A car manufacturer requires tires. Inventory consumption is constant at 600 tires per day. Lead time is normally distributed with a mean of four days and a standard deviation of one day. If the manufacturer wishes to avoid a stockout with probability P(z < +2.00), what should the reorder point be?

Answers

Answer 1

The car manufacturer requires tires and the inventory consumption is constant at 600 tires per day. The lead time is normally distributed with a mean of four days and a standard deviation of one day. The manufacturer wishes to avoid a stockout with probability P(z < +2.00).

We can calculate the reorder point using the following formula:

Reorder point = Mean demand during lead time + Z-score x Standard deviation of lead time demand

Given that the inventory consumption is constant at 600 tires per day, we can calculate the mean demand during lead time as follows:

Mean demand during lead time = Mean lead time x Daily demand

= 4 days x 600 tires per day= 2400 tires

We are given that the manufacturer wishes to avoid a stockout with probability P(z < +2.00). Using the standard normal distribution table, we can find that the probability P(z < +2.00) is 0.9772. Therefore, the z-score corresponding to this probability is +2.00.

Using the formula for the reorder point, we can now calculate the reorder point as follows:Reorder point = Mean demand during lead time + Z-score x Standard deviation of lead time demand

= 2400 tires + 2.00 x (1 day x 600 tires per day)^0.5

= 2400 tires + 2.00 x 173.2 tires

= 2400 tires + 346.4 tires

= 2746.4 tires

Therefore, the reorder point should be 2746.4 tires.

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Related Questions

Rundle Medical Equipment Company makes a blood pressure measuring kit. Jason McCoy is the production manager. The production department’s static budget and actual results for 2019 follow: Static Budget Actual Results Production in units 28,000 kits 29,200 kits Direct materials ($6. 40 per unit) $ 179,200 $ 224,680 Direct labor ($5. 40 per unit) 151,200 150,480 Variable manufacturing overhead ($1. 50 per unit) 42,000 46,900 Total variable costs 372,400 422,060 Fixed manufacturing overhead 203,000 198,100 Total manufacturing cost $ 575,400 $ 620,160 Required a. Convert the static budget into a flexible budget. B. Calculate the volume variance for Direct materials, Direct labor and Fixed manufacturing overhead. C. Calculate the flexible budget variances for Direct materials, Direct labor and Fixed manufacturing overhead

Answers

Rundle Medical Equipment Company's production department had a flexible budget variance of $620,160 for direct materials, a favorable volume variance of $10,720 for direct labor, and favorable volume variance of $4,900 for fixed manufacturing overhead.

To convert the static budget into a flexible budget, the variable costs are adjusted for the actual level of production. Therefore, the flexible budget for Rundle Medical Equipment Company is

Flexible Budget Actual Results

Production in units 29,200 kits 29,200 kits

Direct materials ($6.40 per unit) $ 186,880 $ 224,680

Direct labor ($5.40 per unit) 157,680 150,480

Variable manufacturing overhead ($1.50 per unit) 43,800 46,900

Total variable costs 388,360 422,060

Fixed manufacturing overhead 203,000 198,100

Total manufacturing cost $ 591,360 $ 620,160

The volume variance is the difference between the static budget and the flexible budget. Therefore, the volume variances are

Direct materials = Static Budget - (Actual Production x Standard Price)

= $179,200 - (29,200 x $6.40)

= -$10,720 (Favorable)

Direct labor = Static Budget - (Actual Production x Standard Price)

= $151,200 - (29,200 x $5.40)

= $6,480 (Unfavorable)

Fixed manufacturing overhead = Static Budget - Flexible Budget

= $203,000 - $198,100

= $4,900 (Unfavorable)

The flexible budget variance is the difference between the actual results and the flexible budget. Therefore, the flexible budget variances are

Direct materials = Actual Cost - Flexible Budget

= $224,680 - $186,880

= $37,800 (Unfavorable)

Direct labor = Actual Cost - Flexible Budget

= $150,480 - $157,680

= -$7,200 (Favorable)

Fixed manufacturing overhead = Actual Cost - Flexible Budget

= $198,100 - $203,000

= -$4,900 (Favorable)

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Baxter company purchases used equipment from grant company, issuing a non-interest-bearing, $10,000, 5-year note in exchange. baxter uses an incremental borrowing rate of 12%. the present value of $10,000 to be repaid at the end of five years at 12% is $5,674.27. baxter company will record this exchange with

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Baxter company will record the exchange of purchasing used equipment from grant company using a non-interest-bearing, $10,000, 5-year note in exchange as follows:

Firstly, Baxter will record the equipment purchased at its fair market value. Assuming the fair market value of the used equipment is also $10,000, Baxter will debit Equipment for $10,000 and credit either Cash or Notes Payable for $10,000.

Next, since the note is non-interest-bearing, Baxter will not record any interest expense or interest payable. Instead, the note will be recorded at its present value, which is $5,674.27. Baxter will debit Notes Payable for $5,674.27 and credit either Cash or Notes Payable for $5,674.27.

The difference between the face value of the note ($10,000) and its present value ($5,674.27) is a discount of $4,325.73. This discount represents the cost of borrowing the money from the grant company at a rate lower than Baxter's incremental borrowing rate of 12%. Baxter will amortize this discount over the life of the note using the effective interest method.

In conclusion, Baxter company will record the exchange of purchasing used equipment from grant company using a non-interest-bearing, $10,000, 5-year note in exchange by recognizing the fair value of the equipment purchased, recording the note at its present value, and amortizing the discount over the life of the note.

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"Summarize the concept of the balanced scorecard. What are its mainadvantages? Explain in 200 words

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The balanced scorecard (BSC) is a strategic management tool that assists organizations in monitoring and evaluating their performance across four key perspectives: financial, customer, internal business processes, and learning and growth.

Understanding balanced scorecard (BSC)

It was developed by Drs. Robert Kaplan and David Norton in the early 1990s to help businesses translate their vision and strategy into actionable objectives and performance measures.

The main advantages of the balanced scorecard include:

1. Holistic approach: BSC provides a comprehensive view of an organization's performance by considering multiple perspectives, ensuring that all key aspects are covered and aligned with the overall strategy.

2. Strategy execution: BSC helps organizations translate their strategic goals into measurable objectives, thereby enabling better strategy execution and monitoring.

3. Enhanced communication: By clearly outlining the organization's strategic goals and performance measures, BSC facilitates better communication and understanding of the strategy among employees, leading to improved organizational alignment.

4. Continuous improvement: The BSC framework promotes regular monitoring and review of performance data, allowing organizations to identify areas for improvement and make necessary adjustments in a timely manner.

In summary, the balanced scorecard is a valuable management tool that enables organizations to effectively monitor and manage their performance across various perspectives, ensuring a comprehensive and aligned approach to strategy execution and continuous improvement

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Suppose you think Apple stock is going to appreciate substantially in value in the next year. Say the stock’s current price, S0, is $120, and a call option expiring in one year has an exercise price, X, of $120 and is selling at a price, C, of $18. With $14,400 to invest, you are considering three alternatives. A. Invest all $14,400 in the stock, buying 120 shares. B. Invest all $14,400 in 800 options (8 contracts). C. Buy 100 options (one contract) for $1,800, and invest the remaining $12,600 in a money market fund paying 6% in interest over 6 months (12% per year)

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Option A provides higher level of risk. Option B provides leverage. Option C provides low level of risks.

If you believe that Apple stock is going to appreciate substantially in value in the next year and are considering how to invest $14,400, you have three options.

Option A is to invest all $14,400 in the stock by buying 120 shares at the current price of $120 per share. This option is straightforward and would give you direct exposure to the stock's potential appreciation.

Option B is to invest all $14,400 in 800 call options (8 contracts) with an exercise price of $120 and a current price of $18 per option. This option provides leverage and the potential for higher returns if the stock appreciates significantly, but also involves a higher level of risk as the options could expire worthless if the stock price does not increase as anticipated.

Option C is to buy 100 call options (one contract) for $1,800 and invest the remaining $12,600 in a money market fund paying 6% interest over 6 months (12% per year). This option involves a lower level of risk than option B as the money market fund provides a guaranteed return, but also limits potential gains if the stock price appreciates substantially.

Ultimately, the best option depends on your risk tolerance and investment goals. Option A provides direct exposure to the stock's potential appreciation but carries the highest level of risk. Option B provides leverage and higher potential returns but also involves a higher level of risk. Option C involves a lower level of risk but also limits potential gains. It's important to carefully consider your investment objectives and risk tolerance before making a decision.

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Lampierre makes silver and gold candlesticks. The company computed this information to decide whether to switch from the traditional allocation method to ABC. Silver and Gold, respectively. Units planned 500, 250. Material moves 250, 750. Machine setups 5,600, 4,400. Direct labor hours 500, 1,500. The estimated overhead for the material cost pool is estimated as $45,000, and the estimate for the machine setup pool is $55,000. Calculate the allocation rate per unit of silver and per unit of gold using:Silver GoldUnits planned 500 250Material moves 250 750 Machine setups 5,600 4,400Direct labor hours 500 1,500What the Overhead per unit for Silver, using ABC?
What the Overhead per unit for Gold, using Traditional?

Answers

Overhead per unit for silver using is $84.10 per unit and Overhead per unit for gold using traditional allocation is $225 per unit.

To calculate the overhead allocation rates per unit using ABC, we need to divide the estimated overhead costs for each cost pool by the total activity for that pool:

Allocation rate for material cost pool = $45,000 / 1,000 material moves = $45 per material move

Allocation rate for machine setup cost pool = $55,000 / 10,000 machine setups = $5.50 per machine setup

Using these allocation rates, we can calculate the overhead per unit for silver:

Overhead for silver using ABC = (250 material moves x $45 per material move) + (5,600 machine setups x $5.50 per machine setup) = $11,250 + $30,800 = $42,050

Overhead per unit for silver using ABC = $42,050 / 500 units planned = $84.10 per unit

To calculate the overhead per unit for gold using the traditional allocation method, we need to allocate the total overhead costs based on the direct labor hours for each product:

Total direct labor hours = 500 + 1,500 = 2,000

Direct labor hours for gold = 1,500 / 2,000 x total overhead costs = $75,000 x 0.75 = $56,250

Overhead per unit for gold using traditional allocation = $56,250 / 250 units planned = $225 per unit

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what is a reason why a business may want to move entirely online?
A. To focus on global market
B. To avoid paying state and local taxes
C. To limit the number of items in its inventory
D. To double the number of employees

Answers

Answer:

A. To focus on global market.

Explanation:

Moving entirely online can help a business reach customers all around the world and expand its market.

What defines employee benefits and incentives in general?

Question 24 options:

extras an employer offers to assist employees


a specific amount of time off each year


bonuses for reaching performance goals


car allowance to help pay gas and payments

Answers

extras an employer offers to assist employees

Onslow Co. Purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $28,800 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.


Required:


1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.


Entry #1 (Jan 2) Record the purchase of a used machine for $240,000 cash.


Entry #2 (Jan 3) Record the costs of 8,000 cash incurred on the used machine


Entry #3 (Jan 3) Record the cost of $1,600 for an operating platform.


2. Prepare journal entries to record depreciation of the machine at December, 31.


(a) its first year in operations.


Entry #1 (dec 31) Record the year-end adjusting entry for the depreciation expense of the used machine.


(b) The year of its disposal.


Entry #1 (dec 31) Record the year-end adjusting entry for the depreciation expense of the used machine.


3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions:


(a) It is sold for $20,000 cash.


Entry #1 (Dec 31) Record the sale of the used machine for $20,000 cash.


(b) It is sold for $80,000 cash


Entry #1 (dec 31) Record the sale of the used machine for $80,000 cash.


(c) it is destroyed in a fire and the insurance company pays $30,500 cash to settle the loss claim.


Entry #1 (dec 31) Record the destruction of the used machine in a fire with $30,500 cash insurance settlement

Answers

Entry #1 (Jan 2)
Equipment $240,000
Cash $240,000
To record the purchase of a used machine for $240,000 cash.

Entry #2 (Jan 3)
Equipment $8,000
Cash $8,000
To record the costs of $8,000 cash incurred on the used machine.

Entry #3 (Jan 3)
Operating platform $1,600
Cash $1,600
To record the cost of $1,600 for an operating platform.

2.
(a) Entry #1 (Dec 31)
Depreciation expense $37,200
Accumulated depreciation - equipment $37,200
To record the year-end adjusting entry for the depreciation expense of the used machine. Depreciation expense = ($240,000 - $28,800) / 6 = $37,200.

(b) Entry #1 (Dec 31)
Depreciation expense $43,200
Accumulated depreciation - equipment $201,600
Loss on disposal $16,800
Equipment $240,000
To record the year-end adjusting entry for the depreciation expense of the used machine and the loss on disposal. Depreciation expense = ($240,000 - $28,800) / 6 = $37,200. Loss on disposal = $20,000 (sale price) - ($240,000 - $37,200 x 5) = $16,800.

3.
(a) Entry #1 (Dec 31)
Cash $20,000
Accumulated depreciation - equipment $186,000
Loss on disposal $34,000
Equipment $240,000
To record the sale of the used machine for $20,000 cash and the loss on disposal. Loss on disposal = $240,000 - $28,800 - $37,200 x 5 - $20,000 = $34,000.

(b) Entry #1 (Dec 31)
Cash $80,000
Accumulated depreciation - equipment $201,600
Gain on disposal $41,400
Equipment $240,000
To record the sale of the used machine for $80,000 cash and the gain on disposal. Gain on disposal = $80,000 - $240,000 + $28,800 + $37,200 x 5 = $41,400.

(c) Entry #1 (Dec 31)
Cash $30,500
Accumulated depreciation - equipment $201,600
Equipment $240,000
To record the destruction of the used machine in a fire with $30,500 cash insurance settlement.

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To downplay a dependent clause in a complex sentence, you shouldSelect one:A.place it in the middle of the sentence.B.replace it with a noun.C.place it at the beginning of the sentence.D.place it at the end of the sentence.E.set it off with a semicolon.

Answers

To downplay a dependent clause in a complex sentence, you should "place it at the end of the sentence" (option c).

When using complex sentences, make sure that dependent clauses don't stand out too much. The entire structure of a complex sentence might be lost if one part takes center stage. Thus, you must downplay a dependent clause in a complex sentence.

Basically, a complex sentence is a sentence that includes at least one independent clause and one dependent clause. An independent clause is a sentence that may stand alone as a complete sentence. On the other hand, a dependent clause is a sentence that cannot stand alone as a complete sentence. In simple words, it is dependent on the independent clause to make sense.

Thus, option c is the answer.

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What are example types of momentum as a key quant factor in the stock market? which answer is right?

a) hiring momentum
b) earnings momentum
c) operational efficiency momentum

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Momentum is a key quant factor in the stock market that is often used by investors to identify stocks that have a high probability of continuing their upward trend. It is a measure of the speed and direction of a stock's price movement over a given period of time, and can be calculated using various technical indicators such as moving averages and relative strength index (RSI).

One example of momentum as a key quant factor in the stock market is earnings momentum. This refers to the trend in a company's earnings growth over time, and can be a strong indicator of future stock price performance. Companies that consistently report strong earnings growth are often viewed favorably by investors, as they are seen as having strong fundamentals and a competitive advantage in their industry.

Another example of momentum as a key quant factor in the stock market is operational efficiency momentum. This refers to a company's ability to improve its operational efficiency over time, which can lead to increased profitability and stock price performance. Companies that are able to streamline their operations, reduce costs, and improve productivity are often viewed favorably by investors, as they are seen as having a competitive advantage in their industry.

Overall, momentum is an important quant factor in the stock market that can help investors identify stocks that are likely to continue their upward trend. By focusing on key indicators such as earnings momentum and operational efficiency momentum, investors can improve their chances of making profitable investments in the stock market.

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Using process capability studies, processes may be classified asbeing in statistical control and capable. Explain the basis andmeaning of this classication.

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Process Capability Study is a tool used by businesses to evaluate the ability of their processes to meet customer requirements. By using process capability studies, processes may be classified as being in statistical control and capable

Statistical process control (SPC) tools are used to determine whether or not a process is in statistical control. If a process is in statistical control, it indicates that it is stable and that any variation in the output is due to common causes. If a process is out of control, it indicates that special causes are present and that the process needs to be improved. A process that is in statistical control and capable indicates that it is predictable and that it is meeting customer requirements within acceptable limits.

In other words, a process that is in control is one that is not generating an excessive amount of waste or producing a large number of defects. Instead, it is producing output that is consistent and within customer specifications. This is an essential component of quality control, as it ensures that businesses are delivering products and services that meet customer needs and expectations.

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the order-taking process should be , , and so that customers do not waste time and endure unnecessary mental or physical effort. short; curt; abrupt simple; slow; effortful short; sweet; ineffective polite; fast; accurate

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The order-taking process should be polite, fast, and accurate so that customers do not waste time and and endure unnecessary mental or physical effort. So, correct option is D.

Customers expect a seamless and hassle-free ordering experience, and any unnecessary steps or delays can lead to frustration and dissatisfaction.

A short order-taking process means that the steps involved in placing an order should be minimal, with the fewest possible clicks or actions required. A simple process means that the customer should not have to jump through hoops or navigate a complex system to place an order. The process should be easy to understand and follow.

Efficiency is crucial, as customers want to receive their orders in a timely manner. The order-taking process should be designed to minimize wait times and ensure accuracy.

Using language that is polite and respectful is also important in the order-taking process. The order taker should be trained to speak in a friendly and helpful manner, and to ensure accuracy by repeating the order back to the customer.

So, correct option is D.

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the market rate of return is 12.65 percent, and the risk-free rate is 3.1 percent. galaxy company has 15 percent more systematic risk than the overall market and has a dividend growth rate of 3.75 percent. the firm's stock is currently selling for $53 a share and has a dividend yield of 4.53 percent. what is the firm's average cost of equity? group of answer choices 17.33% 11.18% 10.87% 12.16% 12.36%

Answers

To calculate the average cost of equity for Galaxy Company, we need to use the Capital Asset Pricing Model (CAPM). The CAPM formula is: Option C is correct.

Cost of Equity = Risk-Free Rate + Beta * (Market Rate of Return - Risk-Free Rate) Here, the risk-free rate is given as 3.1 percent and the market rate of return is 12.65 percent. We also know that Galaxy Company has 15 percent more systematic risk than the overall market, which means its beta is 1.15, we need to calculate the expected market rate of return that incorporates the company's dividend growth rate. We can use the Dividend Discount Model (DDM) for this calculation. The DDM formula is:

Expected Market Rate of Return = Dividend Yield + Dividend Growth Rate

Here, the dividend yield is given as 4.53 percent and the dividend growth rate is 3.75 percent. Therefore, the expected market rate of return is:
Expected Market Rate of Return = 4.53% + 3.75% = 8.28%
Using the CAPM formula, we can now calculate the cost of equity for Galaxy Company:
Cost of Equity = 3.1% + 1.15 * (8.28% - 3.1%) = 10.87%

Therefore, the answer is 10.87%, which is option C. This means that investors require a return of 10.87% to compensate for the risk associated with investing in Galaxy Company's stock.

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Economic Development in Bangladesh
OPENING CASE
When Bangladesh gained independence from Pakistan in 1971 after a brutal civil war that may have left as many as 3 million dead, the U.S. National Security Adviser, Henry Kissinger, referred to the country as a "basket case." Kiss inger's assessment was accurate enough. At the time, Bangladesh was one of the world's poorest nations. Al though most of the country is dominated by the Ferte Ganges-Brahmaputra delta, a lack of other natural re sources, coupled with poor infrastructure, political instability, and high levels of corruption, long held the country back. To compound matters, Bangladesh is prone to natu ral disasters. Most of Bangladesh is less than 12 meters above sea level. The extensive low-lying areas are vulner able to tropical cyclones, floods, and tidal bores.
Beginning in the mid 1990s, however, Bangladesh be gan to climb the ladder of economic progress. From the early 2000s onward, the country grew its economy at around 6 percent per annum compounded. Today, this Muslim majority country of 160 million people has joined the ranks of lower-middle-income nations. Poverty reduction has been dramatic, with the percentage of the population living in poverty falling from 44.2 percent in 1991 to 18.5 percent in 2010, an achievement that raised 20.5 million people out of abject poverty. Today the country ranks 64th out of the 154 countries included in the World Bank's global poverty database. Yes, it has a considerable way to go, but it is no longer one of the world's poorest countries.
Several reasons underlie Bangladesh's relative eco nomic success. In its initial post-independence period, Bangladesh adopted socialist policies, nationalizing many companies and subsidizing the costs of agricultural production and basic food products. These policies failed to deliver the anticipated gains. Policy reforms in the 1980s were directed toward the withdrawal of food and agricul tural subsidies, the privatization of state-owned compa nies, financial liberalization, and the withdrawal of some import restrictions. Further reforms aimed at liberalizing the economy were launched in the 1990s. These included. making the currency convertible (which led to a floating exchange rate in 2003), reducing import duties to much
lower levels, and removing most of the controls on the movement of foreign private capital (which is allowed for more foreign direct investment). The reforms of the 1990s. coincided with the transition to a parliamentary democracy. from semi-autocratic rule.
Bangladesh's private sector has expanded rapidly since then. Leading the growth has been the country's vibrant textile sector, which is now the second-largest exporter of ready-made garments in the world after China. Textiles ac count for 80 percent of Bangladesh's exports. The development of the textile industry has been helped by the availability of low-cost labor, managerial skills, favorable trade agreements, and government policies that elimi nated import duties on inputs for the textile business, such as raw materials. The Bangladesh economy has also ben efited from its productive agricultural sector and remit tences from more than 10 million Bangladesh citizens who work in other nations. Bangladesh is also home of the mi crofinance movement, which has enabled entrepreneurs with no prior access to the banking system to borrow small amounts of capital to start businesses.
This being said, the country still faces considerable impediments to sustaining its growth. Infrastructure re mains poor, corruption continues to be a major problem; and the political system is, at best, an imperfect democ racy where opposition is stified. The country is too depen dent upon its booming textile sector and needs to diversify its industrial base. Bangladesh is also one of the countries most prone to the adverse effects of climate change. A one-meter rise in sea level would leave an estimated 10 percent of the country under water and increase the po tential for floods in much of the remainder. travel, according to the U.S. Investment bank Gold man Sachs, Bangladesh is one of the 11 lower-middle income nations posed for sustained growth.
Please answer the following Qs:
What were the principal reasons for the economic stagnation of Bangladesh after its war for independence?
Explain how the liberalization program in the 1990s enabled Bangladesh to start climbing the ladder of economic progress. What are the main lessons here that can be applied to economic development in other nations?
Bangladesh is dependent for its prosperity upon agriculture and textile exports. What are the risks here? How might Bangladesh diversify its industrial and commercial base?

Answers

The economic stagnation of Bangladesh post war was primarily due lack of natural resource, lacking infrastructure, corrupt and political instability, and natural disasters.

The 1990s liberalization program 1990s enabled Bangladesh to rebuilding and achieving economic progress by introducing policy reforms.

Reliance on agriculture and textile exports pose risks such as vulnerability to global market fluctuations, over-dependence on a single industry, and potential adverse effects of climate change.

The principal reasons for the economic stagnation of Bangladesh after its war for independence were a lack of natural resources, poor infrastructure, political instability, high levels of corruption, and natural disasters. The country also faced challenges due to socialist policies, nationalization of companies, and subsidies for agricultural production and basic food products, which failed to deliver anticipated gains.

The liberalization program in the 1990s enabled Bangladesh to start climbing the ladder of economic progress by introducing policy reforms such as the withdrawal of food and agricultural subsidies, privatization of state-owned companies, financial liberalization, and the withdrawal of import restrictions.

Other reforms included making the currency convertible, reducing import duties, and removing controls on the movement of foreign private capital. The main lessons that can be applied to economic development in other nations include the importance of economic liberalization, privatization, and creating a favorable environment for foreign investments.

Bangladesh is dependent on agriculture and textile exports, which pose risks such as vulnerability to global market fluctuations, over-dependence on a single industry, and potential adverse effects of climate change.

To diversify its industrial and commercial base, Bangladesh can invest in other sectors like information technology, pharmaceuticals, and renewable energy. The country can also encourage entrepreneurship and innovation, improve infrastructure, and promote foreign investments in various industries.

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In target pricing, ______. Multiple choice question. Management charges different prices to maximize revenue for a set amount of capacity at any given time. Management marks up all products in a similar fashion since it is impossible to estimate demand for each. Manufacturers deliberately adjust the composition of a product to achieve the estimated price that consumers are willing to pay for it. Management offers a line of products at a number of different specific pricing points

Answers

In target pricing, manufacturers deliberately adjust the composition of a product to achieve the estimated price that consumers are willing to pay for it. This pricing strategy involves determining the selling price of a product based on the costs incurred in manufacturing, marketing, and distribution, as well as the profit margins desired by the manufacturer.

Target pricing involves analyzing the market demand for a product and understanding the consumer's willingness to pay for it. The manufacturer then sets the target price and works backwards to determine the maximum cost that can be incurred to produce the product. This approach helps manufacturers optimize profitability while remaining competitive in the market.

Target pricing also allows manufacturers to offer a line of products at a number of different specific pricing points. This approach is particularly useful for companies that want to appeal to a wide range of consumers with different budgets and preferences. By offering products at different price points, manufacturers can increase their market share and capture a larger share of the consumer base.

Overall, target pricing is an effective strategy for manufacturers who want to optimize their profitability while remaining competitive in the market. By understanding consumer demand and setting prices accordingly, manufacturers can appeal to a wide range of consumers while still achieving their desired profit margins.

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how did information technology change the game of baseball? how did information technology affect decision making at mbl teams?what kinds ofdecisions changed as a result of using big data? how much should baseball rely on big data and analytics? explain your answer

Answers

Information technology has had a significant impact on the game of baseball in recent years. The use of technology has allowed teams to collect and analyze large amounts of data on players, which has changed the way teams make decisions about player evaluation, strategy, and game management.

One of the most significant changes brought about by information technology has been the increased use of advanced statistical analysis, often referred to as "sabermetrics," in baseball decision-making. Teams now use data analytics to evaluate player performance and predict future performance. This has led to a greater emphasis on player skills that were previously undervalued, such as on-base percentage and defensive value, and has led to a reevaluation of traditional strategies such as sacrifice bunts and stolen bases.

Information technology has also allowed for improved decision-making during games. Teams use real-time data to make strategic decisions such as pitching changes, defensive shifts, and lineup adjustments.

The increased reliance on big data and analytics has led to questions about how much baseball should rely on this approach. Some argue that the use of big data and analytics has led to a devaluation of the "human element" of the game, such as intuition and experience, and that too much reliance on data could lead to a homogenization of the game. Others argue that the use of data is essential to making informed decisions and staying competitive in a rapidly changing landscape.

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Waterways Corporation is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. The company has gathered information from its managers in preparation of the budgeting process.


Sales


Unit sales for November 2019 112,000


Unit sales for December 2019 102,000


Expected unit sales for January 2020 114,000


Expected unit sales for February 2020 114,000


Expected unit sales for March 2020 116,000


Expected unit sales for April 2020 126,000


Expected unit sales for May 2020 136,000


Unit selling price $12


Waterways likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019, totaled $183,600.


Direct Materials


Direct materials cost 80 cents per pound. Two pounds of direct materials are required to produce each unit.


Waterways likes to keep 5% of the materials needed for the next month in its ending inventory. Raw Materials on December 31, 2019, totaled 11,400 pounds. Payment for materials is made within 15 days. 50% is paid in the month of purchase, and 50% is paid in the month after purchase. Accounts Payable on December 31, 2019, totaled $103,740.


Direct Labor


Labor requires 12 minutes per unit for completion and is paid at a rate of $6 per hour.


Manufacturing Overhead


Indirect materials 30¢ per labor hour


Indirect labor 50¢ per labor hour


Utilities 40¢ per labor hour


Maintenance 30¢ per labor hour


Salaries $41,000 per month


Depreciation $18,500 per month


Property taxes $2,900 per month


Insurance $1,200 per month


Maintenance $1,400 per month


Selling and Administrative


Variable selling and administrative cost per unit is $1. 60.


Advertising $16,000 a month


Insurance $1,600 a month


Salaries $73,000 a month


Depreciation $2,400 a month


Other fixed costs $3,100 a month


Other Information


The Cash balance on December 31, 2019, totaled $103,000, but management has decided it would like to maintain a cash balance of at least $800,000 beginning on January 31, 2020. Dividends are paid each month at the rate of $2. 30 per share for 4,800 shares outstanding. The company has an open line of credit with Romney’s Bank. The terms of the agreement requires borrowing to be in $1,000 increments at 6% interest. Waterways borrows on the first day of the month and repays on the last day of the month. A $520,000 equipment purchase is planned for February.


For the first quarter of 2020, prepare a cash budget. (Round answers to 0 decimal places, e. G. 2,520. )

Answers

Payment for direct materials purchases in January 2020 is $102,024.

To prepare a cash budget for Waterways Corporation for the first quarter of 2020, we need to estimate the company's cash receipts and cash payments for January, February, and March 2020.

Cash receipts:

a. Sales in January 2020: (114,000 units x $12/unit) = $1,368,000

b. Sales in February 2020: (114,000 units x $12/unit) = $1,368,000

c. Sales in March 2020: (116,000 units x $12/unit) = $1,392,000

d. Collections from December 2019 Accounts Receivable: ($183,600 x 85%) = $156,060

e. Collections from January 2020 Accounts Receivable: ($1,368,000 x 85%) = $1,162,800

f. Collections from February 2020 Accounts Receivable: ($1,392,000 x 15%) = $208,800

Cash payments:

a. Direct materials purchases in January 2020: [(114,000 units x 2 lbs/unit) x $0.80/lb x 105%] = $204,048

b. Direct materials purchases in February 2020: [(114,000 units x 2 lbs/unit) x $0.80/lb x 105%] = $204,048

c. Direct materials purchases in March 2020: [(116,000 units x 2 lbs/unit) x $0.80/lb x 105%] = $208,176

d. Direct labor cost in January 2020: (114,000 units x 12 minutes/unit x $6/hour / 60 minutes/hour) = $68,400

e. Direct labor cost in February 2020: (114,000 units x 12 minutes/unit x $6/hour / 60 minutes/hour) = $68,400

f. Direct labor cost in March 2020: (116,000 units x 12 minutes/unit x $6/hour / 60 minutes/hour) = $69,600

g. Manufacturing overhead in January 2020: (114,000 units x 12 minutes/unit x $0.30/labor hour) = $41,040

h. Manufacturing overhead in February 2020: (114,000 units x 12 minutes/unit x $0.30/labor hour) = $41,040

i. Manufacturing overhead in March 2020: (116,000 units x 12 minutes/unit x $0.30/labor hour) = $41,760

j. Selling and administrative expenses in January 2020: (114,000 units x $1.60/unit) + $94,100 = $282,740

k. Selling and administrative expenses in February 2020: (114,000 units x $1.60/unit) + $94,100 + $520,000 = $896,740

l. Selling and administrative expenses in March 2020: (116,000 units x $1.60/unit) + $94,100 + $520,000 = $908,740

m. Equipment purchase in February 2020: $520,000

n. Dividends paid each month: $2.30/share x 4,800 shares = $11,040

o. Payment for direct materials purchases in January 2020: ($204,048 x 50%) = $102,024

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a flow chart shows an aspect of fiscal policy. money goes from the government, to household, and to firms. the diagram shows an aspect of fiscal policy. what aspect of fiscal policy does this diagram show? the way in which a government creates a budget a budget that is severely unbalanced government spending to strengthen the economy ways in which governments spend money

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The aspect of fiscal policy does this diagram shows is government spending to strengthen the economy. The right answer is b.

Fiscal policy is the use of public expenditure and taxation to affect the economy, particularly macroeconomic conditions. These include employment, inflation, economic expansion, and the total demand for goods and services. The government may reduce tax rates or boost spending during a recession to boost demand and the economy.

On the other hand, it can increase rates or reduce spending to slow down the economy in order to battle inflation. The government should run significant budget deficits in economic downturns and surpluses during expansions in order to help stabilise the economy.

The correct answer is option b.

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The question seems incomplete. The complete question is:

A flow chart shows an aspect of fiscal policy. Money goes from the government, to household, and to firms. The diagram shows an aspect of fiscal policy. What aspect of fiscal policy does this diagram show?

the way in which a government creates a budget a budget that is severely unbalanced

government spending to strengthen the economy

ways in which governments spend money

Identifying and Selecting an Organization and a Product for Studies
For this assignment, you will choose two candidate organizations. The selection must be an intercultural organization doing business in at least one foreign country.
In submission, provide a review and arguments for and against each of the two organizations. At the end of your submission, recommend which one of the two organizations and which one of its products you would like to use for your culture and subculture studies.
The submission must include sections for the discussion of each of the two countries supported by viable current sources. The concluding section should include the corporation of your choice, and it should be supported by your arguments and analysis.

Answers

Consider the relevance of the organization and its product to your culture and subculture studies. Criteria for evaluating the organizations: Conduct research on each organization to gather information on their history, mission, values, products/services, marketing strategies, target audience, and cultural sensitivity.

Evaluate each organization based on their cultural sensitivity and responsiveness to the local culture and customs of the foreign country they operate in.Examine the reputation and sustainability of each organization. Criteria for selecting a product: Choose a product that is relevant to your culture and subculture studies. Consider the product's popularity, market demand, and cultural significance. Criteria for evaluating the products: Conduct research on the product to gather information on its history, features, benefits, and target audience. Evaluate the product based on its cultural significance, appropriateness, and effectiveness in meeting the needs of the target audience. Examine the product's branding, packaging, and marketing strategies.Conclusion:Based on your research and analysis, recommend the organization and product that best aligns with your culture and subculture studies.

Provide arguments and evidence to support your recommendation, and address any potential limitations or challenges that may arise in your study. Be sure to cite your sources and follow any formatting guidelines provided by your instructor.

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For this assignment, I will review two candidate organizations, an intercultural organization doing business in at least one foreign country. The first organization is Nike and the second organization is Nestlé.

The Argument For Nike:

Arguments for: Nike is an American multinational corporation that designs, develops, and sells footwear, apparel, and equipment. Nike is a well-known brand that has a global reach and a strong presence in many countries, including emerging markets. The company has a reputation for innovation, design, and marketing.

Arguments against: Nike has faced criticism for labor practices in its supply chain, particularly in developing countries. Additionally, the company has been accused of using sweatshops and child labor in the past.

The Argument Nestlé:

Arguments for: Nestlé is a Swiss multinational food and drink processing conglomerate corporation. Nestlé is a leading company in the food and beverage industry, with a wide range of products that are popular globally. The company has a strong presence in emerging markets and has a reputation for quality and safety.

Arguments against: Nestlé has faced criticism for its marketing practices, particularly regarding infant formula in developing countries. Additionally, the company has been accused of using unsustainable practices in its supply chain, particularly in the production of palm oil.

Based on the arguments for and against each organization, I recommend choosing Nike for the culture and subculture studies, particularly for its footwear product line. While Nike has faced criticism for its labor practices in the past, the company has taken steps to address these issues and has a strong reputation for innovation and marketing.

Additionally, the footwear industry is particularly interesting for cultural studies, as footwear can be a significant aspect of cultural identity and expression.

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Ivan contributed the following amounts to a spousal RRSP, for which his wife Natalie is the annuitant: $4,000 in 2018; $4,500 in 2019; and $5,000 in 2020. In December 2021, Natalie withdraws $15,000 from her spousal RRSP. Calculate the tax consequences to each that Natalie’s withdrawal from the RRSP will cause.


Answer all this question in the file please

Answers

Certainly, I'd be happy to help you with this question.

To calculate the tax consequences of Natalie's withdrawal from the spousal RRSP, we need to consider the following:

1. The amount of contributions made by Ivan to the spousal RRSP
2. The attribution rules for spousal RRSPs
3. The tax implications of the withdrawal for both Natalie and Ivan

Let's start by calculating the total amount of contributions made by Ivan to the spousal RRSP:

Total contributions made by Ivan = $4,000 (in 2018) + $4,500 (in 2019) + $5,000 (in 2020) = $13,500

Next, we need to consider the attribution rules for spousal RRSPs. Under these rules, any amount withdrawn from the spousal RRSP within the calendar year of a contribution by the spouse will be attributed back to the contributing spouse and included in their income for that year.

In this case, Ivan made contributions to the spousal RRSP in each of the years 2018, 2019, and 2020. Since Natalie is making a withdrawal from the spousal RRSP in December 2021, which is within the calendar year of all three contributions, we need to calculate the amounts of the withdrawals that will be attributed back to Ivan for each contribution year.

To do this, we can use the following formula:

Amount attributed back to contributing spouse = (Withdrawal amount / Total RRSP value) x Contribution amount

Using this formula, we can calculate the amounts attributed back to Ivan for each contribution year as follows:

For the $4,000 contribution made in 2018:
Amount attributed back to Ivan = ($15,000 / Total RRSP value) x $4,000
Total RRSP value = $4,000 + $4,500 + $5,000 = $13,500
Amount attributed back to Ivan = ($15,000 / $13,500) x $4,000 = $4,444

For the $4,500 contribution made in 2019:
Amount attributed back to Ivan = ($15,000 / Total RRSP value) x $4,500
Total RRSP value = $4,500 + $5,000 = $9,500
Amount attributed back to Ivan = ($15,000 / $9,500) x $4,500 = $7,105

For the $5,000 contribution made in 2020:
Amount attributed back to Ivan = ($15,000 / Total RRSP value) x $5,000
Total RRSP value = $5,000
Amount attributed back to Ivan = ($15,000 / $5,000) x $5,000 = $15,000

Therefore, the total amount attributed back to Ivan is:
Total amount attributed back to Ivan = $4,444 + $7,105 + $15,000 = $26,549

Finally, we need to consider the tax implications of the withdrawal for both Natalie and Ivan.

For Natalie, the $15,000 withdrawal will be included in her income for the year and taxed accordingly. The amount attributed back to Ivan will also be included in his income for the relevant contribution years and taxed accordingly.

Assuming both Natalie and Ivan are in the same tax bracket, and using

What term describes promotion of career and advancement paths for all employees? O Cultural training Inclusive audit O Company policy O Equal opportunity Select the best response to the following questions. The result of a(n) lawsuit can include reinstating those who were wrongly terminated. O operations O cultural dimension O affirmative action O diversity

Answers

The term that describes the promotion of career and advancement paths for all employees is Equal opportunity.

Equal opportunity is a term that describes the promotion of career and advancement paths for all employees.

Equal opportunity is a principle of non-discrimination that seeks to guarantee the equality of treatment and the absence of discrimination in any work-related aspect, regardless of the person's age, race, religion, disability, sexual orientation, gender identity, national origin, or other protected characteristics.

Equal opportunity policies aim to ensure that all employees and job seekers are given equal consideration and treatment, regardless of their individual differences, in all areas of employment, including recruitment, selection, promotion, training, and development.

Equal opportunity policies can help create a more diverse and inclusive workplace where employees feel valued, respected, and empowered to achieve their full potential. They can also help organizations attract and retain talented employees from diverse backgrounds, which can lead to a more innovative and competitive business.

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which of the following is an example of a corporate level strategy? group of answer choices target differentiates itself from wal-mart by offering high quality and fresher products wal-mart's use of the rfid technology to improve efficiency. forever 21 and h

Answers

Hewlett-Packard decides to get out of the PC manufacturing industry is an example of a corporate level strategy. So the option D is correct.

A corporate level strategy is a plan for a company to achieve its long-term strategic goals. In the case of Hewlett-Packard deciding to get out of the PC manufacturing industry, this decision would be an example of a corporate level strategy.

This decision would be driven by the company's objectives, such as the need to focus on higher-margin products, reduce costs, or shift resources to different areas of the business. By making this decision, the company would be making a strategic move to focus on a different core business, and this could help them to gain a competitive advantage in the marketplace.

The decision to get out of the PC manufacturing industry could also involve restructuring the company, divesting certain business units, and/or introducing new products and services. So the option D is correct.

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The complete question is:

Which of the following is an example of a corporate level strategy?

Group of answer choices

A. Target differentiates itself from Wal-Mart by offering high quality and fresher products

B. Wal-Mart's use of the RFID technology to improve efficiency.

C. Forever 21 and H&M focus on young women in the apparel industry.

D. Hewlett-Packard decides to get out of the PC manufacturing industry.

E. United Airlines start to charge for checked luggage.

ShippersRUs provides logistic support services for on-line merchants. The company maintains warehouses that stock items carried by the on-line clients. When a client receives an order from a customer, the order is forwarded to ShippersRUs, which pulls the item from storage, packs it and ships it to the customer. The compay uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 160,000 items were shipped to customers using 2,200 direct labor-hours. The company incurred a total of $8,100 in variable overhead costs. According to the company's standards, 0. 01 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $1. 25 per direct labor-hour. The static budget this month was based on the expectation that 140,000 items would be shipped. The actual number of items shipped was 140,000 items. If direct labor cost is $15. 00 per hour, what is the amount of direct labor cost in the flexible budget

Answers

The amount of direct labor cost in the flexible budget for the month is $21,000.

To determine this, we will consider the actual number of items shipped, the direct labor-hours required per item, and the direct labor cost per hour.

In the most recent month, ShippersRUs shipped 140,000 items, as mentioned in the question. The company's standards indicate that 0.01 direct labor-hours are required to fulfill an order for one item, and the direct labor cost is $15.00 per hour.

To calculate the total direct labor-hours needed, we multiply the number of items shipped by the direct labor-hours per item:

140,000 items x 0.01 direct labor-hours per item = 1,400 direct labor-hours

Now, we can find the total direct labor cost by multiplying the total direct labor-hours by the direct labor cost per hour:

1,400 direct labor-hours x $15.00 per hour = $21,000

So, the amount of direct labor cost in the flexible budget for the month is $21,000.

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Customer satisfaction is a goal that companies strive to earn. companies can achieve customer delight by.............

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Companies can achieve customer delight by providing exceptional customer service, exceeding customer expectations, offering high-quality products and services, personalizing the customer experience, and consistently delivering on their promises.

Customer delight is the ultimate goal of many companies as it creates loyal customers who are willing to recommend the company to others and provide repeat business.

To achieve customer delight, companies must understand and anticipate the needs and wants of their customers and exceed their expectations at every touchpoint.

This can be accomplished through exceptional customer service, personalized experiences, and a commitment to quality. Companies can also use customer feedback and data to continuously improve their products and services and better meet the needs of their customers.

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Indigo Corporation had the following activities in 2020. 1. Sale of land $173,000 4. Purchase of equipment $448,000 2. Purchase of inventory $925,000 5. Issuance of common stock $302,000 3. Purchase of treasury stock $68,000 6. Purchase of available-for-sale debt securities $62,000 Compute the amount Indigo should report as net cash provided (used) by investing activities in its 2020 statement of cash flows. (Show amounts that decrease cash flow with either a - sign e. G. -15,000 or in parenthesis e. G. -15,000. )

Answers

The net cash provided (used) by investing activities is -$337,000.

To compute the net cash provided (used) by investing activities for Indigo Corporation's 2020 statement of cash flows, we need to consider cash inflows and cash outflows from investing activities.

From the given activities, the following are related to investing activities:

1. Sale of land (cash inflow): $173,000
4. Purchase of equipment (cash outflow): $448,000
6. Purchase of available-for-sale debt securities (cash outflow): $62,000

Now, let's calculate the net cash provided (used) by investing activities:

Cash inflows: $173,000
Cash outflows: $448,000 + $62,000 = $510,000

Net cash provided (used) by investing activities = Cash inflows - Cash outflows = $173,000 - $510,000 = -$337,000

Therefore, Indigo Corporation should report a net cash used by investing activities of -$337,000 in its 2020 statement of cash flows.

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Limited Liability Companies. John, Lesa, and Trevor form a limited liability company. John contributes 60 percent of the capital, and Lesa and Trevor each contribute 20 percent. Nothing is decided about how profits will be divided. John assumes that he will be entitled to 60 percent of the profits, in accordance with his contribution. Lesa and Trevor, however, assume that the profits will be divided equally. A dispute over the profits arises, and ultimately a court has to decide the issue. What law will the court apply? In most states, what will result? How could this dispute have been avoided in the first place? Discuss fully

Answers

1.The court will likely apply the default rules established by the state's LLC statute in the absence of a specific agreement between the members.

2.In most states, the court will likely rule in favor of Lesa and Trevor's assumption that profits will be divided equally, as this is the default rule in the absence of a specific agreement.

3.To avoid this dispute in the first place, the members should have created a comprehensive operating agreement that addresses how profits will be divided among the members.  

1.These default rules typically provide that profits are distributed equally among the members regardless of their capital contributions, unless the operating agreement provides otherwise.

2.John's assumption that he will be entitled to 60% of the profits based on his capital contribution will not hold up unless there is a provision in the operating agreement that specifically provides for such a distribution.

3. The operating agreement should have been drafted with the assistance of an attorney to ensure that it is legally binding and enforceable. The agreement should have explicitly stated how profits will be distributed among the members, taking into account their capital contributions, as well as any other factors that the members deem relevant.

By creating a well-drafted operating agreement, the members could have avoided the uncertainty and expense of litigation, and they could have ensured that their respective rights and obligations were clearly defined. The operating agreement could have also provided for dispute resolution mechanisms, such as mediation or arbitration, to address any future disputes that may arise among the members.

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When estimating first-year costs for a startup, which item is commonly calculated as a percentage of revenues?.

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When estimating first-year costs for a startup, marketing and advertising expenses are commonly calculated as a percentage of revenues.

This is because marketing and advertising are critical components of a startup's growth strategy and can have a significant impact on the company's ability to attract and retain customers.Typically, startups will allocate a certain percentage of their revenues towards marketing and advertising expenses, with the exact percentage varying depending on the industry, competition, and growth goals of the company.

It is important for startups to carefully consider their marketing and advertising expenses and ensure that they are investing in channels and tactics that are most effective in reaching their target audience and achieving their growth objectives. By properly budgeting for marketing and advertising, startups can maximize their return on investment and set themselves up for success in the long run.

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Supercar Corporation issues smartphones to some employees. The value of each smartphone is $500. About 250 smartphones have been issued. In the past two years, the company has lost 24 smartphones due to breakage. Supercar can purchase an insurance policy for each phone that costs $4 a month per phone. If the phone is damaged beyond repair, the insurance company will replace the entire phone. Does it make sense for Supercar to buy insurance for each phone at this price

Answers

Based on the provided information, it does not make sense for Supercar Corporation to buy insurance for each phone at this price. since the expected cost of replacing 12 phones without insurance is lower than the cost of insurance for all phones.

How do we find out the expected cost of replacing 12 phones without insurance?

We shall first calculate the total value of all the smartphones issued by Supercar Corporation:

Total value of smartphones = $500 x 250 = $125,000

Next, we calculate the cost of insurance for each phone:

Insurance cost per phone per month = $4

Insurance cost per phone per year = $4 x 12 = $48

Total insurance cost for all phones per year = $48 x 250 = $12,000

According to the given information, since the past two years, the company has lost 24 smartphones due to damages.

Let's assume that the probability of a phone being lost due to breakage is the same for all phones, we can calculate the expected number of phones that will be lost in a year:

Expected number of phones lost per year = 24 / 2 = 12

Now, we need to compare the expected cost of replacing 12 phones without insurance to the cost of paying for insurance for all 250 phones:

Expected cost of replacing 12 phones without insurance = 12 x $500 = $6,000

Cost of insurance for all phones per year = $12,000

Since the expected cost of replacing 12 phones without insurance is lower than the cost of insurance for all phones, it does not make sense for Supercar Corporation to buy insurance for each phone at the price.

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a. casting doubt on scientific consensus b. using a neutral or non-partisan sounding name c. claiming regulations will lead to economic problems d. promoting individual action as a solution to environmental problems e. claiming environmentalists are extremists

Answers

Casting doubt on scientific consensus is a common tactic used to undermine environmental policies and messages. Option (1)

One common tactic used to undermine environmental policies and messages is casting doubt on scientific consensus. This tactic involves questioning the validity of scientific research and data related to environmental issues, which can create confusion and uncertainty among the public.

Another tactic is using a neutral or non-partisan sounding name, which can be misleading and give the impression of impartiality.  Claiming that regulations will lead to economic problems is another tactic used to discourage support for environmental policies.

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Full Question: Which of the following is a common tactic used to undermine environmental policies and messages?

a. Casting doubt on scientific consensus

b. Using a neutral or non-partisan sounding name

c. Claiming regulations will lead to economic problems

d. Promoting individual action as a solution to environmental problems

e. Claiming environmentalists are extremists

The short run is a period of time: a. that is long enough to permit changes in the firm's plant size. b. in which a firm uses at least one fixed input. c. in which production occurs within six months. d. in which production occurs within one year.

Answers

The short run is a period of time in which a firm uses at least one fixed input. The correct option is b.

In the short run at least one input used in the production process is fixed, which means it cannot be altered or modified. Businesses can only change their variable inputs in the short run to produce output; at least one input must remain fixed.

The presence of fixed inputs in the production process determines the length of the short run rather than a specific time frame. The presence of fixed inputs in the production process rather than a specific time frame defines the short run. The correct option is b.

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