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- Determine which factor of production is needed in the following problem. 1.The ABM manufacturing Co.hired a gardener.He uses a lawn mower for landscaping.Which factor of production would you consider this machine? 2.The owner of the company withdrew cash for the salaries of thw employees.which factor of production would you consider cash on hand? 3.The top manager of the firm said "the great ideas,consepts and emotional determination of a person to produce something that consumers want to buy" is very important for the company.What factor of production describes the ability to create great ideas? 4.The farmers planted pineapple cutting in the vacant area located in their locality.Which factor of production would you consider a pineapple plantation?Franklin Company makes fine jewelry that it sells to department stores throughout the United States. Franklin is trying to decide which of the two bracelets to manufacture. Cost data pertaining to the two choices follow. Bracelet A Bracelet B Cost of materials per unit Cost of labor per unit Advertising cost per year Annual depreciation on existing equipment %24 30 37 43 43 8,800 6,500 7,700 5,900 Required a. Identify the fixed costs and determine the amount of fixed cost for each product. b. Identify the variable costs and determine the amount of variable cost per unit for each product. c. Identify the avoidable costs and determine the amount of avoidable cost for each product.Calculate customer life time value for the data below. (Show Work) Purchase Occasion Transition Probability Average Basket Size 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 ΝΑ 55% 75% 78% 83% 81% 81% 86% 82% 85% 90% 93% 85% 89% 85% 91% 97% 97% 96% 85% 83% 89% 82% 79% 82% 89% 88% 86% 67% 75% $46.71 $56.71 $57.93 $56.87 $58.26 $66.90 $63.62 $70.27 $63.03 $62.60 $71.81 $76.76 $78.14 $65.65 $74.84 $81.11 $72.08 $87.30 $71.94 $75.44 $70.35 $72.86 $66.68 $79.90 $93.91 $61.08 $94.16 $100.40 $77.89 $99.70
- Please answer this question: 1. Traveling requisition used for one time capital purchases. A. False B. True 2. Invitation for bid is used to buy when: A. The specifications are designed for one supplier. B. The buyer has wants a competition on the best offer, C. There is complete monopoly. D. The buyer prefers a specific supplier. 3. Spend analysis is the process of determining how much to pay for service A. False B. TrueS1: Cost plus contract is a contract used on long term construction contracts in which the contractor agrees to a contract price that is fixed, either at the inception or at a fixed rate per unit of output, which in some cases may be subject to cost escalation clauses.S2: Variable contract is a construction contract in which the contractor is reimbursed for allowable or otherwise defined costs, plus a percentage of these costs or a fixed fee * A. Both are true B. S2 True; S1 False C. Both are false D. S1True; S2 FalseCorral Cartage leases trucks to service its shipping contracts. Larger trucks have cheaper operating costs if there is sufficient business, but are more expensive if they are not full. CC has estimates of monthly shipping demand. What comparison method(s) would be appropriate for choosing which trucks to lease? 1.Present Worth(PW) 2.Annual Worth(AW) 3.Payback Period
- Relevant Cost Exercises Each of the following situations is independent:a. Make or Buy Terry Inc. manufactures machine parts for aircraft engines. CEO Bucky Waltersis considering an offer from a subcontractor to provide 2,000 units of product OP89 for $120,000.If Terry does not purchase these parts from the subcontractor, it must continue to produce themin-house with these costs:[LO 11-1, 11-2, 11-3,11-4, 11-7]Cost per UnitDirect materials $28Direct labor 18Variable overhead 16Allocated fixed overhead 4Required1. What is the relevant cost (per unit, rounded to 2 decimal places) to make the product internally?2. What is the estimated increase or decrease in short-term operating profit of producing the productinternally versus purchasing the product from a supplier? (Round your answer to nearest whole dollar.)3. What strategic considerations likely bear on this make-vs.-buy decision?A. restaurant is opening in Laie and is going to cater to the rich and the famous. It is a 35 seat A B C D Cash Cost 3000 3200 2700 2000 Estimate life 6 6 6 6 Trade in 500 500 600 0 Installation 675 675 675 675 Initial training 325 350 225 275 Annual training 150 125 125 100 Annual labor 3500…Consider the following price and dividend data for Ford Motor Company: Dividend ($) Date December 31, 2004 January 26, 2005 April 28, 2005 July 29, 2005 October 28, 2005 December 30, 2005 Price ($) $14.04 $13.43 $9.14 OA. -44.4% OB. -40.2% OC.-42.32% OD. -38.1% $10.74 $8.02 $7.72 $0.12 $0.12 $0.12 $0.12 Assume that you purchased Ford Motor Company stock at the closing price on December 31, 2004 and sold it at the closing price on December 30, 2005. Your realized annual return is for the year 2005 is closest to:
- 123456789unn3u5167 10 5 6 Variable Cells 18 19 20 21 22 23 24 25 26 27 28 29 30 31 7 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 8 9 10 11 2 11 13 12 14 12 Constraints Name Cell $B$15 demand for A LHS $B$16 total demand LHS 16 17 $B$17 procssing time LHS Cell $C$8 A $D$8 B 15 16 Name Final Reduced Objective Allowable Allowable Value Cost Coefficient Increase Decrease 1E+30 250 100 Final Value Price 250 350 600 0 0 Shadow Constraint R.H. Side 0 4 -1 2 3 Q1 what is the range for objective coefficient of A and B? 125 350 600 1 1E+30 Allowable Allowable Increase Decrease Q4) if the objective coefficient of A goes up to 5 dollars what will happen? Q2 assume that the final value of B is 0 and the reduced cost of B is 1; explain the situation ? Q5 If the objective coefficient of B goes up to 8 dollars what will happen? Q6) if the obj coeff of A goes down to -5 dollars what does that mean? 125 125 100 1 Q3 if the objective coefficient of A goes down to 1 dollar and objective coefficient of B…28. 4.4 The Gorman Manufacturing Company must decide whether to purchase a component part from a supplier or to manufacture the component at its own plant. If demand is high, it would be to Gorman's advantage to manufacture the component. If demand is low, however, Gorman's unit manufacturing cost will be high because of underutilization of equipment. The projected profit in thousands of dollars for Gorman's make-or-buy decision is as follows. Demand Medium $40 $45 Decision Manufacture component Purchase component a. Determine the best decisions using the maximax, maximin, and opportunity loss decision criteria. b. Assume that the probability of low demand is 0.35, of medium demand is 0.35, and of high demand is 0.30. What is the best decision using the expected value criterion and what is the expected value of perfect information? Low $220 $210 High $100 $70Please do not give solution in image format thanku Answer these Multiple Choice Questios: 6) Which of the following could be consideration to meet this important contracting requirement in exchange for a concert ticket worth $50? a) A mere peppercorn will do! b) $50 cash c) a video game originally purchased for $35 d) All of the above