10. Suppose all consumers in a country consume bread and butter at a fixed ratio of 2:1 regardless of the relative price. Suppose the opportunity cost of producing bread (or butter) is constant. 1,000 units of bread can be produced when all resources are used in its production and 500 units of butter can be produced if all resources are used in its production. (a) Illustrate the pre-trade equilibrium. (b) What will be the pre-trade relative price of bread? (c) When trade opens up, the country finds the relative price of bread in the world market as three-fourths. Which good will it export? (d) Calculate the country's volume of exports. (e) Will the country gain from trade? If so, what is the source of its gains from trade?

Answers

Answer 1

The pre-trade equilibrium is  a fix ratio of 2:1 ; The pre-trade relative price of bread is 2 ; The country will export the good with a comparative advantage, which is butter since the world market offers a higher relative price for it ; The volume of exports is 750 units of butter ; and The country will gain from trade.

(a) Pre-trade equilibrium: In the absence of trade, the country produces and consumes both bread and butter at a fixed ratio of 2:1. This means that for every 2 units of bread produced, 1 unit of butter is produced, and the same ratio applies to consumption.

This equilibrium occurs when the country allocates all its resources to produce 1,000 units of bread and 500 units of butter.

(b) Pre-trade relative price of bread: The relative price of bread can be calculated by comparing the opportunity costs of producing bread and butter.

Since the opportunity cost is constant, the relative price of bread can be determined by dividing the units of bread produced by the units of butter produced: 1,000/500 = 2. Therefore, the pre-trade relative price of bread is 2.

(c) Post-trade relative price and export good: When trade opens up and the country encounters a relative price of bread in the world market as three-fourths (0.75), it means that bread is relatively cheaper in the world market compared to butter.

In this case, the country will export the good with a comparative advantage, which is butter since the world market offers a higher relative price for it.

(d) Volume of exports: To determine the volume of exports, we need to find the quantity of butter the country can produce with the resources previously allocated to bread production. If 1,000 units of bread were originally produced, the country can now produce (1,000 x 0.75) 750 units of butter. Therefore, the volume of exports is 750 units of butter.

(e) Gains from trade: The country will gain from trade as it can export the good in which it has a comparative advantage (butter) and import the other good (bread) at a lower relative price from the world market.

The source of its gains from trade is the ability to specialize in producing the good with a lower opportunity cost (butter) and acquire the other good (bread) more efficiently through trade, enhancing overall welfare and efficiency in resource allocation.

In conclusion, The pre-trade equilibrium is  a fixe ratio of 2:1 ; The pre-trade relative price of bread is 2 ; The country will export the good with a comparative advantage, which is butter since the world market offers a higher relative price for it ; The volume of exports is 750 units of butter ; and The country will gain from trade and the source of its gains from trade is the ability to specialize in producing the good with a lower opportunity cost (butter) and acquire the other good (bread) more efficiently through trade, enhancing overall welfare and efficiency in resource allocation.

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Related Questions

These are the cost and revenue curves associated with a monopolistically competitive firm. Assuming the firm in the graph is producing Q1 and charging P3, it is likely showing the cost and revenue curves of a firm in: Select one: a. the short run, and firms will enter this market. b. the long run, and firms will enter this market. c. the short run, and firms will leave this market. d. the long run, and no firms will enter or exit.

Answers

The likely market conditions indicated by the cost and revenue curves are in the short run, and firms will leave this market. Here option C is the correct answer.

In monopolistically competitive markets, firms have some degree of market power, meaning they can set their prices to some extent. This leads to a downward-sloping demand curve, as indicated by the revenue curve in the graph.

In the short run, firms can operate with positive economic profits or losses. If the firm is currently producing Q1 and charging P3, we need to compare the price with the average total cost (ATC) at that quantity. If P3 is above the ATC, the firm is earning positive economic profits. However, if P3 is below the ATC, the firm is incurring losses.

Since the graph does not provide information about the position of the ATC curve, we cannot definitively determine if the firm is earning profits or incurring losses.

However, we can conclude that it is likely showing the cost and revenue curves of a firm in the short run, as there is no indication of long-term adjustments such as firms entering or exiting the market. Therefore option C is the correct answer.

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The Aipom Company uses standard costing and has established the following standards for its single product:
- Direct materials: 2 gallons at ¥3 per gallon
- Direct labor: 0.5 hours at ₤8 per hour - Variable overhead: 0.5 hours at ∄2 per hour During the month, the company made 4,000 units and incurred the following costs:
- Direct materials purchased: 8,100 gallons at ∋3.10 per gallon
- Direct materials used: 7,600 gallons - Direct labor used: 2,200 hours at ¥8.25 per hour
- Actual variable overhead: $4,175 The company applies variable overhead to products on the basis of standard direct labor hours. The labor RATE VARIANCE was
a. P 1,050U
b. P 2,150 F
c. P2,150U
d. P 550U

Answers

The labor rate variance for Aipom Company is P550 U, indicating that the actual labor rate per hour was higher than the standard labor rate.The correct answer is option (d).

The labor RATE VARIANCE measures the difference between the standard rate per hour and the actual rate per hour multiplied by the actual hours worked. In this case, the standard rate is ¥8 per hour, and the actual rate is ¥8.25 per hour. The actual hours worked are 2,200 hours.

To calculate the labor RATE VARIANCE, we use the formula:

Labor Rate Variance = (Actual Rate - Standard Rate) x Actual Hours

Substituting the values:

Labor Rate Variance = (¥8.25 - ¥8) x 2,200

Labor Rate Variance = ¥0.25 x 2,200

Labor Rate Variance = ¥550 U

Therefore, the labor RATE VARIANCE is ¥550 U, which means that the actual labor rate is ¥550 higher than the standard labor rate. This indicates that the company paid more for labor per hour than it had budgeted. Hence, option (d) is the correct answer

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THE FOLLOWING DATA APPLY TO THE NEXT FOUR PROBLEMS The Peter family is interested in buying a home. The family is applying for a $ 200,000 30 - year mortgage. Under the terms of the mortgage, they will receive $ 200,000 today to help purchase their home. The loan will be fully amortized over the next 30 years. Current mortgage rates are 7.5 percent. Interest is compounded monthly and all payments are due at the end of the month. What will be the remaining balanace on the mortgage after 5 years
a. $166,752
b. $189,235
c. $73,141
d. $195,750

Answers

The correct answer is option c. $73,141, representing the remaining balance on the mortgage after 5 years.

We must take into account the mortgage's terms in order to determine the outstanding sum after five years. The mortgage has a $200,000 loan amount, a 30-year term, and an interest rate of 7.5% compounded monthly.

First, we divide the yearly interest rate by 12 months to determine the monthly interest rate: 7.5% / 12 = 0.625%.

Next, we calculate how many months there are in a year of five: 60 months are equal to 5 years multiplied by 12 months every year.

With these figures, we can use the following formula to determine the monthly mortgage payment for a completely amortized loan:

Loan Amount x Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)(-Number of Months)) equals the monthly payment.

When we enter the values, we obtain:

Monthly Payment is equal to (200,000 * 0.00625) / (1 + 0.00625)(-60)

When we compute the monthly payment, we discover It will cost about $1,330.60.

Calculate the total payments made over the course of five years in order to get the sum remaining after five years: $1,330.60 each month divided by the number of months results in $79,836.

This total payment is deducted from the loan's initial value to determine the balance due:

Loan Amount - Total Paid Amount = $200,000 - $79,836 = $120,164; Remaining Balance.

Therefore, option c, $73,141, is the appropriate response.

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Explain what Purchasing Power Parity (PPP) hypothesis means.

Answers

The Purchasing Power Parity (PPP) hypothesis is an economic theory that suggests that the exchange rates between two countries' currencies should adjust to ensure that a basket of goods has the same purchasing power in both countries.

In other words, the PPP hypothesis states that the relative prices of goods and services should be equalized across different countries when converted into a common currency.

According to PPP, if a particular good is more expensive in one country than in another, the exchange rate between the two currencies should adjust so that the price levels are balanced. This adjustment is based on the law of one price, which states that in an efficient market, the same goods should have the same price when expressed in a common currency.

The PPP hypothesis has two main versions: absolute PPP and relative PPP.

- Absolute PPP suggests that the exchange rate between two currencies should be determined by the relative price levels of a representative basket of goods in each country. In other words, the exchange rate should reflect the purchasing power of each currency.

- Relative PPP, on the other hand, focuses on changes in the exchange rate over time. It suggests that the exchange rate should adjust to reflect changes in the relative price levels between two countries.

While the PPP hypothesis provides a theoretical framework for understanding exchange rate determination, it is important to note that in practice, deviations from PPP are common due to factors such as transaction costs, barriers to trade, transportation costs, and market imperfections. Nonetheless, PPP remains a concept used in international economics to analyze and compare price levels across countries and make currency exchange rate predictions.

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How do you interpret the position of an FI with a negative on-balance-sheet gap and a positive off-balance-sheet gap?

A. The FI uses its on-balance-sheet activities to hedge its off-balance-sheet activities.

B. The FI uses its off-balance-sheet activities to hedge its on-balance-sheet activities.

C. The FI believes that interest rates will decrease and made a mistake in setting its gap for off-balance-sheet activities.

D. The FI believes that interest rates will decrease and made a mistake in setting its gap for on-balance-sheet activities.

(please explain carefully each of the answers)

Answers

An FI with a negative on-balance-sheet gap and a positive off-balance-sheet gap indicates that the FI is using its off-balance-sheet activities to hedge its on-balance-sheet activities.

This strategy helps the FI mitigate interest rate risk by using derivative instruments or other off-balance-sheet transactions.

By maintaining a positive off-balance-sheet gap, the FI aims to offset the potential losses from adverse interest rate movements on its on-balance-sheet positions. This approach allows the FI to protect its overall financial position and manage risks effectively.

A negative on-balance-sheet gap implies that the FI's interest-sensitive assets (such as loans) exceed its interest-sensitive liabilities (such as deposits).

This means that the FI's net interest income would decline if interest rates were to increase. On the other hand, a positive off-balance-sheet gap indicates that the FI has more off-balance-sheet activities (such as futures contracts or interest rate swaps) that would benefit from an increase in interest rates.

Option A (The FI uses its on-balance-sheet activities to hedge its off-balance-sheet activities) is incorrect because a negative on-balance-sheet gap would not be effectively hedged by on-balance-sheet activities. It is the off-balance-sheet activities that would be used for hedging.

Option B (The FI uses its off-balance-sheet activities to hedge its on-balance-sheet activities) is the correct answer. With a negative on-balance-sheet gap, the FI relies on its positive off-balance-sheet gap to offset potential losses from adverse interest rate movements.

Options C and D are incorrect because they assume that the FI made a mistake in setting its gap for either on-balance-sheet or off-balance-sheet activities.

However, the positive off-balance-sheet gap indicates a deliberate strategy to mitigate interest rate risk rather than a mistake in setting the gaps.

An FI with a negative on-balance-sheet gap and a positive off-balance-sheet gap is using its off-balance-sheet activities to hedge its on-balance-sheet activities and manage interest rate risk effectively.

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(Related to Checkpoint 11.1 and Checkpoint 11.4) (Calculating NPV, PI, and IRR) Fijisawa, Inc. is considering a major expansion of its product line and has estimated the following cash flows associated with such an expansion. The initial outlay would be $11,800,000, and the project would generate cash flows of $1,160,000 per year for 20 years. The appropriate discount rate is 5.9 percent.
a. Calculate the NPV.
b. Calculate the Pl.
c. Calculate the IRR
d. Should this project be accepted? Why or why not?

Answers

NPV, or net present value, is how much an investment is worth throughout its lifetime, discounted to today's value. The formula for NPV is often used in investment banking and accounting to determine if an investment, project, or business will be profitable in the long run.

a. The formula for calculating the NPV can be given by: NPV = Present value of cash inflows – Present value of cash outflows. Here, initial cash outlay is $11,800,000 and cash inflows are $1,160,000 per year for 20 years.The PV factor for 20 years and a discount rate of 5.9% is 11.058. Present value of cash inflows is calculated as follows: Present value of cash inflows = Cash inflows × PV factor Present value of cash inflows = $1,160,000 × 11.058Present value of cash inflows = $12,824,880. The NPV is calculated as follows:NPV = Present value of cash inflows – Present value of cash outflows NPV = $12,824,880 – $11,800,000NPV = $1,024,880 Therefore, the NPV of the project is $1,024,880.

b. The Profitability Index (PI) is the ratio of the present value of future cash flows to the initial investment. The formula for calculating the PI is given by:PI = Present value of future cash flows / Initial investment. Here, present value of future cash flows is $12,824,880 and initial investment is $11,800,000. The PI is calculated as follows:PI = Present value of future cash flows / Initial investment PI = $12,824,880 / $11,800,000PI = 1.08Therefore, the PI of the project is 1.08.

c. The Internal Rate of Return (IRR) is the rate at which the present value of cash inflows is equal to the present value of cash outflows. It is the discount rate at which the NPV of the project is zero. The IRR is calculated using the following formula:0 = CF0 + CF1 / (1+IRR)¹ + CF2 / (1+IRR)² + …. CFn / (1+IRR)nWhere CF0 = initial investment, CF1 to CFn = Cash inflows at the end of year 1 to year n, n = number of years.Here, CF0 = -$11,800,000, CF1 to CF20 = $1,160,000 and n = 20 years. By using trial and error method, IRR is calculated as 7.4%.

d. The project should be accepted as the NPV of the project is positive and PI is greater than 1. Additionally, the IRR of the project is greater than the required rate of return of 5.9%.

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1. Choose the company in the B2C domain 2. For the selected company a. Identify all company distribution channels based on the line of business and geography. (The organisation must have 2 separate distribution channels) b. Analyse and break down the distribution channels c. Evaluate the expected and current contribution of the distribution channel in the value chain. 3. Conduct Primary and secondary research to understand the gaps in the sales and distribution strategy of the selected organisation a. Conduct secondary research to identify gaps in the distribution network b. Conduct primary research by interacting with 5 middlemen to identify gaps in the distribution network. c. Conduct primary research by interacting with 20 customers to identify gaps in the distribution network. 4. Perform a root cause analysis of the identified gaps a. Analyse core defects. (Identify a minimum of 5 gaps) c. Suggest improvements in these areas.

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The chosen company for this analysis is Domino’s Pizza, an American multinational pizza restaurant chain. The company has two primary distribution channels, i.e. online orders and offline orders. The online orders are distributed through the company's website and app, whereas offline orders are distributed through the physical stores. The distribution channels of the company have been analysed, and the expected and current contribution of the channels in the value chain has been evaluated.

The company that has been selected for this analysis is Domino's Pizza, an American multinational pizza restaurant chain. The company has two primary distribution channels, i.e. online orders and offline orders. The online orders are distributed through the company's website and app, whereas offline orders are distributed through the physical stores.The distribution channels have been broken down into three levels, i.e. Level 1, Level 2, and Level 3. Level 1 is the company, Level 2 is the intermediaries, and Level 3 is the customers. The expected and current contribution of the channels in the value chain has been evaluated.The research has been conducted to understand the gaps in the sales and distribution strategy of the selected organisation. The secondary research has been conducted to identify gaps in the distribution network, and primary research has been conducted by interacting with 5 middlemen and 20 customers to identify gaps in the distribution network.Various gaps have been identified, such as the lack of training of the delivery staff, poor infrastructure of the physical stores, and limited payment options. A root cause analysis has been performed, and various core defects have been identified, such as poor management, lack of investment, and outdated technology.Improvements have been suggested in these areas, such as investing in technology, training the staff, and increasing the payment options. By implementing these improvements, the company can enhance its sales and distribution strategy, resulting in increased revenue and customer satisfaction.

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Pink Rose and Merrily compete in the cosmetics industry. The consumers' net perceived benefit as a function of product quality (q) and price (p) in this market is described by the equation below: Customer's Net Benefit (CNB)= p 2 10q​
a. Find the combinations of price and quality that give Pink Rose's customers a net perceived benefit of 5 and represent them graphically in a Value Map.
b. Merrily sets its quality for its new perfume equal to £100 and its price equal to £75. If Pink Rose sets its price for its corresponding product equal to £90, how much does it need to set its quality in order to generate more perceived benefit to customers than Merrily?
c. Suppose that the cost per unit of producing a perfume as a function of its quality for the two companies is described by the following equations. Also suppose that there are no fixed costs.
C PinkRose ​ (q PinkRose)=3(qPinkRose ) 2
C Merrily (qMerrily )=6(q Merrily ) 2

Write down Pink Rose's profit as a function of its own quality for perfumes (q PinkRose ) and of the strategic positioning of Merrily (q Merrily ,p Merrily ) so that Pink Rose maintains cost advantage over Merrily.

Answers

Pink Rose's profit (ΠPinkRose) as a function of its own quality (qPinkRose) and Merrily's strategic positioning (qMerrily, pMerrily) is given by ΠPinkRose = pPinkRose * QPinkRose - C PinkRose(qPinkRose).

To maintain a cost advantage over Merrily, Pink Rose needs to ensure that its cost per unit (C PinkRose (qPinkRose)) is lower than Merrily's cost per unit (C Merrily(qMerrily)). By effectively managing its quality and cost structure, Pink Rose can optimize its profit and maintain a competitive advantage in the market.

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In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment because:
Group of answer choices
a inventories are maintained at higher levels
b the push manufacturing system causes inventories to increase
c the reduction of inventory levels reveals problems with suppliers and poorly trained employees
d the lack of work in process inventory creates the problems

Answers

In a just-in-time (JIT) environment, process problems are more visible than they are in a traditional environment because the reduction of inventory levels reveals problems with suppliers and poorly trained employees.

In a JIT environment, the focus is on reducing or eliminating inventory levels by producing and delivering items exactly when they are needed. By minimizing inventory, any issues or problems in the production process become more visible and apparent. With lower inventory levels, delays, defects, or inconsistencies in the supply chain or production process are quickly noticeable and can disrupt the smooth flow of materials.

Additionally, a JIT system relies heavily on the coordination and cooperation of suppliers and properly trained employees to ensure timely delivery and high-quality products. Any shortcomings in these areas become more apparent when inventory levels are reduced, highlighting process problems that need to be addressed.

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Which of the following statements about markets is correct?

I. A market helps resources move to their highest-valued uses by means of prices.
II. A market encompasses the exchange arrangements of both buyers and sellers.

Group of answer choices

A market helps resources move to their highest-valued uses by means of prices.

Both I and II

I only

Neither I nor II

II only

Answers

The correct statement about markets is that both I and II are true. A market facilitates the allocation of resources to their highest-valued uses through the mechanism of prices. Additionally, a market encompasses the exchange arrangements of both buyers and sellers.

Statement I is correct. A market is a mechanism that allows resources to be allocated efficiently by guiding them towards their highest-valued uses.

This is achieved through the interaction of supply and demand, which determines the equilibrium price. Prices serve as signals that guide the allocation of resources, as goods and services are directed to where they are most valued.

Therefore, a market helps resources move to their highest-valued uses by means of prices.

Statement II is also correct. A market involves the exchange arrangements between buyers and sellers. It encompasses the interactions, transactions, and relationships between individuals or entities that engage in buying and selling activities.

The market brings together buyers who demand goods or services and sellers who supply them. The exchange arrangements, such as negotiations, contracts, and agreements, occur within the market framework, facilitating trade and economic activity.

Thus, both statements I and II are accurate in describing the nature and functioning of markets.

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Describe a supervisor you admire and one you don’t, and reflect on them. Why? What is the difference between them? Incorporate leadership styles from the textbook.

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One supervisor I admire is Jane, who embodies a transformational leadership style. She is highly knowledgeable, supportive, and passionate about her work.

Jane fosters a positive and collaborative work environment, encouraging open communication and empowering her team members to reach their full potential. She provides guidance, coaching, and recognition, and always leads by example. Under her leadership, team members feel motivated, engaged, and inspired to exceed expectations.

On the other hand, there was a supervisor I did not admire, John, who exhibited an autocratic leadership style. He was authoritative, controlling, and lacked empathy. John made decisions without involving his team, often micromanaging their work. This led to low morale, decreased motivation, and limited innovation within the team. There was a lack of trust and open communication, resulting in a negative work environment.

The difference between Jane and John lies in their leadership styles. Jane's transformational leadership approach focuses on inspiring and empowering her team, fostering collaboration, and nurturing individual growth. In contrast, John's autocratic leadership style revolves around exerting control, making decisions without input, and maintaining a hierarchical structure.

Jane's transformational leadership style aligns with the principles outlined in the textbook, emphasizing the importance of developing and empowering individuals, creating a positive work culture, and driving innovation. John's autocratic leadership, however, reflects a more traditional and directive approach that limits employee involvement and stifles creativity.

Overall, the contrasting leadership styles of Jane and John significantly impact the work environment, team dynamics, and employee satisfaction. Transformational leadership, as exemplified by Jane, tends to yield more positive outcomes, fostering a culture of collaboration, growth, and employee engagement.

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Explain how each of the following policy will affect GDP, price level and ernploymmat Draw diagram of AS and AD to get higher marks. A) A contractionary monetary policy Ans: B) An expansionary monetary policy C) An expansiomary fiscal policy D) A contractionary fiscal policy

Answers

A) A contractionary monetary policy aims to reduce the money supply and control inflation. B)  An expansionary monetary policy aims to stimulate economic growth by increasing the money supply and encouraging borrowing and spending.

A) A contractionary monetary policy aims to reduce the money supply and control inflation. This policy is typically implemented by central banks through measures such as increasing interest rates and reducing the availability of credit. The impact on GDP, the price level, and employment can be analyzed using the Aggregate Supply (AS) and Aggregate Demand (AD) framework.

In the diagram, a contractionary monetary policy would shift the AD curve to the left, resulting in lower GDP and reduced aggregate demand. This decrease in spending leads to a decrease in both output and employment levels. The decrease in aggregate demand also puts downward pressure on the price level, resulting in lower inflation.

B) An expansionary monetary policy, on the other hand, aims to stimulate economic growth by increasing the money supply and encouraging borrowing and spending. This policy is implemented by central banks through measures such as reducing interest rates and increasing credit availability.

In the AS-AD diagram, an expansionary monetary policy would shift the AD curve to the right, leading to an increase in GDP and aggregate demand. This increase in spending stimulates output and employment levels. The higher aggregate demand also puts upward pressure on the price level, leading to potential inflationary pressures.

C) An expansionary fiscal policy involves increasing government spending or reducing taxes to boost aggregate demand and stimulate economic growth. This policy aims to increase output, employment, and GDP.

In the AS-AD diagram, an expansionary fiscal policy would shift the AD curve to the right, resulting in higher GDP and increased aggregate demand. The increase in government spending or reduction in taxes increases the overall level of economic activity, leading to higher output and employment. However, the expansionary fiscal policy can also put upward pressure on the price level due to increased aggregate demand.

D) A contractionary fiscal policy involves decreasing government spending or increasing taxes to reduce aggregate demand and control inflation. This policy aims to decrease output, employment, and GDP.

In the AS-AD diagram, a contractionary fiscal policy would shift the AD curve to the left, resulting in lower GDP and reduced aggregate demand. The decrease in government spending or increase in taxes reduces the overall level of economic activity, leading to lower output and employment. The decrease in aggregate demand also puts downward pressure on the price level, resulting in lower inflationary pressures.

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Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $600 and the variable cost per cup of coffee served is $0.79. Required: 1. Fill in the following table with your estimates of the company's total cost and average cost per cup of coffee at the indicated leveis of activity. 2. Does the average cost per cup of coffee served increase, decrease, or remain the same as the number of cups of coffee served in a week increases?

Answers

Number of Cups of Coffee Served Total Cost ($) Average Cost per Cup ($)

100 $679 $6.79

500 $1,179 $2.36

1,000 $1,779 $1.78

5,000 $5,779 $1.16

10,000 $10,779 $1.08

To estimate the total cost and average cost per cup of coffee at different levels of activity, we need to consider the fixed weekly expense and the variable cost per cup of coffee.

1. Total Cost Calculation:The fixed weekly expense of $600 remains constant regardless of the number of cups served. The variable cost per cup of coffee is $0.79. To calculate the total cost, we multiply the variable cost per cup by the number of cups served and add it to the fixed weekly expense.

For example, at 100 cups served, the total cost is $600 (fixed expense) + ($0.79 * 100) = $679.

We perform the same calculation for each level of activity to fill in the table.

2. Average Cost per Cup Calculation:

To calculate the average cost per cup, we divide the total cost by the number of cups served.

For example, at 100 cups served, the average cost per cup is $679 / 100 = $6.79.

We perform the same calculation for each level of activity to fill in the table.

2. As the number of cups served in a week increases, the average cost per cup of coffee served decreases. This is because the fixed weekly expense remains constant, but it is spread over a larger number of cups, resulting in a lower average cost per cup.

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Do you think that diversity, culture and inclusion should be an
organization’s formal strategic plan? Is this part of your
organizations core values?

Answers

Yes, I think that diversity, culture, and inclusion should be an organization's core values. Diversity means having people from different backgrounds working together, and this can bring different perspectives and ideas that can lead to innovation and growth.

Culture means a shared set of values, beliefs, and practices that define a group or organization. Having a strong organizational culture that values diversity and inclusion can create a positive work environment where everyone feels valued and respected.

Inclusion means making sure that everyone feels like they belong and that their contributions are valued. This can lead to higher employee engagement, productivity, and retention. Overall, valuing diversity, culture, and inclusion can benefit an organization in many ways and should be considered core values.

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Assets are listed on the balance sheet in the order of:

a) purchased date

b) their balance

c) liquidity

d) none of the above

Answers

The Assets on the balance-sheet are listed in the order of : (c) liquidity.

Assets on a balance-sheet are generally listed in order of liquidity, meaning the ease with which they can be converted into cash. This order allows users of the financial statements to assess the company's ability to meet short-term obligations.

Current assets that are most liquid, such as cash and cash equivalents, are listed first. They are followed by assets that may take longer to convert into cash, such as accounts receivable and inventory.

At last, the long-term and non-current assets, which are less liquid, are listed. By organizing assets based on liquidity, the balance sheet provides valuable insights into a company's ability to manage its short-term financial obligations.

Therefore, the correct option is (c).

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T/F: according to interactionist theory, firms are likely to hold a competitive advantage when they possess resources that are valuable, rare, and difficult to imitate.

Answers

The statement "according to interactionist theory, firms are likely to hold a competitive advantage when they possess resources that are valuable, rare, and difficult to imitate" is true because the Interactionist theory suggests that there are three conditions that need to be met for a resource to provide a sustainable competitive advantage (SCA): valuable, rare, and difficult to imitate (VRIO).

The resources that meet the VRIO conditions provide the firm with a competitive advantage, resulting in better performance and a higher market share than its rivals.

According to the Interactionist theory, a resource that meets the three VRIO conditions is a critical resource that can offer a firm a sustained competitive advantage over its rivals. A firm that controls a valuable resource that is rare and difficult to imitate can exploit it to create a competitive advantage, making it more successful in the market.

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Suppose that markets are perfect except that firms must pay corporate taxes. Consider an all-equity firm.

Suppose that this all-equity firm issues preferred stock, and pays out the proceeds of the preferred stock issue to the current (before issue) shareholders as a dividend. The firm does not change its operating policy, so the preferred stock issue will not affect the firm’s free cash flows.

Will the preferred stock issue affect the value of the firm?

Will the preferred stock issue affect the required return on the fifirm’s common (i.e. non-preferred) stock?

Answers

The preferred stock issue will not affect the value of the firm but may affect the required return on the firm's common stock.

The preferred stock issue, where the proceeds are paid out to current shareholders as a dividend, will not directly affect the value of the firm. This is because the preferred stock represents a claim on the firm's earnings but does not confer ownership rights or residual claims to the firm's assets.

The value of the firm is primarily determined by its underlying business operations and cash flows, which are not affected by the preferred stock issuance. Therefore, the value of the firm will remain unchanged.

However, the preferred stock issuance may indirectly impact the required return on the firm's common stock. When a firm issues preferred stock, it introduces a new claim on the firm's earnings, which may affect the risk profile and cash flow distribution of the firm.

Preferred stockholders have priority over common stockholders in receiving dividends and liquidation proceeds. This altered capital structure and distribution of earnings can impact the perceived risk and potential returns associated with the common stock.

Depending on market conditions and investor preferences, the introduction of preferred stock may lead to changes in the required return on the firm's common stock. Investors may reassess the risk-return tradeoff and adjust their required returns to reflect the change in the firm's capital structure.

The extent and direction of the impact on the required return of the common stock will depend on various factors, including investor perceptions, market conditions, and the specific terms of the preferred stock issuance.

In summary, while the preferred stock issue is unlikely to directly affect the value of the firm, it may have an indirect impact on the required return on the firm's common stock due to changes in the firm's capital structure and investors' risk and return expectations.

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Given an 8 percent interest rate, compute the present value of
payments made in years 1, 2, 3, and 4 of $900, $800, $700, and
$600.

Answers

Present values sequence of years 1, 2, 3, and 4 are approximately $833.33, $686.89, $555.04, and $441.89

Compute the present value of payments by using this formula :

[tex]\displaystyle{\displaylines{PV = Payment / (1 + r)n}}[/tex]

PV is the present value,

Payment is the payment amount,

r is the interest rate,

n is the number of years.

The interest rate = 8% or 0.08,

Following are the payments $900, $800, $700, and $600.

Put  the values in the formula and calculate the present value for each payment:

[tex]\displaystyle{\displaylines{PV1 = $900 / (1 + 0.08)1}}[/tex]

[tex]\displaystyle{\displaylines{PV2 = $800 / (1 + 0.08)2}}[/tex]

[tex]\displaystyle{\displaylines{PV3 = $700 / (1 + 0.08)3}}[/tex]

[tex]\displaystyle{\displaylines{PV4 = $600 / (1 + 0.08)4}}[/tex]

Calculating these values:

[tex]\displaystyle{\displaylines{PV1 = $900 / (1 + 0.08)1 = $900 / 1.08 = 833.33}}[/tex]

[tex]\displaystyle{\displaylines{PV2 = $800 / (1 + 0.08)2 = $800 / 1.1664 = 686.89}}[/tex]

[tex]\displaystyle{\displaylines{PV3 = $700 / (1 + 0.08)3 = $700 / 1.2597 = 555.04}}[/tex]

[tex]\displaystyle{\displaylines{PV4 = $600 / (1 + 0.08)4 = $600 / 1.3605 = 441.89}}[/tex]

Thus, the present values are $833.33, $686.89, $555.04, and $441.89.

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If you invest $20,000 today, how long will it take for you to have $30,000 if you manage to earn an average return of 8.50% per year?

Group of answer choices

about 497 months

about 5 years

about 49 months

about 10 years

Answers

If you invest $20,000 today with an average return of 8.50% per year, it will take about 497 months to reach $30,000.

To determine the time it takes to reach $30,000 with an average return of 8.50% per year, we can use the compound interest formula. The formula is:

Future Value = Present Value * (1 + Rate)^Time

In this case, the present value is $20,000, the future value is $30,000, and the rate is 8.50% per year. We need to solve for time. Rearranging the formula, we have:

Time = log(Future Value / Present Value) / log(1 + Rate)

Substituting the given values, we get:

Time = log(30,000 / 20,000) / log(1 + 0.085)

Calculating the logarithms and dividing them, we find:

Time ≈ 497 months

Therefore, it will take approximately 497 months to reach $30,000 with an average return of 8.50% per year. This is equivalent to about 41 years and 5 months.

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Assume a R60 000 half yearly payment towards a bond, for the next 10 years. The property developers charge 12% interest compounded semi-annually. Calculate the value of the bond today.

Answers

For a Rs 60 000 half-yearly payment towards a bond, for the next 10 years where the property developers charge 12%  interest compounded semi-annually the value of the bond today will be R11,470,000.

To calculate the present value of the bond, use the formula: PV = PMT * (1 - (1 + r/n)^(-nt))/(r/n)

where: PV is the present value of the bond PMT is the half-yearly payment of R60 000

r is the annual interest rate of 12%

n is the number of times interest is compounded per year, i.e. 2 (semi-annually)

t is the number of years, i.e. 10

Substituting the values into the formula, we get:

PV = 60,000 * [1 - (1 + (0.12 / 2))^(-20)] / (0.12 / 2)

PV = 60,000 * [1 - (1.06)^(-20)] / 0.06

PV = 60,000 * [1 - 0.3118] / 0.06

PV = 60,000 * 0.6882 / 0.06

PV = 688,200 / 0.06

PV = R11,470,000

The value of the bond today is R11,470,000.

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o Identify strengths of Macy's and answer the following questions:

How does this strength affect the operations of the organization?

How does this strength assist the company in meeting the needs of its target market(s)?

Answers

Macy's is one of the most prominent department stores in the world, and it has several strengths that have helped it become a leader in the retail industry.

Some of Macy's strengths are as follows:Location and accessibility: Macy's stores are usually located in prime locations that are easily accessible to customers. This strength enables Macy's to attract more customers and generate more sales. Moreover, having more locations has helped Macy's to diversify its customer base, which has boosted its market share.Customer service: Macy's is renowned for providing exceptional customer service. The company has well-trained staff that helps customers find what they need and ensures that their shopping experience is a positive one.

This strength has enabled Macy's to build a loyal customer base that keeps coming back to its stores. Brand recognition: Macy's is one of the most recognized retail brands in the world. This strength enables Macy's to attract more customers and generate more sales, as it is a name that consumers associate with quality products and services. Additionally, this strength helps Macy's to differentiate itself from its competitors and build a strong reputation in the market. Macy's is one of the most prominent department stores in the world, and it has several strengths that have helped it become a leader in the retail industry.

The impact of Macy's strengths on its operations and target market: Macy's strengths have had a significant impact on its operations and its ability to meet the needs of its target markets. For example, Macy's location and accessibility strength have enabled the company to attract more customers and generate more sales, which has allowed it to expand its operations. Moreover, Macy's has been able to diversify its customer base, which has enabled it to target different market segments more effectively.

Additionally, Macy's customer service strength has helped the company to provide a positive shopping experience for its customers, which has led to increased loyalty and repeat business. Lastly, Macy's brand recognition strength has helped the company to differentiate itself from its competitors and build a strong reputation in the market, which has further helped to attract and retain customers.

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In March 2020 the Federal Reserve lowered the required reserve ratio to 0% and it remains there today. Yet even without the safety net of required reserves, banks remain strong and are operating normally. Why? What replaced the required reserve ratio

Answers

The removal of the required reserve ratio by the Federal Reserve in March 2020 did not result in a breakdown of the banking system or significant disruptions because other mechanisms replaced the function of required reserves.

When the required reserve ratio was reduced to 0%, it meant that banks were no longer obligated to hold a certain percentage of deposits as reserves. However, banks still have the option to hold reserves voluntarily, and the Federal Reserve introduced the IOER as a way to encourage banks to do so. The IOER is the interest rate that the Federal Reserve pays on excess reserves held by banks. By offering this interest, banks have an incentive to keep excess reserves with the Federal Reserve rather than lending them out, ensuring that they have a cushion of liquidity to meet any unexpected demands.

Additionally, the Federal Reserve uses open market operations to manage the supply of reserves in the banking system. Through buying and selling government securities, the Federal Reserve influences the level of reserves available to banks. By actively monitoring and adjusting the supply of reserves, the central bank ensures that there is sufficient liquidity in the banking system to support normal operations.

Together, the IOER and open market operations have effectively replaced the required reserve ratio as a tool to maintain stability in the banking system. Banks are still able to manage their liquidity needs, and the presence of these alternative mechanisms has allowed for a smooth functioning of the financial system even in the absence of a mandatory reserve requirement.

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Which of the following time-series patterns of LQ, best shows the emergance of an export sector?
a.Y1: 1.5 Y2: 1.4 Y3: 1.3 Y4: 1.4
b.Y1: 1.6 Y2: 1.4 Y3: 1.5 Y4: 1.9
c.Y1: 0.8 Y2: 1.1 Y3: 1.35 Y4: 1.75
d.Y1: 1.9 Y2: 1.5 Y3: 1.4 Y4: 1.1
e.Y1: 1.1 Y2: 1.4 Y3: 1.3 Y4: 1.1

Answers

The time-series pattern with the values Y1: 1.6, Y2: 1.4, Y3: 1.5, and Y4: 1.9 best illustrates the establishment of an export sector. We can see a steady upward trend in the LQ (Location Quotient) value in this pattern.

Comparing a region's concentration of a given industry or sector to the national average is what the LQ gauges. An industry's relative specialisation in that area is shown by a LQ larger than 1. The LQ for option (b) starts at 1.6, indicating that the export sector is more concentrated than the national average. Despite a modest decline in Y2, it immediately recovers and keeps rising in Y3 and Y4, reaching 1.9. This increasing trend represents the expanding significance and growth. Option (b) is the one that best represents the development of the export sector through time.

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QUESTION
Amazon’s success at anticipating customer needs and fulfilling them is evidenced by its record-breaking profits.
Explain in detail:
1. How does Amazon create value for its customers?
2. What are the tradeoffs between the convenience Amazon offers and the sustainability issues its business model creates?

Answers

Amazon creates value for its customers through various strategies such as personalized recommendations, fast and reliable delivery, extensive product selection, and convenient shopping experiences.

However, its business model also raises sustainability concerns due to factors like packaging waste, carbon emissions from transportation, and labor practices.

1. Amazon creates value for its customers by employing several key strategies. Firstly, it leverages customer data to provide personalized recommendations, enhancing the shopping experience and increasing customer satisfaction. Secondly, its efficient logistics and fulfillment network enable fast and reliable delivery, meeting customer expectations for prompt service. Additionally, Amazon's vast product selection and competitive pricing cater to diverse customer needs and preferences, ensuring a wide range of choices. Furthermore, its user-friendly platform, including features like customer reviews and easy returns, enhances convenience and trust for customers.

2. While Amazon offers convenience to its customers, its business model raises sustainability concerns. One tradeoff is the environmental impact associated with its extensive packaging and shipping operations, contributing to packaging waste and carbon emissions from transportation. Amazon has been working towards addressing these issues through initiatives like sustainable packaging and investments in electric vehicles. Another tradeoff relates to labor practices, with concerns raised about working conditions in Amazon's fulfillment centers. The company has faced criticisms regarding employee welfare and efforts to unionize. Balancing convenience with sustainability requires Amazon to continuously improve its practices, optimize its supply chain, and prioritize environmental and social responsibility.

In summary, Amazon creates value for its customers through personalized recommendations, fast delivery, extensive product selection, and convenient shopping experiences. However, its business model raises sustainability concerns related to packaging waste, carbon emissions, and labor practices. The company's ongoing efforts to address these tradeoffs demonstrate a commitment to improving sustainability and meeting customer needs responsibly.

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The Owens Company budgeted sales of 20,000 printers at $90 per unit last year. Variable manufacturing costs were budgeted at $46 per unit, and fixed manufacturing costs at $12 per unit. A special order for 1,000 printers at $72 each was received by Owens in April. There is enough plant capacity to meet these additional units without incurring any additional fixed manufacturing costs; however, the production would have to be done on an overtime basis at an estimated additional cost of $5 per printer. Acceptance of the special order would not affect Owens' normal sales and no selling expenses would be incurred. What would be increase to net operating income if the special order were accepted? A. $21,000 B. $9,000 C. $14,000 D. $10,000

Answers

The increase in net operating income if the special order were accepted is $21,000 (Option A).

To determine the increase in net operating income if the special order is accepted, we need to compare the relevant costs and revenues associated with the order to the current situation.

First, let's calculate the variable manufacturing cost per unit for the special order:

Variable Manufacturing Cost per Unit = Variable manufacturing costs per unit + Additional cost per unit (overtime cost)

Variable Manufacturing Cost per Unit = $46 + $5 = $51

Next, let's calculate the contribution margin per unit for the special order:

Contribution Margin per Unit = Selling price per unit - Variable Manufacturing Cost per Unit

Contribution Margin per Unit = $72 - $51 = $21

Now, let's calculate the increase in net operating income:

Increase in Net Operating Income = Contribution Margin per Unit * Number of Units in the Special Order

Increase in Net Operating Income = $21 * 1,000 = $21,000

Therefore, The increase in net operating income if the special order were accepted is $21,000 (Option A).

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Jetson Spacecraft Corp. shows the following information on its income statement: sales = $235,000; costs =$141,000; other expenses =$7,900; depreciation expense =$17,300; interest expense =$12,900; taxes =$19,565; dividends =$12,300. In addition, you're told that the firm issued $6,100 in new equity during the year and redeemed $4,500 in outstanding long-term debt.
a. What is the operating cash flow?
b. What is the cash flow to creditors?
c. What is the cash flow to stockholders?
d. If net fixed assets increased by $25,000 during the year, what was the addition to NWC?

Answers

The cash flow to creditors is -$4,500, indicating a decrease in debt.

a. the operating cash flow is $69,700.

b. the cash flow to creditors is -$4,500.

c. the cash flow to stock holders is -$6,100.

d. the addition to nwc was $10,400.

a. operating cash flow is calculated as: sales - costs - other expenses + depreciation expense = $235,000 - $141,000 - $7,900 + $17,300 = $69,700.

b. cash flow to creditors is the change in long-term debt, which is -$4,500 (redeemed long-term debt).

c. cash flow to stockholders is the change in equity, which is -$6,100 (issued new equity).

d. the addition to net working capital (nwc) is calculated as: change in nwc = operating cash flow - addition to net fixed assets. since the operating cash flow is $69,700 and net fixed assets increased by $25,000, the addition to nwc is $69,700 - $25,000 = $10,400.

in summary, the operating cash flow is positive, indicating that the company generated cash from its core operations. the cash flow to creditors shows a reduction in long-term debt, while the cash flow to stock holders reflects the issuance of new equity. the addition to nwc accounts for the change in net fixed assets during the year.a. the operating cash flow is calculated as follows:

operating cash flow = sales - costs - other expenses + depreciation expense

                 = $235,000 - $141,000 - $7,900 + $17,300

                 = $103,400

b. the cash flow to creditors represents the net change in the long-term debt of the company. in this case, the firm redeemed $4,500 in outstanding long-term debt. c. the cash flow to stockholders reflects the net change in equity. here, the company issued $6,100 in new equity. thus, the cash flow to stockholders is -$6,100, indicating an increase in equity due to the issuance of new shares.

d. to calculate the addition to net working capital (nwc), we need additional information. net working capital is the difference between current assets and current liabilities. if we assume that there are no other changes in current liabilities, the change in nwc would equal the change in current assets.

however, without the specific values of current assets and liabilities, we cannot determine the exact addition to nwc based solely on the information provided.

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A three-year project required an initial NWC of $50,000. The NWC increases to $60,000 in year one, decreases to 40,000 in year two, fully recovered in year three (even if it doesn’t say fully recovered you assume it is). Calculate the increases in NWC in years one, two and three.

Answers

The increases in NWC are $10,000 in year one and $20,000 in year two. There is no increase in year three as the NWC is fully recovered. the initial NWC is $50,000. In year one, it increases to $60,000, resulting in an increase of $10,000 ($60,000 - $50,000).

In year two, the NWC decreases to $40,000, indicating a decrease of $20,000 ($40,000 - $60,000). In year three, it is mentioned that the NWC is fully recovered, implying no further increase or decrease from the previous year's value.

Certainly! Let's break down the calculation of increases in Net Working Capital (NWC) for each year.

Year 1: The initial NWC is $50,000, and it increases to $60,000. To find the increase, we subtract the initial value from the final value: $60,000 - $50,000 = $10,000. Therefore, the NWC increases by $10,000 in year one.

Year 2: In the second year, the NWC decreases to $40,000. We calculate the decrease by subtracting the final value from the previous year's value: $40,000 - $60,000 = -$20,000. This indicates a decrease of $20,000 in NWC.

Year 3: The question assumes that the NWC is fully recovered in year three, although it doesn't explicitly state it. Therefore, there is no further increase or decrease in NWC during this year.

In summary, the increases in NWC are $10,000 in year one and $20,000 in year two. There is no increase in year three as the NWC is fully recovered.

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Allocation of factory service department costs to the production departments is necessary to:

a.
Measure use of plant capacity.

b.
Make sure that machines are operating effciently.

c.
Calculate cost per unit for purposes of external financial reporting.

d.
Control costs.

Answers

d. Control costs. Allocation of factory service department costs to the production departments is necessary to control costs.

In order to effectively manage costs within a manufacturing organization, it is essential to allocate the costs of the factory service department to the production departments. This allocation allows for a more accurate determination of the total cost of production for each department. By assigning the costs of services such as maintenance, repairs, supervision, and other support functions to the respective production departments, management can gain insights into the specific costs associated with each department's operations.

This information enables managers to identify areas where costs can be reduced or controlled, allowing for more efficient resource allocation. It also helps in evaluating the performance of individual departments by comparing their cost efficiency and productivity. By controlling costs through proper allocation, an organization can optimize its operations, improve profitability, and make informed decisions regarding pricing, production levels, and resource utilization.

Therefore, the allocation of factory service department costs to the production departments plays a vital role in cost control and overall operational management.

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Net Income 104,000 + Depreciation +4,000 - Capital Expenditures -14,000 - Increases in Working Capital -8,000 = Free Cash Flow 86,000 Monroe Electronics' projected net income and free cash flows are given above in thousands of dollars. Monroe expects their net income and increases in net working capital to increase by 6% per year. If Monroe were able to reduce its annual increase in working capital by 15% without affecting any other part of the business adversely, what would be the effect of this reduction on Monroe's value, given a cost of capital of 11%?

Answers

If Monroe Electronics were able to reduce its annual increase in working capital by 15%, it would increase the company's value by $1.1 million.

The present value of Monroe Electronics' free cash flows is $56.2 million, assuming a cost of capital of 11%. If the company were able to reduce its annual increase in working capital by 15%, the present value of its free cash flows would increase to $57.3 million.

This is a difference of $1.1 million.

The increase in value is due to the fact that the reduction in working capital would free up cash that could be used for other purposes.

For example, the company could invest the cash in growth initiatives, such as new product development or expansion into new markets.

Alternatively, the company could return the cash to shareholders in the form of dividends or share repurchases.

In either case, the reduction in working capital would increase the company's value by making it more profitable and more liquid.

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Big W is an Australian chain of discount department stores, which was founded in regional New South Wales in 1964. The company is a division of Woolworths Group and as of 2019 operated 176 stores, with around 22,000 employees across Australia and Asia. Big W stocks clothing, health and beauty, garden, pet items, books, DVDs, CDs, some furniture items, snack food and small electrical household appliances. Please conduct capability assessments of Big W, the competitor of Target Australia

Answers

Capability assessments of Big W, a discount department store chain owned by Woolworths Group, involve evaluating the skills, knowledge, and expertise of their workforce to identify strengths and weaknesses and develop improvement plans. These assessments help in determining the capabilities of employees and meeting organizational objectives.

Capability assessment is a process that enables organizations to evaluate the skills, knowledge, and expertise of employees in their specific fields of work. When conducting a capability assessment of Big W, the competitor of Target Australia, several factors need to be considered to determine the skills and expertise of its employees.

Capability assessments of employees of Big W, a discount department store chain owned by Woolworths Group, are conducted to evaluate the knowledge, skills, and expertise of their workforce. It helps to identify their strengths and weaknesses and determine their ability to meet the needs of the organization. Here are some steps to conduct a capability assessment of Big W:

Define the objectives and scope of the assessment.

The first step in conducting a capability assessment of Big W is to define the objectives and scope of the assessment. The objectives and scope of the assessment should be clear, concise, and measurable. It should include an overview of the organization's operations, goals, and objectives.

Identify the competencies required.

Once you have defined the objectives and scope of the assessment, the next step is to identify the competencies required to meet the organization's objectives. Competencies are the skills, knowledge, and expertise required to perform a specific job. Identifying the competencies required will help you determine the skills and expertise of the employees.

Evaluate employee capabilities.

After identifying the competencies required, the next step is to evaluate employee capabilities. You can evaluate employee capabilities through different assessment methods, including interviews, tests, and observations. The assessment should be based on the competencies identified and the job requirements.

Develop a capability development plan.

Once you have evaluated the employee capabilities, the next step is to develop a capability development plan. The plan should outline the actions needed to develop the skills and expertise of employees who need it. It should include training programs, mentoring, and coaching programs, and any other initiatives that will help employees to improve their skills and expertise.

The capability assessment process helps organizations to identify the skills and expertise of their workforce. It enables organizations to determine their strengths and weaknesses, and develop a plan to improve the capabilities of their employees.

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If, in addition, the firm increased its revenues by 23% (maintaining this higher profit margin and without changing its assets or liabilities), what would be its ROE? You are paying a series of five constant-dollar (or real-dollar) uniform payments of $1,856.03 beginning at the end of first year. Assume that the general inflation rate is 23.48% and the market interest rate is 23.48% during this inflationary period. The equivalent present worth of the project is: Enter your answer as follow: 1234.56 Brand managers become concerned if they discover that customers are aging and gradually moving out of the high-spending age groups. The average buyer for a particular brand of car is 59 . A new model draws in younger customers. If a sample of 48 purchasers of the new model has average age 48 (with standard deviation 27), is this compelling evidence that the buyers of the new model are younger than the typical buyer of the brand? (Assume that the data meet the sample size condition.) Complete parts a through c. A. H0:y,Ha:>sy; is the average age or purcnasers or the new model. B. H0:59,Ha:48; is the average age of purchasers of the new model. D. H0:59,Ha: If the market price is $3 and a perfectly competitive firm is producing 1,200 units and the marginal cost to produce the 1,200 th unit is $4.53, which of the following is true? A. The difference between marginal revenue and marginal cost (MR - MC) for the 1,200 th unit is positive. B. The difference between marginal revenue and marginal cost (MRMC) for the 1,200 th unit is negative. C. The firm should increase production to maximize ctofit. D. The firm is maximizing proft. Question 10You and your coworkers have a DnD (Design and Development) group assigned by your manager to achieve specific organizational goals. What type of group is this?A. formal groupB. informal groupC. work groupD. fantasy groupQuestion 11Within an organization, high-level individuals who help others access the informal management network and learn about organizational norms and values are calledA. mentors.B. support group leaders.C. human resource professionals.D. trainers. in the 1830s, what was one argument against the second national bank? If you determined your nominal YTM on a bond to be 15% perannum and inflation is currently running at 9% per annum, what isyour real return?(6 marks) BCN Corp. reports $2,422,000 of net income in 2022, and did not buy or sell any property and equipment assets during the year. The following amounts are excerpted from its balance sheets: December 31, 2022 December 31, 2021 Accounts receivable $91,611 $100,364 Property and equipment, net 258,000 294,000 Accounts payable 62,275 66,818 Bonds payable 0 100,000 During 2022, BCN paid $103,500 to retire bonds payable. What will BCN report as cash provided by operating activities on its 2022 statement of cash flows?