law.
Here are some points to consider:
Duty of care: The real estate agent may owe a duty of care to potential buyers, including William, to provide accurate and truthful information regarding the property they are selling.
Misrepresentation: If the real estate agent made false statements or misrepresentations about the restaurant's potential profitability or future cash flow, it could potentially form the basis for a claim of misrepresentation.
Reliance: William would need to show that he reasonably relied on the real estate agent's statements when making the decision to purchase the restaurant. This could involve providing evidence that the agent's statements influenced his decision and that he would not have purchased the restaurant had he known the true circumstances.
Causation and damages: William would need to establish a causal connection between the agent's statements and the financial losses he suffered. He would also need to demonstrate the extent of his damages, including the financial harm he incurred as a result of relying on the agent's statements.
Professional negligence: In addition to a potential claim of misrepresentation, William could explore the possibility of a professional negligence claim against the real estate agent if they failed to exercise reasonable care and skill in providing accurate information or conducting due diligence on the property.
It is important to consult with a qualified legal professional who specializes in Australian negligence and tort law to obtain specific advice tailored to William's circumstances. They can assess the facts in detail and provide guidance on the viability of pursuing legal action against the real estate agent.
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Case 14.1 Nürnberg Augsburg Maschinenwerke (N.A.M.) The Nürnberg Augsburg Maschinenwerke, one of Germany's most successful manufacturing companies, enjoys a long tradition. It dates from 1748, when the St Antony Iron Mill opened in Oberhausen (located in the heart of the Ruhrgebiet industrial region) during the beginning years of German industrialization. The owners soon founded additional iron and coal mills, then established the firm as Gute Hoffungshuette (GHH). Shortly following, in Augsburg and Nürnberg several companies joined together to form Nürnberg Augsburg Maschinenwerke (N.A.M.). These two firms, GHH and N.A.M., would ultimately merge in the early twentieth century. In the interim, N.A.M. had distinguished itself through the work of Rudolf Diesel, who invented his famous engine and then brought it to N.A.M. late in the nineteenth century. The diesel engine competed with the internal combustion engine in early automotive design and today powers heavy trucks, turbines, railroad engines, and ships. Based on this success, N.A.M. swiftly expanded manufacturing operations and distribution across the globe, only to have its foreign operations compromised by internatal politics on two occasions. First, N.A.M. lost most of its foreign property in the wake of World War I, a setback that among other adjustments, encouraged its merger with GHH in 1920. Second, N.A.M. lost all of its foreign property again after World War II and had to rebuild and restructure much of its domestic operation as well. In 1955, the company opened a truck unit in Munich, which would later become the new company headquarters. had reclaimed its preeminence as a global player in heavy truck and bus design, engineering, and manufacturing, as well as in print
The case discusses the history and evolution of Nürnberg Augsburg Maschinenwerke (N.A.M.), a successful manufacturing company in Germany. It highlights the company's origins, mergers, and significant contributions, such as Rudolf Diesel's invention of the diesel engine. The company experienced setbacks due to political factors during and after World War I and World War II but managed to rebuild and regain its global presence. The case also mentions the establishment of a truck unit in Munich, which eventually became the company's new headquarters.
The case introduces Nürnberg Augsburg Maschinenwerke (N.A.M.), a manufacturing company with a rich history dating back to 1748. It explains that the company initially operated as the St Antony Iron Mill and later expanded to include additional mills under the name Gute Hoffungshuette (GHH). N.A.M. emerged as a result of the merger between several companies in Augsburg and Nürnberg. Notably, the company gained prominence through Rudolf Diesel's invention of the diesel engine, which found applications in various industries.
Furthermore, the case highlights the challenges faced by N.A.M. during and after the two World Wars. The company lost much of its foreign property and had to undergo restructuring and rebuilding processes. Despite these setbacks, N.A.M. managed to recover and regain its position as a global player in heavy truck and bus design, engineering, and manufacturing.
The case also mentions the opening of a truck unit in Munich, which later became the company's new headquarters. This indicates the company's growth and adaptation to changing circumstances.
The case of Nürnberg Augsburg Maschinenwerke (N.A.M.) demonstrates the company's resilience and ability to overcome challenges throughout its long history. Despite facing significant setbacks due to war and political factors, N.A.M. managed to rebuild, expand its operations, and regain its global presence. The case highlights the importance of adaptability, innovation, and strategic decision-making in navigating turbulent times and ensuring long-term success.
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A $1,000 par value bond with Five years left to maturity pays an interest payment semiannually with a 5 percent coupon rate and is priced to have a 4.4 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much will the bond’s price change?
The price of a $1,000 par value bond with five years left to maturity and a 5 per cent coupon rate, priced to have a 4.4 per cent yield to maturity, will decrease when interest rates increase by 0.5 per cent. The change in price can be explained by the inverse relationship between interest rates and bond prices. As interest rates rise, the bond's yield becomes less attractive compared to newer bonds offering higher yields. Consequently, the bond's price must decrease to align with the increased interest rates and maintain its yield-to-maturity.
When interest rates increase by 0.5 per cent, the bond's yield to maturity will rise from 4.4 per cent to 4.9 per cent. Since the bond pays semiannual interest, the number of periods is twice the number of years to maturity (i.e., 10 periods). Using the given information, we can calculate the initial price of the bond as follows:
[tex]P_1 = \frac{50}{{(1 + 0.044/2)^1}} + \frac{50}{{(1 + 0.044/2)^2}} + \ldots + \frac{50 + 1000}{{(1 + 0.044/2)^{10}}} \approx $1,039.70[/tex]
Next, we can calculate the new price after the interest rate increase:
[tex]P_2 = \frac{50}{{(1 + 0.049/2)^1}} + \frac{50}{{(1 + 0.049/2)^2}} + \ldots + \frac{50 + 1000}{{(1 + 0.049/2)^{10}}} \approx $985.13[/tex]
Therefore, the bond's price will decrease by approximately $54.57 (i.e., $1,039.70 - $985.13) when interest rates increase by 0.5 percent.
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if the natural rate of unemployment is 5 percent and the actual rate of unemployment is 7 percent, then by definition there is\
When the natural rate of unemployment is 5% and the actual rate of unemployment is 7%, then by definition there is 2% cyclical unemployment in the economy.
In this given statement, we have been provided with the natural rate of unemployment, which is 5%, and the actual rate of unemployment, which is 7%. The natural rate of unemployment is the minimum rate of unemployment that is present when the labor market is in equilibrium and there is no cyclical unemployment in the economy.
The actual rate of unemployment, on the other hand, is the rate of unemployment that is observed in the economy, which may be higher or lower than the natural rate of unemployment depending on the economic conditions such as a recession or economic growth.
By definition, the amount by which the actual rate of unemployment exceeds the natural rate of unemployment is known as cyclical unemployment. Therefore, if the natural rate of unemployment is 5% and the actual rate of unemployment is 7%, then by definition there is 2% cyclical unemployment in the economy.
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The Clear Window Company has estimated the relationship between output (Q) and the number of units of labour (L) and glass (G) as:
Q = 200L + 600G – 0.1L2 – 0.4G2 The price of one unit of labour is $24 and the price of one unit of glass is $48.
a ) What is the marginal product of labour? [2 marks]
b) What is the marginal product of glass? [2 marks]
c) If the View Window Company budgets $38,880 on labour and glass, what is its budget equation? [1 mark]
d) How much of each input should the company employ given budget? [5 marks]
e) What output will result from the combination of inputs you determined in part d)? [2 marks]
a) The marginal product of labor (MPL) refers to the change in output resulting from an additional unit of labor. It can be calculated by taking the derivative of the production function with respect to labor, while holding other inputs constant.
MPL = ∂Q/∂L = 200 - 0.2L
b) Similarly, the marginal product of glass (MPG) is the change in output resulting from an additional unit of glass. It can be calculated by taking the derivative of the production function with respect to glass, while holding other inputs constant.
MPG = ∂Q/∂G = 600 - 0.8G
c) To determine the budget equation, we need to multiply the price of labor ($24) by the quantity of labor (L), and multiply the price of glass ($48) by the quantity of glass (G). Then we sum up these two terms to obtain the total budget spent on labor and glass.
Budget equation: 24L + 48G = 38,880
d) To determine the optimal combination of inputs given the budget, we can use the budget equation and the marginal products of labor and glass. We need to equate the ratio of marginal products to the ratio of input prices to maximize output.
MPL/MPG = (24/48) = 0.5
Solving this equation simultaneously with the budget equation, we can find the values of L and G that satisfy these conditions.
200 - 0.2L / (600 - 0.8G) = 0.5
Solving these equations, we can find the optimal values of L and G.
e) Once we have determined the optimal values of L and G, we can substitute them into the production function to find the corresponding output (Q) level.
Q = 200L + 600G - 0.1L^2 - 0.4G^2
Substituting the values of L and G obtained in part d), we can calculate the output level.
a) The marginal product of labor (MPL) is given by 200 - 0.2L, where L represents the number of units of labor.
b) The marginal product of glass (MPG) is given by 600 - 0.8G, where G represents the number of units of glass.
c) The budget equation is 24L + 48G = 38,880.
d) The optimal values of L and G can be determined by equating the ratio of marginal products to the ratio of input prices.
e) The output resulting from the combination of inputs determined in part d) can be calculated by substituting the values of L and G into the production function.
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Corruption: O May involve one facet known as bribery; legally, a bribe has the same definition everywhere and does not vary by nationality. O Is being combatted by the Sarbanes-Oxley Act, which outlaws bribery by U.S. firms anywhere they do business. O May erode the legitimacy of a government. Tends to boost economic growth because high a level of corruption helps get things done in a timely manner.
Corruption is a major concern for governments and societies around the world. It is generally associated with the abuse of power for personal gain and often involves bribery. The definition of a bribe is the same everywhere and is not affected by nationality.
The Sarbanes-Oxley Act is a law that was enacted to combat corruption by US firms doing business anywhere. The act specifically outlaws bribery by US firms. This law has helped reduce corruption in the business world and has made it easier for companies to operate ethically.
Corruption is a major concern because it can erode the legitimacy of a government and can damage the economy. Although corruption may seem to boost economic growth in the short term, it is ultimately harmful to society and can lead to long-term damage.
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What is the initial cost, savings, Tax rate, expected salvage,
discount rate, and NWC change of the given information?
The discount rate is 10%.
Net working capital changes by $20,000 due to the investment.
How to solveNow, based on these numbers:
The initial cost is $500,000.
Annual savings are $80,000.
The tax rate is 30%.
The expected salvage value after 5 years is $50,000.
The discount rate is 10%.
Net working capital changes by $20,000 due to the investment.
These figures can then be used to calculate the Net Present Value (NPV) of the investment to determine its profitability.
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The Complete Question
What are the initial cost, annual savings, tax rate, expected salvage value, discount rate, and net working capital change for a company planning to invest $500,000 in a piece of machinery that would result in annual savings of $80,000? The corporate tax rate is 30%, the machine's expected salvage value at the end of its 5-year lifespan is $50,000, and the company uses a discount rate of 10%. Additionally, the investment would cause a change in net working capital of $20,000.
The Excellent DVD Company sells DVDs for $82 each. Manufacturing cost is $32.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price. The fixed cost of preparing the DVDs is $227 300. Capacity is 20 000 DVDs. Calculate the Break Even point in dollars. (Round the final answer to the nearest dollar)
The Break Even point in dollars for The Excellent DVD Company is $429,775. This means that the company needs to generate at least $429,775 in sales in order to cover all costs and reach a point where there is neither a profit nor a loss.
The Break Even point in dollars for The Excellent DVD Company is $429,775. This means that the company needs to generate at least $429,775 in sales in order to cover all costs and reach a point where there is neither a profit nor a loss.
To calculate the Break Even point, we need to consider both the fixed costs and the variable costs per unit. The fixed costs include the manufacturing cost, marketing cost, royalty payments, and the fixed cost of preparing the DVDs, which amounts to $227,300. The variable costs per unit consist of the manufacturing cost, marketing cost, and royalty payments.The contribution margin per unit is calculated by subtracting the variable costs per unit from the selling price. In this case, the contribution margin per unit is $82 - ($32.70 + $7.75 + 15% of $82).
To find the Break Even point in units, we divide the fixed costs by the contribution margin per unit. In this case, the Break Even point in units is $227,300 / contribution margin per unit.Finally, to find the Break Even point in dollars, we multiply the Break Even point in units by the selling price per unit. This gives us the Break Even point in dollars as $429,775.
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How does the nature of environmental protection as a public good
make it difficult for global environmental policies to be created
or effective?
Environmental protection is considered as a public good because it benefits all citizens worldwide without regard to social class, race, or nationality.
Environmental resources like air, water, and wildlife are all considered public goods because they can be used by multiple people at the same time without being depleted. When something is considered a public good, there is often a free-rider issue that arises. In terms of the environment, this means that people are willing to use and enjoy natural resources, but they may not be willing to pay the full cost to protect them. This makes it difficult for global environmental policies to be created and effective.
In addition to free-rider issues, there are many other challenges that arise when trying to create global environmental policies. These include:
1. Limited enforcement power: Global environmental policies lack the necessary authority and power to enforce them. These policies cannot make laws on their own. Instead, they rely on individual governments to implement and enforce them.
2. Diverse interests: Environmental issues affect different countries and regions in different ways, which can make it difficult to find common ground. For example, a country that relies heavily on fossil fuels may be less willing to reduce carbon emissions than a country that relies more heavily on renewable energy.
3. Complex scientific issues: The science behind environmental issues is often complex and not well understood by the general public. As a result, it can be difficult to convince people of the need for global environmental policies.
4. Financial constraints: Implementing and enforcing global environmental policies requires significant resources, which can be difficult to come by. Many countries are already facing financial challenges, and they may be unwilling or unable to allocate resources to environmental protection.
Overall, the nature of environmental protection as a public good makes it difficult for global environmental policies to be created and effective. These challenges include free-rider issues, limited enforcement power, diverse interests, complex scientific issues, and financial constraints.
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QUESTION 2 2.1 Fixed-routing manufacturing system that consists of multiple workstations linked together by a material handling system to transfer parts from one station to the next. Judge the three fundamentals of an automated production line. (9) 2 2
A fixed-routing manufacturing system consists of multiple workstations linked together by a material handling system to transfer parts from one station to the next.
The three fundamentals of an automated production line are:-
1. Automatic material handling systems: Automated material handling systems are essential for automated production lines. Automated material handling systems such as conveyors, robots, and automated storage and retrieval systems (AS/RS) are frequently used in automated production lines. These systems transfer the workpieces between workstations, which is critical to achieving automated manufacturing.
2. Programmable logic controllers (PLCs): Programmable logic controllers (PLCs) are frequently used to control and manage automated production lines. PLCs are utilized to program and control the entire system's production process, including the speed, location, and performance of the system's individual components.
3. Computer Integrated Manufacturing (CIM): CIM systems are frequently used in automated production lines to handle the manufacturing process. CIMs, which are computer-based systems, handle manufacturing activities including inventory management, quality assurance, and other manufacturing operations.
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When two countries that would gain from trade choose not to liberalize trade because of concerns that the other country might find hidden ways to maintain their barriers through health or safety regulations, this most closely resembles which of the following game theory interactions? (321)
A. Stag Hunt
B. Prisoner's Dilemma
C. Chicken
The answer to this question is B. Prisoner's Dilemma.
Prisoner's dilemma is a game theory interaction that most closely resembles the situation when two countries that would gain from trade choose not to liberalize trade because of concerns that the other country might find hidden ways to maintain their barriers through health or safety regulations.
Prisoner's dilemma is a game theory example that depicts a situation in which two participants can't communicate and must choose between cooperating with or betraying each other. It can be used as a model for a wide range of human behaviors, such as economics and politics.
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Consider a supply chain consisting of a heavy machine mfr., its part supplier, its dealer, and the customer. The mfr. produces customized machine and uses the dealer to sell to the customer. Suppose the customer's reservation price of the machine is $300,000. The retail price is $250,000. The wholesale price between the mfr. and the dealer is $200,000. The dealer's other retail related cost is $20,000. To produce the machine, the mfr. spends $50,000 as the production cost and pays the supplier $40,000 to buy the parts needed. The parts are not customized and the supplier's production cost is $10,000. What is the supply chain surplus and what is the mfr.'s objective? (Please Explain Step By Step)
The supply chain involves the activities and functions associated with the production and distribution of products. The primary objective of the Mfr is to maximize its profit by producing and delivering machines at a cost lower than the wholesale price
The following is a discussion of the supply chain consisting of a heavy machine manufacturer, its part supplier, its dealer, and the customer. Consider a supply chain consisting of a heavy machine mfr., its part supplier, its dealer, and the customer.
The mfr. produces customized machine and uses the dealer to sell to the customer. Suppose the customer's reservation price of the machine is $300,000. The retail price is $250,000. The wholesale price between the mfr. and the dealer is $200,000.
The dealer's other retail related cost is $20,000. To produce the machine, the mfr. spends $50,000 as the production cost and pays the supplier $40,000 to buy the parts needed. The parts are not customized and the supplier's production cost is $10,000.
The supply chain surplus is the difference between the customer's reservation price for the product and the total cost of producing and delivering the product to the customer. In this case, the supply chain surplus is equal to the difference between the customer's reservation price ($300,000) and the total cost of producing the machine, including production costs and parts cost ($50,000+$40,000+$10,000 = $100,000).
The primary objective of the manufacturer is to maximize its profit by producing and delivering machines at a cost lower than the wholesale price. In this case, the manufacturer produces a customized machine at a production cost of $50,000 and sells it to the dealer at a wholesale price of $200,000.
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Financial institutions are known as financial intermediaries because they serve as go-betweens, which link ___ and ____
a firms; the government. b firms; consumers. c savers; borrowers. d employers; employees.
Financial institutions are known as financial intermediaries because they serve as go-betweens, linking savers and borrowers.
Financial intermediaries play a crucial role in the economy by facilitating the flow of funds between those who have excess funds (savers) and those who need funds (borrowers). Savers, such as individuals or households, deposit their money into financial institutions like banks, credit unions, or mutual funds.
These institutions then pool these funds and make them available to borrowers, such as businesses or individuals seeking loans for investment or consumption purposes. By acting as intermediaries, financial institutions help match the needs of savers and borrowers, enabling the efficient allocation of capital and promoting economic growth.
Therefore, the correct answer is c) savers; borrowers.
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Consider an extended Cournot model, where there are three identical firms. Market demand is given by P = a - bQ. The common marginal cost is denoted by c, which satisfies 0 < c < a.
Derive firm 1’s reaction function.
Compute the Nash equilibrium output levels and the equilibrium price.
In the extended Cournot model with three identical firms, the reaction function for firm 1 can be derived by maximizing its profit with respect to its output level. The Nash equilibrium output levels and equilibrium price can be obtained by solving the simultaneous reaction functions of all three firms.
The equilibrium output levels are determined based on the assumption that each firm takes the output of other firms as given. The equilibrium price is then determined by substituting the equilibrium output levels into the market demand equation.
To derive firm 1's reaction function, we maximize its profit with respect to its output level. Firm 1's profit can be calculated as (P - c) * Q1, where P is the market price, c is the common marginal cost, and Q1 is the output level of firm 1. By differentiating the profit function with respect to Q1 and setting it equal to zero, we can find the optimal output level for firm 1, which gives us its reaction function.
To find the Nash equilibrium, we need to solve the simultaneous reaction functions of all three firms. Each firm's reaction function represents its optimal output level given the outputs of the other firms. By solving these equations simultaneously, we can determine the equilibrium output levels for all firms.
Once we have the equilibrium output levels, we can substitute them into the market demand equation (P = a - bQ) to find the equilibrium price. The equilibrium price is determined by the level of total output in the market.
In summary, to find the reaction function for firm 1 in the extended Cournot model with three identical firms, we maximize its profit with respect to its output level. The Nash equilibrium output levels and equilibrium price are obtained by solving the simultaneous reaction functions and substituting the equilibrium output levels into the market demand equation.
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Identify two Alternative animal industries that have struggled
to become established in Australia. Describe their development and
why they have struggled.
Two alternative animal industries that have struggled to become established in Australia are the alpaca industry and the ostrich industry.
Industry:The alpaca industry in Australia has faced challenges in its development. Alpacas are native to South America and were introduced to Australia in the 1980s with the aim of establishing a sustainable industry for their fleece and breeding. However, the industry has struggled to reach its full potential due to several reasons:
a) Limited Market Demand: Initially, there was a lack of awareness and market demand for alpaca products in Australia. Alpaca fleece, known for its softness and warmth, is used for luxury garments and textiles. However, competing with established wool and synthetic fiber industries proved difficult, leading to limited market uptake.
b) Lack of Processing Infrastructure: Another challenge was the lack of processing infrastructure for alpaca fiber in Australia. The absence of specialized mills for spinning, weaving, and processing alpaca fiber made it challenging to produce and market high-quality alpaca products domestically.
c) Breeding Challenges: Building a genetically diverse and commercially viable alpaca herd in Australia posed difficulties. Importation restrictions limited the availability of superior genetics, hindering the breeding progress and quality improvement needed for a successful industry.
2. Ostrich Industry:
The ostrich industry in Australia has also struggled to become established despite initial enthusiasm. Ostriches were introduced in the late 19th century for their meat, leather, feathers, and oil. However, the industry faced several challenges, leading to its limited success:
a) Market Volatility: The ostrich industry experienced fluctuations in market demand and prices. Initially, there was a boom in the 1990s, driven by the perceived health benefits of ostrich meat and the fashion industry's interest in ostrich leather. However, market saturation, competition from other meats, and changing consumer preferences contributed to a decline in demand, making the industry economically unstable.
b) Limited Processing Infrastructure: Similar to the alpaca industry, the ostrich industry faced challenges related to processing infrastructure. The lack of specialized facilities for slaughtering, processing, and value-added product development hindered the industry's ability to meet market demands and maximize profitability.
c) Breeding and Management Complexity: Ostriches have unique breeding and management requirements. Challenges in breeding programs, disease management, and effective feeding practices contributed to difficulties in maintaining healthy and productive ostrich populations. These complexities made it challenging for farmers to sustain successful and profitable operations.
Conclusion:The alpaca and ostrich industries in Australia have struggled to become established due to various factors such as limited market demand, inadequate processing infrastructure, breeding challenges, market volatility, and management complexities. Overcoming these hurdles would require a comprehensive approach involving market development, investment in processing infrastructure, genetic improvement, research and development, and targeted marketing to create awareness and demand for these alternative animal industries.
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Q1. Vehicle allocation problem (VAP) is faced by carriers that generate revenue by transporting full loads. VAP decides which loads to be accepted (and which loads to be rejected) and how to position empty vehicles.
Vehicle Allocation Problem (VAP) is a problem that is faced by carriers that generate revenue by transporting full loads. It involves making decisions on which loads to accept and reject, as well as how to position empty vehicles.
The Vehicle Allocation Problem (VAP) is a common problem faced by transportation companies. The problem is associated with making decisions about which loads to accept and reject, as well as how to position empty vehicles.
The goal of the problem is to minimize the overall cost of the carrier while also satisfying customer demand.
The Vehicle Allocation Problem is essentially a variant of the Capacitated Vehicle Problem (CVRP) in which the vehicles are given capacities and need to transport goods between different locations.
However, in VAP, the carrier decides which loads to be accepted and which ones to be rejected in order to maximize the carrier's revenue.
VAP is an important problem in the transportation industry since it helps companies decide which loads to accept and reject in order to maximize their profits. It also helps companies to minimize their overall costs by effectively allocating their resources (i.e., vehicles) and improving their efficiency.
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Suppose that two call options on a non-dividend-paying stock are trading for the same price. One option has three months to maturity and the other has six months to maturity. If both options have the same strike price, describe an arbitrage opportunity.
Arbitrage opportunity: Buy a three-month call option and sell a six-month call option with the same strike price, taking advantage of the longer-term option's potential for greater profit.
The options are priced equally, but the longer-term option provides more time for potential stock price appreciation. By exploiting this price discrepancy, you can profit from the difference in option maturities. This strategy allows you to lock in the same price for both options, while benefiting from the additional time available for the stock price to potentially increase.
Since the options have the same strike price, if the stock price rises above the strike price before the six-month option expires, you can exercise it and buy the stock at a lower price, subsequently selling it for a profit. This strategy is a form of riskless arbitrage as it takes advantage of pricing inefficiencies in the options market.
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Describe the characteristics of the following systems and explain how each of these systems help managers make decisions:
- Transaction processing systems (TPS)
- Management information systems (MIS)
- Decision support systems (DSS)
- Executive support systems (ESS)
2. Define collaboration and social business and explain why they have become so important in business today.
3. List and describe the business benefits of collaboration and social business.
4. Describe a supportive organizational culture for collaboration.
Characteristics of different systems used by managers and their contribution in decision making:a. Transaction processing systems (TPS) Transaction processing systems are designed to process data in the same way every time. These systems are used to collect and process data generated by day-to-day business transactions.
The following are the characteristics of TPS :Transaction processing systems process a large volume of data. They ensure data accuracy and completeness. TPS is designed to process simple and routine transactions that occur frequently. TPS systems are a combination of hardware and software, and the software that runs TPS is frequently proprietary.b. Management Information Systems (MIS) Management Information Systems (MIS) provide information that managers can use to make decisions. MIS systems are used to provide regular, routine, and structured information to managers in an easy-to-understand format.
Definition and importance of collaboration and social business:Collaboration: Collaboration refers to the act of working together to achieve a common goal. In a business setting, collaboration refers to a group of people working together to achieve a common business objective. It is the process of people working together to achieve common goals, and it can take many forms.Social Business: A social business is a business that uses social media tools and platforms to facilitate communication, collaboration, and information sharing. Social business is a business model that involves the integration of social technologies into business processes and practices.Importance:Collaboration and social business have become increasingly important in business today for several reasons, including the following:Collaboration can help businesses become more innovative and productive. Collaboration allows businesses to leverage the collective knowledge and expertise of employees.
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1. What is current liability? Explain between current and long term debt.
2. What types of liabilities are not counted on a company's books?
3, Why can a company issue bonds at a lower interest rate than a company would have to pay on funds borrowed from a bank?
4. For interest rate calculations : can the interest rate be higher or lower than the stated rate If so, will the interest rates usually higher or lower ?
5. Are contingent liabilities recorded on the company's books? Why?
1. Current liability:Current liability refers to debts and obligations that are due and payable in a year or less. These obligations are paid with the existing assets of the company or through the creation of other current liabilities. Current liabilities are reported on the balance sheet of the company. Examples of current liabilities include wages payable, accounts payable, and accrued expenses.
1. Current liability:Current liability refers to debts and obligations that are due and payable in a year or less. These obligations are paid with the existing assets of the company or through the creation of other current liabilities. Current liabilities are reported on the balance sheet of the company. Examples of current liabilities include wages payable, accounts payable, and accrued expenses.Long term debt, on the other hand, is a form of debt that is payable in a period of over a year. The funds borrowed under long term debt are often used to finance fixed assets and are paid with the future earnings of the company. 2. Liabilities not counted in the books of a company:Off-balance sheet liabilities are not reported in the balance sheet of the company. These are the liabilities that are not recorded and not recognized as a part of a company’s financial statements. This happens when the liabilities are not the legal responsibility of the company but its associate or subsidiary.3. Bonds at a lower interest rate:Companies issue bonds at a lower interest rate than they have to pay on funds borrowed from a bank because bonds are typically issued for a longer term than bank loans. The bond's interest rate is generally lower than the rate of a short-term loan from a bank. Banks have a higher interest rate as compared to bonds.4. Interest rate calculations:The interest rate can be higher or lower than the stated rate based on certain factors. These include the creditworthiness of the borrower, market conditions, and the nature of the transaction. Usually, the interest rates are higher than the stated rate.5. Contingent liabilities on the company's books:Contingent liabilities are recorded in the company's financial statements because they represent a potential obligation to the company. They are also recorded because these liabilities are possible and probable, and may require payments in the future. They are disclosed in the notes to the financial statements.
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Which of the following is a criterion for determining whether an operating segment is separately reportable? a. Segment liabilities are 10 percent or more of consolidated liabilities. b. Segment profit or loss is 10 percent or more of consolidated net income. C. Segment assets are 10 percent or more of combined segment assets. d. Segment revenues from external sales are 5 percent or more of combined segment revenues from external sales.
The criterion for determining whether an operating segment is separately reportable is "Segment assets are 10 percent or more of combined segment assets."
What is the meaning of an operating segment?
An operating segment refers to a part of a corporation that engages in similar activities and creates its revenue and expenditure outcomes. It is usually seen as the fundamental accounting reporting unit for financial statement purposes.An operating segment is required to be reported separately when its sales revenue or total assets represent 10% or more of the total sales revenue or combined assets of all operating segments. This criterion is used to determine whether an operating segment is reportable separately. Therefore, the option C "Segment assets are 10 percent or more of combined segment assets" is the correct criterion for determining whether an operating segment is separately reportable.
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Question 3 The primary similarity between common and preferred stock is that preferred shareholders can vote. True 3 False
The primary similarity between common and preferred stock is that preferred shareholders can vote. This statement is False.
Common and preferred stocks are two types of stocks in the stock market. The primary similarity between common and preferred stock is that they both represent ownership in a company and their value can rise or fall based on the company's performance. However, there are several differences between the two types of stocks. One of the differences is that preferred shareholders have limited or no voting rights.
Only common stockholders have voting rights in a company's annual meeting. This means that preferred shareholders cannot participate in the company's decision-making process or elect board members. Therefore, the statement "the primary similarity between common and preferred stock is that preferred shareholders can vote" is false.
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Rachel and Alexander Harrison need to calculate the amount they can afford to spend on their first home.. They have a combined annual income of $67,500. and have $37,000 available for a down payment and closing costs. The Harrisons estimate that homeowner's insurance and property taxes will be. $175 per month. They expect the mortgage lender to use a 28 percent (of monthly gross income). mortgage payment affordability ratio, to lend at an interest rate of 6 percent on a 30-year mortgage, and to require a 15 percent down payment. Based on this. information, use the home affordability analysis. form in Worksheet 5.3 to determine the highest- priced home the Harrisons can afford. Assume that closing costs are one-half of the down payment. Round the answer to the nearest dollar.
The Harrisons need to calculate the amount they can afford to spend on their first home. They have a combined annual income of $67,500 and $37,000 available for a down payment and closing costs. They estimate that homeowner's insurance and property taxes will be $175 per month.
The mortgage lender will use a 28% mortgage payment affordability ratio (of monthly gross income) to lend at an interest rate of 6% on a 30-year mortgage, and require a 15% down payment. We will use the home affordability analysis form in Worksheet 5.3 to determine the highest-priced home the Harrisons can afford.Closing costs are one-half of the down payment, according to the problem, so closing costs are $18,500 / 2 = $9,250. The Harrisons have a total of $37,000 + $9,250 = $46,250 for down payment and closing costs.The monthly gross income of the Harrisons is $67,500 / 12 = $5,625. Their monthly PITI (Principal, Interest, Taxes, and Insurance) would be:[$5,625 × 0.28] − $175= $1,225The Harrisons would be able to pay $1,225 a month for PITI on their mortgage. They would be able to pay a total of$1,225 × 12 × 30 = $441,000 over the life of the loan. The amount they can afford to pay for the home will depend on the down payment they can make. Because they will need to make a 15% down payment, we can divide the total amount they can afford to pay for the home by 0.85.
The maximum price of the home they can afford is:$441,000 / 0.85 = $518,824Round the answer to the nearest dollar. The highest-priced home the Harrisons can afford is $518,824.
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A stock price currently stands at $450. The risk-free interest rate is 5% per annum (with continuous compounding) and the dividend yield on the stock is 3% per annum, What should the futures price for a 6-month contract be in this case? (b) How would you use this value in order to find out whether or not the market is efficient
The futures price for a 6-month contract can be calculated using the formula given below:Futures Price = Spot Price x e^(r−δ)Twhere:r = Risk-free rateδ = Dividend yieldT = Time to maturity= 6 months or 0.5 year= $450 x e^(0.05−0.03)×0.5= $450 x e^0.01×0.5= $450 x e^0.005= $450 x 1.0025= $451.125
The futures price for a 6-month contract should be $451.125.(b) In order to find out whether or not the market is efficient, we can use the concept of arbitrage. If the futures price is not equal to the calculated futures price using the formula, then there will be an arbitrage opportunity.
Arbitrage is the process of buying and selling assets in different markets to take advantage of price differences. An arbitrage opportunity occurs when the futures price is either higher or lower than the calculated futures price. In the case of higher futures price, a trader can sell the futures contract and buy the underlying asset, and in the case of lower futures price, a trader can buy the futures contract and sell the underlying asset.
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Major Issues
In this section, you are expected to highlight the major issues emanating from the IKEA company global supply chain within the context of covid-19. this should capture past issues and current issues.
Analysis
In this section, you are expected to provide a detailed analysis of the issues highlighted in major issues. you are expected to explore relevant scholarly articles and demonstrate your ability to apply concepts, models, frameworks and theories in supply chains and operation management to the issues identified in major issues.
Major issues from IKEA company global supply chain during Covid-19:COVID-19 outbreak has impacted the operations of companies worldwide, and IKEA company is no exception. There are major issues in the supply chain that have affected the company's operations. These issues are mainly related to production, logistics, and inventory management.
Analysis of the major issues identified in IKEA company global supply chain during Covid-19:Production: The decline in production capacity has had a significant impact on the company's financial performance. The company's suppliers have been impacted by the restrictions, leading to reduced orders. The company should have diversified its suppliers' base to minimize the supply chain disruption. The company should also adopt a flexible supply chain strategy that allows it to adapt to the changing demand and supply conditions. Logistics: The challenges related to logistics have impacted the transportation of goods from suppliers to factories and stores. The company should consider local sourcing of raw materials and establish distribution centers closer to its factories and stores. This will minimize transportation costs and reduce the delivery time of raw materials and finished products. The company should also adopt a lean supply chain strategy that focuses on minimizing waste and maximizing efficiency. Inventory management: The pandemic has created a significant challenge in inventory management. With the closure of IKEA stores, the company had to manage inventory levels. The company should adopt a just-in-time inventory management system that minimizes inventory holding costs. The company should also establish an efficient inventory management system that monitors the inventory levels and adjusts the production capacity to match the demand. This will minimize overburdening of distribution centers with inventory levels and reduce delays in the supply chain. In conclusion, IKEA company has experienced significant challenges in its global supply chain due to the Covid-19 pandemic. The company should adopt a flexible supply chain strategy that allows it to adapt to the changing demand and supply conditions. The company should also consider local sourcing of raw materials, establish distribution centers closer to its factories and stores, and adopt a just-in-time inventory management system that minimizes inventory holding costs. The company's supply chain management team should monitor the supply chain performance and adjust the supply chain strategy to improve efficiency.
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Joel Foster is the portfolio manager of a $3 million hedge fund that contains $1.9 million stock A and $1.1 million stock B. The beta is 0.7 for stock A and and 0.75 for stock B. The market return is 11% and the risk-free rate is 5%. What rate of return should investors expect on this fund?
a.
12.90%
b.
18.17%
c.
9.31%
d.
17.93%
Joel Foster is responsible for managing a $3 million hedge fund that contains $1.9 million in stock A and $1.1 million in stock B. The beta is 0.7 for stock A and 0.75 for stock B, respectively.
The correct option is A.
The market return is 11% and the risk-free rate is 5%. What rate of return should investors expect on this fund?12.90% Firstly, let's calculate the weighted average beta of the two stocks. Below is the formula for that:Beta (weighted) = (amount invested in stock A / Total portfolio value) x Beta of stock A + (amount invested in stock B / Total portfolio value) x Beta of stock B= (1.9 / 3) x 0.7 + (1.1 / 3) x 0.75= 0.69 + 0.275= 0.965
Next, we will calculate the expected rate of return using the capital asset pricing model (CAPM) formula: Expected return = Risk-free rate + (Beta x Market return - Risk-free rate)= 5% + (0.965 x 11% - 5%)= 5% + (9.865% - 5%)= 12.865%Therefore, the rate of return that investors should expect on this fund is 12.90%.
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The purpose of this assignment is to have you, complete research on a topic that may have an impact on Strategic Planning in Supply Chain. You are to do the necessary research to make an argument for or against the inclusion of the subject in the strategic supply chain plan of a company. It might help to think of the company as automotive. The topic of research is: would a company be better off as a manufacturer or a Distributor? Why? Your report should be based on your research and follow the report writing guidelines you have been supplied with, the report needs to be professional looking and informative. There is a limit of 5 pages single spaced, plus a cover sheet, plus a maximum of three of exhibits (graphs, charts, pictures) one of which needs to be a bibliography page. REMEMBER - Wikipedia is not considered a valid or reputable source of information- any report that cites Wikipedia will be given an automatic deduction of 50% Your report should include: (This is a minimum requirement) Cover Page and Table of Contents Executive Summary (be sure to read about what an executive summary contains) Background on your topic Background Information is restricted to 100 words or less •
Analysis Argument for or against considering this topic in the context of Strategic Planning in a Supply Chain What is the Impact on a Supply Chain if you do not consider this topic: A pro's and con's type analysis or SWOT analysis What industries/organizations would benefit most from this topic? Why? Any legal ramifications in considering or not considering this topic? Recommendation from your research Exhibits Bibliography referenced (be sure you understand what In-text citations are and use them correctly) Be sure to review and understand the college's Academic Integrity Policy on plagiarism. This case report is not simply a lot of facts about the tople. You need to present a point of view. Remember you are trying to convince the reader why or why not this subject should be considered in a supply chain strategic planning
This report provides an analysis of whether a company would be better off as a manufacturer or a distributor in the context of strategic planning in supply chain management. The report examines the advantages and disadvantages of each option and the impact on supply chain management.
The report concludes with recommendations for companies considering this decision.
Background:
The decision to become either a manufacturer or a distributor is a crucial one for any company. A manufacturer produces goods, while a distributor buys products from manufacturers and sells them to customers. The choice between the two options can have significant implications for a company's supply chain strategy.
Analysis:
There are pros and cons to both manufacturing and distributing. Manufacturers have more control over their production process, quality, and pricing. Additionally, manufacturers may be able to achieve economies of scale that allow them to produce goods at a lower cost than distributors. On the other hand, distributors have the advantage of not having to manage the production process. They can focus on marketing, sales, and customer service. This allows distributors to be more flexible in responding to changes in demand.
If a company chooses to become a manufacturer, it will need to invest in production facilities, equipment, and staff. This requires a significant upfront investment. Additionally, if demand for the product does not meet expectations, the company may end up with excess inventory, which can be costly. If a company chooses to become a distributor, it will need to establish relationships with suppliers and develop a network of distribution channels. Distributors face the risk of being cut out of the supply chain by manufacturers who decide to sell directly to consumers.
Industries/organizations that would benefit most from this topic:
Companies in industries that require complex manufacturing processes or highly specialized products may benefit more from becoming manufacturers. For example, automotive companies that produce cars or aircraft manufacturers that produce planes may choose to manufacture rather than distribute. Companies in industries where products are standardized and there is high competition may benefit more from becoming distributors. For example, grocery store chains that sell products made by multiple manufacturers.
Legal ramifications in considering or not considering this topic:
There are no legal ramifications to consider when choosing between manufacturing and distributing. However, companies should be aware of regulations related to the production and distribution of their products. For example, manufacturers must comply with safety and environmental regulations, while distributors must comply with transportation and safety regulations.
Recommendation:
The decision to become a manufacturer or distributor depends on the specific needs and goals of the company. Companies should consider factors such as their level of investment, expertise, market demand, and competition. If a company has the resources and expertise to manage the production process, then becoming a manufacturer may be the best option. However, if a company wants to focus on marketing and sales, then becoming a distributor may be the best choice. Ultimately, the decision should be based on an assessment of the company's core competencies and strategic objectives.
Exhibits:
Exhibit 1: Pros and Cons of Manufacturing
Pros:
More control over the production process
Ability to achieve economies of scale
Control over pricing Cons:
High upfront investment
Risk of excess inventory
Exhibit 2: Pros and Cons of Distributing
Pros:
Focus on marketing and sales
Flexibility in responding to changes in demand
Established supplier relationships Cons:
Risk of being cut out of the supply chain
No control over production process.
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Fall Line, Inc. is a Great Falls, Montana manufacturer of variety of downhill skis. Fall-Line is considering four locations for a new plant: Aspen, Colorado; Medicine Lodge; Kansas; Broken Bow, Nebraska; and Wounded Knee, South Dakota. Annual fixed costs and variable costs per pair of skis are shown in the following table:
Location
Annual Fixed Costs
Variable Cost per Pair
Aspen
$8,000,000
$250
Medicine Lodge
$2,400,000
$130
Broken Bow
$3,400,000
$90
Wounded Knee
$4,500,000
$65
Plot the total cost curves for all the communities on a single graph on the graph the range in volume over which each location would be best.
What break-even quantity defines each range?
Although Aspen’s fixed and variable costs are dominated by those of other communities, Fall Line believes that both the demand and the price would be higher for skis made in Aspen than for skis made in the other locations. The following table shows those projections.
Location
Price Per Pair
Forecast Demand Per Year
Aspen
$500
60000 pairs
Medicine Lodge
$350
45000 pairs
Broken Bow
$350
43000 pairs
Wounded Knee
$350
40000 pairs
Determine which location yields the highest total profit per year
Is this location decision sensitive to forecast accuracy? At what minimum sales volume does Aspen become the location of choice?
To plot the total cost curves for the four locations, we will use the provided data of annual fixed costs and variable costs per pair of skis. The graph will show the total cost on the y-axis and the volume (number of pairs) on the x-axis. The break-even quantity defines the range in which each location would be the best choice.
Location
Break-Even Quantity
Aspen
Break-even quantity: 32,000 pairs
Medicine Lodge
Break-even quantity: 16,000 pairs
Broken Bow
Break-even quantity: 37,778 pairs
Wounded Knee
Break-even quantity: 69,231 pairs
Based on the demand projections and price per pair for each location, we can calculate the total profit per year for each location. The total profit is calculated by subtracting the total cost from the revenue (price per pair multiplied by the forecast demand).
Location
Total Profit per Year
Aspen
Total Profit: $17,600,000
Medicine Lodge
Total Profit: $8,775,000
Broken Bow
Total Profit: $9,300,000
Wounded Knee
Total Profit: $8,600,000
As we can see, Aspen yields the highest total profit per year among the four locations. The location decision is sensitive to forecast accuracy because the forecasted demand directly impacts the profit. If the actual demand deviates significantly from the forecast, it can significantly affect the profitability of each location. To determine the minimum sales volume at which Aspen becomes the location of choice, we need to compare the total profit of Aspen with the total profit of the other locations. In this case, since Aspen already has the highest total profit, it remains the location of choice regardless of the minimum sales volume.
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2) What Scientific Management and bureaucratic organizations have in common is: a) A division of labor b) Clear authority and responsibility c) Managers are subject to rules d) Management is separate from ownership 5) Contingency view emerged because: a) What worked in one organization may not work in another b) Industry affects organizations more than individuals c) Universalist views are too difficult to apply d) Toyota reinvented systems thinking 14) Heroes, slogans, and ceremonies are types of: a) demonstrations of corporate culture b) Symbols of affluence c) Predetermined company values d) Recognition for achievements
2) Both Scientific Management and bureaucratic organizations have a) A division of labor in common.
5) The contingency view emerged because a) What worked in one organization may not work in another.
14) Heroes, slogans, and ceremonies are a) demonstrations of corporate culture.
2) Both Scientific Management and bureaucratic organizations have a) A division of labor in common. This means that tasks and responsibilities are divided and assigned to specific individuals or departments based on their specialization and expertise.
5) The contingency view emerged because a) What worked in one organization may not work in another. This perspective recognizes that organizations operate in unique environments and face different circumstances. Therefore, management approaches and practices need to be tailored and adjusted based on the specific context of each organization.
14) Heroes, slogans, and ceremonies are a) demonstrations of corporate culture. These elements serve as visible and symbolic representations of a company's values, beliefs, and norms. They play a role in shaping and reinforcing the organizational culture, and they help communicate and promote desired behaviors and attitudes among employees.
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A company is considering the following investment:
- Pay 1000€ today and 5000€ in two years
- Receive 4000€ at the end of each of the next three years
1. What is the Net Present Value (NPV) of this project if the interest rate is 2%?
2. Does the company have to carry out this project?
1. The NPV of the project at a 2% interest rate is the present value of cash inflows minus the present value of cash outflows.
2. If the NPV is positive, the company should carry out the project; if negative, it should reconsider.
1. To calculate the Net Present Value (NPV) of the project, we need to discount the cash flows to their present value and then subtract the initial investment.
Cash Flows:
- Pay 1000€ today
- Pay 5000€ in two years
- Receive 4000€ at the end of each of the next three years
Using a discount rate of 2%, we can calculate the present value of each cash flow:
PV1 = 1000€ / [tex](1 + 0.02)^1[/tex]
PV2 = 5000€ / [tex](1 + 0.02)^2[/tex]
PV3 = 4000€ / [tex](1 + 0.02)^3[/tex]
PV4 = 4000€ / [tex](1 + 0.02)^4[/tex]
PV5 = 4000€ / [tex](1 + 0.02)^5[/tex]
Next, we sum up the present values of the cash inflows and subtract the present value of the cash outflows:
NPV = PV2 + PV3 + PV4 + PV5 - PV1
2. To determine whether the company should carry out this project, we evaluate the NPV. If the NPV is positive, it indicates that the project is expected to generate a net gain in present value terms and is therefore generally considered favorable. If the NPV is negative, it suggests that the project is expected to result in a net loss in present value terms and may not be financially viable.
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The seller has into a the listing appointment the seller asks the broker not to disclosure the period treatment repair since they're know corrected the broker should
A.confirm that repair was made expect of the repair before agreeing
B.go back to the office without pursuing listing
C. agree not to disclosure this issue as they not longer up the property
D. insists that the seller disclosure this facets that and Prospective buyers Potential purchase
The broker should agree not to disclose this issue as it is no longer present in the property if the seller has not disclosed a previous termite treatment repair and asks the broker not to disclose it as they have already corrected the issue. The correct answer is option C.
As the seller has already corrected the repair issue and specifically asked the broker not to disclose it, the broker should respect the seller's wishes. Since the repair has been addressed, it may not be necessary or relevant to disclose it to potential buyers. However, it's important to note that specific legal requirements regarding property disclosures may vary depending on the jurisdiction. It is advisable for the broker to consult with legal professionals or local regulations to ensure compliance.
Hence, option C is the right answer.
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Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. eBook View transaction list Hint Journal entry worksheet < 1 > Print Record entry to allocate underapplied /overapplied overhead. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal 12 At the beginning of the year, Custom Mfg. established its predetermined overhead rate by using the following cost predictions: overhead costs, $930,000, and direct materials costs, $300,000.
There is no over- or underapplied overhead at the end of the year.Therefore, the adjusting entry is not required.
The adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold is given below:
Journal Entries Accounts Debit Credit Cost of Goods Sold$50,000 Manufacturing Overhead $50,000
The problem statement has provided a rate of $3 per direct labor hour. For 31,000 actual hours worked, the actual overhead applied would be $93,000.
The predetermined overhead rate is calculated by dividing the overhead costs by the cost driver. In this case, the cost driver is direct materials costs.
So the predetermined overhead rate = $930,000 / $300,000= $3 per direct labor hour.
The overhead costs applied at the end of the year are $93,000, which is equal to the actual overhead costs. This means that there is no over- or underapplied overhead at the end of the year.Therefore, the adjusting entry is not required.
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