1. Assess the decisions made by the hotel’s management in relation to the various offers received Due to the uncertain economic and financial situation in 2008‚ the Marketing Department of the Terminus Hotel forecasted an average occupation level of 40% during 2009. In November 2008‚ the department received two offers from regular customers‚ the first at a rate of €90 for 10 rooms per day‚ and the second at a rate of €95 for 5 rooms per day. Both offers were rejected. Based on the numbers‚ it
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which is fall under manufacturing overhead. It is because the costs of personnel who do not work directly on the product but whose services are necessary for the manufacturing process are classified as indirect labour. Other examples are such as production supervisor‚ security guards and custodial employee. Product costs are assigned to units as they are processed and hence are included in inventories. The flow is from direct materials‚ direct labour‚ and manufacturing overhead to Work in Process
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or enterprise less the variable costs of that enterprise or business. It can be given in terms of per hectare in the case of crops and on a per head basis in livestock which can be derived from the totals. It is a good indicator of productive and economic efficiency. The term Net margin can be defined as the gross margin of a business or enterprise‚ as worked out by the above definition‚ less the total fixed cost which can be attributed to the business or enterprise. This can once again be given
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Research by gaining information from research it makes decision making process easier but the costs are irrelevant as the decisions will not change them.BOOK VALUES AND ACCOUNTING DEPRECIATION.Both figures are determined by accounting conventions. Only economic considerations are relevant in decision making.COMMON COSTSCosts which are common to all alternative course of action are irrelevant to decision-making.TYPES OF DECISIONMake or Buy a component.Decision-Rule:Make a component if the variable manufacturing
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number of drivers and the total cargo transported by the company at different staff levels. Drivers employed Total Cargo Transported (tons) 1 5 2 12 3 21 4 32 5 40 6 46 7 51 8 50 a. Which inputs are fixed and which are variable in the production function of Jennifer Trucking Company? Over what ranges do there appear to be increasing‚ constant and/or diminishing returns to the number of drivers employed? The inputs that are fixed are the driver’s monthly salaries. The variable inputs
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commodities • High-value cargo • Perishable • Time-sensitive • Temperature controlled goods 4 / … Question 2: What is the role of government in air transportation? Include both economic and safety regulations. How have regulation changes in USA affected the competition between the air carriers. Economic regulations: Price regulation Rate-ofRate-of-Return regulation Entry and Exit regulation Safety regulations: Licensing personnel Certification of aircraft equipment How have regulation
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Total annual revenue from pottery sales is $72‚000. Calculate accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs)
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Assignment 2: Costs and Profit (20 points) In Section 2‚ you learned about costs and profit. Now‚ you’ll apply what you learned. 1. Choose a real or made up example of a company‚ and describe at least three variable costs the company has. (1-3 sentences. 1.5 points) soaring angels attire company’s first variable cost is shirts they customize shirts to whatever you want them to be but how many shirts you want tells them how much material they need. Same thing with the shoes they also customize
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chapter 6: Planning capacity Capacity the maximum rate of output of a process or a system. Acquisition of new capacity requires extensive planning‚ and often involves significant expenditure of resources and time. Capacity decisions must be made in light of several long-term issues such as the firm’s economies and diseconomies of scale‚ capacity cushions‚ timing and sizing strategies‚ and trade-offs between customer service and capacity utilization. Planning capacity across the organization
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Chapter 5 Operating and Financial Leverage Discussion Questions |5-1. |Discuss the various uses for break-even analysis. | | | | | |Such analysis allows the firm to determine at what level of operations it will break even (earn zero profit) | | |and to explore
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