When Hurricane Katrina struck New Orleans, there was a significant loss of aquarium fish at the Audubon Aquarium of the Americas. FEMA originallystated that the aquarium needed to buy the fish from commercial vendors, a method the agency said would cost $616,849 but would comply with disaster aid laws. FEMA later reversed their decision and allowed the aquarium staff to catch the fish themselves at a total cost of $99,766. If it is assumed that the aquarium staff spent the $99,766 equally over a 12-month period of time, what rate of return per month did their effort represent? Assume FEMA would have given the aquarium the $616,849 at the end of month 12.

When Hurricane Katrina struck New Orleans, there was a significant loss of aquarium fish at the Audubon Aquarium of the Americas. FEMA originallystated that the aquarium needed to buy the fish from commercial vendors, a method the agency said would cost $616,849 but would comply with disaster aid laws. FEMA later reversed their decision and allowed the aquarium staff to catch the fish themselves at a total cost of $99,766. If it is assumed that the aquarium staff spent the $99,766 equally over a 12-month period of time, what rate of return per month did their effort represent? Assume FEMA would have given the aquarium the $616,849 at the end of month 12.

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter11: Environmental Regulation And Sustainability

Section: Chapter Questions

Problem 1QAP

See similar textbooks

Similar questions

In a recent year, an oil refinery in Texas City, Texas, on the Houston Ship Channel exploded. The explosion killed 14 people and sent a plume of smoke hundreds of feet into the air. The blast started as a fire in the section of the plant that increased the octane of gasoline that was produced at the refinery. The Houston Ship Channel is the main waterway that allows commerce to flow from the Gulf of Mexico into Houston. The Texas Commission on Environmental Quality express concern about the release of nitrogen oxides, benzene, and other known carcinogens as a result of blast. Neighbors of the plant complained that the plant had been emitting carcinogens for years and that the regulators had ignored their complaints about emissions and unsafe working conditions. Instructions Answer the following Questions Outline the costs that the company now faces as a result of the accident. How could the company have reduced the cost associated with the accident?
PowerSwitch, Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout North Carolina affected Power Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the disaster recovery specialists clean the buildings, Stephen Plum, the company controller, is anxious to salvage whatever records he can to support an insurance claim for the destroyed inventory. He is standing in what is left of the accounting department with Paul Lopez, the cost accountant. “I didn’t know mud could smell so bad,” Paul says. “What should I be looking for?” “Don’t worry about beginning inventory numbers,” responds Stephen, “we’ll get them from last year’s annual report. We need first-quarter cost data.” “I was working on the first-quarter results just before the storm hit,” Paul says. “Look, my report is still in my desk drawer. All I can make out is that for the first quarter, material…
PowerSwitch, Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout North Carolina affected Power Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the disaster recovery specialists clean the buildings, Stephen Plum, the company controller, is anxious to salvage whatever records he can to support an insurance claim for the destroyed inventory. He is standing in what is left of the accounting department with Paul Lopez, the cost accountant. “I didn’t know mud could smell so bad,” Paul says. “What should I be looking for?” “Don’t worry about beginning inventory numbers,” responds Stephen, “we’ll get them from last year’s annual report. We need first-quarter cost data.” “I was working on the first-quarter results just before the storm hit,” Paul says. “Look, my report is still in my desk drawer. All I can make out is that for the first quarter, material…
Arsenic enters drinking water supplies from natural deposits in the earth or from agricultural and industrial practices. Since it has been linked to cancer of the bladder, kidney, and other internal organs, the EPA has lowered the arsenic standard for drinking water from 0.050 parts per million to 0.010 parts per million (10 parts per billion). The annual cost to public water utilities to meet the new standard is estimated to be $202 per household. If it is estimated that there are 92 million households in the United States and that the lower standard can save 52 lives per year valued at S 4 million per life, what is the benefit/cost ratio of the regulation? Important Note: Give B/C with 3 decimal places
When the Exotic Newcastle disease (an infectious disease) broke out in southern California in 2003, it could have spelled disaster for the San Diego zoo. The zoo spent almost half a million dollars on quarantine measures in 2003. It worked: no birds got sick and the damage to the zoo's budget was minimized by a monthly budget re forecast. The new planning process introduced a year earlier, allowed the zoo to redirect resources to ward off the disease. The San Diego zoo's annual static budget was behind the times before Paula Brock took over as CFO in 2001. Brock's first efforts were link strategy to the process. Consultants believe it is a key way to improve people's involvement in budgeting. What is the major benefit of tying the budget to the overall goals of the company?
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $240,000. The company is contesting the fine. In addition, an employee is seeking $220,000in damages related to the spill. Finally, a homeowner has sued the company for $310,000. The homeowner lives 35 miles from the plant but believes that the incident has reduced the home’s resale value by $310,000. Ayers’ legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $125,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner’s case is much weaker and will be decided in favor of Ayers. Otherlitigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials spill. Use…
Several months ago, Jones Company experienced a spill of hazardous materials into the White River from one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $405,000. The company contested the fine. In addition, an employee is seeking $180,000 damages related to the spill. Finally, a homeowner has sued the company for $260,000. Although the homeowner lives 30 miles downstream from the plant, he believes that the spill has reduced his home’s resale value by $260,000. Jones’ legal counsel believes the following will happen in relationship to these incidents: (a) It is probable that the EPA fine will stand. (b) An out-of-court settlement for $165,000 has recently been reached with the employee, with the final papers to be signed next week. (c) Counsel believes that the homeowner’s case is weak and will be decided in favor of Jones Company. (d) Other litigation related to the spill is possible, but the damage amounts are uncertain. …
The Stone River Textile Mill was inspected by OSHA and found to be in violation of a number of safety regulations. The OSHA inspectors ordered the mill to alter some existing machinery to make it safer (e.g., add some safety guards); purchase some new machinery to replace older, dangerous machinery; and relocate some machinery to make safer passages and unobstructed entrances and exits. OSHA gave the mill only 35 weeks to make the changes; if the changes were not made by then, the mill would be fined $300,000. The mill determined the activities that would have to be completed and then estimated the indicated activity times, as shown in the table below. Activity Description Immediate Predecessor(s) Time Estimates (Weeks) Optimistic Most Likely Pessimistic a m b A Order new machinery --- 1 2 3 B Plan new physical plant --- 2 5 8 C Determine safety changes in existing machinery --- 1 3 5 D Receive equipment A 4 10 25 E Hire new employees A 3 7 12 F Make plant…
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $276,000. The company is contesting the fine. In addition, an employee is seeking $202,000 in damages related to the spill. Finally, a homeowner has sued the company for $318,000. The homeowner lives 35 miles from the plant but believes that the incident has reduced the home’s resale value by $318,000.Ayers’ legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $130,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner’s case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain.Required:a. On December 31, journalize the contingent liabilities associated with the…
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $248,000. The company is contesting the fine. In addition, an employee is seeking $213,000 in damages related to the spill. Lastly, a homeowner has sued the company for $324,000. The homeowner lives 35 miles from the plant but believes that the incident has reduced the home’s resale value by $324,000. Ayers’ legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $130,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner’s case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. Required: a. Journalize the contingent liabilities associated with the…
Russell Forest Products Limited needed to upgrade a burner at its sawmill in Cochrane, Ontario, to comply with the new air pollution standards. The new burner, which is used to burn the scrap wood from its sawing operations, will not only reduce the amount of pollution, but will supply heat for the plant facility, including the wood dryer. In order to encourage Russell Forest Products Limited in its compliance with the stan- dards, the Province of Ontario extended an interest-free loan of $400,000 on December 31, 2011. The only conditions in obtaining the interest-free loan are that the loan proceeds be applied directly to the construction costs and that the loan be repaid in full on December 31, 2019. RussellForest Products Limited borrowed the remaining funds from the bank for the construction of the burner and will be paying interest at the rate of 7% per year. Instructions (a) Discuss the issues related to obtaining the interest-free loan from the Province of Ontario. (b)…
Several months ago, Ayers Industries Inc. experienced a hazardous materials spill at one of its plants. As a result, the Environmental Protection Agency (EPA) fined the company $470,000. The company is contesting the fine. In addition, an employee is seeking $540,000 in damages related to the spill. Lastly, a homeowner has sued the company for $300,000. The homeowner lives 30 miles from the plant, but believes that the incident has reduced the home's resale value by $300,000. Ayers’ legal counsel believes that it is probable that the EPA fine will stand. In addition, counsel indicates that an out-of-court settlement of $230,000 has recently been reached with the employee. The final papers will be signed next week. Counsel believes that the homeowner's case is much weaker and will be decided in favor of Ayers. Other litigation related to the spill is possible, but the damage amounts are uncertain. a. Journalize the contingent liabilities associated with the hazardous materials…