Relevant Cost Essay Example

Relevant Cost Essay CHAPTER 13 SHORT-RUN DECISION MAKING: RELEVaNT COSTING 1 DISCUSSION QUESTIONS 1. Tactical decisions are short run in nature; they involve choosing among alternatives with an immediate or limited end in view. Strategic decisions involve selecting strategies that yield a long-term competitive advantage. 2. Depreciation is an allocation of a sunk cost. This cost is a past cost and will never differ across alternatives. 3. The salary of the supervisor of an assembly line with excess capacity is an example of an irrelevant future cost for an accept-or-reject decision. 4. Past costs can be used to help predict future costs. 5. Yes. Suppose, for example, that sufficient materials are on hand for producing a part for two years. After two years, the part will be replaced by a newly engineered part. If there is no alternative use for the materials, then the cost of the materials is a sunk cost and not relevant in a make-or-buy decision. 6. A complementary effect is the loss of revenue on a secondary product when the primary product is dropped. Thus, complementary effects may make it more expensive to drop a product. 7. A manager can identify alternatives by using his or her own knowledge and experience and by obtaining input from others who are familiar with the problem. . No. Joint costs are irrelevant. They occur regardless of whether the product is sold at the split-off point or processed further. 9. Yes. The incremental revenue is $1,400, and the incremental cost is only $1,000, creating a net benefit of $400. 10. No. If a scarce resource is used in producing the two products, then the product providing the gre atest contribution per unit of scarce resource should be selected. For more than one scarce resource, linear programming may be used to select the optimal mix. 11. If a firm is operating below capacity, then a price that is above variable costs will increase profits. MULTIPLE-CHOICE EXERCISES 13–1e 13–2d 13–3e 13–4c 13–5a 13–6c 13–7c 13–8c 13–9c 13–10c 13–11a 13–12d 3 CORNERSTONE EXERCISES Cornerstone Exercise 13–13 1. There are two alternatives: make the ingredient in-house or purchase it externally. 2. Relevant costs of making the ingredient in-house include direct materials, direct labor, and variable overhead (both manufacturing and marketing in nature). Relevant costs of purchasing the ingredient externally include the purchase price. 3. AlternativesDifferential MakeBuyCost to Make Direct materials$25,000—$25,000 Direct labor15,000—15,000 We will write a custom essay sample on Relevant Cost specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Relevant Cost specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Relevant Cost specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Variable manufacturing overhead7,500—7,500 Variable marketing overhead10,000—10,000 Purchase cost—$60,000(60,000) Total relevant cost$57,500$60,000$(2,500) It is cheaper to make the ingredient in-house. This alternative is cheaper by $2,500. 4. AlternativesDifferential MakeBuyCost to Make Direct materials$25,000—$25,000 Direct labor15,000—15,000 Variable manufacturing overhead7,500—7,500 Variable marketing overhead10,000—10,000 Avoidable fixed plant overhead12,000a—12,000 Purchase cost—$60,000(60,000) Total relevant cost$69,500$60,000$9,500 Now it is cheaper to purchase the ingredient. This alternative is cheaper by $9,500. a$12,000 = $30,000 ? 0. 40 Cornerstone Exercise 13–14 1. costs and benefits of accepting the special order include the sales price of $4, direct materials, direct labor, and variable overhead. No relevant costs or benefits are attached to rejecting the order. 2. If the problem is analyzed on a unit basis: Differential Benefit to AcceptRejectAccept Price$4. 00$—$4. 00 Direct materials(1. 50)—(1. 50) Direct labor(2. 00)—(2. 00) Variable overhead(1. 00)—(1. 00) Decrease in operating income$(0. 50)$0$(0. 50) Operating income will decrease by $5,000 [($0. 50) ? 0,000 units] if the special order is accepted; therefore, the special order should be rejected. Cornerstone Exercise 13–15 1. The two alternatives are to keep the parquet flooring line or to drop it. 2. The relevant benefits and costs of keeping the parquet flooring line include sales of $300,000, variable costs of $250,000, machine rental cost of $30, 000, and supervision cost of $5,000. None of the relevant benefits and costs of keeping the parquet flooring line would occur under the drop alternative. 3. Differential KeepDropAmount to Keep Sales$300,000$—$300,000 Less: Variable expenses250,000—250,000 Contribution margin$50,000$—$50,000 Less: Machine rent(30,000)—(30,000) Supervision(5,000)—(5,000) Total relevant benefit (loss)$15,000$0$15,000 The difference is $15,000 in favor of keeping the parquet flooring line. Cornerstone Exercise 13–16 1. Previous contribution margin of the strip line was $175,000. A 25 percent decrease in sales implies a 25 percent decrease in total variable costs, so the contribution margin decreases by 25 percent. New contribution margin for strip = $175,000 – 0. 25($175,000) = $131,250. The reasoning is the same for the plank line, but the decrease is 20 percent. New contribution margin for plank = $80,000 – 0. 20($80,000) = $64,000. Therefore, if the parquet floor product line were dropped, the resulting total contribution margin for Hickory would equal $195,250 ($131,250 + $64,000). 2. Differential KeepDropAmount to Keep Contribution margin$305,000$195,250$109,750 Less: Machine rent(55,000)(25,000)(30,000) Supervision(30,000)(25,000)(5,000) Total$220,000$145,250$74,750 Notice that the contribution margin for the drop alternative equals the new contribution margins of the strip and plank lines ($131,250 + $64,000). Also, machine rent and supervision remain relevant across these alternatives. Now the analysis even more heavily favors keeping the parquet line. In fact, company income will be $74,750 higher if all three flooring product lines are kept as opposed to dropping the parquet line. Cornerstone Exercise 13–17 1. Revenue from logs = ($500 ? 8,000) = $4,000,000. 2. Revenue from further processing = $0. 75 ? (8,000 ? 800) = $4,800,000. Further processing cost = $0. 05 ? (8,000 ? 800) = $320,000. Income from further processing = $4,800,000 – $320,000 = $4,480,000. 3. Jack’s should process the logs into lumber because the company will make $4,480,000 versus the $4,000,000 it would make by selling the logs for use in cabins. Cornerstone Exercise 13–18 1. SwoopRufus Contribution margin per unit$5$15 Required machine time per unit? 0. 10a? 0. 50 Contribution margin per hour of machine time$50$30 a0. 10 = [pic]; 0. 50 = [pic] 2. Since the Swoop sweatshirt yields $50 of contribution margin per hour of machine time (which is higher than the $30 contribution margin per hour of machine time for Rufus), all machine time (i. e. , 7,000 hours) should be devoted to the production of Swoop sweatshirts. Units of Swoop = [pic] = 70,000 units The optimal mix is Swoop—70,000 units and Rufus—0 units. 3. Total contribution margin of optimal mix= (70,000 units Swoop)$5 = $350,000 Note: Cornerstone Exercise 13–18 (as well as Cornerstone 13–6) clearly illustrates a fundamentally important point involving relevant decision making with a constrained resource. The point is that when making this relevant decision, one should choose the option with the highest contribution margin per unit of the constrained resource—even if that option does not have the highest contribution margin per unit. For instance, in this exercise, Rufus’ contribution margin is three times greater than Swoop’s contribution margin ($15 gt; $5). However, because each Rufus sweatshirt requires more than three times as much machine time to produce than each Swoop sweatshirt (. 50 machine hour per Rufus sweatshirt gt; 0. 10 machine hour per Swoop sweatshirt), Swoop has a higher contribution margin per machine hour than does Rufus ($50 gt; $30). Cornerstone Exercise 13–19 1. SwoopRufus Contribution margin per unit$5$15 Required machine time per unit? 0. 10a? 0. 50 Contribution margin per hour of machine time$50$30 0. 10 = [pic]; 0. 50 = [pic] Cornerstone Exercise 13–19(Concluded) 2. Since Swoop yields $50 of contribution margin per hour of machine time, the first priority is to produce all of the Swoop sweatshirts that the market will take (i. e. , demands). Machine time required for maximum amount of Swoop = 50,000 maximum units ? 0. 10 hours of machine time required per Sw oop sweatshirt = 5,000 hours needed to manufacture 50,000 Swoop sweatshirts. Remaining machine time for Rufus sweatshirts= 7,000 – 5,000 = 2,000 hours Units of Rufus to be produced in remaining 2,000 hours= [pic] = 4,000 units Now the optimal mix is 50,000 units of Swoop sweatshirts and 4,000 units of Rufus sweatshirts. This mix will precisely exhaust the machine time available. 3. Total contribution margin of optimal mix= (50,000 units Swoop ? $5) + (4,000 units Rufus ? $15) = $310,000 Cornerstone Exercise 13–20 Price= Cost + Markup percentage ? Cost = $95,000 + 0. 15($95,000) = $95,000 + $14,250 = $109,250 Cornerstone Exercise 13–21 1. Desired profit= 0. 10 ? Target price = 0. 10 ? $350 = $35 2. Target cost= Target price – Desired profit = $350 – $35 = $315 4 EXERCISES Exercise 13–22 The correct order is 4, 5, 2, 6, 3, and 1. Exercise 13–23 Steps in Austin’s decision: Step 1:Define the problem. The problem is whether to continue studying at his present university or to study at a university with a nationally recognized engineering program. Step 2:Identify the alternatives. Events A and B. (Students may want to include event I—possible study for a graduate degree. However, future events indicate that Austin still defined his problem as in step 1 above. ) Step 3:Identify costs and benefits associated with each feasible alternative. Events C, E, F, and I. Students may also list E and F in step 5—they are included here because they may help Austin estimate future income benefits. ) Step 4:Total the relevant costs and benefits for each feasible alternative. No specific event is listed for this step, although we can assume that it was done, and that three schools were selected as feasible since event J mentions that two of three applications met with success. Step 5:Assess qualitative factors. Events D, E, F, G, and H. Step 6:Make the decision. Event J is certainly relevant to this. (What did Austin ultimately decide? He decided to stay at SMWU and finish his engineering degree. He also applied for—and won—summer internships with large West coast companies in the aerospace industry. Currently, he’s applying for jobs and [Plan B] looking into graduate programs. ) Exercise 13–24 1. The two alternatives are to make the component in-house or to buy it from Bryce. 2. AlternativesDifferential MakeBuyCost to Make Direct materials$12. 00—$12. 00 Direct labor8. 25—8. 25 Variable overhead3. 50—3. 50 Purchase cost—$25. 00(25. 00) Total relevant cost$23. 75$25. 00$(1. 25) 3. Zion should make the component in-house because operating income will be $12,500 ($1. 25 ? 0,000) higher than if the part were purchased from Bryce. Exercise 13–25 AlternativesDifferential MakeBuyCost to Make Direct materials$12. 00—$12. 00 Direct labor8. 25—8. 25 Variable overhead3. 50—3. 50 Avoidable fixed overhead*1. 501. 50 Purchase cost—$25. 00(25. 00) Total relevant cost$25. 25$25. 00$0. 25 *Avoidable fi xed overhead is the 75% of fixed overhead that would be eliminated if the component were no longer made in-house. Avoidable fixed overhead is relevant because if Zion makes the component, it will incur the cost, but if the component is purchased, that fixed overhead will not be incurred. Zion should purchase the component from Bryce because it will save $2,500 ($0. 25 ? 10,000) over making it in-house. Exercise 13–26 1. The two alternatives are (1) to accept the special order or (2) to reject the special order. 2. Direct materials$3. 00 Direct labor2. 25 Variable overhead1. 15 Total$6. 40 Relevant manufacturing costs are $6. 40 per unit so the gross profit per unit from the special order is $0. 60 ($7. 00 – $6. 40). The increase in gross profit is $9,000 (15,000 ? $0. 60). Exercise 13–27 In this case, it may be easier to deal with the total costs and revenues of the special order: Revenue ($7. 00 ? 5,000)$105,000 Less variable costs: Direct materials ($3. 00 ? 15,000)$45,000 Direct labor ($2. 25 ? 15,000)33,750 Variable overhead ($1. 15 ? 15,000)17,25096,000 Less labeling machine14,000 Loss on special order$(5,000) Smooth Move should reject the special order because it will reduce income by $5,000. Exercise 13–28 If Petoskey drops Conway, overall profit will decrease by $75,000 as a result of the lost contribution margin ($300,000 – $225,000). Note that the direct fixed expense for depreciation is a sunk cost and not relevant to the decision (i. e. , it will remain unchanged whether Conway is kept or dropped). Therefore, the overall impact of dropping Conway is that profit decreases by the 75,000 lost contribution margin. As a result, Petoskey should keep Conway because profits are higher with Conway than without Conway. Exercise 13–29 If Petoskey drops Conway, profit will decrease by $75,000 as a result of the lost contribution margin ($300,000 – $225,000). Note that the direct fixed expense for depreciation is a sunk cost and not relevant to the decision (i. e. , it will remain unchanged whether Conway is kept or dropped). In addition, Petoskey will avoid the $80,000 supervisory salary cost if it drops Conway. Therefore, the overall impact of dropping Conway is that profit decreases by the 75,000 lost contribution margin but increases by the lost supervisory salary of $80,000, which is a net increase in profit of $5,000. Therefore, Petoskey should drop Conway because profits are higher without Conway than with Conway. Exercise 13–30 If Petoskey drops Conway, profit will decrease by $75,000 as a result of the lost contribution margin ($300,000 – $225,000). Note that the direct fixed expense for depreciation is a sunk cost and not relevant to the decision (i. e. , it will remain unchanged whether Conway is kept or dropped). In addition, Petoskey will avoid the $80,000 supervisory salary cost if it drops Conway. Finally, if Petoskey drops Conway, 20% of Alanson’s contribution margin, or $33,000 (i. e. , . 20 ? $165,000), will also be lost as Conway customers shop elsewhere for Alanson. Therefore, the overall impact of dropping Conway is that profit decreases by the lost Conway contribution margin of $75,000, increases by the lost Conway supervisory salary of $80,000, and decreases by the lost Alanson contribution margin of $33,000, which is a net decrease in profit of $28,000. Therefore, Petoskey should keep Conway because profits are higher with Conway than without Conway. Exercise 13–31 1. Contribution margin if HS is sold at split-off= $8 ? 20,000 = $160,000 2. Contribution margin if HS is processed into CS: Revenue ($45 ? 4,000)$180,000 Less further processing cost34,000 Contribution margin$146,000 Bozo should sell HS at split-off; profit from selling at split-off will be $14,000 higher ($160,000 – $146,000) than if it were processed into CS. Exercise 13–32 1. RenoTahoe Unit contribution margin$120$75 Painting department hours? 5? 3 Contribution margin per unit scarce resource$24$25 . Assuming no other constraints, the optimal mix is zero units of Reno and 820 units of Tahoe. Total painting department time is 2,460 hours per year; if all of them are devoted to Tahoe production, then 820 ([pic]) units of Tahoe can be produced. 3. Contribution margin = ($120 ? 0) + ($75 ? 820) = $61,500 Exercise 13–33 1. If 500 units of each p roduct can be sold, then the company will first make and sell 500 units of Tahoe (the product with the higher contribution margin per hour of painting department time). This will take 1,500 (500 units ? 3 hours) hours of painting department time, leaving 960 (2,460 – 1,500) hours for Reno production. This time will yield 192 ([pic]) units of Reno. Optimal mix: 192 units Reno, 500 units Tahoe 2. Total contribution margin = ($120 ? 192) + ($75 ? 500) = $60,540 Exercise 13–34 1. Price of carved bear candle = $12. 00 + (0. 8 ? $12) = $21. 60 2. Price of scented votive candle = $1. 10 + (0. 8 ? $1. 10) = $1. 98 Exercise 13–35 1. Desired profit= 0. 25 ? Target price = 0. 25 ? $75 = $18. 75 2. Target cost= Target price – Desired profit = $75 – $18. 75 = $56. 25 Exercise 13–36 1. The amounts Heather has spent on purchasing and improving the Grand Am are irrelevant because these are sunk costs. . Alternatives Cost ItemRestore Grand AmBuy Neon Transmission$2,000 Water pump400 Master cylinder1,100 Sell Grand Am0$(6,400) Cost of new car09,400 Total$3,500$3,000 Heather should sell the Grand Am and buy the Neon because it provides a net savings of $500. Note: Heather should consider the qualitative factors. If she restores the Grand Am, how much longer will i t last? What about increased license fees and insurance on the newer car? Could she remove the stereo and put it in the Neon without greatly decreasing the Grand Am’s resale value? Exercise 13–37 1. If the analysis is done using total costs, each variable cost as well as the purchase price will be the unit cost multiplied by 35,000 units. The direct fixed overhead of $77,000 is avoidable if the part is purchased. MakeBuy Direct materials$210,000$0 Direct labor70,0000 Variable overhead52,5000 Fixed overhead77,0000 Purchase cost0385,000 Total relevant costs$409,500$385,000 Blasingham should purchase the part. 2. Maximum price = [pic] = $11. 70 per unit 3. Income would increase by $24,500 ($409,500 – $385,000). Exercise 13–38 1. MakeBuy Direct materials$210,000$0 Direct labor70,0000 Variable overhead52,5000 Purchase cost0385,000($11 ? 5,000) Total relevant costs$332,500$385,000 Blasingham should continue manufacturing the part. 2. Maximum price = [pic] = $9. 50 per unit 3. Income would decrease by $52,500 ($385,000 – $332,500). 5 PROBLEMS Problem 13–39 1. If the special order is accepted: Revenues ($7 ? 100,000)$700,000 Direct materials ($2 ? 100,000)(200,000) Direct labor ($1 ? 100,000)(100,000) Variable overhead ($3 ? 100,000)(300,000) Total net benefit$100,000 Fixed overhead and selling costs are irrelevant. If the special order is rejected, there will be no impact on income. Therefore, the quantitative analysis is $100,000 in favor of accepting the special order. . The qualitative factors are those that cannot be easily quantified. The company is faced with a problem of idle capacity. Accepting the special order would bring production up to near capacity and allow the company to avoid laying off employees. This would also enhance the company’s community image. The special-order price is well below the company’s normal price. Will this have a potential impact on regular customers? Considering the fact that the customer is located in a region not usually served by the company, the likelihood of an adverse impact on reg ular business is not high. Problem 13–40 1. Cost ItemMakeBuy Raw materialsa$218,000$0 Direct laborb70,2000 Variable overheadc20,8000 Fixed overheadd58,0000 Purchase coste0340,000 $367,000$340,000 a($70 ? 2,000) + ($130 ? 600). b$27 ? 2,600. c$8 ? 2,600. d$26,000 + $32,000. e($125 ? 2,000) + ($150 ? 600). Net savings by purchasing: $27,000. Hetrick should purchase the crowns rather than make them. Problem 13–40(Concluded) 2. Qualitative factors that Hetrick should consider include quality of crowns, reliability and promptness of producer, and reduction of workforce. 3. It reduces the cost of making the crowns to $335,000, which is less than the cost of buying. . Cost ItemMakeBuy Raw materials$316,000$0 Direct labor108,0000 Variable overhead32,0000 Fixed overhead58,0000 Purchase cost515,000 $514,000$515,000 Hetrick should produce its own crowns if demand increases to this level because the fixed overhead is spread over more units. Problem 13–41 1. @ 600 lbs. Process FurtherSellDifference Revenuesa$24,000$7,200$16,800 Bagsb0(39)39 S hippingc(384)(60)(324) Grindingd(1,500)0(1,500) Bottlese(2,400)0(2,400) $19,716$7,101$12,615 a600 ? 10 ? $4 = $24,000; $12 ? 600. b$1. 30 ? [pic]. c[pic] ? $1. 60 = $384; $0. 10 ? 600 = $60. d$2. 50 ? 600. 10 ? 600 ? $0. 40. Zanda should process depryl further. 2. [pic] = $21. 025 additional income per pound $21. 025 ? 265,000 = $5,571,625 Problem 13–42 1. System ASystem BHeadsetTotal Sales$45,000$32,500$8,000$85,500 Variable expenses20,00025,5003,20048,700 Contribution margin$25,000$7,000$4,800$36,800 Direct fixed cost526a11,158b1,016c12,700 Segment margin$24,474$(4,158)$3,784$24,100 Common fixed cost18,000 Operating income$6,100 a$45,000/$85,500 ? $18,000 = $9,474; $10,000 – $9,474 = $526. b$32,500/$85,500 ? $18,000 = $6,842; $18,000 – $6,842 = $11,158. c$8,000/$85,500 ? 18,000 = $1,684; $2,700 – $1,684 = $1,016. 2. System AHeadsetTotal Sales$58,500$6,000$64,500 Variable expenses26,0002,40028,400 Contribution margin$32,500$3,600$36,100 Direct fixed cost s5261,0161,542 Segment margin$31,974$2,584$34,558 Common fixed costs18,000 Operating income$16,558 System B should be dropped. 3. System ASystem CHeadsetTotal Sales$45,000$26,000$7,200$78,200 Variable expenses20,00013,0002,88035,880 Contribution margin$25,000$13,000$4,320$42,320 Direct fixed costs52611,1581,01612,700 Segment margin$24,474$1,842$3,304$29,620 Common fixed costs18,000 Operating income$11,620 Replacing B with C is better than keeping B, but not as good as dropping B without replacement with C. Problem 13–43 1. Steve should consider selling the part for $1. 85 because his division’s profits would increase $12,800: AcceptReject Revenues (2 ? $1. 85 ? 8,000)$29,600$0 Variable expenses16,8000 Total$12,800$0 Pat’s divisional profits would increase by $18,400: AcceptReject Revenues ($32 ? 8,000)$256,000$0 Variable expenses: Direct materials ($17 ? 8,000)(136,000)0 Direct labor ($7 ? 8,000)(56,000)0 Overhead ($2 ? 8,000)(16,000)0 Component (2 ? $1. 85 ? 8,000)(29,600) 0 Total relevant benefits$18,400$0 2. Pat should accept the $2 price. This price will increase the cost of the component from $29,600 to $32,000 (2 ? $2 ? 8,000) and yield an incremental benefit of $16,000 ($18,400 – $2,400). Steve’s division will see an increase in profit of $15,200 (8,000 units ? 2 components per unit ? $0. 95 contribution margin per component). 3. Yes. At full price, the total cost of the component is $36,800 (2 ? $2. 30 ? 8,000), an increase of $7,200 over the original offer. This still leaves an increase in profits of $11,200 ($18,400 – $7,200). (See the answer to Requirement 1. ) Problem 13–44 1. Markup = [pic] = 0. 63, or 63% . Direct materials$1,800 Direct labor1,600 Overhead800 Total cost$4,200 Add: Markup2,646 Initial bid$6,846 Problem 13–45 1. BasicStandardDeluxe Price$9. 00$30. 00$35. 00 Variable cost6. 0020. 0010. 00 Contribution margin$3. 00$10. 00$25. 00 ? Machine hours? 0. 10? 0. 50? 0. 75 Contribution margin per machine hour$30. 00$20. 00$33. 33 The com pany should sell only the deluxe unit with contribution margin per machine hour of $33. 33. Sealing can produce 20,000 ([pic]) deluxe units per year. These 20,000 units, multiplied by the $25 contribution margin per unit, would yield a total contribution margin of $500,000. . First, produce and sell 12,000 deluxe units, which would use 9,000 machine hours. Then, produce and sell 50,000 basic units, which would use 5,000 machine hours. Finally, with the remaining 1,000 machine hours, produce 2,000 standard units. Total contribution margin= ($3 ? 50,000) + ($25 ? 12,000) + ($10 ? 2,000) = $470,000 Problem 13–46 1. The company should not accept the offer because the additional revenue is less than the additional costs (assuming fixed overhead is allocated and will not increase with the special order): Incremental revenue per box$4. 20 Incremental cost per box4. 25 Loss per box$(0. 05) Total loss: $0. 05 ? 5,000 = $250 2. Costs associated with the layoff: Increase state UI premiums (0. 01 ? $1,460,000)$14,600 Notification costs ($25 ? 20)500 Rehiring and retraining costs ($150 ? 20)3,000 Total$18,100 The order should be accepted. The loss of $250 on the order is more than offset by the $18,100 savings by not laying off employees. Problem 13–47 1. Sales$263,000 Costs223,000 Operating profit$40,000 2. SellProcess FurtherDifference Revenues$40,000$75,000$35,000 Further processing cost023,90023,900 Operating income (loss)$40,000$51,100$11,100 The company should process Delta further because gross profit would increase by $11,100 if it were processed further. (Note: Joint costs are irrelevant to this decision because the company will incur them whether or not Delta is processed further. ) Problem 13–48 1. ($30 ? 2,000) + ($60 ? 4,000) = $300,000 2. JunoHera Contribution margin$30$60 ? Pounds of material? 2? 5 Contribution margin/pound$15$12 Norton should make as much of Juno as can be sold and then make Hera. 2,000 units of Juno ? 2 = 4,000 pounds 16,000 pounds – 4,000 pounds = 12,000 pounds for Hera Hera production = [pic] = 2,400 units Product mix is 2,000 Juno and 2,400 Hera. Total contribution margin= (2,000 ? $30) + (2,400 ? $60) = $204,000 Problem 13–49 1. ProcessDifferential Amount SellFurtherto Process Further Revenues$24,000$33,000$9,000 Processing cost—4,1004,100 Total$24,000$28,900$4,900 Germain should be processed further as it will increase profit by $4,900 for every 1,000 liters. 2. ProcessDifferential Amount SellFurtherto Process Further Revenues$24,000$33,000$9,000 Processing cost—(4,100)(4,100) Distribution cost—(800)(800) Commissions—(3,300)(3,300) Total$24,000$24,800$800 Germain should be processed further as it will increase profit by $800 for every 1,000 liters. Note that the liability issue was not quantified so it would need to be considered as a qualitative factor, further reducing the attractiveness of making geraiten. Problem 13–50 1. Monthly cost for FirstBank: Checking accounts: Maintenance fees ($5 ? 6)$30 Foreign DR/CR ($0. 10 ? 200)20 Returned checks ($3 ? 25)75 Earnings on deposits ($0. 50 ? 300)(150)$(25) Credit card fees ($0. 50 ? 4,000)2,000 Wire transfers [($15 ? 40) + ($50 ? 60)]3,600 Line of credit charges [pic]($100,000)500 Internet banking charges20 Total monthly charges$6,095 One-time Internet setup fees ($15 ? 6 accounts)$90 Problem 13–50(Concluded) Monthly cost for Community Bank: Checking accounts: Returned checks ($2 ? 25)$50 Credit card fees Per item ($0. 50 ? 4,000)$2,000 Batch processing ($7 ? 20)1402,140 Wire transfers ($30 ? 100)3,000 Line of credit charges [pic] ($100,000)583 Total monthly charges$5,773 Monthly cost for RegionalOne Bank: Checking accounts: Foreign DR/CR ($0. 20 ? 200)$40 Returned checks ($3. 80 ? 25)95 Earnings on deposits ($0. 30 ? 300)(90)$45 Credit card fees ($0. 50 ? 4,000)2,000 Wire transfers [($10 ? 40) + ($55 ? 60)]3,700 Line of credit charges [pic] ($100,000)542 Internet banking charges20 Total monthly charges$6,307 Community Bank has the lowest overall monthly fees. On quantitative factors alone, it would be chosen. 2. If the full online banking access were crucial, Community Bank would be eliminated immediately. This leaves FirstBank and RegionalOne Bank. The two sets of monthly costs are similar, $6,095 for FirstBank versus $6,307 for RegionalOne. Now, the banking relationship, comfort level of Kicker with the loan officer, and confidence in the bank’s ability to respond quickly and appropriately to Kicker’s needs will be the deciding factors. Additionally, some further negotiation would probably be done—for example, on the interest rate on the line of credit. 6 CASES Case 13–51 1. Pamela should not have told Roger about the deliberations concerning the power department because this is confidential information. She had been explicitly told to keep the details quiet but deliberately informed the head of the unit affected by the potential decision. (Standard II: 1) Her revelation may be interpreted as actively or passively subverting the attainment of the organization’s legitimate and ethical objectives. 2. The romantic relationship between Pamela and Roger sets up a conflict of interest for this particular decision, and Pamela should have withdrawn from any active role in it. (Standard III: 1) However, she should definitely provide the information she currently has about the cost of eliminating the power department. To not do so would be active subversion of the organization’s legitimate and ethical objectives. Moreover, she has the obligation to communicate information fairly and to disclose all relevant information that could reasonably be expected to influence an intended user’s understanding. In addition, however, Pamela should discuss the qualitative effects of eliminating the power department. The effects on workers, community relations, reliability of external service, and any ethical commitments the company may have to its workers should all enter into the decision. Pamela should communicate the short-term quantitative effects and express her concerns about the qualitative factors. She should also project what the costs of operating internally would be for the next five years and compare that with estimates of the costs of external acquisition. Case 13–52 1. Salesa$3,751,500 Less: Variable expensesb2,004,900 Contribution margin$1,746,600 Less: Direct fixed expensesc1,518,250 Divisional margin$228,350 Less: Common fixed expensesc299,250 Operating (loss)$(70,900) aBased on sales of 41,000 units Let X = Units sold [pic]+ [pic]= $3,751,500 $183X= $7,503,000 X= 41,000 units b[pic] =$66. 40Manufacturing cost 20. 00Fixed overhead $46. 40Per internal unit variable cost 5. 00Selling $51. 40Per external unit variable cost Variable costs= ($46. 40 ? 20,500) + ($51. 40 ? 20,500) = $2,004,900 Fixed selling and admin: $1,100,000 – $5(20,500) = $997,500 Direct fixed selling and admin: 0. 7 ? $997,500 = $698,250 Direct fixed overhead: $20 ? 41,000 = $820,000 Total direct fixed expenses = $698,250 + $820,000 = $1,518,250 Common fixed expenses = 0. 3 ? $997,500 = $299,250 2. KeepDrop Sales$3,751,500$— Variable costs(2,004,900)(2,050,000)* Direct fixed expenses(1,518,250)— Annuity—100,000 Total$228,350$(1,95 0,000) *$100 ? 20,500 (The units transferred internally must be purchased externally. ) The company should keep the division. Case 13–53 Answers will vary.

Free Essays on Pschology

Men and Women What influences a person’s identity? Is it their homes, parents, religion, or maybe where they live? When do they get one? Do they get it when they understand right from wrong, or when they can read, or are they born with it? Everyone has one and nobody has the same, is there a point in everyone’s life when they get one? A person’s identity is his own, nobody put it there and nobody can take it out. Everyone in this world has a different identity because they all make their own over the course of their life. A person’s identity also causes a person to have masculine and feminine traits. There is no one thing that gives a person their identity, there are however many different factors that contribute to one’s identity. What is someone’s identity? Is it the way they look, the way they dress, or it could be many things all put together, or is it none of the above? To me someone’s identity is a part of their being. Nobody will ever hold it, touch it, or even see it, but it is there. Everybody has one, it guilds your decision making, your thoughts, ideas, and dreams. You may think something is terrible while someone else does not even care and yet another person may laugh, why? The answer is simple, everyone has his own identity and personality. Everyone feels, acts, thinks, and dreams differently. People may have some of these things in common with one another, but they will not be totally the same, it is like a fingerprint, unique. There are many origins to a person’s identity, their family, friends, home life, religion, environment and others. But how does it get there, you do not go into a store and pick on off the shelf. A person’s identity is developed over many years and put together by the person themselves. It comes from the individuals ability to think, reason and form an opinion. Nobody has the same mind, ... Free Essays on Pschology Free Essays on Pschology Men and Women What influences a person’s identity? Is it their homes, parents, religion, or maybe where they live? When do they get one? Do they get it when they understand right from wrong, or when they can read, or are they born with it? Everyone has one and nobody has the same, is there a point in everyone’s life when they get one? A person’s identity is his own, nobody put it there and nobody can take it out. Everyone in this world has a different identity because they all make their own over the course of their life. A person’s identity also causes a person to have masculine and feminine traits. There is no one thing that gives a person their identity, there are however many different factors that contribute to one’s identity. What is someone’s identity? Is it the way they look, the way they dress, or it could be many things all put together, or is it none of the above? To me someone’s identity is a part of their being. Nobody will ever hold it, touch it, or even see it, but it is there. Everybody has one, it guilds your decision making, your thoughts, ideas, and dreams. You may think something is terrible while someone else does not even care and yet another person may laugh, why? The answer is simple, everyone has his own identity and personality. Everyone feels, acts, thinks, and dreams differently. People may have some of these things in common with one another, but they will not be totally the same, it is like a fingerprint, unique. There are many origins to a person’s identity, their family, friends, home life, religion, environment and others. But how does it get there, you do not go into a store and pick on off the shelf. A person’s identity is developed over many years and put together by the person themselves. It comes from the individuals ability to think, reason and form an opinion. Nobody has the same mind, ...

Multilingual Create a Secondary Language Profile on LinkedIn®

Multilingual Create a Secondary Language Profile on LinkedIn ® Are you bilingual or multilingual? The general rule on LinkedIn ® is that you may only have one profile; having multiple profiles is a violation of the Terms of Service that could get you booted off the site. However, there is one exception to that rule: the Secondary Language Profile. As of January 2013, over 64% of LinkedIn ® members are located outside of the US. Because such a large portion of users are multilingual and interested in connecting with people both inside and outside of English-speaking countries, LinkedIn ®Ã‚   allows users to set up additional LinkedIn ® profiles that cater to secondary languages. LinkedIn ® supports the following languages: English | Czech | Danish | Dutch | French| German | Indonesian | Italian | Japanese | Korean | Malay | Norwegian | Polish | Portuguese | Romanian | Russian| Spanish | Swedish| Tagalog | Turkish Click here for a list of languages supported by LinkedIn ® mobile applications. NOTE: You cannot change the default language of your profile once youve set it up in a particular language. Its recommended that you set up a secondary language profile instead. Creating a Profile in Another Language To create a profile in another language, go to your Profile page and click the down arrow to the right of your Edit Profile button. Select Create profile in another language:    Choose your language from the dropdown menu:    Youll also want to update your Professional Headline. Then click Create Profile. The language you select will determine the default language for your profile display and also the language in which you will receive messages from the LinkedIn Corporation. Content and messages will always be displayed in the language in which they are written. LinkedIn ® does not translate content or messages for you, so you will need to go through each section and update all necessary fields. Remember to save each section before continuing onto the next. When a member signs in to LinkedIn ® and views your profile, they will see it in the language you chose when you set up your account; or, if you have multiple profiles in several languages, viewers will see the one most relevant to them. The viewer has the ability to choose from your language profiles by selecting one from the dropdown menu underneath your profile photo.    All of your language profiles will show up in search engines and have their own URL. You can also delete a secondary language profile by select the language from this dropdown list. Just select Delete this profile link and click Delete. Let me know if this article was useful to you! Also note that the inspiration for this topic came from a question submitted by one of my readers so please do contribute your ideas if you have them! Finally, a Bonus Tip on Secondary Language Profiles has been added to the 7th Edition of How to Write a KILLER LinkedIn Profile coming soon!

''In this complex world compagnies have objectives that are not Essay

''In this complex world compagnies have objectives that are not stricly economic'' Discuss - Essay Example Societal demands on new roles for companies on societal needs are forcing companies to think beyond any traditional philanthropy that they were engaged in to company objectives that are not strictly economic. Traditional philanthropy may be viewed as the only times when companies deviated from spending their resources without real tangible returns to their coffers. This was however limited to activities towards their employees or in a minimal manner to the society or societies in which they operated. The complex dimension that has arisen for companies is the demand from societies that they need to show more concern for the societies in which they operate. Such a perspective is reflected in the call of the United Nations for companies around the world to be aware and show adopt more socially oriented objectives as they explore opportunities (Magee, 2007). With the concept of globalization and the global village become more of a reality than a considered possibility actions of companies oriented towards economic concerns with societal detrimental effects have a means of spreading to all corners of the globe, which has made the societal demands for responsibility from companies more strident. This has led to the concept of corporate social responsibility, wherein companies become aware of the needs of maintaining the environment in which they operate and assistance to societal needs and are encouraged to incorporate them among the objectives of the company. This has resulted in environment orientation, social buying, and social advertisements as examples of the incorporation of non-economic criterion being incorporated in company objectives (Drumwright & Murphy, 2001). Since the last decade of the twentieth the concept of corporate greening, wherein companies have become more aware and concerned about their environmental responsibilities and have shown the tendency to incorporate this non-economic criterion among their objectives has attracted a lot

Reactions to Industrial Domination Essay Example | Topics and Well Written Essays - 750 words

Reactions to Industrial Domination - Essay Example The case considered here are multinational agro food companies. As in any entity, aside from corporate objectives of increased sales of products and services, these companies want to be seen as having humanitarian causes. They are pictured as companies who solve problems of poor countries, particularly in terms of hunger, through new technologies and free trade agreements. There is no objection to that. But behind these objectives, are the underlying reasons that these large corporations have a great ability to influence the market because of their large market share. Again as in OPEC, any increase or decline in oil production has a dramatic effect worldwide. The flow of activities in industrial domination creates uneven distribution of wealth, and draws a big impact on the global economy. For instance, in food production, the system underpays their inputs and overpays their outputs. Here since there are few sellers, big corporations can command a price and exert their power to farmers in buying expensive agricultural inputs. and into buying the farmers' product at a bargain price, and sometimes lesser than it cost to grow them. This alone is a disadvantageous position to farmers. Not only that, the large ... Unknown to the public, these corporations influences the industry as it formulates guidelines on nutrition, food safety regulations, and rules for labeling and content disclosure which all work for their benefit. The monopoly of food conglomerates has the power to set wages and farm gate prices which is usually tipping the edge advantageous to the corporations by setting a below levels of farm gate prices, workers' wages and benefits. The implication here starts when farmers are forced to sell their lands by the agribusiness powers, and in other developing countries, sometimes called third world countries, the fall down of domestic market due to the pressure of dumped imports. Domestic market cannot compete with the dumped imports eventually leading to the closing of factories and abandonment of agricultural lands. Workers, then have no resort but to accept low wages, work under poor conditions in the factories of giant corporations, and often restricted in labor rights, or others consider migration. Effects on environment. While the damage to environment cannot be felt now, the future generation will feel the effects particularly on agriculture, when there would be soil erosion, water depletion, toxic contamination, and loss of" bio-diversity" that will deplete the natural resources . The loss will be shouldered by the people, while the gains are raked by these conglomerates. Influence on taxes and subsidies. The public is kept uninformed that they are actually subsidizing these companies thru taxes. Because of influence, and complexity of operations, big companies found a way of reduced tax liabilities.

Photostory Essay Essay Example for Free

Photostory Essay Essay This essay is to comment on my photo story that I did for my coursework, I will be talking about various things like the lighting, costumes and mise-en-scene, what they did for the photo story and how it helped. The genre I chose for my photo story was a sports genre. I thought it would appeal to the vast majority of male readers of around 14-18 years old, as it is a football magazine, which I have called The Kick-A-Bout Crew. I think that the story I chose would also interest younger readers as an incident like this one could crop up in their everyday lives. In a newsagents local to me, most of the space for papers and comics had been taken up by football magazines; this is partly why I used a football idea. If I were to sell my magazine, I would be very confident that my target audience would be teenage boys, and my grey market would be female readers as they are not likely to want to read football stories very often in most cases, but not unheard of. I would be very satisfied with this target audience. The way my story was narrated was through caption boxes and speech bubbles; this made my story quite easy to understand without too much difficulty. My captions were being placed at the bottom of a photo, to be read first, while the speech bubbles on the photo, perhaps slipping onto the background of the document to make sure that they didnt cover up the characters faces. I placed my speech bubbles in the direction the storys pictures were placed, normally flowing from left to right so as to make it easier to read. I used many different camera angles, to subtly highlight the events occurring in my story. For my first photo, I took an establishing shot from a fairly long distance away, taking it from a high angle to symbolize the fact that the boys are really just kids, innocent in youth and also to show the readers were the story takes place. In my second photo I take the photo as a medium shot, from a slightly low angle, so that it appears to the readers that the watching boy is much taller physically and symbolically than Paul and Jimmy showing that he is more important. For my third and fourth shots, I used eye-level close-ups that display the clear emotion on both of the boys faces, to depict to the readers the emotions of the boys and put the readers in their positions. The fifth photo is simply an eye-level medium shot that was the plainest and most obvious way to show the audience what is happening quite clearly. When my main character, Paul, gets tackled, the photo is taken from a high angle from a medium distance for the first view of it, to show the vulnerability of Paul to the audience before switching to an eye-level close-up to make the readers see how cheap the tackle was. The next shot is taken back to a high-angle showing the discomfort and pain that Paul is feeling, making him pitiful to the audience and to make them feel sorry for him, whilst not showing the boy, who is helping Paul up in the same light. For the next shot I used another eye-level medium shot, with a slight over-the-shoulder feel to it were you see Jimmy listening in behind the two talking boys, to show his sly jealous side to the more judgmental of the readers. For my penultimate shot I used an eye-level long shot to fit the characters all in but not leave too much background so the audience are drawn to the colour and action of the shot. And finally I used an eye-level close-up of Jimmy getting punched; the camera is supposedly a first-person view from Paul, to make the audience feel as though theyre throwing the punch. I think that all of these different angles have really illustrated the point that I was trying to make in each photo, they help keep the readers entertained and even kind of involved and would easily help them to understand the characters. I used particular colours in my background to lure my readers attention and immediately tell them the type of story I have chosen. I used a background of green and white like a football field and had the title set against a black and white football, in the actual title the word foul was a chilling blood red in the style of chiller. For each of my photos I used a different colour for each caption boxes to try and not make the page too boring and also to try and describe the photos, for instance at the start of the story where it is just a friendly kick about the caption box is a merry yellow, while proceeding through the story coming to the tackle it has slowing turned to a violent shade of scarlet. I shot my photo story at Dundonald Playing Fields as it fitted in with the story and provided a good mise-en-scene. Its in the grounds of a shabby looking high school to show that these kids lead a normal school life and this is their day to day surroundings, a the dual carriage way in the background shows how busy the place is and stands for their urban lives. I also used different costumes to display the type of characters starring in my photo story. Jimmy wore a black tracksuit to show him as the villain, while Paul wore a green and grey Northern Ireland tracksuit, to show that he is not exactly good as gold either, but generally decent and has strong loyalties. The boy watching is wearing a bright red Man U top to show that he is very friendly and is chasing a spot on Manchester United Youth team. The only lighting was the afternoon sky that made it seem as though they were still at school having a lunch-time game. The football and the goalposts fitted in nicely with the story giving it that sporty touch. I also added a competition to star in the magazine, which I thought would really grab the readers attention and spread the word to their friends. These are all the devices and techniques I used to make the story interesting, eye-catching and comprehendible.

The Brink of War :: history

The Brink of War In 1914, there were many things that placed Europe at the brink if war. Nationalism, militarism, imperialism, social darwinism, and Jingoes where five of the main forces that were pushing Europe to the brink of war. Another main force was the development of Alliance systems. These ideas and systems threatened the balance of power which could then cause a major war to break out. In Europe at the time, there were many ideas which were causing friction. Nationalism, which was the desire for a country was causing friction because people in old empires sought to be free. The leaders of these people would not be happy and a war would definitely break out. If they became free they would also need to take land from someone else and this again may cause a war and usually did. Another idea which was contributing to the shifts of power in Europe was Militarism. This was when a country believed its power was reflected in its army. They believed that war was the right thing to do and that all countries needed to be ready for war. If a country felt they had a lot of power they would, no doubt, try to conquer a weaker neighbor or just any other country. Imperialism which was the countries want to build an empire was another reason. For a country to become an empire they would have to colonize and conquer other territories. This would easily start wars and it's not that hard to figure out why. A good example of this is Italy. They wanted to become an empire so they attacked a country which they thought was weaker then them(Abyssinia). This caused a war which in the end was won by Abyssinia. Another cause was the idea of social darwinism. This meant the survival of the fittest. The best would win and the weaker would parish. The stronger country would attack weaker countries and in the end the weaker would usually lose. This caused a lot of tension just like militarism. The last of the ideas, was the idea of jingoes. These were people who lived for war. All they wanted was to go to war. Jingoes where very aggresive talkers and they caused a lot of friction between many countries. These ideas where some of the main reasons Europe was pushed to the brink of war.

No name woman by Maxine Hong Kingston Essay

No name woman, by Maxine Hong Kingston, exposed the harsh culture of the Chinese in the 1920’s. Women were treated as breeders and slaves to their husbands. The unborn is the narrator’s aunt; whom she never had the chance to meet. The mother tells the story while her daughter listens to the devastating suicide of her aunt. The narrator of the story struggles to find the morals of her deceased aunt; she attempts to reveal and understand the Chinese culture in the 1920’s versus the American culture she currently lives in. Chinese culture in the 20’s has always been a patriarchal society. The men are completely dominant; they provide money and shelter for the women and children. Women, on the other hand, do not have any power in decision-making, â€Å"women in the old China did not choose† (825). They had no say in who their husband would be or how many children they had to have. When they were commanded to do a chore or to cook they were forced to only follow their husband’s wishes. During the adolescent age, â€Å"brothers and sisters, newly men and women, had to efface their sexual color and present plain miens† (828). Everyone in the Chinese society looked the same; there was no make-up or trendy hairstyles to make a unique appearance. The hair must be pulled up in a bun when young and when they married, women could cut their hair. A common characteristic of the Chinese was the temptation to grab attention by speaking loudly or shouting at family gatherings (828). The narrator even admits her mother still shouts in the library or other quiet areas. The adjustment from Chinese culture to Chinese-American culture has been different for her family. In the 1970’s the â€Å"first American generations have had to figure out the invisible world the emigrants built around [her] childhood in solid America† (824). The narrator feels like her immediate family is not adjusting to the American culture effectively. The narrator’s family has a secret. Her aunt became a disgrace to their family and village in China. Her mother states, â€Å"your father has all brothers because it is as if she had never been born† (823). In the Chinese culture, committing sexual relations outside of marriage is considered dishonoring your family’s name. Family values are very important and committing infidelity equals banishment from the village. When the narrator’s aunt becomes pregnant, and her husband had been away for years, â€Å"no one said anything. [They] did not discuss it† (823). The father of the baby was unknown, but, the family did not even attempt to find him. Not only did the aunt sin, but her baby would forever live in sin because of her mother’s actions. In the Chinese culture, their past stayed with them forever; they couldn’t start over like the Japanese and become a Samurais or Geishas (826). They were forced to the outcast table during family feasts and were basically shunned. On top of becoming impregnated by another man, the aunt had a daughter; which, â€Å"to have a daughter in starvation time was a waste enough† (825). Producing a male was more beneficial to the village and carrying on the family name. Obedience is the main factor in this story. The dominance of the male required, â€Å"she [obey] him, she always did what she was told† (825). Therefore, the chain reaction occurred, the aunt became pregnant and cursed the village. Even throughout childbirth she never revealed the father’s identity. Just hours before she delivered, the village ransacked and raided her home. They screamed, â€Å"Look what you’ve done. You’ve killed us. Ghost! Dead ghost. You’ve never been born† (830). This disgrace only left her to commit suicide with her child. If she decided to stay in this world she would forever be an outcast and her daughter would be treated as a living curse. Even though she took her and her child’s life, â€Å"infidelity had already harmed the village, the waves of consequences would return unpredictable, sometimes in disguise†¦ to hurt her† (830). The damage was already done. She disrespected her family’s name. Also, the village had to suffer penalties from her actions. They believe the breaking of the village code would set a curse on them. Her mother voiced this particular story to ensure her daughter does not make the same mistake. Even though they are now experiencing Chinese-American culture, the Chinese culture still remains dominant in their family. Her aunt sinned over 50 years ago when this story was told; however, the ramifications are still affecting her family. This story was mentioned to prevent another family crisis and to keep the family name free of sin.

Financial Analysis of Victoria Secret Essay

INCOME STATEMENT ANALYSIS Victoria Secret appears to be a profitable company. Victoria Secret is part of L Brands whose operating income was at $ 211 million, up by $24 million from the last quarter. Specifically at Victoria’s Secret, sales increased by 4% to reach 5.4 billion but operating income decreased by 6% to 1.71 billion. It appears that Victoria Secret’s major expense was their Cost of Goods Sold, COGS, which totaled at 1.3144 billion. The gross profit percentage as at February 2013 was 47.87% (NASDAQ, 2014). BALANCE SHEET ANALYSIS Assets of Victoria’s Secret have steadily increased in the last three fiscal years. As at November 2013, return on Assets was at 12.73% up from 12.2% in January 2013. Return on equities has been high as well, at 105.39% in January 2012, up from 44% in 2011. Liabilities have also sadly increased in the last four years. Expenses have increased from $630 million in August  2013 to $645 million in November 2013 (L Brands, 2014). The Cost of Goods Sold has decreased however, from $1.527 billion in August 2013 to $1.314 billion in November 2013. Total liabilities were at $7.456 billion in November 2013, up from $6.933 billion in August 2013 (NASDAQ, 2014). STATEMENT OF STOCKHOLDER’S EQUITY Retained earnings were in the negatives for Victoria’s Secret stockholders. As at November 2013 it was -$519 million. Common stock was at $153 million but treasury stock was at a negative of -$740 million (NASDAQ, 2014). STATEMENT OF CASH FLOWS The net cash provided as a result of operating activities as at January 2014was at 1.279 billion dollars, while the net cash provided as a result of investing activities at -$106 million (L Brands, 2014). The net cash provided as a result of financing activities was also at a negative at -$78 million. The negative cash flows brought about by investing and financing activities imply that they have cost the company more money in their undertaking than they have brought in. However, the large cash flows brought in by operating activities are more than enough to cover the losses brought about by the other categories, so the negative cash flows do not worry me too much. FINANCIAL RATIO ANALYSIS After conducting the financial ratios for Victoria Secrets, it is clear to me that they are able to fulfill consumer demands while maintaining financial stability. Their Liquidity Measures ratios suggests that the company is able to adequately pay for the liabilities while investing assets  in a strategic manner. Net Working Capital to Total Assets results show that Victoria Secret is able to efficiently turn assets and cover short-term liabilities. The company is in fair health, however there is a decline in 2011-2013, suggesting a slight trouble turning their assets into cash fast  enough to cover their liabilities. For their collection period it takes about 7-8 days for Victoria Secret to collect cash, meaning that they collect cash quickly for reinvestment purposes. Victoria Secret depletes and replenishes their inventory at least five times per year to satisfy their consumer demand. Fixed Asset Turnover for Victoria Secret proves that they are able to use their fixed assets effectively towards sales revenues. They are able to generate $4 to $5 of sales for every $1 that is invested in fixed assets. Their debt/leverage measures the low debt to total asset ratio implies that Victoria Secret assets are financed more through equity rather than debt and that they are using a conservative capital structure; ultimately, by keeping their debts low and manageable, they have a financial advantage. However, Victoria Secret may not be taking advantage of their increase profits that comes with financial advantage. Victoria Secret’s gross profit margin is above industry norms, indicating that Victoria Secret is generating strong sales prices that are relative to their cost of goods sold. Victoria Secret’s operating profit margin ratio shows that they have complete and effective control of their operating costs, however their sales could be increasing faster than their operating costs. The net profit margin ratios suggests that Victoria Secret has a some cushioning that will help protect them in case of hard times. Victoria Secret is effectively managing and turning assets into generating earnings and income on new investments. Victoria Secret makes at least $2.50 per share and is generating a significant dividend for their investors, which leads investors anticipating a higher future growth. SALES FORECASTING During performing the sales forecast for Victoria’s Secret, I learned that for most part that Victoria’s Secret has an incline in their profits. They have however hit a few bumps here and there. The causes of this could be more cost for Victoria’s Secret purchasing materials and production of their products. Another reason for this could also be a slower rate in sales than usual. Like I said, for the most Victoria Secret has seen an incline in their profits and sales throughout the years. Performing the percentage of sales forecast for Victoria’s Secret, I established a forecasted sales of 5  percent which means that they would have to have a sales of $2,808 compared to their last years $2,675. This is a very feasible number for Victoria Secret to achieve, considering that majority of their money in assets outweighs their liabilities. The EFN, External Financing Needed, for Victoria Secret is $2,855. This indicates that Victoria Secret would need to obtain External Financing Needed to achieve the $2,808 forecasted sales level, which 5% more of their current sales revenue. SUBSTANTIAL GROWTH RATE ANALYSIS Victoria Secret has had a steady growth over the analyzed period. It has not been too slow or too fast, but one that shows that they are adequately handling the progressive growth of the company. This shows that Victoria Secret is paying close attention to all details of the organization. CONSEQUENCES FACED BY FIRMS THAT GROW AT A RATE THAT IS NOT CONSISTENT WITH THEIR SUSTAINABLE RATE Growing too fast as crazy as it may sound, does have potential consequences for the organizations. These consequences could come in the form of the organization not being able to fulfill customer demand, hire and/or train capable employees to accommodate for the growth, and difficulty in obtaining cash to support the growth. When an organizations too fast it will need more capital to support the growth. On the reverse side, a growth too slow can be as destructive as growing too fast. Slow growth can have the consequences of wanting or needing to expand their organization, however if they do decide to expand without the support of a sufficient revenue; then the organization runs into potential trouble with investors. If Victoria Secret grew at a rate where it was difficult for them to be consistent with their sustainable rate, then they would have either to find additional funding or consider eliminating some of their debt. IF THE FIRM GREW AT A RATE ABOVE OR BELOW THE SGR, HOW DID IT FINANCE ITS EXCESSIVE GROWTH OR REWARD ITS STOCKHOLDERS FOR THE UNDERPERFORMANCE Since Victoria Secret has a sustainable growth rate that is steady, they did not need to finance an excessive growth or reward their stockholders for an underperformance. Victoria Secret’s continued growth and success will depend on their ability to open and operate new stores and to expand and even remodel existing stores in a manner that is not only timely but also on a profitable basis. Accomplishing their new and existing store expansion goals will depend upon a number of factors, including their ability to collaborate with developers in order to obtain suitable sites for new and expanded stores, the hiring and training of qualified personnel, and the integration of new stores into existing operations. However, there are risks associated with these growths, which could be having a negative effect on their results of operations, financial condition and cash flows. FINAL ANALYSIS Upon my initial analysis on the financial performance of Victoria Secret, I assumed that were a profitable company. After performing the financial ratios analysis, forecast of sales analysis, and the substantial growth analysis; my assumption proved to be correct. Victoria Secret proves to be the most profitable business owned by L Brands. Granted Victoria Secret has had their fair share of bumps in the road, but because of their strategic financial plan, those bumps did not have a great deal of import financial for them. What I have learned from doing the financial analysis on Victoria Secret is that they are an organization who takes knowing their financial performance seriously. They know, understand, and most importantly can successfully create financial strategic plans can serves as a tool for their success, as well as prepare them in case of a â€Å"rainy day†. This is where majority of organizations fail in performing a financial analysis and preparing a financial strategic plan. Most organizations do not want to believe or even admit to the potential of having a â€Å"rainy day†, because in their eyes it sets them up for failure. Victoria Secret obviously knows the importance of embracing the idea of a â€Å"rainy day† and prepares for it, which is one of the many reasons they are such a successful organization. Conducting the financial analysis on Victoria Secret also proves that my prediction about how they are able to turn assets into income to can pay for their liabilities as well as have enough left over to reinvest back into the organization. Victoria Secret clearly understands that growth is crucial for the success of the organization while at the same keeping their growth maintainable without getting themselves into financial trouble. It is clear that Victoria Secret knows the importance of knowing how to do a financial analysis of their organization’s financial performance and using the analysis to build a strategic financial plan. I do believe that if Victoria Secret keeps a diligent watch on their financial performance and does regular financial analysis, they can continue to be a force to be reckoned with that they have been in the retail industry. References Baral, S. (2013). _The Challenge of Attaining Sustaintable Growth ._ Retrieved from http://prj.co.in/setup/business/paper77.pdf Business Town. (2003). _Pro Forma Balance Sheets._ Retrieved from http://www.businesstown.com/accounting/projections-balance.asp Business Town. (2003). _Pro Forma Income Statements._ Retrieved from http://www.businesstown.com/accounting/projections-statements.asp Hoovers. (2014). _Victoria’s Secret Stores, LLC. ._ Retrieved from http://www.hoovers.com/company-information/cs/competition.Victorias_Secret_Stores_LLC.d793812b13b17deb.html L Brands. (2014). _Financials._ Retrieved from http://www.lb.com/investors/financial_information/financials.aspx L Brands. (2014). _SEC Filings._ Retrieved from http://www.lb.com/investors/company_info/sec_filings.aspx Lane, M. (2014). _Percentage of Sales Method._ Retrieved from Business Finance Online: http://www.zenwealth.com/businessfinanceonline/FF/PercentageOfSales.html Lutz, A. (2013). _Why The Lingerie Industry Can’t Compete With Victoria’s Secret._ Retrieved from http://www.businessinsider.com/victorias-secret-will-beat-competition-2013-9 NASDAQ. (2014). _L Brands, Inc. Stock Report._ Retrieved from http://www.nasdaq.com/symbol/lb/stock-report

World Issues Essays - Demography, Population, Demographic Economics

World Issues Essays - Demography, Population, Demographic Economics World Issues There are many important world issues. Among these issues, we have studied the rapid growth of the world, which was the topic of critical importance. The extraordinary rapid increase of the world population constitutes a serious problem in which no citizen of the world can remain indifferent. The public has become increasingly aware of the dramatic rise in the rate of the world population growth during the three centuries of the modern era. There is a tendency on the part of many to see rapid rates on population growth as giving rise to a barrier on a road to progress. This may threaten peace and stability in the world because the population growth may make it impossible to meet in a timely fashion, the reasonable aspirations of hundreds of millions of people in the underdeveloped countries. During the first three centuries of the modern era, from 1690 - 1990, the world population has multiplied five times, from 1 to more than 4.5 billion. Over this time span the population of Europe increased six times, and of Europe and European occupied areas in the Western Hemisphere and Oceania combined about eight times. The population of North America increased about 160 times and that of Latin America about fourteen times. During the same period, the population of Asia increased by less than 4 times (however, this contrasts with what must have been a much less rapid increase earlier. The absolute increase in Asia however was very large.) In Africa, the population merely doubled. It is clear that greatly accelerated growth occurred first among the nations that first experienced modernization - the combination of "revolutions," including the agricultural revolution, commercial revolution, science revolution, and the technological revolution. Explosive population growth, th! e "vital revolution" - a pace of growth without precedent in long settled areas - did not approach nations in Asia, Latin America, and Africa, until after Wold War I and especially after World War II. Rapid growth has been one of the three related population phenomena generating public concern. The two other are the increasing concentration of people on a relatively small portion of the Earth's surface - a phenomenon of better urbanization and mertopolitanization and growing diversity of the people who share the same geographical area and increasingly, the same economic, social, and political systems. World population growth is entirely the result of natural increase - the excess of births over deaths. If mortality declines rapidly and there is a high birth rate in any given country, there will become a heavy child burden that marks the beginning of overpopulation. The reasons for this remarkable change are not entirely clear. One cause was certainly the widespread control and virtual elimination of Malaria and other insect-carried disease. Other causes were widespread use of vaccines and modern drugs in less developed countries. There also has been speculation that human beings have developed more immunity to some microbial diseases that the virulence of some microorganisms has declined. The disadvantages of high birth rate are not generally admitted for two reasons. First there is and ideological prejudice against admitting that a high birth rate can in any way be harmful, and so anti nationalist policy does not generally appeal to politicians. Secondly, there is widespre! ad belief that an ever-greater pool of manpower is a military and economic asset to a nation. It therefore comes as a shock to many people to hear it maintained that one of the demographic factors weakening a nation's powers is a birth. No one can maintain that a pre-industrial birth rate is always and in every way disadvantageous. In certain instances, it may be an asset. But an analysis of the effect of birth rates on a nation's efficiency will show that in most cases today the advantage lies with a low rather then a high rate. The rapid population growth has economic, social, and political effects. It also interacts with public education, health, and welfare, and the qualities in which people live. Economic Consequences: Rates of population growth in many less developed countries are at least half the rate of economic growth and in some cases equal the latter. Chiefly because of high fertility of these countries, the ratio of

AllinOne Computer Security Systems

The program also contains other features including ways to better the health of your PC. Norton Internet Security plus 360 versions 4. 0 warns you of dangerous downloads before you install and run them on your computer. Norton Internet Security has an extra layer of protection that detects viruses, spyware, Trojans and other threats. In addition Norton 360 4. 0 identifies applications that are impacting the performance of your PC. Using an all-in-one computer security protects your CPU from hijackers, identity theft, spyware, and virus. In addition using a security all in one center generally protects the user computer on its own. This keeps your system and all your information safe from others. There are some security programs which protect as well such as Anti-Virus, Anti-Spyware, Anti-Spam, Anti-Root kit, Identity Protection, Link Scanner Active Surf, Link Scanner Search, Web Protection Firewall, and Sophisticated threat detection. Using an all-in-one security system is effective because the programs are not conflicting with each other; instead they all work together within one system. An all-in-one security system will use less running memory than several security systems running parallel to each other. All-in-one security system is effective in many elements such physically secured security appliance, content discrimination, quick recovery from failure, highly configurable logging and notification, simplicity, high uptime, economy secure connections, well-conceived security system policies, scalability, distributed architecture, of IP addresses, secure remote management and communication, authentication, virtual private networking, and summarize and report network activity. What the all in one computer security systems protect against is with spyware, virus, identity theft, and hijackers. The all in one computer security systems block the threats from getting onto your computer as long as it is running at all times. References McAfee. McAfee Total Protection 2010. Retrieved from. http://download. mcafee. com/products/manuals/en-us/mtp_datasheet_2010. pdf Norton by Symantec. Top-ranked Protection. Norton 360â„ ¢ Version 6. 0. Retrieved from. http://us. norton. com/360 Internet Security Handbook. What Makes a Good Network Security System and effective security system. Retrieved from. http://www. watchguard. com/help/lss/41/handbook/need_fo3. htm AllinOne Computer Security Systems The program also contains other features including ways to better the health of your PC. Norton Internet Security plus 360 versions 4. 0 warns you of dangerous downloads before you install and run them on your computer. Norton Internet Security has an extra layer of protection that detects viruses, spyware, Trojans and other threats. In addition Norton 360 4. 0 identifies applications that are impacting the performance of your PC. Using an all-in-one computer security protects your CPU from hijackers, identity theft, spyware, and virus. In addition using a security all in one center generally protects the user computer on its own. This keeps your system and all your information safe from others. There are some security programs which protect as well such as Anti-Virus, Anti-Spyware, Anti-Spam, Anti-Root kit, Identity Protection, Link Scanner Active Surf, Link Scanner Search, Web Protection Firewall, and Sophisticated threat detection. Using an all-in-one security system is effective because the programs are not conflicting with each other; instead they all work together within one system. An all-in-one security system will use less running memory than several security systems running parallel to each other. All-in-one security system is effective in many elements such physically secured security appliance, content discrimination, quick recovery from failure, highly configurable logging and notification, simplicity, high uptime, economy secure connections, well-conceived security system policies, scalability, distributed architecture, of IP addresses, secure remote management and communication, authentication, virtual private networking, and summarize and report network activity. What the all in one computer security systems protect against is with spyware, virus, identity theft, and hijackers. The all in one computer security systems block the threats from getting onto your computer as long as it is running at all times. References McAfee. McAfee Total Protection 2010. Retrieved from. http://download. mcafee. com/products/manuals/en-us/mtp_datasheet_2010. pdf Norton by Symantec. Top-ranked Protection. Norton 360â„ ¢ Version 6. 0. Retrieved from. http://us. norton. com/360 Internet Security Handbook. What Makes a Good Network Security System and effective security system. Retrieved from. http://www. watchguard. com/help/lss/41/handbook/need_fo3. htm

Discussion and Respond Dissertation Example | Topics and Well Written Essays - 250 words - 1

Discussion and Respond - Dissertation Example 2. Response to ‘HC Jobs, How should you Flex?’ Communication is I believe key to working with a wide variety of healthcare professionals and situations. Why I have picked communication as a focal point despite the presence of more complex issues like variable medical beliefs, culturally different expectations and different approaches adopted. This reason is because communication lies at the root of all these other problems. Through effective communication not only can different health professionals compare techniques, discuss medical practices, ask questions but also it aids to resolve complex issues of employee management. 3. Response to Tannenbaum and Schmidt Delegation cannot be categorized as ‘good’ or ‘bad’ but the need for it various from situation to situation and depends on the management style of a leader. Generally it is a key aspect of a managers job as he himself cannot perform all tasks which are assigned to him in a specified time line. In order to meet deadlines a manager needs to delegate authority, which incorporates a division of authority and powers to a subordinate for the purpose to achieving effective results.