Give an example of nonverbal communication that you have observed in a written message and another in an oral message.
> Charging $17.99 a month for an unlimited number of movie rentals (three at one time), Netflix revolutionized the movie rental business with a one-day mailing service for DVDs and acquired 12 million subscribers and $1.5 billion in revenue. However, Block
> Firm-specific demand in the scheduled airline industry is segmented by customer class and is highly uncertain so that an order may not lead to realized revenue and a unit reservations at preannounced fares and reassigning capacity to the various market s
> The following cost-output data were obtained as part of a study of the economies of scale in operating a charter high school in Wisconsin: Required: 1. Plot the data in columns B and C in an output (enrollment) cost graph and sketch a smooth curve tha
> You are the lead underwriter among a syndicate of five investment banks composed of yourself, the syndicate co-manager, and syndicate members 3, 4, and 5. Your syndicate finds a deal worth $100 million in fees. You must submit a proposal as to how the fe
> Economists at the Wilson Company are interested in developing a production function or fertilizer plants. They collected data on 15 different plants that produce fertilizer (see the following table). Required: 1. Estimate the Cobb-Douglas production f
> Explore the crisis that Internet file sharing of copyrighted music recordings has caused for Vivendi Universal, Sony Music, EMI, and AOL Time Warner Music, which together formerly supplied 70 percent of the global music industry. Required: 1. How would
> Given the following market share distributions, the U.S. Antitrust Division blocked a merger of BMG and EMI in 2001, and the European Commission blocked a merger of Time Warner’s music division and EMI in 2000. Analyze these decisions a
> Conduct an in-class debate on a recent antitrust case and whether it was decided correctly. The case is Leegin Creative Products, Inc. v. PSKS, Inc., DBA Kay’s Kloset, 551, U.S. (2007). Leegin of Dallas Texas makes upscale leather accessories somewhat li
> Airlines face highly cyclical demand; American reported profitability in the strong expansion of 2006–2007 but massive losses in the severe recession of 2008–2009. Demand also fluctuates day to day. One of the ways American copes with random demand is th
> Specific Electric Co. asks you to implement a pay-for-performance incentive contract for its new CEO and four EVPs on the Executive Committee. The five managers can either work really hard with 70 hour weeks at a personal opportunity cost of $200,000 in
> The Williams Company has a present capital structure (that it considers optimal) consisting of 30 percent long-term debt and 70 percent common equity. The company plans to finance next year’s capital budget with additional long-term debt and retained ear
> If Apple iPod only played iTunes, and iTunes only could be heard on the Apple iPod, could Apple price the technologically integrated bundle any way it wanted? If other electronic music can play on an iPod, what determines whether there are any limitation
> Would warehouse operators insist on owning their own trucking companies? Why or why not? What coordination and control problems and contractual hazards would these companies encounter?
> If coal mine tonnage can be shipped elsewhere cheaply, but an adjacent coal-fired power plant is not redeployable to other uses, what organizational form would be adopted by the power plant owners? Why?
> In the game-theoretic model of workouts and rollovers (Figure 15.2), identify the specific consequences of loan terms that worsen the moral hazard problem. Data from figure 15.2: FIGURE 15.2 The Problem of Moral Hazard in Line-of-Credit Lending: A
> The price elasticity of demand for a textbook sold in the United States is estimated to be - 2, whereas the price elasticity of demand for books sold overseas is - 3. The U.S. market requires hardcover books with a marginal cost of $40; the overseas ma
> Nike and Adidas face the following coordination problem in trying to decide whether to conduct heavy or light combative advertising against the other firm. What should each firm do? Nike Light Ads Heavy Ads $12 M $6 M Light Ads $10 M $4 M Adidas $4
> Why should the early adopters of an information technology system provided by IBM Systems Solutions be willing to pay more for a closed-end lease of the servers and other hardware required than for an outright purchase?
> Suppose you have announced you will “meet the competition” in response to entry threats by a potential rival who has done marketing research in your target market and is offering a lower price point. What difference does it make, if any, if technology is
> The long competition between Subway and Quizno’s subshops took price from $6 to $5 for selected Footlongs. Eventually, Quizno’s dropped price another dollar to $4 with its Torpedo product. Market share rose for Quizno’s relative to its head to head Footl
> Analyze the following sequential game and advise Kodak about whether they should introduce the new product, Picture CD. Rival New product Introduction advertising Pricing policy Kodak Sony High $380m $620m Kodak Moderate $610m $590m Increase ads Low
> If core price inflation has grown at a compound growth rate of 2 percent per annum in the United States and 0.06 percent in Japan for the past eight years, what exchange rate represents PPP today if the two currencies eight years ago in 2005 were in pari
> Would cappuccino by the cup or Prada handbags have wider price variation in a free trade area like the European Union? Why?
> Compare the optimal solutions obtained in Exercises 2 and 3. Specifically: a. How much higher (lower) is the optimal selling price when the two firms form a cartel to maximize industry profits, compared to when they act independently? b. How much higher
> If unit labor costs in Spain and Portugal rise, but unit labor costs in Germany decline and other producer prices remain unchanged, what effect should these factors, by themselves, have on export trade, and why?
> The costs of producing steel have declined substantially from building a conventional hot-rolled steel mill down to the new minimill technology that requires only scrap metal, an electric furnace, and 300 workers rather than iron ore raw materials, enorm
> Assuming that all other factors remain unchanged, determine how a firm’s breakeven point is affected by each of the following: a. The firm finds it necessary to reduce the price per unit because of increased foreign competition. b. The firm’s direct labo
> If the U.S. dollar depreciates 20 percent, how does this affect the export and domestic sales of a U.S. manufacturer? Explain.
> After an unanticipated dollar appreciation has occurred, what would you recommend a company such as Cummins Engine do with its strong domestic currency?
> Explain the effect on capacity reallocations of advance sales data indicating mean demand of 55 rather than 60 during a slow travel week for business class, using the information in Figure 14.1, Table 14.2, and Equation 14A.4. Data from figure 14.1:
> Suppose an appliance manufacturer is doing a regression analysis, using quarterly time-series data, of the factors affecting its sales of appliances. A regression equation was estimated between appliance sales (in dollars) as the dependent variable and d
> Identify some cultural differences between people who work in a hospital and a manufacturing plant.
> List several words that you use all the time that others may not use or that they pronounce differently.
> Because you are reading this book, you are probably taking a course at a university. Does the university use the gangplank theory to any extent? Explain.
> Why is the circle used for the model of communication? What is meant by communicating to someone and not with someone?
> Give an example of polarization that you have observed.
> Give a specific example in which a demand for greater quality also increases the demand for more efficient communication.
> This textbook states that it is not possible to review all contingencies. Elaborate on this statement.
> Ben knocked on the door of Nancy Kerr, his supervising director. “Come in,” Nancy said, and Ben entered. He was frustrated, and his demeanor reflected it. “I need to talk to you about Stacey Burton, who works in the office beside mine,” Ben said. “Ever
> The Finance Investment Company is located in Houston, Texas. The company is only two years old, but it has made the headlines in regional magazines as “the company to watch.” It is staffed with three investment analysts and four secretaries. The firm occ
> A historian has said this about Gen. George A. Custer: “Generals who led men were rare; generals who won battles were rarer. It is no wonder that he was idolized from President Lincoln down. All the world loves a winner." On June 26, 1874, Custer’s 261 s
> Give an example of a channel. What channel is used by a restaurant to tell you the price of a meal?
> In the spring of 1992, Ignacio Lopez de Arriortua hit Detroit like a storm. General Motors was in trouble and needed help, so the company’s president appointed Lopez as the vice president of global purchasing. He had saved the company millions of dollars
> Clarence opened a farm supply store in Montana during the early 1900s. His neighbors in the county were also his customers. Every person who walked into his store felt comfortable. In fact, they would often sit, sip a cup of coffee or shell some peanuts,
> Jane Rye is a student of advertising at State University and will graduate at the end of the next term. She had a part-time job in the sales department at a local television station. When hired, Rye thought she was very lucky to have a job there, not onl
> Chris smiled as he received the analysis packet from his supervisor. He worked from home three days a week, and when he received an assignment he did not know how to analyze, he would call one of his buddies who easily accomplished such tasks. He compens
> Describe a situation that may have caused a manager to be unethical in which the problem was more one of poor communication than ethics.
> Why do you think that men and women may have difficulty communicating with each other?
> Provide an example in which you have seen a manager attempt to empower employees.
> In which ways do you believe that women communicate differently than men?
> How does the behavioral approach differ from the contingency approach to management communication?
> Mitch Finley, a 29-year-old with a degree in finance, began working as a loan officer at a bank two years ago. Later, he began consulting for other businesses in financial planning. His career goal has been to begin his own business. Recently, Finley sta
> Newhard Company assigns overhead cost to jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost. A total of 1,000 units were produced in Job 313. Required
> Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: During January the company completed the following transactions: a. Purchased raw materials on account, $74,000. b. Raw
> Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials purchased on account, $100,000. b. Raw materials used in production, $78,000 direct materials, and $16,000 indirect mat
> Adams Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was recorded for the month, $35,000 (80% related to factor
> Carmen Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials used in production as direct materials, $56,000. b. Paid direct laborers $40,000 in cash for their work on various job
> Would you expect the amount of applied overhead for a period to equal the actual overhead costs of the period? Why or why not?
> What is the link that connects the schedule of cost of goods manufactured to the schedule of cost of goods sold?
> How is the unit product cost of a job calculated?
> What is job-order costing?
> What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?
> What is normal costing?
> What is absorption costing?
> What are the three major types of product costs in a manufacturing company?
> Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales ..................................................................$20,00
> Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work
> Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Additional information about the company follows: a. Hubs require $32 in direct materials per unit, and Sprockets require $18. b. T
> Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials.......................$40,000 Work in process.....................$18,000 Finished goods ...................
> Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during Marchâ
> Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials . . . . . . . . . . . . . . . . . . . . .
> What is the purpose of the job cost sheet in a job-order costing system?
> Explain the four-step process used to compute a predetermined overhead rate.
> What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?
> What is the difference between a traditional format income statement and a contribution format income statement?
> Define the following terms: (a) cost behavior and (b) relevant range.
> Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.
> Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead.
> Pat Miranda, the new controller of Vault Hard Drives, Inc., has just returned from a seminar on the choice of the activity level in the predetermined overhead rate. Even though the subject did not sound exciting at first, she found that there were some i
> Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price, variable expense per unit and annual sales volume are as follows: Fixed expenses total $475,800 per year. Require
> Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given belo
> Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended j
> Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then tra
> Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1, are given below. Because the videos differ in length and in complexity of production, the company use
> Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields.The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labo
> Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses .....................................................................................$140,000 Pur
> Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing system and applies manufacturing overhead cost to products on the basis of machine hours. The predetermined overhead rate was based on a cost form
> Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following estimates at the beginning of the year as well as the fol
> McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pacemakers. Its direct labor costs (e.g., surgeons, anes
> Platinum Tracks, Inc., is a small audio recording studio located in Los Angeles. The company handles work for advertising agencies—primarily for radio ads—and has a few singers and bands as clients. Platinum Tracks han
> Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. Speedy’s overhead costs include various items,
> Wilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is based on estimates from the beginning of
> Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production.......140,000 Machine-hours required to support estimated production.
> Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of goods sold ………………
> Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total pro
> Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is $18,000 and its only variable sellin
> Madison Seniors Care Center is a nonprofit organization that provides a variety of health services to the elderly. The center is organized into a number of departments, one of which is the Meals-On-Wheels program that delivers hot meals to seniors in t
> Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales ..............................................................................$300,000 Beginning merchandise inventory ………………..............$20,000
> The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries ............................................................................$56,000 Apparel Department cost of
> Whirly Corporation’s contribution format income statement for the most recent month is shown below: Required: 1. What would be the revised net operating income per month if the sales volume increases by 100 units? 2. What would be the
