1. What are the two types of pricing environments for sales to external parties? 2. What is a transfer price? Why is determining a fair transfer price important to division managers? 3. Standard costs facilitate management planning. What are the other advantages of standard costs? 4. Distinguish between an ideal standar
The sentiment for increased deregulation in the late 1970s and early 1980s has been felt most significantly in the price regulation of a coal b grain c transportation d automobiles e electric power generation
Multiple choice questions in Finance: Break-even, future value, time value of money, present value, bond, payback period, capital project, NPV, IRR, international operations, currency fluctuations, goal of corporate management, current yield on the bond
1. Break-even is the point where: a. revenue equals total manufacturing costs b. revenue equals cost of goods sold c. revenue equals total variable costs d. revenue equals total variable costs plus total fixed costs e. none of the above 2. Future value can also be described as ____________ while present value can al
BE2-19 Porter Company signed a lease for an office building for a period of 10 years. Under the lease agreement, a security deposit of $10,000 is made. The deposit will be returned at the expiration of the lease with interest compounded at 5% per year. What amount will Porter receive at the time the lease expires? BE2-20 G
Show graphically why someone paid an annual salary might be likely to shirk if monitoring is incomplete at the firm.
Your company has invested $6 million in a new Trilithium crystal technology project. The company will generate huge profits if the project is successful. As a risk hedge, the CFO decides to purchase equal risk derivatives. She buys two hundred 1-year put option contracts with an exercise price of $50. The cost of the option
Your company has definitely become a global company in the past 5 years. 40% of your sales are now exported to other countries. You import 60% of the raw materials which go into the production of your product. And you have begun to outsource some of your labor intensive activities to other countries as well. The value of the
Present Worth: What is the present worth of costs over the next three years for the defender and the challenger ?
The Burnaby Machine Company makes small parts under contract for manufacturers in the Vancouver area. The company makes a group of metal parts on a turret lathe for a local ski manufacturer. The current lathe is now six years old. It has a planned further life of three years. The contract with the ski manufacturer has three more
Campus Print Shop is thinking of purchasing a new, modern copier that automatically collates pages. The machine would cost $22,000 cash. A service contract on the machine, considered a must because of its complexity, would be an additional $200 per month. The machine is expected to last eight years and have a resale value of $4,
You are the general manager of TU modems Inc., and your accounting department has provided you with the following information about the total cost of producing three potential quantities of a commercial-grade modem: 100,000 Units 150,000 Units 200,000 Units Materials $ 250,000 $ 375,000
Please see the attached file. 1. Two firms together employ 100 units of labor and 100 units of capital... 2. Suppose that a small economy's production possibility frontier for chocolate (X) and raspberries (Y)....
I would be grateful for an explanation to the attached problem.
1. Which of the following forms of payment is not an incentive plan? A. Commission plans for salesman B. Flat salary for a plant manager C. Bounses for managers that increase as profits increase D. None of the above 2. When relationship-specific exchange occurs in complex contractural environments, the best
Managerial Economics - Eighth Edition, Authors Christopher R. Thomas and S. Charles Maurice. Chapter Five Questions: 1. Gigi has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle and the price of cheese is
1. How does eBay create value? 2. What potential contracting problesm exist on ebay? 3. How does eBay address these problems? 4. What are the contracting cost at ebay 5. EBay claims that it has only a small problem with fraud and misuse of the sytem. Does this imply that it is overinvesting in addressing potention contr
I am hoping someone can review/provide the exact formulas required to arrive at the final answer for this problem. I'd like to understand how to approach this type of problem. --- Leases R Us, Inc. (LRU) has been contracted by Robotics of Beverly Hills (RBH) to provide lease financing for a machine that would assist in auto
____ 1. Which of the following will cause the demand curve for gasoline to shift leftward? a. a decrease in the price of gasoline b. an increase in the price of gasoline c. a leftward shift of the supply of gasoline d. a rightward shift of the supply of cars e. a decrease in the price of bicycles ____ 2. Markets reduce
Does labor market flexibility raise employment levels? Discuss in relation to experiences of EU15 countries since 1980 (Either analysis of one/two countries or cross-section analysis across EU15 pre-2004 economies)
(See attached file for full problem description with diagram) --- 17. (Expansionary and Contractionary Gaps) Answer the following questions on the basis of the graph on the next page: a. If the actual price level exceeds the expected price level reflected in long-term contracts, real GDP equals ______ and the actual price
Please answer the question completely (e.g. premise and supporting facts) and please provide/document your reference. Why is centralizing the purchasing and supply function important? Discuss fully.
1. The theory of comparative advantage is generally used to demonstrate the benefits of international trade. Could the argument also be used to show that it might be worthwhile for firms to contract out specific activities even when they are equally or more cost effective in money terms than external contractors in providing the
I need answer for #1 this evening and the rest no later than Sunday evening. 1. Do you think the economy is in or in danger of falling into a recession then expansionary monetary policy is the correct course of action. If you think the economy is in danger or experiencing a period of inflation than contractionary policy is t
The book is not good at explaining or giving examples of these problems
See the attached file for the problem. This question eventually allows us to "discover" some interesting facts about PPF's and trade theory. A closed economy produces X and Y with labor and capital. They currently have 20 units of labor and 10 units of capital. (a) Suppose production of X and Y are governed by the followi
For the past ten years, DWI has wanted to develop the lucrative Iraqi oil reserves for its exploration, drilling, refining, and transport division; DWI's Oil Division has been limited to Siberia and the South China Sea up to this date, and was precluded from entry into business in Iraq by United States law and U.N Sanctions.
Online Economics Managerial class using Michael Baye's 5th edition book. You are the manager of a monopoly, and your demand and cost functions are given by P = 200 - 2Q and C(Q) = 2,000 + 3Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is
1. The following information is taken from the financial statements of Universal Fertilizers, Inc. for it fiscal year ended December 31, 2004: Debt $25.0 million Shareholders' Equity 30.0 million Interest expense 1.2 million Times interest earned 3.0x The Company's financial statement footnotes
Subject: Insurance Details: Private health insurers tend to be quite passive in the face of health care cost escalation ? simply passing increased costs forward as increased premiums or back as reduced coverage and larger requirements for patient payment. (Think of Canadian drug insurers.) How would one interpret cost escalati
I want to confirm that my analysis is correct. I have attached the problem and my analysis as two separate attachments. Thank you. The notes that were cut off are as follows: The Dental Practice will be paid on the basis of covered lives. Capitation is the amount of money paid by the HMO to the Dental Practice per cover
Q: Suppose you place an order for ₤56,000 worth of British ale, to be delivered in 3 months. The current $/₤ spot rate is $1.80, and the 3-month forward rate is $1.85. a) Discuss whether you would consider hedging the exchange risk, how you would hedge using a forward contract, and your additional costs or savi