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- Q1.Determine the production plan that will maximise the weekly profit of MJD Ltd and prepare a profit statement showing the profit your plan will yield. Q2.The marketing director of MJD Ltd is concerned about the company’s ability to meet the quantity demanded by its customers. Two alternative strategies are being considered to overcome this: To increase the number of hours worked using the existing machinery by working overtime. Such overtime would be paid at a premium of 50% above normal labour rates, and variable overheads costs would be expected to increase in proportion to labour costs. To buy product B from an overseas supplier at a cost of £19 per unit; which includes the cost of delivery. This purchased product would need to be repackaged at a cost of £1 per unit before it can be sold Evaluate each of the two alternative strategies and write a report to the marketing director discussing which strategy should be adopted.RAJIV: I heard the HR manager say that they offer two supplemental plans, but I only wrote down the profit-sharing plan. Under this type of plan, your account does not depend on the company's performance. This is because when profits are low, the company makes larger less do not set depends _smaller contributions to the plan, and when profits are high, it pays more. However, employers maximum amounts to be paid as contributions. What is the other plan? ERISA SIMONE: The other plan she mentioned is the traditional 401(k) plan the Pension Protection Act RAJIV: Because our employer is a big Fortune 500 company, our plan is voluntary. It takes everyone's in company stock. set RAJIV: Agreed. Thanks for helping me complete my notes! benefits contributions minimum and and heavily invests i SIMONE: Well, I think I have my notes complete. I may need to clarify a few things that will apply just to me, vesting, profit-sharing percentages, and retirement age.Carpetland salespersons average 8,000 per week in sales. Steve Contois, the firms vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. a. Develop the appropriate null and alternative hypotheses. b. What is the Type I error in this situation? What are the consequences of making this error? c. What is the Type II error in this situation? What are the consequences of making this error?
- 1. I was engaged as a freelance project manager to locate someone to fill a highly specialized position. When I asked an outstanding candidate about her salary, she told me a figure that really was far below market average. I guided her to a price that was about twice her original bid but 30% less than my client's budget. I did not inform it to my client and she was employed at the wage I suggested. Is there anything I did wrong in the eyes of either party? If you were in the project manager’s situation, how would you have handled this negotiation differently? Explain.A manager in your organization just received a special order at a price that is “below cost.” The manager points to the document and says, “These are the kinds of orders that will get you in trouble. Every sale must bear its share of the full costs of running the business. If we sell below our full cost, we'll be out of business in no time.” What do you think of this remark?P4.6 (LO 1, 2, 5), s Excel Maddie, the owner of a used car dealership, is working on compensation plans for her employees. She is trying to evaluate how a commission-based versus salary-based workforce would affect her bottom line. In considering her options, she finds basic financial information of two companies with similar year-end performance but different compensation plans-perfect examples to help her with her evaluation! Company X uses a commission-based approach, where its sales staff operates exclusively on commission. Com- pany Y, on the other hand, pays its sales staff a flat salary with no commission. Here are the basics for each company. Company X Company Y Current volume 10,000 units 10,000 units Selling price $ 50 $ 50 Variable cost per unit $ 20 $ 10 Fixed costs $100,000 $200,000 Required a. Present a contribution margin income statement for each company at its current volume of sales, and calculate the degree of operating leverage (DOL) for each. b. Utilizing the DOL…
- Paton Consultants is a consulting firm that engages clients in regards to their transfer pricing. The following Table presents the most recent period's budget and actual performance for that period. Revenue is based on hours billed to clients. Revenue Direct Labor Fixed Overhead Profit Budget $ 1,000,000 $ 800,000 $ 100,000 $ 100,000 Actual $ 1,200,000 $ 990,000 $ 100,220 $ 109,780 1.Assume that Paton's actual hourly rate that they billed clients at was no different than the planned hourly rate (thus, the difference between budgeted revenue and actual is solely because Paton was able to bill more hours). Should Paton be satisfied with the variance in Direct Labor? Why or why not?Superior Markets, Incorporated, operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expenses Administrative expenses Total expenses Net operating income (loss) Selling expenses: Sales salaries Direct advertising General advertising* Store rent Depreciation of store fixtures Delivery salaries Depreciation of delivery equipment Total selling expenses Superior Markets, Incorporated Income Statement For the Quarter Ended September 30 Total $ 3,240,000 1,789,776 1,450,224 Administrative expenses: Store managers' salaries General office salaries* Insurance on fixtures and inventory Utilities Employment taxes General office-other* 882,360 413,640 1,296,000 $ 154,224 Total administrative expenses *Allocated on the basis of sales dollars. a. The breakdown of the selling and administrative expenses that are shown…The insufficient capacity of SHELLA Craft is due to the availability of manpower that the company is currently lacking. One of the supervisors in the production department, En Shauqi suggested another option to use the service of external agency to recruit and hire workers at a rate of RM30 per hour. The company also will have to pay for transportation allowance for external workers amounting RM15,000. Evaluate the above suggestion. Suggest THREE (3) qualitative factors that need to be considered if the company decided to use the service of external agency.
- Solve a Related Rates Problem. A technical support contracting firm hires people to work from home using their proprietary support scripting system. The more employess they have, the more contracts they can support and therefore the more revenue they can generate. Suppose that the company's revenue and number of employees is related by R² = 297x³, where is R is the revenue in thousands of USD anda is the number of employees in hundreds. If there is no shortage of work to be done, the company currently has 3300 employees, and the company wants to increase their revenue from $3,267,000.00 this year to $5,643,000.00 next year, how many new employees should be hired in order to make that possible? The company should hire new employees before next year. Preview My Answers Submit Answers hYou are a member of the board of directors of a small manufacturing firm. The firm is about to hire a new CEO and is discussing the compensation package that will be offered. A salary of $350,000 has already been settled, but the board is uncertain how to structure the bonus. The proposal that has gained the most support is to pay a bonus based on some percentage of operating income. Some of the board members believe that the bonus should be based on absorption costing operating income while others think that variable costing operating income should be used. Which option do you support? State clearly why this option is best.Fanning Construction Company is a building contractor specializing in small commercial buildings. The company has the opportunity to accept one of two Jobs; it cannot accept both because they must be performed at the same time and Fanning does not have the necessary labor force for both jobs. Indeed, it will be necessary to hire a new supervisor If either job is accepted. Furthermore, additional Insurance will be required if elther job is accepted. The revenue and costs associated with each job follow. Cost Category Contract price Unit-level materials. Unit-level labor Unit-level overhead Supervisor's salary Rental equipment costs Depreciation on tools (zero market value) Allocated portion of companywide facility-sustaining costs Insurance cost for job Complete this question by entering your answers in the tabs below. Required A Required a. Assume that Fanning has decided to accept one of the two Jobs. Fill in the information relevant to selecting one job versus the other. Recommend…