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- Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?Geoff Gullo owns a small firm that manufactures “Gullo Sunglasses.” He has the opportunity to sell a particular seasonal model to Land’s Start, a catalog retailer. Geoff offersLand’s Start two purchasing options.• Option 1: Geoff offers to set his price at $65 and agrees to credit Land’s Start $53 foreach unit Land’s Start returns to Geoff at the end of the season (because those unitsdid not sell). Because styles change each year, there is essentially no value in thereturned merchandise.• Option 2: Geoff offers a price of $55 for each unit, but returns are no longer accepted.In this case, Land’s Start throws out unsold units at the end of the season.This season’s demand for this model will be normally distributed with a mean of 200and a standard deviation of 125. Land’s Start will sell those sunglasses for $100 each.Geoff’s unit production cost is $25.a. How much would Land’s Start buy if it chose option 1? b. How much would Land’s Start buy if it chose option 2? c. Which option will…
- Q4. RKE & Associates is considering the purchase of a building it currently leases for $30,000 per year. The owner of the building put it up for sale at a price of $170,000, but because the firm has been a good tenant, the owner offered to sell it to RKE for a cash price of $160,000 now. If purchased now, how long will it be before the company recovers its investment at an interest rate of 15% per year?(Do not use excel)29 00:24 1 令.l 50 B/s Question no. 02: A Leading manufacturer of Action Figures is about to introduce four new Action Figures. The accompanying table summarizes price and cost data, combined fixed costs equal $650,000. A marketing research study predicts that for each unit sold of Noyan, 2 units of Dogan, 3 units of Bamsi and 4 units of Turgut will be sold. Action Figures Turgut Bamsi Dogan Novan Selling Price (in dollars) 35 26 24 16 Variable Cost/unit (in dollars) 17 12 12 11 Table 1 a) How many product mix units must be sold to break even? b) How does it translate into sales of individual games?Q1. An LMN sugar mill company, department stores wish to purchase 10,000 handbags of which 2,000 are of style A, 2,000 are of style B, 3,000 of style C and 3,000 are of style D. Four manufacturers P, Q, R and S bid to supply not more than the following quantities, all styles combined. P= 1,500, Q = 2,600, R = 3,500 and S = 3,000. The following table gives the cost per handbag of each style of the bidders in RO. per handbag: Style Manufacturers P Q R S A 9 12 10 8 B 10 11 9 7 C 8 10 7 10 D 10 9 9 8 Use the transportation model to determine how should orders to be placed by the department store to minimize the total cost? Compare transportation cost by both models(NWCR and LCM)
- Q1. An LMN sugar mill company, department stores wish to purchase 10,000 handbags of which 2,000 are of style A, 2,000 are of style B, 3,000 of style C and 3,000 are of style D. Four manufacturers P, Q, R and S bid to supply not more than the following quantities, all styles combined. P= 1,500, Q = 2,600, R = 3,500 and S = 3,000. The following table gives the cost per handbag of each style of the bidders in RO. per handbag: Manufacturers Style P Q A 9. 12 10 8 10 11 9 7 8. 10 7 10 D 10 9 8 (a) Use the transportation model to determine how should orders to be placed by the department store to minimize the total cost? (b) Compare transportation cost by both models(NWCR and LCM)QUESTION 1. The CEO of Talk Ltd, Ms Andi, has made an observation about the pricing of products and seeks youradvice as the organisations Management Accountant. Ms Andi has noticed that despite three steepprice increases to products over the last 12 months, customers have not been deterred and sales arestronger than ever before. Explain to the CEO Ms Andi why this could be the case.Consider the following price and dividend data for Ford Motor Company: Dividend ($) Date December 31, 2004 January 26, 2005 April 28, 2005 July 29, 2005 October 28, 2005 December 30, 2005 Price ($) $14.04 $13.43 $9.14 OA. -44.4% OB. -40.2% OC.-42.32% OD. -38.1% $10.74 $8.02 $7.72 $0.12 $0.12 $0.12 $0.12 Assume that you purchased Ford Motor Company stock at the closing price on December 31, 2004 and sold it at the closing price on December 30, 2005. Your realized annual return is for the year 2005 is closest to:
- Question 5 Your company has developed a new energy drink and you are trying to decide whether to sell the recipe, or make and distribute it yourself. A company will pay you $8 million for the recipe. If your company makes the drink itself, it will cost $7 million to build a factory and distribution network. Your analytics and marketing teams tell you there is a 10% chance the market response will be great, a 60% chance the market response will be decent with gross earnings of $15 million, and a 30% chance the market response will be poor with gross earnings of $5 million. If the market response is great, there is a 60% chance the drink will be the new fad and you will make gross earnings of $70 million, a 30% chance the gross earnings will be $40 million, and a 10% chance the gross earnings will be $20 million What is the expected value from the Perfect Information Tree Gust the perfect information tree. not EVP) Please write your answer in units of Smillions, and round to 2 decimal…Q1) A retail. Store stocks two types of shirts A and B. These are packed in attractive cardboard boxes. During a week the store can sell a maximum of 400 shirts of type A and a maximum of 300 shirts of type B. The storage capacity, however, is limited to a maximum of 600 of both types combined. Type A shirt fetches a profit of SR 2/- per unit and type B a profit of SR. 5/- per unit. (b) Find the optimal solution (How many of each type) that store should stock per week to maximize the total profit. Use Graphical Method.Question 16 Refer to the table given below. As a price of $45, a Price (in dollars) of units occurs. Quantity Demanded Quantity Supplied 75 400 900 450 850 800 70 65 500 60 550 750 55 600 700 50 650 650 45 700 600 40 750 550 a) surplus; 100 b) shortage; 700 Oc) surplus; 700 O d) shortage; 100
