Wednesday, July 31, 2019

If I Could Go Back in Time Essay

I’m sure that everyone at least once in his or her life thought: â€Å"If I could go back in time, I would†¦Ã¢â‚¬ . I think every person has something in their past that would want to change: some people regret about mistakes they’ve done, others about things they wanted to do, but didn’t resolve to. Mine would be that if I could go back in time I would pick one of the gifts I am good at and focus on one of them. I am a multi-talented person. It must have been because as a pastor’s kid I had to be ready to function wherever my father needed me. A pastor in Puerto Rico is different than a pastor here. My father was the church driver, taxi driver (taking people to go do groceries and other runs), carpenter, plumber, preacher, teacher, etc†¦ you get the picture right? Well, being part of his ministry I also learned how to do a little bit of everything. I am a musician, handy man, involved in real estate, pastor, now a student, and a few other things I am involved in. The big problem is that, though I am good on most of all the things I do, I have not been successful on any of them because I am doing a little bit of everything. I truly believe that if I had focus on any or maybe two, I would have been very successful. As a musician I have made some recordings, wrote my own songs and my own music. In real estate I have bought houses, rented houses, and renovated and sold houses. As a handy man I’ve worked in all kinds of building jobs (carpet, drywall, tile floors, doors, roofing, etc). As pastor I have helped many people and brought many to the Lord. As a student I am trying to get my Associate this year. There is a saying in Spanish that says â€Å"el que aprieta mucho abarca poco†. It means â€Å"he who squeezes much retains little†. If I could go back in time I would take one or two of these areas focus on them and give it my best. As a matter of fact I have been working on making those changes now. I have come to the conclusion that this opportunity of going back in life is not going to take place. Therefore, I have decided to stop doing some of the things that I have been doing and focus on two of them. My number one desire is to continue to do the work of the Lord as a pastor. I want to grow and continue to work for the Lord. I love helping people and being able to meet their needs, both material and spiritual. The other area I am focusing on is Real Estate. I have decided to go 100 percent on it and give it the best. Next week I am taking my license and becoming a full time real estate agent. Of course, I will continue playing my music and singing my songs but it will now be a hobby that I will enjoy to do.

Chronicle of a Death Foretold

Sarah Winter Silver 1 World Literature 4/27/09 Angela Vicario is responsible for the murder of Santiago Nasar. Although it was her twin brothers that committed the actual crime, the reasons behind their murder come directly from their beautiful sister Angela. While it wasn’t Angela who directly murdered Santiago, she is just as guilty as the rest. Angela is complacent and also participated in the solicitation of the murder of Santiago Nasar. The marriage between Bayardo San Roman and Angela Vicario set a strong foundation for the murder. If the marriage between Bayardo and Angela had never occurred, Santiago Nasar would still be alive. Ever since Angela was a child, she faced a strong pressure to get married. â€Å"The girls had been reared to get married. † (Page 31) It is notable that Angela was the prettiest of her three sisters and several men desired her. Many men were interested in marrying her, especially Bayardo San Roman, but Angela was not interested in marrying unless she was in love. â€Å"Angela Vicario never forgot the horror of the night on which her parents and her older sisters with their husbands gathered together in the parlor, imposed on her the obligation to marry a man whom she had barely seen. (Page 24) Bayardo, on the other hand, was determined to marry her and in a hurry to do so. Their engagement lasted only six months, and their marriage lasted not even one night. â€Å"No one would have thought, nor did anyone say, that Angela Vicario wasn’t a virgin. † (Page 37) Her family was incredibly protective of her and â€Å"She’d grown up along with her sisters unde r the rigor of a mother of iron. † (Page 37) Angela Vicario was terribly naive for going into this marriage without her virginity. She had been distressed but eventually listened to her two confidantes. They assured her that almost all women lost their virginity in childhood accidents and that even the most difficult of husbands resigned themselves to anything as long as nobody knew about it. † (Page 38) Apparently Bayardo San Roman was an exception. Only four hours after the extravagant wedding and dancing festivities, Pura Vicario (Angela’s mother) was woken by three very slow knocks. â€Å"Her [Angela Vicario] satin dress was in shreds and she was wrapped in a towel up to the waist. † (Page 46) Bayardo San Roman was there to return his wife because she was not a virgin. Pura Vicario beat her daughter mercilessly and urgently ummoned her twin sons home. â€Å"They found Angela Vicario lying face down on the dining room couch, her face all bruised†¦P edro Vicario, the more forceful of the brothers picked her up by the waist and sat her on the dining room table. ‘All right, girls,’ he said to her, trembling with rage, ‘tell us who it was. ’ She only took the time necessary to say the name. She looked for it in the shadows, she found it at first sight among the many, many easily confused names from this world and the other, and she nailed it to the wall with her well-aimed dart, like a butterfly with no will whose sentence had always been written. Santiago Nasar. ’ she said. † (Page 47) Angela Vicario named Santiago Nasar as the perpetrator and whether he did it or not, Angela gave him a death sentence the moment his name escaped her lips. When Angela’s brothers asked who took her virginity, she could have named any man in town. It is never confirmed nor denied whether Santiago Nasar had sex with Angela Vicario or not. However, if he was not the man to take her virginity, then why woul d Angela Vicario give his name? This raises many new questions, for instance, did they have consensual sex? Did Santiago rape her? Were they in love but never had sex, and was Angela only trying to protect Santiago? Or was the entire sexual encounter made up? Marquez never answers these questions, and the reader has to make several inferences. The image of a butterfly pinned to a wall is symbolic of both Angela Vicario and Santiago Nasar’s situation. Once she had stated that Santiago is the one who took her virginity, both of their fates became pinned. If Angela did not give her brothers a name, they would have become furious at her for protecting the man who had dishonored her. She â€Å"pins† Santiago with her words, but she is also pinning herself by the sexism of the culture. The description of Angela’s thought process when she spoke Santiago’s name suggests that Angela is not only thinking of people who are alive but also those who are dead (â€Å"many easily confused names from this world and the other. †) This is not a proven fact, but this strongly implies that Angela chose his name at random, which would mean Angela Vicario sanctioned the murder of an innocent man. Like almost all of the townspeople, Angela Vicario is complacent. â€Å"There had never been a death more foretold. † (Page 50) Everybody knew of the Vicario twin’s intentions, â€Å"The Vicario brothers had told their plans to more than a dozen people who had gone to buy milk, and these had spread the news everywhere before six o’clock. † (Page 58) Yet the only person out of the whole town to attempt stopping the Vicario twins was Colonel Aponte. The murder of Santiago Nasar never would have happened if Angela had done several things differently. If Angela had kept her virginity, the disaster never would have surfaced. Angela could have simply given a different name, and Santiago would still be alive. It also would have been fairly easy for her to stop her brothers from murdering Santiago. Not only is she complacent in the murder, but she also gave the solicitation of murder. Pablo and Pedro Vicario are innocent; they were murdering simply to protect their sister, something any brother would have done without a question. Angela Vicario is clearly responsible for the gruesome murder of Santiago Nasar. Chronicle of a Death Foretold Chronicle of a Death Foretold

Tuesday, July 30, 2019

Cost Accounting Chapter 11

Horngren, C. T. , Datar, S. M. and Foster, G. (2003) Cost Accounting – A Managerial Emphasis, Pearson Education, Inc. , New Jersey, Eleventh Edition CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION 11-1 The five steps in the decision process outlined in Exhibit 11-1 of the text are: 1. 2. 3. 4. 5. Obtain information Make predictions about future costs Choose an alternative Implement the decision Evaluate performance to provide feedback 11-2 Relevant costs are expected future costs that differ among the alternative courses of action being considered.Historical costs are irrelevant because they are past costs and, therefore, cannot differ among alternative future courses of action. 11-3 No. Relevant costs are defined as those expected future costs that differ among alternative courses of action being considered. Thus, future costs that do not differ among the alternatives are irrelevant to deciding which alternative to choose. 11-4 Quantitative factors are outcomes that are m easured in numerical terms. Some quantitative factors are financial––that is, they can be easily expressed in monetary terms. Direct materials is an example of a quantitative financial factor.Qualitative factors are outcomes that are difficult to measure accurately in numerical terms. An example is employee morale. 11-5 Two potential problems that should be avoided in relevant cost analysis are: 1. 2. Do not assume all variable costs are relevant and all fixed costs are irrelevant. Do not use unit-cost data directly. It can mislead decision makers because a. it may include irrelevant costs, and b. comparisons of unit costs computed at different output levels lead to erroneous conclusions 11-6 No. Some variable costs may not differ among the alternatives under consideration and, hence, will be irrelevant.Some fixed costs may differ among the alternatives and, hence, will be relevant. 11-7 No. Some of the total unit costs to manufacture a product may be fixed costs, and, hence, will not differ between the make and buy alternatives. These fixed costs are irrelevant to the make-or-buy decision. The key comparison is between purchase costs and the costs that will be saved if the company purchases the component parts from outside plus the additional benefits of using the resources freed up in the next best alternative use (opportunity cost). 1-8 Opportunity cost is the contribution to income that is forgone (rejected) by not using a limited resource in its next-best alternative use. 11-1 11-9 No. When deciding on the quantity of inventory to buy, managers must consider both the purchase cost per unit and the opportunity cost of funds invested in the inventory. For example, the purchase cost per unit may be low when the quantity of inventory purchased is large, but the benefit of the lower cost may be more than offset by the high opportunity cost of the funds invested in acquiring and holding inventory. 1-10 No. Managers should aim to get the highest co ntribution margin per unit of the constraining (that is, scarce, limiting, or critical) factor. The constraining factor is what restricts or limits the production or sale of a given product (for example, availability of machine-hours). 11-11 No. For example, if the revenues that will be lost exceed the costs that will be saved, the branch or business segment should not be shut down. Shutting down will only increase the loss. Allocated costs are always irrelevant to the shutting down decision. 1-12 Cost written off as depreciation is irrelevant when it pertains to a past cost. But the purchase cost of new equipment to be acquired in the future that will then be written off as depreciation is often relevant. 11-13 No. Managers tend to favor the alternative that makes their performance look best so they focus on the measures used in the performance-evaluation model. If the performanceevaluation model does not emphasize maximizing operating income or minimizing costs, managers will most likely not choose the alternative that maximizes operating income or minimizes costs. 1-14 The three steps in solving a linear programming problem are: 1. 2. 3. Determine the objective function. Specify the constraints. Compute the optimal solution. 11-15 The text outlines two methods of determining the optimal solution to an LP problem: 1. Trial-and-error solution approach 2. Graphical solution approach Most LP applications in practice use standard software packages that rely on the simplex method to compute the optimal solution. 11-2 11-16 (20 min. ) Disposal of assets. 1. This is an unfortunate situation, yet the $80,000 costs are irrelevant regarding the decision to remachine or scrap.The only relevant factors are the future revenues and future costs. By ignoring the accumulated costs and deciding on the basis of expected future costs, operating income will be maximized (or losses minimized). The difference in favor of remachining is $3,000: (a) Remachine Future revenues Deduct future costs Operating income Difference in favor of remachining $35,000 30,000 $ 5,000 $3,000 (b) Scrap $2,000 – $2,000 2. This, too, is an unfortunate situation. But the $100,000 original cost is irrelevant to this decision.The difference in relevant costs in favor of rebuilding is $7,000 as follows: (a) Replace New truck Deduct current disposal price of existing truck Rebuild existing truck $102,000 10,000 – $ 92,000 $7,000 (b) Rebuild – – $85,000 $85,000 Difference in favor of rebuilding Note, here, that the current disposal price of $10,000 is relevant, but the original cost (or book value, if the truck were not brand new) is irrelevant. 11-3 11-17 (10 min. ) The careening personal computer. Considered alone, book value is irrelevant as a measure of loss when equipment is destroyed.The measure of the loss is replacement cost or some computation of the present value of future services lost because of equipment loss or damage. In the specific case des cribed, the following observations may be apt: 1. A fully depreciated item probably is relatively old. Chances are that the loss from this equipment is less than the loss for a partially depreciated item because the replacement cost of an old item would be far less than that for a nearly new item. 2. The loss of an old item, assuming replacement is necessary, automatically accelerates the timing of replacement.Thus, if the old item were to be junked and replaced tomorrow, no economic loss would be evident. However, if the old item were supposed to last five more years, replacement is accelerated five years. The best practical measure of such a loss probably would be the cost of comparable used equipment that had five years of remaining useful life. The fact that the computer was fully depreciated also means the accounting reports will not be affected by the accident. If accounting reports are used to evaluate the office manager's performance, the manager will prefer any accidents to be on fully depreciated units. 11-18 (15 min. Multiple choice. 1. (b) Special order price per unit Variable manufacturing cost per unit Contribution margin per unit Effect on operating income = $1. 50 ? 20,000 units = $30,000 increase $1,200,000 $48 9 $57 1,140,000 60,000 25,000 $ 85,000 $6. 00 4. 50 $1. 50 2. (b) Costs of purchases, 20,000 units ? $60 Total relevant costs of making: Variable manufacturing costs, $64 – $16 Fixed costs eliminated Costs saved by not making Multiply by 20,000 units, so total costs saved are $57 ? 20,000 Extra costs of purchasing outside Minimum overall savings for Reno Necessary relevant costs that would have to be saved in manufacturing Part No. 75 11-4 11-19 (30 min. ) Special order, activity-based costing (CMA, adapted). 1. Award Plus's operating income under the alternatives of accepting/rejecting the special order are: Without OneWith OneTime Only Time Only Special Order Special Order 7,500 Units 10,000 Units Revenues Variable costs: Direc t materials Direct manufacturing labor Batch manufacturing costs Fixed costs: Fixed manufacturing costs Fixed marketing costs Total costs Operating income 1 2 Difference 2,500 Units $250,000 87,500 100,000 12,500 –– –– 200,000 $ 50,000 $1,125,000 262,500 300,000 75,000 1,375,000 350,000 2 400,000 3 87,500 1 275,000 275,000 175,000 175,000 1,087,500 1,287,500 $ 37,500 $ 87,500 $300,000 ? 10,000 7,500 3 $262,500 ? 10,000 7,500 $75,000 + (25 ? $500) Alternatively, we could calculate the incremental revenue and the incremental costs of the additional 2,500 units as follows: Incremental revenue $100 ? 2,500 Incremental direct manufacturing costs Incremental direct manufacturing costs Incremental batch manufacturing costs Total incremental costs Total incremental operating income from accepting the special order $262,500 ? 2,500 7,500 300,000 ? ,500 7,500 $500 ? 25 $250,000 87,500 100,000 12,500 200,000 $ 50,000 Award Plus should accept the one-time-only specia l order if it has no long-term implications because accepting the order increases Award Plus's operating income by $50,000. If, however, accepting the special order would cause the regular customers to be dissatisfied or to demand lower prices, then Award Plus will have to trade off the $50,000 gain from accepting the special order against the operating income it might lose from regular customers. 11-5 11-19 (Cont’d. ) 2. Award Plus has a capacity of 9,000 medals.Therefore, if it accepts the special one-time order of 2,500 medals, it can sell only 6,500 medals instead of the 7,500 medals that it currently sells to existing customers. That is, by accepting the special order, Award Plus must forgo sales of 1,000 medals to its regular customers. Alternatively, Award Plus can reject the special order and continue to sell 7,500 medals to its regular customers. Award Plus's operating income from selling 6,500 medals to regular customers and 2,500 medals under one-time special order follow: Revenues (6,500 ? $150) + (2,500 ? 100) 1 1 Direct materials (6,500 ? $35 ) + (2,500 ? $35 ) 2 2 Direct manufacturing labor (6,500 ? $40 ) +(2,500 ? $40 ) 3 Batch manufacturing costs (130 ? $500) + (25 ? $500) Fixed manufacturing costs Fixed marketing costs Total costs Operating income 1 $1,225,000 315,000 360,000 77,500 275,000 175,000 1,202,500 $ 22,500 $35 = $262,500 7,500 2 $40 = 300,000 7,500 3 Award Plus makes regular medals in batch sizes of 50. To produce 6,500 medals requires 130 (6,500 ? 50) batches. Accepting the special order will result in a decrease in operating income of $15,000 ($37,500 – $22,500).The special order should, therefore, be rejected. A more direct approach would be to focus on the incremental effects––the benefits of accepting the special order of 2,500 units versus the costs of selling 1,000 fewer units to regular customers. Increase in operating income from the 2,500-unit special order equals $50,000 (requirement 1). The l oss in operating income from selling 1,000 fewer units to regular customers equals: Lost revenue, $150 ? 1,000 Savings in direct materials costs, $35 ? 1,000 Savings in direct manufacturing labor costs, $40 ? 1,000 Savings in batch manufacturing costs, $500 ? 0 Operating income lost $(150,000) 35,000 40,000 10,000 $ (65,000) Accepting the special order will result in a decrease in operating income of $15,000 ($50,000 – $65,000). The special order should, therefore, be rejected. 3. Award Plus should not accept the special order. Increase in operating income by selling 2,500 units under the special order (requirement 1) Operating income lost from existing customers ($10 ? 7,500) Net effect on operating income of accepting special order The special order should, therefore, be rejected. $ 50,000 (75,000) $(25,000) 11-6 11-20 (30 min. ) Make versus buy, activity-based costing. . The expected manufacturing cost per unit of CMCBs in 2004 is as follows: Total Manufacturing Manufactur ing Costs of CMCB Cost per Unit (1) (2) = (1) ? 10,000 $1,700,000 $170 450,000 45 120,000 12 320,000 800,000 $3,390,000 32 80 $339 Direct materials, $170 ? 10,000 Direct manufacturing labor, $45 ? 10,000 Variable batch manufacturing costs, $1,500 ? 80 Fixed manufacturing costs Avoidable fixed manufacturing costs Unavoidable fixed manufacturing costs Total manufacturing costs 2. The following table identifies the incremental costs in 2004 if Svenson (a) made CMCBs and (b) purchased CMCBs from Minton.Total Incremental Costs Make Buy $ 3,000,000 $1,700,000 450,000 120,000 320,000 $2,590,000 $3,000,000 $410,000 Per-Unit Incremental Costs Make Buy $300 $170 45 12 32 $259 $300 $41 Incremental Items Cost of purchasing CMCBs from Minton Direct materials Direct manufacturing labor Variable batch manufacturing costs Avoidable fixed manufacturing costs Total incremental costs Difference in favor of making Note that the opportunity cost of using capacity to make CMCBs is zero since Svenson woul d keep this capacity idle if it purchases CMCBs from Minton.Svenson should continue to manufacture the CMCBs internally since the incremental costs to manufacture are $259 per unit compared to the $300 per unit that Minton has quoted. Note that the unavoidable fixed manufacturing costs of $800,000 ($80 per unit) will continue to be incurred whether Svenson makes or buys CMCBs. These are not incremental costs under either the make or the buy alternative and are, hence, irrelevant. 3. Svenson should continue to make CMCBs. The simplest way to analyze this problem is to recognize that Svenson would prefer to keep any excess capacity idle rather than use it to make CB3s. Why?Because expected incremental future revenues from CB3s, $2,000,000 are less than expected incremental future costs, $2,150,000. If Svenson keeps its capacity idle, we know from requirement 2 that it should make CMCBs rather than buy them. 11-7 11-20 (Cont’d. ) An important point to note is that, because Svens on forgoes no contribution by not being able to make and sell CB3s, the opportunity cost of using its facilities to make CMCBs is zero. It is, therefore, not forgoing any profits by using the capacity to manufacture CMCBs. If it does not manufacture CMCBs, rather than lose money on CB3s, Svenson will keep capacity idle.A longer and more detailed approach is to use the total alternatives or opportunity cost analyses shown in Exhibit 11-7 of the chapter. Choices for Svenson Make CMCBs Buy CMCBs Buy CMCBs and Do Not and Do Not and Make Relevant Items Make CB3s Make CB3s CB3s TOTAL-ALTERNATIVES APPROACH TO MAKE-OR-BUY DECISIONS Total incremental costs of making/buying CMCBs (from requirement 2) Excess of future costs over future revenues from CB3s Total relevant costs $2,590,000 0 $2,590,000 $3,000,000 0 $3,000,000 $3,000,000 150,000 $3,150,000 Svenson will minimize manufacturing costs by making CMCBs.OPPORTUNITY-COST APPROACH TO MAKE-OR-BUY DECISIONS Total incremental costs of making/b uying CMCBs (from requirement 2) $2,590,000 $3,000,000 Opportunity cost: profit contribution forgone because capacity will not be used to make CB3s 0* 0* Total relevant costs $2,590,000 $3,000,000 $3,000,000 0 $3,000,000 *Opportunity cost is 0 because Svenson does not give up anything by not making CB3s. Svenson is best off leaving the capacity idle (rather than manufacturing and selling CB3s). 11-8 11-21 (10 min. ) Inventory decision, opportunity costs. 1. Unit cost, orders of 20,000 Unit cost, order of 240,000 (0. 5 ? $8. 00) Alternatives under consideration: (a) Buy 240,000 units at start of year. (b) Buy 20,000 units at start of each month. Average investment in inventory: (a) (240,000 ? $7. 60) ? 2 (b) ( 20,000 ? $8. 00) ? 2 Difference in average investment $8. 00 $7. 60 $912,000 80,000 $832,000 Opportunity cost of interest forgone from 240,000-unit purchase at start of year = $832,000 ? 0. 08 = $66,560 2. No. The $66,560 is an opportunity cost rather than an incremental or out lay cost. No actual transaction records the $66,560 as an entry in the accounting system. 3.The following table presents the two alternatives: Alternative A: Alternative B: Purchase Purchase 240,000 20,000 spark plugs at spark plugs beginning of at beginning year of each month Difference (1) (2) (3 )= (1) – (2) Annual purchase-order costs (1 ? $200; 12 ? $200) Annual purchase (incremental) costs (240,000 ? $7. 60; 240,000 ? $8) Annual interest income that could be earned if investment in inventory were invested (opportunity cost) (8% ? $912,000; 8% ? $80,000) Relevant costs $ 200 1,824,000 $ 2,400 1,920,000 $ (2,200) (96,000) 72,960 $1,897,160 6,400 $1,928,800 66,560 $ (31,640)Column (3) indicates that purchasing 240,000 spark plugs at the beginning of the year is preferred relative to purchasing 20,000 spark plugs at the beginning of each month because the lower purchase cost exceeds the opportunity cost of holding larger inventory. If other incremental benefits of holding l ower inventory such as lower insurance, materials handling, storage, obsolescence, and breakage costs were considered, the costs under Alternative A would have been higher, and Alternative B may have been preferred. 11-9 11-22 (20–25 min. ) Relevant costs, contribution margin, product emphasis. 1. Cola $18. 0 13. 50 $ 4. 50 Lemonade $19. 20 15. 20 $ 4. 00 Punch $26. 40 20. 10 $ 6. 30 Natural Orange Juice $38. 40 30. 20 $ 8. 20 Selling price Deduct variable cost per case Contribution margin per case 2. The argument fails to recognize that shelf space is the constraining factor. There are only 12 feet of front shelf space to be devoted to drinks. Sexton should aim to get the highest daily contribution margin per foot of front shelf space: Natural Orange Juice $ 8. 20 ? 5 Contribution margin per case Sales (number of cases) per foot of shelf space per day Daily contribution per foot of front shelf space 3.Cola $ 4. 50 ? 25 Lemonade $ 4. 00 ? 24 Punch $ 6. 30 ? 4 $112. 50 $96. 00 $25. 20 $41. 00 The allocation that maximizes the daily contribution from soft drink sales is: Daily Contribution per Foot of Front Shelf Space $112. 50 96. 00 41. 00 25. 20 Cola Lemonade Natural Orange Juice Punch Feet of Shelf Space 6 4 1 1 Total Contribution Margin per Day $ 675. 00 384. 00 41. 00 25. 20 $1,125. 20 The maximum of six feet of front shelf space will be devoted to Cola because it has the highest contribution margin per unit of the constraining factor.Four feet of front shelf space will be devoted to Lemonade, which has the second highest contribution margin per unit of the constraining factor. No more shelf space can be devoted to Lemonade since each of the remaining two products, Natural Orange Juice and Punch (that have the second lowest and lowest contribution margins per unit of the constraining factor) must each be given at least one foot of front shelf space. 11-10 11-23 (10 min. ) Selection of most profitable product. Only Model 14 should be produced. The ke y to this problem is the relationship of manufacturing overhead to each product.Note that it takes twice as long to produce Model 9; machine-hours for Model 9 are twice that for Model 14. Management should choose the product mix that maximizes operating income for a given production capacity (the scarce resource in this situation). In this case, Model 14 will yield a $9. 50 contribution to fixed costs per machine hour, and Model 9 will yield $9. 00: Model 9 Selling price Variable costs per unit Contribution margin per unit Relative use of machine-hours per unit of product Contribution margin per machine hour $100. 00 82. 00 $ 18. 00 ? 2 $ 9. 00 Model 14 $70. 00 60. 50 $ 9. 50 ? $ 9. 50 11-23 Excel Application Decision-Making and Relevant Information Body-Builders, Inc. Original Data Selling Price Costs Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Marketing costs (all variable) Total costs Operating Income Model 9 $100. 00 2 8. 00 15. 00 25. 00 10. 00 14. 00 92. 00 $8. 00 $70. 00 13. 00 25. 00 12. 50 5. 00 10. 00 65. 50 $4. 50 Product Mix Analysis Selling price Variable cost per unit Contribution margin per unit Relative use of machine-hours per unit of product Contribution margin per machine-hour Model 9 $100 82. 0 18. 00 2 $9. 00 Model 14 $70 60. 50 9. 50 1 $9. 50 11-11 11-24 (20 min. ) Which base to close, relevant-cost analysis, opportunity costs. The future outlay operating costs will be $400 million regardless of which base is closed, given the additional $100 million in costs at Everett if Alameda is closed. Further, one of the bases will permanently remain open while the other will be shut down. The only relevant revenue and cost comparisons are: a. $500 million from sale of the Alameda base. Note that the historical cost of building the Alameda base ($100 million) is irrelevant.Note, also, that future increases in the value of the land at the Alameda base is also irrelevant. One of the bases mu st be kept open, so if it is decided to keep the Alameda base open, the Defense Department will not be able to sell this land at a future date. b. $60 million in savings in fixed income note if the Everett base is closed. Again, the historical cost of building the Everett base ($150 million) is irrelevant. The relevant costs and benefits analysis favors closing the Alameda base despite the objections raised by the California delegation in Congress. The net benefit equals $440 ($500 – $60) million. 11-25 (25? 0 min. ) Closing and opening stores. 1. Solution Exhibit 11-25, Column 1, presents the relevant loss in revenues and the relevant savings in costs from closing the Rhode Island store. Lopez is correct that Sanchez Corporation’s operating income would increase by $7,000 if it closes down the Rhode Island store. Closing down the Rhode Island store results in a loss of revenues of $860,000 but cost savings of $867,000 (from cost of goods sold, rent, labor, utilities, and corporate costs). Note that by closing down the Rhode Island store, Sanchez Corporation will save none of the equipment-related costs because this is a past cost.Also note that the relevant corporate overhead costs are the actual corporate overhead costs $44,000 that Sanchez expects to save by closing the Rhode Island store. The corporate overhead of $40,000 allocated to the Rhode Island store is irrelevant to the analysis. 2. Solution Exhibit 11-25, Column 2, presents the relevant revenues and relevant costs of opening another store like the Rhode Island store. Lopez is correct that opening such a store would increase Sanchez Corporation’s operating income by $11,000.Incremental revenues of $860,000 exceed the incremental costs of $849,000 (from higher cost of goods sold, rent, labor, utilities, and some additional corporate costs). Note that the cost of equipment written off as depreciation is relevant because it is an expected future cost that Sanchez will incur only i f it opens the new store. Also note that the relevant corporate overhead costs are the $4,000 of actual corporate overhead costs that Sanchez expects to incur as a result of opening the new store. Sanchez may, in fact, allocate more than $4,000 of corporate overhead to the new store but this allocation is irrelevant to the analysis. 1-12 11-25 (Cont’d. ) The key reason that Sanchez’s operating income increases either if it closes down the Rhode Island store or if it opens another store like it is the behavior of corporate overhead costs. By closing down the Rhode Island store, Sanchez can significantly reduce corporate overhead costs presumably by reducing the corporate staff that oversees the Rhode Island operation. On the other hand, adding another store like Rhode Island does not increase actual corporate costs by much, presumably because the existing corporate staff will be able to oversee the new store as well.SOLUTION EXHIBIT 11-25 Relevant-Revenue and Relevant-C ost Analysis of Closing Rhode Island Store and Opening Another Store Like It. Incremental (Loss in Revenues) Revenues and and Savings in (Incremental Costs) Costs from of Opening New Closing Rhode Store Like Rhode Island Store Island Store (1) (2) Revenues Cost of goods sold Lease rent Labor costs Depreciation of equipment Utilities (electricity, heating) Corporate overhead costs Total costs Effect on operating income (loss) $(860,000) 660,000 75,000 42,000 0 46,000 44,000 867,000 $ 7,000 $ 860,000 (660,000) (75,000) (42,000) (22,000) (46,000) (4,000) (849,000) $ 11,000 1-13 11-26 (20 min. ) Choosing customers. If Broadway accepts the additional business from Kelly, it would take an additional 500 machine-hours. If Broadway accepts all of Kelly’s and Taylor’s business for February, it would require 2,500 machine-hours (1,500 hours for Taylor and 1,000 hours for Kelly). Broadway has only 2,000 hours of machine capacity. It must, therefore, choose how much of the Taylor or Kelly business to accept. To maximize operating income, Broadway should maximize contribution margin per unit of the constrained resource. Fixed costs will remain unchanged at $100,000 regardless of the business Broadway chooses to accept in February, and is, therefore, irrelevant. ) The contribution margin per unit of the constrained resource for each customer in January is: Taylor Corporation $78,000 = $52 1,500 Kelly Corporation $32,000 = $64 500 Contribution margin per machine-hour Since the $80,000 of additional Kelly business in February is identical to jobs done in January, it will also have a contribution margin of $64 per machine-hour, which is greater than the contribution margin of $52 per machine-hour from Taylor.To maximize operating income, Broadway should first allocate all the capacity needed to take the Kelly Corporation business (1,000 machine-hours) and then allocate the remaining 1,000 (2,000 – 1,000) machine-hours to Taylor. Taylor Corporation $52 ? 1, 000 $52,000 Kelly Corporation $64 ? 1,000 $64,000 Total Contribution margin per machine-hour Machine-hours to be worked Contribution margin Fixed costs Operating income $116,000 100,000 $ 16,000 11-14 11-27 (30–40 min. ) Relevance of equipment costs. 1a. Statements of Cash Receipts and Disbursements Keep Year 2, 3, 4 $150,000 (110,000) (15,000)Year 1 Receipts from operations: Revenues Deduct disbursements: Other operating costs Operation of machine Purchase of â€Å"old† machine Purchase of â€Å"new† equipment Cash inflow from sale of old equipment Net cash inflow $150,000 (110,000) ( 15,000) (20,000)* Four Years Together $600,000 (440,000) (60,000) (20,000) Buy New Machine Four Year Years Year 1 2, 3, 4 Together $150,000 (110,000) (9,000) (20,000) (24,000) 8,000 $ (5,000) $150,000 (110,000) (9,000) $600,000 (440,000) (36,000) (20,000) (24,000) 8,000 $ 88,000 $ 5,000 $ 25,000 80,000 $ 31,000 *Some students ignore this item because it is the same for each altern ative. However, note that a statement for the entire year has been requested. Obviously, the $20,000 would affect Year 1 only under both the â€Å"keep† and â€Å"buy† alternatives. The difference is $8,000 for four years taken together. In particular, note that the $20,000 book value can be omitted from the comparison. Merely cross out the entire line; although the column totals are affected, the net difference is still $8,000. 11-15 11-27 (Cont’d. ) 1b.Again, the difference is $8,000: Income Statements Keep Year 1, 2, 3, 4 Revenues Costs (excluding disposal): Other operating costs Depreciation Operating costs of machine Total costs (excluding disposal) Loss on disposal: Book value (â€Å"cost†) Proceeds (â€Å"revenue†) Loss on disposal Total costs Operating income $150,000 110,000 5,000 15,000 130,000 Four Years Together $600,000 440,000 20,000 60,000 520,000 Buy New Machine Four Years Year Together Year 1 2, 3, 4 $150,000 $150,000 110,000 6,000 9,000 125,000 110,000 6,000 9,000 125,000 $600,000 440,000 24,000 36,000 500,000 20,000* (8,000) 12,000 512,000 $ 88,000 30,000 $ 20,000 520,000 $ 80,000 20,000 (8,000) 12,000 137,000 125,000 $ 13,000 $ 25,000 *As in part (1), the $20,000 book value may be omitted from the comparison without changing the $8,000 difference. This adjustment would mean excluding the depreciation item of $5,000 per year (a cumulative effect of $20,000) under the â€Å"keep† alternative and excluding the book value item of $20,000 in the loss on disposal computation under the â€Å"buy† alternative. 1c. The $20,000 purchase cost of the old equipment, the revenues, and the other costs are irrelevant because their amounts are common to both alternatives. 2.The net difference would be unaffected. Any number may be substituted for the original $20,000 figure without changing the final answer. Of course, the net cash outflows under both alternatives would be high. The Auto Wash manager really b lundered. However, keeping the old equipment will increase the cost of the blunder to the cumulative tune of $8,000 over the next four years. 3. Book value is irrelevant in decisions about the replacement of equipment, because it is a past (historical) cost. All past costs are down the drain. Nothing can change what has already been spent or what has already happened. The $20,000 has been spent.How it is subsequently accounted for is irrelevant. The analysis in requirement (1) clearly shows that we may completely ignore the $20,000 and still have a correct analysis. The only relevant items are those expected future items that will differ among alternatives. 11-16 11-27 (Cont’d. ) Despite the economic analysis shown here, many managers would keep the old machine rather than replace it. Why? Because, in many organizations, the income statements of part (2) would be a principal means of evaluating performance. Note that the first-year operating income would be higher under the à ¢â‚¬Å"keep† alternative.The conventional accrual accounting model might motivate managers toward maximizing their first-year reported operating income at the expense of long-run cumulative betterment for the organization as a whole. This criticism is often made of the accrual accounting model. That is, the action favored by the â€Å"correct† or â€Å"best† economic decision model may not be taken because the performance-evaluation model is either inconsistent with the decision model or because the focus is on only the short-run part of the performance-evaluation model. There is yet another potential conflict etween the decision model and the performance evaluation model. Replacing the machine so soon after it is purchased may reflect badly on the manager’s capabilities and performance. Why didn’t the manager search and find the new machine before buying the old machine? Replacing the old machine one day later at a loss may make the manager appear i ncompetent to his or her superiors. If the manager’s bosses have no knowledge of the better machine, the manager may prefer to keep the existing machine rather than alert his or her bosses about the better machine. 11-28 (30 min. Equipment upgrade versus replacement (A. Spero, adapted). 1. Solution Exhibit 11-28 presents a cost comparison of the upgrade and replacement alternatives for the three years taken together. It indicates that Pacifica Corporation should replace the production line because it is better off by $180,000 by replacing rather than upgrading. SOLUTION EXHIBIT 11-28 Comparing Upgrade and Replace Alternatives Three Years Together Upgrade Replace Difference (1) (2) (3) = (1) – (2) $2,160,000 $1,620,000 $ 540,000 (90,000) 90,000 300,000 $2,460,000 750,000 $2,280,000 (450,000) $ 180,000 Cash-operating costs, $12; $9 ? 80,000 Current disposal price One-time capital costs, written off periodically as depreciation Total relevant costs Note that sales and boo k value of the existing machine are the same under both alternatives and, hence, are irrelevant. 11-17 11-28 (Cont’d. ) 2a. Suppose the capital expenditure to replace the production line is $X. Using data from Solution Exhibit 11-28, the cost of replacing the production line is equal to $1,620,000 – $90,000 + $X. Using data from Solution Exhibit 11-28, the cost of upgrading the production line is equal to $2,160,000 + $300,000 = $2,460,000.We want to find $X such that $1,620,000 – $90,000 + $X = $2,460,000 that is, $1,530,000 + $X = $2,460,000 that is, $X = $2,460,000 – $1,530,000 or $X = $ 930,000 Pacifica would prefer replacing, rather than upgrading, the existing line if the replacement cost of the new line does not exceed $930,000. Note that the $930,000 can also be obtained by adding the $180,000 calculated in requirement 1 to the replacement cost of $750,000 for the new machine assumed in requirement 1 ($750,000 + $180,000 = $930,000). 2b. Suppose t he units produced and sold each year equal y.Using data from Solution Exhibit 11-28, the cost of replacing the production line is $9y – $90,000 + $750,000, while the cost of upgrading is $12y + $300,000. We solve for the y at which the two costs are the same. $9y – $90,000 + $750,000 $9y + $660,000 $3y y = = = = $12y + $300,000 $12y + $300,000 $360,000 120,000 units For expected production and sales of less than 120,000 units over 3 years (40,000 units per year), the upgrade alternative is cheaper. When production and sales are low, the higher operating costs of upgrading are more than offset by the significant savings in capital costs when upgrading relative to replacing.For expected production and sales exceeding 120,000 units over 3 years, the replace alternative is cheaper. For high output, the benefits of the lower operating costs of replacing, relative to upgrading, exceed the higher capital costs. 3. Operating income for the first year under the upgrade and repl ace alternatives are as follows: Upgrade Replace Revenues $25 ? 60,000 $1,500,000 $1,500,000 Cash-operating costs $12 ? 60,000, $9 ? 60,000 720,000 540,000 a b Depreciation 220,000 250,000 c Loss on disposal of old production line –– 270,000 Total costs 940,000 1,060,000 Operating income $ 560,000 $ 440,000 a $360,000 + $300,000) ? 3 = $220,000 $750,000 ? 3 = $250,000 c Book value – current disposal price = $360,000 – $90,000 = $270,000 b First-year operating income is higher by $120,000 under the upgrade alternative. If first year's operating income is an important component of Azinger's bonus, he would prefer the upgrade over the replace alternative even though the decision model (in requirement 1) prefers the replace to the upgrade alternative. This exercise illustrates the conflict between the decision model and the performance evaluation model. 11-18 11-29 (30 min. Contribution approach, relevant costs. 1. Average one-way fare per passenger Commissio n at 8% of $500 Net cash to Air Frisco per ticket Average number of passengers per flight Revenues per flight ($460 ? 200) Food and beverage cost per flight ($20 ? 200) Total contribution margin from passengers per flight 2. If fare is Commission at 8% of $480 Net cash per ticket Food and beverage cost per ticket Contribution margin per passenger Total contribution margin from passengers per flight ($421. 60 ? 212) All other costs are irrelevant. $ 500 40 $ 460 ? 200 $92,000 4,000 $88,000 $480. 0 38. 40 441. 60 20. 00 $421. 60 $89,379. 20 On the basis of quantitative factors alone, Air Frisco should decrease its fare to $480 because reducing the fare gives Air Frisco a higher contribution margin from passengers ($89,379. 20 versus $88,000). 3. In evaluating whether Air Frisco should charter its plane to Travel International, we compare the charter alternative to the solution in requirement 2 because requirement 2 is preferred to requirement 1. Under requirement 2, contribution from passengers Deduct fuel costs Total contribution per flight $89,379. 0 14,000. 00 $75,379. 20 Air Frisco gets $74,500 per flight from chartering the plane to Travel International. On the basis of quantitative financial factors, Air Frisco is better off not chartering the plane and, instead, lowering its own fares. Other qualitative factors that Air Frisco should consider in coming to a decision are: a. The lower risk from chartering its plane relative to the uncertainties regarding the number of passengers it might get on its scheduled flights. b. The stability of the relationship between Air Frisco and Travel International.If this is not a long-term arrangement, Air Frisco may lose current market share and not benefit from sustained charter revenues. 11-19 11-30 (30 min. ) Relevant costs, opportunity costs. 1. Easyspread 2. 0 has a higher relevant operating income than Easyspread 1. 0. Based on this analysis, Easyspread 2. 0 should be introduced immediately: Easyspread 1. 0 $150 $ 0 0 $150 Easyspread 2. 0 $185 $25 25 $160 Relevant revenues Relevant costs: Manuals, diskettes, compact discs Total relevant costs Relevant operating income Reasons for other cost items being irrelevant are: Easyspread 1. †¢ Manuals, diskettes—already incurred †¢ Development costs—already incurred †¢ Marketing and administrative—fixed costs of period Easyspread 2. 0 †¢ Development costs—already incurred †¢ Marketing and administration—fixed costs of period Note that total marketing and administration costs will not change whether Easyspread 2. 0 is introduced on July 1, 2003, or on October 1, 2003. 2. Other factors to be considered: a. Customer satisfaction. If 2. 0 is significantly better than 1. 0 for its customers, a customer driven organization would immediately introduce it unless other factors offset this bias towards â€Å"do what is best for the customer. b. Quality level of Easyspread 2. 0. It is critical for new s oftware products to be fully debugged. Easyspread 2. 0 must be error-free. Consider an immediate release only if 2. 0 passes all quality tests and can be fully supported by the salesforce. c. Importance of being perceived to be a market leader. Being first in the market with a new product can give Basil Software a â€Å"first-mover advantage,† e. g. , capturing an initial large share of the market that, in itself, causes future potential customers to lean towards purchasing Easyspread 2. 0. Moreover, by introducing 2. earlier, Basil can get quick feedback from users about ways to further refine the software while its competitors are still working on their own first versions. Moreover, by locking in early customers, Basil may increase the likelihood of these customers also buying future upgrades of Easyspread 2. 0. d. Morale of developers. These are key people at Basil Software. Delaying introduction of a new product can hurt their morale, especially if a competitor then preem pts Basil from being viewed as a market leader. 11-20 11-31 (20 min. ) Opportunity costs (H. Schaefer). 1.The opportunity cost to Wolverine of producing the 2,000 units of Orangebo is the contribution margin lost on the 2,000 units of Rosebo that would have to be forgone, as computed below: Selling price Variable costs per unit: Direct materials Direct manufacturing labor Variable manufacturing overhead Variable marketing costs Contribution margin per unit Contribution margin for 2,000 units $20 $2 3 2 4 11 $ 9 $ 18,000 The opportunity cost is $18,000. Opportunity cost is the maximum contribution to operating income that is forgone (rejected) by not using a limited resource in its next-best alternative use. . Contribution margin from manufacturing 2,000 units of Orangebo and purchasing 2,000 units of Rosebo from Buckeye is $16,000, as follows: Manufacture Orangebo Selling price Variable costs per unit: Purchase costs Direct materials Direct manufacturing labor Variable manufacturing costs Variable marketing overhead Variable costs per unit Contribution margin per unit Contribution margin from selling 2,000 units of Orangebo and 2,000 units of Rosebo $15 – 2 3 2 2 9 $ 6 $12,000 Purchase Rosebo $20 14 Total 4 18 $ 2 $4,000 $16,000As calculated in requirement 1, Wolverine's contribution margin from continuing to manufacture 2,000 units of Rosebo is $18,000. Accepting the Miami Company and Buckeye offer will cost Wolverine $2,000 ($16,000 – $18,000). Hence, Wolverine should refuse the Miami Company and Buckeye Corporation's offers. 3. The minimum price would be $9, the sum of the incremental costs as computed in requirement 2. This follows because, if Wolverine has surplus capacity, the opportunity cost = $0. For the short-run decision of whether to accept Orangebo's offer, fixed costs of Wolverine are irrelevant.Only the incremental costs need to be covered for it to be worthwhile for Wolverine to accept the Orangebo offer. 11-21 11-32 (30-40 min. ) Product mix, relevant costs (N. Melumad, adapted). 1. Selling price Variable manufacturing cost per unit Variable marketing cost per unit Total variable costs per unit Contribution margin per unit Contributi on margin per hour of the constraine d resource (the regular machine) Total contribution margin from selling only R3 or only HP6 R3: $25 ? 50,000; HP6: $30 ? 0,000 Less Lease costs of high-precision machine to produce and sell HP6 Net relevant benefit R3 $100 60 15 75 $ 25 $25 = $25 1 HP6 $150 100 35 135 $ 15 $15 = $30 0. 5 $1,250,000 ? $1,250,000 $1,500,000 300,000 $1,200,000 Even though HP6 has the higher contribution margin per unit of the constrained resource, the fact that Pendleton must incur additional costs of $300,000 to achieve this higher contribution margin means that Pendleton is better off using its entire 50,000-hour capacity on the regular machine to produce and sell 50,000 units (50,000 hours ? 1 hour per unit) of R3.The additional contribution from selling HP6 rather than R3 is $250,000 ($1,500,000 ? $1,250,000), which is not enough to cover the additional costs of leasing the high-precision machine. Note that, because all other overhead costs are fixed and cannot be changed, they are irrelevant for the decision. 2. If capacity of the regular machines is increased by 15,000 machine-hours to 65,000 machine-hours (50,000 originally + 15,000 new), the net relevant benefit from producing R3 and HP6 is as follows: R3 Total contribution margin from selling only R3 or only HP6 R3: $25 ? 5,000; HP6: $30 ? 65,000 Less Lease costs of high-precision machine that would be incurred if HP6 is produced and sold Less Cost of increasing capacity by 15,000 hours on regular machine Net relevant benefit HP6 $1,625,000 $1,950,000 300,000 150,000 150,000 $1,475,000 $1,500,000 11-22 11-32 (Cont’d. ) Investing in the additional capacity increases Pendleton’s operating income by $250,000 ($1,500,000 calculated in requirement 2 minus $1,250,000 calc ulated in requirement 1), so Pendleton should add 15,000 hours to the regular machine.With the extra capacity available to it, Pendleton should use its entire capacity to produce HP6. Using all 65,000 hours of capacity to produce HP6 rather than to produce R3 generates additional contribution margin of $325,000 ($1,950,000 ? $1,625,000) which is more than the additional cost of $300,000 to lease the highprecision machine. Pendleton should therefore produce and sell 130,000 units of HP6 (65,000 hours ? 0. 5 hours per unit of HP6) and zero units of R3. 3.R3 Selling price Variable manufacturing costs per unit Variable marketing costs per unit Total variable costs per unit Contribution margin per unit Contributi on margin per hour of the constraine d resource (the regular machine) $100 60 15 75 $ 25 $25 = $25 1 HP6 $150 100 35 135 $ 15 S3 $120 70 15 85 $ 35 $15 $35 = $30 = $35 0 . 5 1 The first step is to compare the operating profits that Pendleton could earn if it accepted the Carter Corporation offer for 20,000 units with the operating profits Pendleton is currently earning.S3 has the highest contribution margin per hour on the regular machine and requires no additional investment such as leasing a high-precision machine. To produce the 20,000 units of S3 requested by Carter Corporation, Pendleton would require 20,000 hours on the regular machine resulting in contribution margin of $35 ? 20,000 = $700,000. Pendleton now has 45,000 hours available on the regular machine to produce R3 or HP6. R3 Total contribution margin from selling only R3 or only HP6 R3: $25 ? 45,000; HP6: $30 ? 45,000 Less Lease osts of high-precision machine to produce and sell HP 6 Net relevant benefit HP6 $1,125,000 $1,350,000 ? 300,000 $1,125,000 $1,050,000 Pendleton should use all the 45,000 hours of available capacity to produce 45,000 units of R3. Thus, the product mix that maximizes operating income is 20,000 units of S3, 45,000 units of R3, and zero units of HP6. This optimal mix res ults in a contribution margin of $1,825,000 ($700,000 from S3 and $1,125,000 from R3). Relative to requirement 2, operating income increases by $325,000 ($1,825,000 minus $1,500,000 calculated in requirement 2).Hence, Pendleton should accept the Carter Corporation business and supply 20,000 units of S3. 11-23 11-33 (35–40 min. ) Discontinuing a product line, selling more units. 1. The incremental revenue losses and incremental savings in cost by discontinuing the Tables product line follows: Difference: Incremental (Loss in Revenues) and Savings in Costs from Dropping Tables Line Revenues Direct materials and direct manufacturing labor Depreciation on equipment Marketing and distribution General administration Corporate office costs Total costs Operating income (loss) $(500,000) 300,000 0 70,000 0 0 370,000 $(130,000)Dropping the Tables product line results in revenue losses of $500,000 and cost savings of $370,000. Hence, Grossman Corporation’s operating income will b e $130,000 higher if it does not drop the Tables line. Note that, by dropping the Tables product line, Home Furnishings will save none of the depreciation on equipment, general administration costs, and corporate office costs, but it will save variable manufacturing costs and all marketing and distribution costs on the Tables product line. . Grossman’s will generate incremental operating income of $128,000 from selling 4,000 additional tables and, hence, should try to increase table sales. The calculations follow: Incremental Revenues (Costs) and Operating Income $500,000 (300,000) (42,000)* (30,000)†  0** 0** $128,000 Revenues Direct materials and direct manufacturing labor Cost of equipment written off as depreciation Marketing and distribution costs General administration costs Corporate office costs Operating income Note that the additional costs of equipment are relevant future costs for the â€Å"selling more tables decision† because they represent increment al future costs that differ between the alternatives of selling and not selling additional tables. † Current marketing and distribution costs which varies with number of shipments = $70,000 – $40,000 = $30,000. As the sales of tables double, the number of shipments will double, resulting in incremental marketing and distribution costs of (2 ? $30,000) – $30,000 = $30,000. *General administration and corporate office costs will be unaffected if Grossman decides to sell more tables. Hence, these costs are irrelevant for the decision. 11-24 11-34 (30 min. ) Discontinuing or adding another division (continuation of 11-33). 1. Solution Exhibit 11-34, Column 1, presents the relevant loss of revenues and the relevant savings in costs from closing the Northern Division. As the calculations show, Grossman’s operating income would decrease by $140,000 if it shut down the Northern Division (loss in revenues of $1,500,000 versus savings in costs of $1,360,000).Grossman will save variable manufacturing costs, marketing and distribution costs, and division general administration costs by closing the Northern Division but equipment-related depreciation and corporate office allocations are irrelevant to the decision. Equipment-related costs are irrelevant because they are past costs (and the equipment has zero disposal price). Corporate office costs are irrelevant because Grossman will not save any actual corporate office costs by closing the Northern Division. The corporate office costs that used to be allocated to the Northern Division will be allocated to other divisions. . The manager at corporate headquarters responsible for making the decision is evaluated on Northern Division’s operating income after allocating corporate office costs. The manager will evaluate the options as follows: If the manager does not close the Northern Division in 2002, the division is expected to show an operating loss of $110,000 after allocating all corporate office costs. If the manager closes the Northern Division, the division would show an operating loss of $100,000 from the write off of equipment.It would show no revenues and, hence, would not attract any corporate office costs. It would also not incur any manufacturing, marketing and distribution, and general administration costs. From the viewpoint of maximizing the operating income against which the manager is evaluated, the manager would prefer to shut down Northern Division (and show an operating loss of $100,000 instead of an operating loss of $110,000 by operating it). In fact, the manager might argue that even the $100,000 operating loss is more a consequence of accounting write offs rather than a â€Å"real† operating loss.Recall from requirement 1 that the decision model favored keeping the Northern Division open. The performance evaluation model of the manager making the decision suggests that the Northern Division be closed. Hence, the performance evaluation model is inconsistent with the decision model. 3. Solution Exhibit 11-34, Column 2, presents the relevant revenues and relevant costs of opening the Southern Division (a division whose revenues and costs are expected to be identical to the revenues and costs of the Northern Division).Grossman should open the Southern Division because it would increase operating income by $40,000 (increase in relevant revenues of $1,500,000 and increase in relevant costs of $1,460,000). The relevant costs include direct materials, direct manufacturing labor, marketing and distribution, equipment, and division general administration costs but not corporate office costs. Note, in particular, that the cost of equipment written off as depreciation is relevant because it is an expected future cost that Grossman will incur only if it opens the Southern Division.Corporate office costs are irrelevant because actual corporate office costs will not change if Grossman opens the Southern Division. The current corpora te staff will be able to oversee the Southern Division’s operations. Grossman will allocate some corporate office costs to the Southern Division but this allocation represents corporate office costs that are already currently being allocated to some other division. Because actual total corporate office costs do not change, they are irrelevant to the division. 1-25 11-34 (Cont’d. ) SOLUTION EXHIBIT 11-34 Relevant-Revenue and Relevant-Cost Analysis for Closing Northern Division and Opening Southern Division Incremental (Loss in Revenues) Revenues and and Savings in (Incremental Costs) Costs from Closing from Opening Northern Division Southern Division (1) (2) $(1,500,000) $1,500,000 825,000 0 205,000 330,000 0 1,360,000 $ (140,000) (825,000) (100,000) (205,000) (330,000) 0 (1,460,000) $ 40,000Revenues Variable direct materials and direct manufacturing labor costs Equipment cost written off as depreciation Marketing and distribution costs Division general administration c osts Corporate office costs Total costs Effect on operating income (loss) 11-35 (30–40 min. ) Make or buy, unknown level of volume (A. Atkinson). 1. Let X = 1 starter assembly. The variable costs required to manufacture 150,000X are: Direct materials Direct manufacturing labor Variable manufacturing overhead Total variable costs $200,000 150,000 100,000 $450,000 The variable costs per unit are $450,000 ? 150,000 = $3. 00 per unit. 11-26 11-35 (Cont’d. The data can be presented in both â€Å"all data† and â€Å"relevant data† formats: All Data Relevant Data Alternative Alternative Alternative Alternative 1: 2: 1: 2: Buy Make Buy Make Variable manufacturing costs $ 3X – $ 3X – Fixed general manufacturing overhead 150,000 $150,000 – – Fixed overhead, avoidable 100,000 – 100,000 – Division 2 manager's salary 40,000 50,000 40,000 $50,000 Division 3 manager's salary 50,000 – 50,000 – Purchase cost, if boug ht from Tidnish Electronics – 4X – 4X Total $340,000 $200,000 $190,000 $50,000 + $ 3X + $ 4X + $ 3X + $ 4X The number of units at which the costs of make and buy are equivalent is: All data analysis: or Relevant data analysis: $340,000 + $3X = $200,000 + $4X X = 140,000 $190,000 + $3X = $50,000 + $4X X = 140,000Assuming cost minimization is the objective, then: †¢ If production is expected to be less than 140,000 units, it is preferable to buy units from Tidnish. †¢ If production is expected to exceed 140,000 units, it is preferable to manufacture internally (make) the units. †¢ If production is expected to be 140,000 units, this is the indifference point between buying units from Tidnish and internally manufacturing (making) the units. 2. The information on the storage cost, which is avoidable if self-manufacture is discontinued, is relevant; these storage charges represent current outlays that are avoidable if self-manufacture is discontinued. Assume t hese $50,000 charges are represented as an opportunity cost of the make alternative.The costs of internal manufacture that incorporate this $50,000 opportunity cost are: All data analysis: Relevant data analysis: All data analysis: Relevant data analysis: $390,000 + $3X $240,000 + $3X $390,000 + $3X X $240,000 + $3X X = = = = $200,000 + $4X 190,000 $50,000 + $4X 190,000 The number of units at which the costs of make and buy are equivalent is: If production is expected to be less than 190,000, it is preferable to buy units from Tidnish. If production is expected to exceed 190,000, it is preferable to manufacture the units internally. 11-27 11-36 (30 min. ) Make versus buy, activity-based costing, opportunity costs (N. Melumad and S. Reichelstein, adapted). 1. Relevant costs under buy alternative: Purchases, 10,000 ? $8. 0 Relevant costs under make alternative: Direct materials Direct manufacturing labor Variable manufacturing overhead Inspection, setup, materials handling Machine ren t Total relevant costs under make alternative $82,000 $40,000 20,000 15,000 2,000 3,000 $80,000 The allocated fixed plant administration, taxes, and insurance will not change if Ace makes or buys the chains. Hence, these costs are irrelevant to the make-or-buy decision. The analysis indicates that Ace should not buy the chains from the outside supplier. 2. Relevant costs under the make alternative: Relevant costs (as computed in requirement 1) Relevant costs under the buy alternative: Costs of purchases (10,000 ? $8. 0) Additional fixed costs Additional contribution margin from using the space where the chains were made to upgrade the bicycles by adding mud flaps and reflector bars, 10,000 ? ($20 – $18) Total relevant costs under the buy alternative $80,000 $82,000 16,000 (20,000) $78,000 Ace should now buy the chains from an outside vendor and use its own capacity to upgrade its own bicycles. 3. In this requirement, the decision on mud flaps and reflectors is irrelevant to t he analysis. Cost of manufacturing chains: Variable costs, ($4 + $2 + $1. 50 = $7. 50) ? 6,200 Batch costs, $200/batcha ? 8 batches Machine rent Cost of buying chains, $8. 20 ? 6,200 a $46,500 1,600 3,000 $51,100 $50,840 $2,000 ? 10 batches In this case, Ace should buy the chains from the outside vendor. 11-28 11-37 (60 min. Multiple choice; comprehensive problem on relevant costs. You may wish to assign only some of the parts. Per Unit Fixed Manufacturing costs: Direct materials Direct manufacturing labor Variable manufac. indirect costs Fixed manufac. indirect costs Marketing costs: Variable Fixed Total $1. 00 1. 20 0. 80 0. 50 $1. 50 0. 90 Variable $3. 50 $0. 50 $3. 00 2. 40 $5. 90 0. 90 $1. 40 1. 50 $4. 50 1. (b) $3. 50 Manufacturing Costs Variable $3. 00 Fixed 0. 50 Total $3. 50 2. (e) None of the above. Decrease in operating income is $16,800. Differential $1,440,000+ $ 91,200* 720,000 + 360,000 + 1,080,000+ 360,000 – 120,000 216,000 336,000 $ 24,000 New Old Revenues 24 0,000 ? $6. 0 Variable costs Manufacturing 240,000 ? $3. 00 Marketing and other 240,000 ? $1. 50 Variable product costs Contribution margin Fixed costs: Manufacturing $0. 50 ? 20,000 ? 12 mos. = Marketing and other $0. 90 ? 240,000 Fixed product costs Operating income *Incremental revenue: $5. 80 ? 24,000 Deduct price reduction $0. 20 ? 240,000 264,000 ? $5. 80 792,000 396,000 1,188,000 343,200 120,000 216,000 $ 7,200 72,000264,000 ? $3. 00 36,000264,000 ? $1. 50 108,000 16,800 –– –– –– – $ 16,800 3 $139,200 48,000 $ 91,200 3. (c) $3,500 If this order were not landed, fixed manufacturing overhead would be underallocated by $2,500, $0. 50 per unit ? 5,000 units.Therefore, taking the order increases operating income by $1,000 plus $2,500, or $3,500. 11-29 11-37 (Cont’d. ) Another way to present the same idea follows: Revenues will increase by (5,000 ? $3. 50 = $17,500) + $1,000 Costs will increase by 5,000 ? $3. 00 Fixed overhead will not change Change in operating income $18,500 15,000 – $ 3,500 Note that this answer to (3) assumes that variable marketing costs are not influenced by this contract. These 5,000 units do not displace any regular sales. 4. (a) $4,000 less ($7,500 – $3,500) Government Contract As above $3,500 Regular Channels Sales, 5,000 ? $6. 00 Increase in costs: Variable costs only: Manufacturing, 5,000 ? $3. 0 $15,000 Marketing, 5,000 ? $1. 50 7,500 Fixed costs are not affected Change in operating income 5. (b) $4. 15 $30,000 22,500 $ 7,500 Differential costs: Variable: Manufacturing Shipping Fixed: $4,000 ? 10,000 $3. 00 0. 75 $3. 75 ? 10,000 0. 40 ? 10,000 4,000 $4. 15 ? 10,000 $41,500 $37,500 Selling price to break even is $4. 15 per unit. 6. (e) $1. 50, the variable marketing costs. The other costs are past costs, and are, therefore, irrelevant. None of these. The correct answer is $3. 55. This part always gives students trouble. The short-cut solution below is followed b y a longer solution that is helpful to students. 7. (e) 11-30 11-37 (Cont’d. Short-cut solution: The highest price to be paid would be measured by those costs that could be avoided by halting production and subcontracting: Variable manufacturing costs Fixed manufacturing costs saved $60,000 ? 240,000 Marketing costs (0. 20 ? $1. 50) Total costs Longer but clearer solution: Comparative Annual Income Statement Present Difference Proposed Revenues Variable costs: Manufacturing, 240,000 ? 3. 00 Marketing and other, 240,000 ? $1. 50 Variable costs Contribution margin Fixed costs: Manufacturing Marketing and other Total fixed costs Operating income $1,440,000 720,000 360,000 1,080,000 360,000 120,000 216,000 336,000 $ 24,000 $ – +132,000 – 72,000 $1,440,000 852,000* 288,000 1,140,000 300,000 60,000 216,000 276,000 $ 24,000 $3. 00 0. 25 0. 30 $3. 55 – 60,000 $ 0 This solution is obtained by filling in the above schedule with all the known figures and working â⠂¬Å"from the bottom up† and â€Å"from the top down† to the unknown purchase figure. Maximum variable costs that can be incurred, $1,140,000 – $288,000 = maximum purchase costs, or $852,000. Divide $852,000 by 240,000 units, which yields a maximum purchase price of $3. 55. 11-31 11-38 (15 min. ) Make or buy (continuation of 11-37). The maximum price Class Company should be willing to pay is $3. 9417 per unit. Expected unit production and sales of new product must be half of the old product (1/2 ? 240,000 = 120,000) because the fixed manufacturing overhead rate for the new product is twice that of the fixed manufacturing overhead rate for the old product.Proposed Make New Old Present Product Product Total Revenues $1,440,000 $1,080,000 $1,440,000 $2,520,000 Variable (or purchase) costs: Manufacturing 720,000 600,000 946,000* 1,546,000 Marketing and other 360,000 240,000 288,000 528,000 Total variable costs 1,080,000 840,000 1,234,000 2,074,000 Contribution margin 360,000 240,000 206,000 446,000 Fixed costs: Manufacturing 120,000 120,000 120,000 Marketing and other 216,000 60,000 216,000 276,000 Total fixed costs 336,000 180,000 216,000 396,000 Operating income $ 24,000 $ 60,000 $ (10,000) $ 50,000 *This is an example of opportunity costs, whereby subcontracting at a price well above the $3. 50 current manufacturing (absorption) cost is still desirable because the old product will be displaced in manufacturing by a new product that is more profitable.Because the new product promises an operating income of $60,000 (ignoring the irrelevant problems of how fixed marketing costs may be newly reallocated between products), the old product can sustain up to a $10,000 loss and still help accomplish management's overall objectives. Maximum costs that can be incurred on the old product are $1,440,000 plus the $10,000 loss, or $1,450,000. Maximum purchase cost: $1,450,000 – ($288,000 + $216,000) = $946,000. Maximum purchase cost per unit: $946,0 00 ? 240,000 units = $3. 9417 per unit. Alternative Computation Operating income is $9. 00 – $8. 50 = $0. 50 per unit for 120,000 new units Target operating income Maximum loss allowed on old product Maximum loss per unit allowed on old product, $10,000 ? 40,000 = Selling price of old product Allowance for loss Total costs allowed per unit Continuing costs for old product other than purchase cost: Fixed manufacturing costs––all transferred to new product Variable marketing costs Fixed marketing costs Maximum purchase cost per unit $60,000 50,000 $10,000 $0. 0417 $6. 0000 0. 0417 6. 0417 $ – 1. 20 0. 90 2. 1000 $3. 9417 11-32 11-39 (30 min. ) Appendix). 1. Optimal production plan, computer manufacturer (Chapter X = Units of printers Y = Units of desktop computers Objective: Maximize total contribution margin of $200X + $100Y Constraints: For production line 1: 6X + 4Y ? 24 For production line 2: 10X ? 0 Sales of X and Y: X – Y ? 0 Negative productio n impossible: X 0 ? Y ? 0 2. Solution Exhibit 11-39 presents a graphical summary of the relationships. The sales-mix constraint here is somewhat unusual. The X – Y ? 0 line is the one going upward at a 45-degree angle from the origin. The optimal corner is the point (2, 3), 2 printers and 3 computers. The corner point where the production line 1 and production line 2 constraints meet is X = 2, Y = 3 that can be calculated by solving: 6X + 4Y = 24 (1) Production line 1 constraint 10X = 20 (2) Production line 2 constraint From (2) X = 20 ? 10 = 2 Substituting for X in (1) 6 ? 2 + 4Y = 24 4Y = 24 – 12 = 12 Y = 12 ? = 3 The corner point where the production line 2 constraint and the product-mix constraint meet is X = 2, Y = 2 that can be calculated by solving: 10X = 20 (2) Production line 2 constraint X – Y = 0 (3) Product-mix constraint From (2) X = 20 ? 10 = 2 Substituting for X in (3) Y = 2 Using the trial-and-error method: Trial 1 2 3 4 Corner (X; Y) (0; 0) (2; 2) (2; 3) (0; 6) Total Contribution Margin $ 200(0) + $100(0) = $ 0 200(2) + 100(2) = 600 200(2) + 100(3) = 700 200(0) + 100(6) = 600 The optimal solution that maximizes operating income is 2 printers and 3 computers. 11-33 11-39 (Cont’d. ) SOLUTION EXHIBIT 11-39 Graphic Solution to Find Optimal Mix, Information Technology, Inc. Product Line 1 Constraint Product Y Production in Units 6 Product Line 2

Monday, July 29, 2019

Myself As the King Consumer Essay Example | Topics and Well Written Essays - 500 words

Myself As the King Consumer - Essay Example Therefore, I believe that I cannot make a mistake when making a purchase because it comes highly recommended by trustworthy people. Then, of course, there are the trending Tweets when it comes to the latest trends in gadgets, fashion, accessories, music, etc. There is a whole multimedia campaign going on here just because Taylor Swift wants me to go back to 1989. the question is, do I spend my hard earned money just on the say-so of the brand marketers? As a consumer, it becomes increasingly difficult for me to purchase items because of all the outside factors that involve themselves in my purchasing decision. However, I find that once I break free from the influence of the brand marketers and my family members, I am even more lost than ever before I purchase something. Why is that? There are too many brands out there that all tout themselves to be better than the other for me to make a personal judgment about the item I wish to purchase. This is when my purchases begin to enter the â€Å"Hail Mary† phase. I make a decision, don't look back, or allow the salesperson to sales talk me into looking at another item before I head to the cashier. I made my decision, I can only hope it was the right one. That is what purchasing decisions have come to these days. Too much influence from other sources has spoiled the shopping experience for me. I can't even buy a tube of toothpaste these days without comparing prices, checking coupons, and googling product reviews, right there in the middle of the supermarket! That just goes to show that there is no such thing as a King Consumer anymore. These days, people know what they want, the problem, is which brand to choose. This is when the practical side of me comes into play. I believe that if I buy something too cheap, it'll break within the day. If it is too expensive, I get bells and whistles that I don't really need. So I try to  shoot for the middle brand.

Sunday, July 28, 2019

Dworkins Distinction Between Ethics and Morality Essay

Dworkins Distinction Between Ethics and Morality - Essay Example Certainly, morals are informed by both â€Å"majorities† and â€Å"minorities†4 and it, therefore, makes sense that standards are set, regulated and enforced by via executive functions. For Dworkin, it is within this paradigm that the political community exists. The political community is a pivotal point of individual and collective identity. Depending on whether or not the political community is successful or not, members of the community will either perceive that the political community enhances the quality of our lives or limits it.5 According to Dworkin, morals and religions differ and conflict among groups and thus it is impossible to construct a universal legal or communal code that embodies all moral and religious ideologies and values. Thus, political communities set limits and standards for all.6 In this regard, Dworkin’s conceptualization of the relationship between morality and ethics explains the relationship between morality and the law in a way that is consistent with Rawls’ idea of justice.7 For Rawls, justice is achieved by setting standards, but by avoiding prohibiting moral and religious beliefs that deviate from the established standards. A just society instead will tolerate the views of others.8 Similarly, Dworkin advocates for a political framework that takes a neutral stance in that it does not favor one set of religious or moral values over another.9 Rawls conceptualization of justice and the political community is more realistic than Dworkin’s theory. It is conceivable that a legal and/or political framework can set and enforce specific moral standards and at the same time recognize and tolerate other religious and moral standards that are different from the normative standard. This would accord with ideas of equality. Thus Rawls’ theory of political liberalism makes more sense than Dworkin’s theory of liberal community. Dworkin advocates for a neutral framework while admitting that it is impossible to formulate a universal moral code. Arguably, in order to be neutral, the political community’s framework must reflect the common values of all members of the community. The values and morals of some members of the political community will be left out since the liberal community must determine and set standards for all to follow. Therefore, Dworkin’s theory of liberal community is a bit contradictory. Nevertheless, Dworkin insists that law and the liberal community that informs the law is beneficial to members of the community because it formulates standards thus facilitating fairness and certainty. It also ensures that members of the community are treated equally and thus makes the community more sincere and enhances the moral rationale for the exercise of executive powers.10 The difficulty with this aspect of Dworkin’s reasoning, however, is that the executive may decide to treat all members of a community with equal oppression.11 In such a case, w ould the executive have a moral justification for the exercise of its powers? The answer according to Gough and Stables is found in Dworkin’s general assumption that the liberal community is structured around respect for rights and dignity of the members of the community.

Saturday, July 27, 2019

Effect of Divorce on Children Research Paper Example | Topics and Well Written Essays - 2000 words

Effect of Divorce on Children - Research Paper Example Although divorce of parents may have both positive and negative effects on a child, depending on a lot of factors including but not limited to the family's situation prior to divorce, parenting skills of one or both parents, attachment of the child to one or both parents and hostilities at home when both parents are together, it is more often than not that detrimental effects become more dominant. It needs taking note that the different effects of divorce on children has a lot to do with their age during which they had to experience their parents get divorce. Nevertheless, the degree or seriousness of these detrimental effects to a child varies depending on the same factors earlier-mentioned. Parents should take on the responsibility of lessening the adverse effects of divorce on their children considering that it is their failure that caused their children to go through hard times at an early stage in life. 1. To classify children into age groups whereby each age group would best reflect commonalities of those belonging to the same category in relation to how social and family situations affect their well-being and career achievement. 6. ... Parents should take on the responsibility of lessening the adverse effects of divorce on their children considering that it is their failure that caused their children to go through hard times at an early stage in life. PROBLEM STATEMENT What is the worst age for children during which their parents could get divorced Specific Research Questions: 1. Into what age groups can children be classified in studying the effects of divorce on their general well-being and career achievement 2. What are the general effects of divorce on children belonging to different age groups 3. What age group in children suffer the most psychological stress or trauma when their parents get divorced 4. What age group in children is most adversely affected when their parents get divorced in relation to academic achievement 5. What age group in children is most adversely affected when their parents get divorced in relation to professional achievement 6. What measures can we do to lessen the adverse affect of divorce on children belonging to the age group most affected OBJECTIVES 1. To classify children into age groups whereby each age group would best reflect commonalities of those belonging to the same category in relation to how social and family situations affect their well-being and career achievement. 2. To find out the general effects of divorce on children particularly on each age group. 3. To find out which age group in children suffers the most psychological stress or trauma when parents get divorced. 4. To find out which age group in children suffers the worst academic set back as an effect of the parents getting divorced. 5. To find out which age group in children is most adversely affected by their parents getting divorced in relation to their career

Friday, July 26, 2019

TELEVISION STUDIES Library Research Project Paper

TELEVISION STUDIES Library Project - Research Paper Example They therefore designed some fieldwork involving 20 under-two year olds, ten male and ten female, who watched the same episode of Teletubbies in their usual home or playgroup environment while being video-recorded. The tapes were then synchronised with the actual Teletubby recording, in such a way that the child’s movements, verbalizations and expressions can be seen as they relate frame by frame with the program. The tapes were analysed according to criteria of attention level, parasocial responses, TV literacy response, verbal echoing, cognitive response, pleasure, action around the TV set, and sharing with a companion. The study made various conclusions regarding the impressive attention spans that were demonstrated in particular sections of the program and the good basis that this data delivered for further â€Å"theorizing the interactivity of our young respondents with media texts† (p. 334). This article provides an excellent methodological model, based on observa tion and simple technology, which could be very useful for those wishing to explore issues around media designed for the under two age group or any other group who may not be able to verbalize their responses effectively. This chapter from an academic book was written by a Professor from Amsterdam in the Netherlands who leads a research center for research on children, adolescents and the media. It traces in detail the way that a child’s early development levels relate to the way that the child interacts with various media. What is interesting about this chapter is that it shows things from the child’s point of view, and warns against an adult, or parent, perception of what the child is doing or what the program is trying to do. So, for example, programs like Teletubbies which appear boring, repetitive and monotone to an adult, are in fact very sophisticated media texts which use carefully chosen stimuli like

Thursday, July 25, 2019

Fictional story Essay Example | Topics and Well Written Essays - 1000 words

Fictional story - Essay Example Since he looked hopeless and pathetic, the Holmes were happy that he could help them with some homework. They hoped to keep him so that they could also send him for errands and leave them at home looking after the kids. â€Å"How much will you be paying me for the responsibilities?† asked John, â€Å"we do not have to pay you, that will compensate for the accommodation and food that we will be giving you.† Upon hearing this, John was annoyed. He started complaining and even almost insulted the Holmes for their lack of concern for him. It took the intervention of Julieta, a woman who personally knew John in the village. Since he had no other place to go, he had to accept the deal with the Holmes. Life at the Holmes was a bit challenging. He was forced to wake up early and slept late. Although he did not spend not even a cent of his savings, he did not earn anything except food and accommodation benefit. This infuriated John and made him confront the Holmes on the second day, â€Å"This is too unfair! I have to leave you alone with your pathetic offers.† John had started imagining that everything would work out well for him and that he no longer needed Holmes’ help. He even accused the Holmes of misusing him and vowed to sue them by the end of the week. This is despite the fact that he had personally agreed to the initial deal of staying with them and doing what the family does for no pay. Outside the Holmes, life was not as he had expected. It reminded him of his school days when he solely depended on his peers. When he was in class five, he had entered into a peer gang that taught him many ‘skills’ including what he referred to as ‘taking what others had misplaced.’ The only thing that kept John away from stealing is the memory of his late father who had died while John was twelve. John had not seen his father since birth and only spent three months with him before his death. As his mother had earlier narrated to

Assignment Example | Topics and Well Written Essays - 500 words - 3

Assignment Example (15 reasons, n.d) Another good form of enhancing and staging presence of the product and company over the internet is by selecting various other forms of advertising available online. Some of the important ones are social networking websites, search engine optimization, banners (paid advertising), linking strategies, public relations. i) Social network websites: This is one of the recent forms of online advertising, here website like face book, twitter etc are used to gain exposure and online presence. The use of sponsored videos in you tube will also attract site traffic. ii) Search engine optimization: Today there are hundreds of millions of websites and only about 10-20 % of the websites are ever really indexed, therefore it is important for the optimization of web pages with key words and phrases, different types of software are available for search engine positioning.(Ralph ,2000) iii) Banners (paid advertising): These graphical or animated promotions on websites advertise products in a very stimulating manner. The incorporation of this in the advertising strategy will help a great deal. Sites like you tube, google and other gaming websites will help in reaching targeted audience and increasing traffic on the desired website. (Banner ads) iv) Linking Strategies: This basically means that more links pointing to the website there more traffic generated and the greater the popularity the higher the rank in the search engines. The monetary input in quite expansive. v) Public Relations: Attaining of several press releases and coverage through print or internet publications will help boost traffic many folds over, this nature is mostly free and has proved to be very effective. (Ralph ,2000) Activation: This website is not very interactive, it does not possess options such as detailed information on the product, options to purchase,

Wednesday, July 24, 2019

Human Trafficking Research Paper Example | Topics and Well Written Essays - 1250 words

Human Trafficking - Research Paper Example According to the Trafficking Victims Protection Act (TVPA), human trafficking is defined according to the nature and purpose of trafficking human beings. Hence, TVPA defines sex trafficking as an act where â€Å"a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such an act has not attained 18 years of age† (Department of States.., 2007, p.7). The TVPA defines other kinds of trafficking as â€Å"the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use offorce, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery†. In simple words, the victims of trafficking are forced to work by keeping them captive (Hart, 2009, p. 4). Forced labor is called trafficking even when a person is forced to work against his will in his own country. According to International Labor Organization (ILO), at a given time, around 12.3 million to 27 million people are the victim of "forced labor, bonded labor, forced child labor, and sexual servitude" in different parts of the world. This shows that the racket of human trafficking is not only strong but is also widespread. The statistics also suggest that traffickers are not restricted to certain areas or countries. In fact, traffickers increase the vulnerability of the victims by trafficking them to the countries at the vast distance, where the victims feel alien due to a large barrier in language and culture.... In simple words, the victims of trafficking are forced to work by keeping them captive (Hart, 2009, p. 4). Forced labor is called trafficking even when a person is forced to work against his will in his own country. According to International Labor Organization (ILO), at a given time, around 12.3 million to 27 million people are victim of â€Å"forced labor, bonded labor, forced child labor, and sexual servitude† in different parts of the world (Department of States.., 2007, p.8). This shows that the racket of human trafficking is not only strong, but is also wide spread. The statistics also suggest that traffickers are not restricted to certain areas or countries. In fact, traffickers increase the vulnerability of the victims by trafficking them to the countries at vast distance, where the victims feel alien due to a large barrier in language and culture (Department of States.., 2007, p.7). This further removes the chances of victims asking for help or support from people aro und them. In this way, traffickers use different methods to weaken the victims and make them feel vulnerable, bonded and slave at the hands of the traffickers and customers. Types Of Human Trafficking There are different types of human trafficking like bonded labor, involuntary servitude, domestic servitude, prostitution etc (Hart, 2009, p. 6). People who are victim of human trafficking are forced to work in various fields and farms to plant and harvest the crop (Hart, 2009, p. 6). Some are made to work in restaurants to do cleanup jobs (Hart, 2009, p. 6). Women and children are forced to work hard as domestic servant, either by torturing them physically and emotionally, or by promising them good pay and schooling (Hart, 2009, p. 6). They are made to

Tuesday, July 23, 2019

Legislative Aspects of Nursing informatics Coursework

Legislative Aspects of Nursing informatics - Coursework Example vent that the breach involves more than 500 patients, then it is imperative that the Department of Health and Human Services (HHS) also receive similar notification. Secondly, the act also establishes the necessity for health institutions through HER system to make it possible for individuals to access their PHI in an electronic format. In line with this, the act establishes that those who receive incentives should ensure that the system is of meaningful use, failure to which results in withdrawal of the said incentives. The act has also specified that vendors providing HER system directly qualify as business associates. To this end, the act intends to make it possible for more vendor/provider dialogue regarding matter of mutual interest, so that service provision becomes more effective. These reforms have potential impact in the practice of psychiatry. For instance, the act provides quality measure incentives through the Maintenance of Certification Program (MOCP), (American Academy of Child and Adolescent Psychiatry, 2013). In addition to participation in MOCP for up to one year, the law requires that physicians must submit data on quality measures through the MOCP under PQRI. McGinigle and Mastrian (2013) observe three topical issues that are encountered in health informatics namely leadership challenges, limited functionality in clinical practice and education in terms of necessary competencies. Regarding leadership challenges, McGinigle and Mastrian note that there exists a knowledge gap within leadership in the sector, and more specific the nursing industry. IN the nursing context, the two advance that there is need for nurse leaders to acquire current skill set and knowledge that will allow them to understand and adopt modern information technologies imperative to delivery of quality care. It is therefore important for nurses and other medical practitioners alike to gain the necessary knowledge. On limited functionality in clinical practice, McGinigle

Monday, July 22, 2019

How would a Scholarship Assist Me After Graduation Essay Example for Free

How would a Scholarship Assist Me After Graduation Essay In my findings, it is not just enough to have enrichment of goal, fervency of passion and the keeping of focus, there is the place of vital impact played by pecuniary support from guardian(s) to actualize the desire. I strongly believe many brave and highly intelligent ones have been choked out of their academic dream in life after graduation. Statistical findings have unarguably revealed that financial incapability in one of the factors responsible for thwarted vision in academic excellence. I am very proud to note however, that our school is making part of her contributions in easing students’ financial burden as a responsible institution in the society. The scholarship is a gesture I really appreciate whole heartedly. I do forward this scholarship application to passionately appeal for my consideration in the grant in order to survive hardship in my future pursuit of academic excellence. See more: how to write a college scholarship essay format Being a promising member from a home with single mother who had lost his father as early as age five, I have only being struggling with ways out of incessant hopelessness, deprivation and unavoidable emotional abuse. I have labored assiduously with my parent to make both ends meet; during summer, I work at Boys and Girls Club to save some fund for school and trying hard to work-out element of laziness from exacerbating the poverty. Sooner after my graduation with me and my two other sisters in studying in college, the financial stress for our mother would climax. The cost of education even in a low grade school with the cheapest environment is overwhelming despite how hard I try to save. My two sisters also need optimum care to cater for their more demanding feminine nature. So huge are my worries despite the strong zeal to pursue academic excellence which I currently demonstrate in school for being among the top 10%. With the hope of scholarship aid, I look forward to a redemptive future from excellence incapacitation. In the college, the scholarship will assist to continual keep focus and meet up the grant expectation.

Sunday, July 21, 2019

Student Monitoring System Development

Student Monitoring System Development Project Definition Document A web-based student monitoring system 1. Introduction Educational software has been evolving in the last couple of years, catching up with the advances of software in the rest of the IT world. Mainly due to the advantages of e-learning more and more institutions are inventing to new technologies to accommodate their learners. This moved educational software from the traditional small client application connecting to central databases, to lighter web applications accessible from multiple clients via the internet. The next step that web based educational applications are taking nowadays is a Service Oriented Approach (SOA). This came after the introduction of the web services technology, AJAX and of course the frameworks that support the Model View Controller approach in developing applications. What is meant from the above, is that web based applications need to be able to collaborate with other systems since not all different components of the IT infrastructure of a university is developed by one company. Also open standards enforce more commercial and open source software developers to use approaches that their applications can be easily integrated and expanded. In our case we need to develop a web based student monitoring system, where personal tutors can monitor the attendance of their first year students. Our system would be developed so it would make it possible to be plugged into the existing systems of the University and if possible use data of them system to add more functionality and ease the administrative tasks staff members have to do. At the beginning of each year, the director of first year students s allocating personal tutors to students and also adds the students to a particular lab group. Then attendance sheets should be produced as outputs of our system to lab assistants and personal tutors. The problem with the existing system is that the interface of adding and modifying information is not very flexible. Our system should overcome this problem and make it easier for staff to keep attendance records of the students. Also in order for our system to be able to fit with the existing solutions, a service oriented approach would be used. Interfaces to import structured external data are one of the main areas that we will concentrate and also adding the flexibility of getting data out of the system. Student Monitoring System Student Information System Existing attendance system VLE Portal/Social Networking site Student Monitoring System Interface In the figure above the highlighted components are the ones we are going to develop as a part of this project. The links of our system to other systems would be implemented using a service oriented approach and web 2.0 techniques. 2. Aims and Objectives Aim Develop an attendance monitoring system to be embedded within the existing systems of the University using a service oriented approach and web 2.0 technologies to display and enter information to the system Objectives and Testing methods: Research and analyse service oriented approach and MVC frameworks in system development. A review of the different approaches will evaluate why we used a specific framework and methodology to develop our solution. Design, implement and test a complete implementation of the student monitoring system. Test all classes using Unit testing and also produce test plans for different functions of the tool as a blackbox / whitebox testing where appropriate. Produce a set of public APIs that can be used from our system to enable integration with existing systems. Testing of this objective would be by extracting data from the university systems and importing in it to our system easily. Also provide a set or web service or RSS feeds to import data to other systems Methodology Literature review on Service oriented approach in software engineering, J2EE MVC frameworks, RSS and web services. This stage will help us meet the first objective Requirements gathering with rapid prototype development. We will use the WebML approach for web application development which is an iterative simplified waterfall model approach. The outcomes of this stage would be a database schema supported by the entity diagram of the application and also any other diagrams required from the WebML approach. Objective 2 will be met at the end of this phase. Test and document all available APIs. At the end of this stage objective 3 would be met Testing and Evaluation: Expert review to test the chosen technical approach service oriented approach and MVC framework Test the code to minimise the risks of potential bugs Test the system for usability and functionality with potential stakeholders and gather their responses Tools: Eclipse IDE Tomcat J2EE server Spring framework Struts framework WebML AXIS, or other web service engine Deliverables: Student monitoring system with APIs so the system is easily integrated with existing systems Unit testing classes and results, test plan and test results Project report including an evaluation of the project with respect to its objectives. Feasibility and Risks: The proposed project will give me the opportunity to work on a real time scenario in the area of software engineering and provide a solution to an existing problem. From my current studies I got the appropriate base to explore more J2EE technology and develop an application by going through the full lifecycle. Related Theory(Some work needed) Areas of theory concerned in the project: Service oriented approach: J2EE frameworks: Tomcat installation and web application packaging Web app security Software development method: rapid prototyping and WebML. Database design Entity relation modelling and normalization J2EE development using UML and frameworks Unit, Black Box and White Box testing. Application Program interface (API) development Work plan (needs to be completed)