Question 1
"Fouch Company makes 21,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $ 15.30 Direct labor 17.00 Variable manufacturing overhead 4.50 Fixed manufacturing overhead 14.10 Unit product cost $ 50.90 An outside supplier has offered to sell the company all of these parts it needs for $50.50 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $165,900 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $5.20 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company?s remaining products. Required: a. How much of the unit product cost of $50.90 is relevant in the decision of whether to make or buy the part? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Relevant manufacturing cost $ b. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it? (Input the amount as positive value. Omit the "$" sign in your response.) Net advantage (disadvantage) $ c. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 21,000 units required each year? (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Benefit per unit $
Question 2
CASE ASSIGNMENT This case involves thinking about the meaning brands have for consumers, the roles brands play, and the views customers have of brands developed through marketing and non-marketing influences. The background readings for the module introduce you to ways of analyzing products and brands and the case reading relates to a study of the relationship consumers have with at least some brands. The fact that individual brands may be identified with certain characteristics, while a strength in most respects, also poses challenges to marketers, both in the ability to extend the brand to new products and to protect a brand's image in the face of such extensions. What would happen to your view of Rolex if its makers decided to offer an "economy timepiece" (think Timex)? How do you feel about Hyundai's efforts to enter the luxury car market, competing against the likes of Lexus and Cadillac? In a recent Wall Street Journal article, Vanessa Fuhrmans takes not of the fact that since automaker Porsche was absorbed into the Volkswagen organization, it has produced and sold more SUVs and sedans than sports cars ? Boxters, 911s, Carrerras, and Caymans ? the vehicles that have gotten hearts pumping for years and worked their way on to midlife bucket lists. 1. Why do you think VW/Porsche has been successful in extending its brand to Cayenne (SUVs) and Panamera (4-door sedans)? What is it about Porsche's brand image that allowed it to transfer to family vehicles? 2. In the wake of that success, why should Porsche's marketing execs begin major investments in supporting its sports car image, particularly when the potential market for uber-expensive sports cars is both small and crowded with competitors? 3. Based on Fournier's paper on brand relationships (listed among the background readings), as well as this case example, what general lessons do you see for managing brand/product extensions? Write a paper of no more than four pages in length (excluding title and reference pages and any appendices) addressing these questions.
Question 3
Problem 8-6 "TUTOR WILL YOU PLEASE PLACE ANSWER ON A EXCEL SPREADSHEET, THANK YOU Binomial Model The current price of a stock is $19. In 1 year, the price will be either $26 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year. $,Dear Tutor when i opened this attachment there is nothing on the document please resubmit in correct format thank you,Dear Tutor, here is the problem that I was hopeing to be solved,( The current price of a stock is $19. In 1 year, the price will be either $26 or $16. The annual risk-free rate is 5%. Find the price of a call option on the stock that has a strike price is of $23 and that expires in 1 year. (Hint: Use daily compounding.) Round your answer to the nearest cent. Assume 365-day year.) I found a problem that is almost identical but a couple of the numbers are different but the formula works, here is the problem I found(The current price of a stock is $20. In 1 year, the price will be either $26 or $16. The annual risk -free rate is 5%. Find the price of a call option on the stock that has a strike price of $21 and that expires in 1 year. (Hint: Use daily compounding.) Tutor if you notice that the difference is in the "current price of a stock is $20 and where in my problem is $19 and the second difference is the strike price there's is $21 where my problem is $23. Below is the calculation Let the call price be C0 The holder of the call will either make a $5 gain or his option will expire worthless. He now has the choice between selling his option and gain C0 dollars, or wait one year and risk a variable profit. If the call holder sells the stocks today, his portfolio is worth C0-20n and in 1 year it will be either 5-26n or 0-16n. By putting n=1/2 he can eliminate his risk. Regardless of what the stock does, his portfolio will be worth -$8. Such a no-risk portfolio gains by definition the no-risk rate of 5%. The discounted value is therefore worth today C0-20/2 = 8/(1+5%) We find that C0=10-8/1.05= $2.38 Solution = $2.38 Tutor would it be possible to use the formula or calculation and solve this problem for me? Thank you
Question 4
The following selected events occurred in the City of Canterbury a. On December 31, 20X7, $250,000 was transferred from the General Fund to establish a central garage to service the city?s vehicles. Of this amount, $150,000 was spent on January 2, 20X8, to acquire a building with an estimated life of 25 years, $30,000 was spent for the acquisition of land, and $60,000 was paid for equipment with an estimated life of 10 years. b. During the six months of operation to June 30, 20X8, the garage billed the General Fund for $24,000 and Enterprise Funds for $50,000. Except for S$8,000 still due from Enterprise Funds, the balance is collected. c. Canceled checks revealed the following payments for garage activities: Salaries (ignore deductions and taxes) $31,000 Parts and supplies (perpetual system) 19,000 Service provided by the city-owned utility 2,000 Total Payments $52,000 d. At fiscal year end, the following adjustments were related to garage operations: Inventory of parts and supplies on hand $7,000 Depreciation To be computed. e. On July 1, 20X7, the city issued 10 year, $400,000, 8% general obligation serial bonds at 101 to finance the construction of a public health center for the aging. The premium on the bond sale is transferred to the Debt Service Fund for interest payment. Each $40,000 serial is redeemable on June 30, along with annual interest on the outstanding bond face value. The project is estimated to cost $430,000 and will be completed in less than one year. The General Fund will transfer resources, if needed, to cover the total cost. The city uses budgetary accounts for these projects. f. During the fiscal year, construction of the public health center was completed at a cost of $426,000, of which $400,000 was paid, the remainder is payable after one year under a retained percentage contract arrangement. The $26,000 deficiency was transferred from the General Fund. g. On June 28, 20X8, $68,000 is transferred from the General Fund to be applied to the payment of the first $40,000 bond serial mentioned in e., plus interest. On this date, the Debt Service Fund records the maturing bonds and interest. h. On June 30, the payment for the matured bond serial and interest is made. Required: For each event, prepare the necessary journal entries for all funds and account groups involved during the fiscal year ended June 30, 20X8. Indicate the fund or group in which the entries are made.,Thank you,
Question 5
The following data show the, curb weight, horsepower, and 1/4mile speed for 16 Sports Cars and GT cars. Suppose that the price of each sports cars and GT car is also available. The complete data set is as follows. Sport & GT Car Price(1000's) Curb Weight(lbs) Horsepower Speed(MPH) Acura Integra Type R 25.035 2577 195 90.7 Acura NXS-T 93.758 3066 290 108.0 BMW Z3 2.8 40.900 2844 189 93.2 Chevy Camaro Z28 24.865 3439 305 103.2 Chevy Corvette CVT 50.144 3246 345 102.1 Dodge Viper RT/10 69.742 3319 450 116.2 Ford Mustang GT 23.200 3227 225 91.7 Honda Prelude SH 26.382 3042 195 89.7 MercedesBenz CLK320 44.988 3240 215 93.0 MercedesBenz SLK230 42.762 3025 185 92.3 Mitsubishi3000GT VR4 47.518 3737 320 99.0 Nissan 240SX SE 25.066 2862 155 84.6 Pontiac Firebird 27.770 3455 305 103.2 Porsche Boxstar 45.560 2822 201 93.2 Toyota Super Turbo 40.989 3505 320 105.0 Volvo C70 41.120 3285 236 97.0 a. Find the estimated regression equation, which usese price and horsepower to predict the 1/4mile speed. b. plot the standard residuals against ^y. Does the residual plot support the assumption about E? Explain c. Check for any outliers. What are your conclusion? d. Are there any influential observations? explain. The highlighted parts in the document are the mathematical portions I don't understand.
