Question 1
To whom it may concern her is my question since now I know the miscommunication concerning this assignment therefore here is the right format for this questions. Chapter ; 12Performance Analysis and Decision Making Complete Problem 12-18. Submit your responses as an Excel spreadsheet. A template is provided on the textbook website. Go to the textbook website, choose "Chapter 12" from the dropdown menu on the left, click on "Excel Templates," "Chapter 12 Excel Templates." Save the file to your desktop using the following naming convention: Add a tab to your spreadsheet for Problem 12-18 and label it Exercise 11-7. Prepare and submit your responses as that tab in the Excel spreadsheet. Proper formatting and professional presentation are expected. ll applicable problems are available with McGraw-Hill?s Connect? Accounting . PROBLEM 12?18 Dropping or Retaining a Tour [LO2] Blueline Tours, Inc., operates tours throughout the United States. A study has indicated that some of the tours are not profitable, and consideration is being given to dropping these tours to improve the company?s overall operating performance. One such tour is a two-day Historic Mansions bus tour conducted in the southern states. An income statement from a typical Historic Mansions tour is given below: Ticket revenue (100 seat capacity ? 40% occupancy ? $75 ticket price per person) . . . . . . . . . . . . . . . . . . . . . . . . $3,000 100% Variable expenses ($22.50 per person) . . . . . . . . . . . . . . . . . 900 30 Contribution margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,100 70% Tour expenses: Tour promotion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600 Salary of bus driver . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350 Fee, tour guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 Fuel for bus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125 Depreciation of bus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450 Liability insurance, bus . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 Overnight parking fee, bus . . . . . . . . . . . . . . . . . . . . . . . . . 50 Room and meals, bus driver and tour guide . . . . . . . . . . . 175 Bus maintenance and preparation . . . . . . . . . . . . . . . . . . . 300 Total tour expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,950 Net operating loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (850) . The following additional information is available about the tour: a. Bus drivers are paid fixed annual salaries; tour guides are paid for each tour conducted. b. The ?Bus maintenance and preparation? cost on the previous page is an allocation of the salaries of mechanics and other service personnel who are responsible for keeping the company?s fleet of buses in good operating condition. c. Depreciation of buses is due to obsolescence. Depreciation due to wear and tear is negligible. d. Liability insurance premiums are based on the number of buses in the company?s fleet. e. Dropping the Historic Mansions bus tour would not allow Blueline Tours to reduce the number of buses in its fleet, the number of bus drivers on the payroll, or the size of the maintenance and preparation staff. Required: 1. Prepare an analysis showing what the impact will be on the company?s profits if this tour is discontinued. 2. The company?s tour director has been criticized because only about 50% of the seats on Blueline?s tours are being filled as compared to an industry average of 60%. The tour director has explained that Blueline?s average seat occupancy could be improved considerably by eliminating about 10% of its tours, but that doing so would reduce profits. Explain how this could happen. and the second question is All applicable cases are available with McGraw-Hill?s Connect? Accounting . CASE 11A?7 Transfer Pricing; Divisional Performance [LO5] Stanco, Inc., is a decentralized organization with five divisions. The company?s Electronics Division produces a variety of electronics items, including an XL5 circuit board. The division (which is operating at capacity) sells the XL5 circuit board to regular customers for $12.50 each. The circuit boards have a variable production cost of $8.25 each. The company?s Clock Division has asked the Electronics Division to supply it with a large quantity of XL5 circuit boards for only $9 each. The Clock Division, which is operating at only 60% of capacity, will put the circuit boards into a timing device that it will produce and sell to a large oven manufacturer. The cost of the timing device being manufactured by the Clock Division follows: Performance Analysis and Decision Making XL5 circuit board (desired cost) . . . . . . . . . . . . . . . . . $ 9.00 Other purchased parts (from outside vendors) . . . . . 30.00 Other variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . 20.75 Fixed overhead and administrative costs . . . . . . . . . . 10.00 Total cost per timing device . . . . . . . . . . . . . . . . . . . . $69.75 The manager of the Clock Division feels that she can?t quote a price greater than $70 per timing device to the oven manufacturer if her division is to get the job. As shown above, in order to keep the price at $70 or less, she can?t pay more than $9 per unit to the Electronics Division for the XL5 circuit boards. Although the $9 price for the XL5 circuit boards represents a substantial discount from the normal $12.50 price, she feels that the price concession is necessary for her division to get the oven manufacturer contract and thereby keep its core of highly trained people. The company uses return on investment (ROI) to measure divisional performance. Required: 1. Assume that you are the manager of the Electronics Division. Would you recommend that your division supply the XL5 circuit boards to the Clock Division for $9 each as requested? Why or why not? Show all computations. 2. Would it be profitable for the company as a whole for the Electronics Division to supply the Clock Division with the circuit boards for $9 each? Explain your answer. 3. In principle, should it be possible for the two managers to agree to a transfer price in this particular situation? If so, within what range would that transfer price lie? 4. Discuss the organizational and manager behavior problems, if any, inherent in this situation. What would you advise the company?s president to do in this situation? (CMA, adapted)
Question 2
MGMT340 - FB3BAFME - Building Teams and Resolving Conflict You are the manager of a team that collaborates on various projects. These projects need to be addressed by the entire group to provide resolutions that are in the company's best interest because it will affect all parties and departments. Today in the management meeting, a discussion evolved around the human resource (HR) policies. There is one particularly good worker, but she is not always reliable. Sometimes she goes above and beyond, and other times she comes to work late. The latter behavior is seen by other employees who then think they can get away with similar behavior, but they are put on progressive disciplinary action by their manager. Consider the following: ? Assume your role in management, and discuss the scenario with your fellow managers. ? Spend some time discussing your position and feelings, including opinions, hurt feelings, problems caused in your group, etc. ? Discuss the model that Bruce Tuckman designed decades ago that is still considered a major work and is used today. ? Use the Library to review the Tuckman model and decide what phase you are in and the reasons for your conclusion.,I already paid to ask this question. I dont undestand exactly what you are asking
Question 3
5. P4-8: Cash Disbursements Schedule, p. 148 Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format of Table 4.9 (on page 130) and the following information in its preparation. A Schedule of Projected Cash Disbursements for Coulson Industries ($000) Aug. Sept. Oct. Nov. Dec. Purchases (0.70 x sales) $70 $140 $280 $210 $140 Cash purchases (0.10) $7 $14 $28 $21 $14 Payments of A/P: Lagged 1 month (0.70) 49 98 196 147 Lagged 2 months (0.20) 14 28 56 Rent payments 5 5 5 Wages and salaries 48 38 28 Tax payments 25 Fixed-asset outlays 130 Interest payments 10 Cash dividend payments 20 Principal payments 20 Total cash disbursements $7 $63 $213 $418 $305 Sales: February = $500,000; March = $500,000; April = $560,000; May = $610,000; June = $650,000; July = $650,000 Purchases: Purchases are calculated as 60% of the next month?s sales, 10% of purchases are made in cash, 50% of purchases are paid for 1 month after purchase, and the remaining 40% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $8,000 per month. Wages and salaries: Base wage and salary costs are fixed at $6,000 per month plus a variable cost of 7% of the current month?s sales. Taxes: A tax payment of $54,500 is due in June. Fixed asset outlays: New equipment costing $75,000 will be bought and paid for in April. Interest payments: An interest payment of $30,000 is due in June. Cash dividends: Dividends of $12,500 will be paid in April. Principle repayments and retirements: No principal repayments or retirements are due during these months.
Question 4
Capital Budgeting Decision Here is Part B: Clark Paints: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them. The equipment needed would cost $200,000 with a disposal value of $40,000 and would be able to produce 5,500,000 cans over the life of the machinery. The production department estimates that approximately 1,100,000 cans would be needed for each of the next five years. The company would hire three new employees. These three individuals would be full-time employees working 2,000 hours per year and earning $12.00 per hour. They would also receive the same benefits as other production employees, 18% of wages in addition to $2,500 of health benefits. It is estimated that the raw materials will cost 25? per can and that other variable costs would be 5? per can. Since there is currently unused space in the factory, no additional fixed costs would be incurred if this proposal is accepted. It is expected that cans would cost 45? per can if purchased from the current supplier. The company's minimum rate of return (hurdle rate) has been determined to be 12% for all new projects, and the current tax rate of 35% is anticipated to remain unchanged. The pricing for a gallon of paint as well as number of units sold will not be affected by this decision. The unit-of-production depreciation method would be used if the new equipment is purchased. Required: 1. Based on the above information and using Excel, calculate the following items for this proposed equipment purchase: o Annual cash flows over the expected life of the equipment o Payback period o Annual rate of return o Net present value o Internal rate of return 2. Would you recommend the acceptance of this proposal? Why or why not. Prepare a short double spaced 1 pg Word paper elaborating and supporting your answer.
Question 5
5-18 Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 10 percent. Year Dry Prepreg Solvent Prepreg 0 -$1,400,000 -$600,000 1 900,000 300,000 2 800,000 500,000 3 700,000 400,000 a). based on the payback period, which project should be taken? b). based on the NPV, which project should be taken? c). based on the IRR, which project should be taken? d). based on this analysis, is incremental IRR analysis necessary? If yes, please conduct the analysis. 5-12 The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) 0 -$40,000 -$15,000 1 21,000 8,500 2 21,000 8,500 3 21,000 8,500 a). if the required return is 10 percent and Robb Computer applies the profitability index decision rule, which project should the firm accept? b). if the company applies the NPV decision rule, which project should it take? c). explain why your answers in (a) and (b) are different. 5-4 An investment project costs $10,000 and has annual cash flows of $2,600 for six years. What is the discounted payback period if the discount rate is 0 percent? What if the discount rate is 10 percent? If it is 15 percent? 4-32 Barrett Pharmaceuticals is considering a drug project that costs $150,000 today and is expected to generate end of year annual cash flows of $13,000 forever. At what discount rate would Barrett be indifferent between accepting or rejecting the project? 4-12 Investment X offers to pay you $5,500 per year for nine years, whereas Investment Y offers you $8,000 per year for five years. Which of these cash flow streams has the highest present value of the discount rate 5 percent? If the discount rate is 22 percent? 4-8 During 2003, Sotheby?s sold the Edgar degas bronze sculpture Petite danseuse de Quartorze ans at auction for a price of $10,311,500. Unfortunately for the previous owner, he had purchased it in 1999 at a price of $12,377,500. What was his annual rate of return on this sculpture?
