Seeso Case

Seeso Case
Unbundling cable in the U.S. cable market–Xiaoyu Zhu
From the above analysis of the specific case of SeeSo, we can generally conclude that from the
perspective of producers, under any of the three conditions, unbundling is more profitable than
bundling: 1) Consumers' preferences are not significantly different or consumers have similar
preference; 2) Firms have significantly high marginal cost; 3) The number of the consumers who
have significant preference for one product is significantly high.
However, unbundling can benefit consumers or increase consumer surplus under any of the four
conditions: 1) Consumers' preferences are sufficiently different; 2) Consumers might benefit from
the price reduction; 3) The percentage of the consumers with similar preference relative to
consumers with different preference; 4) Firms have significantly low marginal cost. However, it
seems that apart from the fourth one, these approaches are not workable for U.S. cable markets.
Based on the following research and analysis, unbundling cable is less likely to increase consumer
surplus for U.S. consumers because of the large proportion of consumers with similar preference ...
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In the year of 2011, only 17 of 137 channels were viewed over one week on average. In fact, this is
also the cable market trend in recent years. Under the current pay TV system, an average U.S.
household subscribes to about 200 channels but watches only between 10 and 15 per month,
according to Martin and Medina's research. In 2014, 15 cable channels averaged more than one
million viewers over n the calendar year. It shows that people have similar preferences towards these
popular TV channels. This situation is similar to the first two cases discussed in the part of "Four
different cases when unbundling is more profitable" so the consumer surplus will decrease on the
... Get more on HelpWriting.net ...

Wilkerson Co. Essay examples
Wilkerson's competitive situation is that of declining profits due largely to chronic and severe price–
cutting on pumps, the company's main product in terms of units produced (Exhibit 4). Being a
standard commodity product, demand for pumps is price elastic, and customers look for the cheapest
price irrespective of the company they buy from. With its competitors constantly lowering their
prices, Wilkerson's only option for remaining competitive in the pump market was to match these
price cuts. As a result, the actual selling price of pumps is $87, well below the target selling price of
$107.69 (Exhibit 2). Consequently, Wilkerson's actual gross margin of 19.5% on pumps is well
below the company's uniform target line of 35% for all ... Show more content on Helpwriting.net ...
This suggests that Wilkerson's traditional cost structure is fairly accurate when applied to valves.
The accuracy of this cost method for Wilkerson's initial product likely explains its continued use
when the company expanded to pumps and flow controllers. Another factor that may be positively
contributing to valve sales is the customer loyalty Wilkerson established due to its high–quality
products. While valves and pumps are commodity products, flow controllers are highly customized
products that require more detailed manufacturing, whereas pumps and valves can be manufactured
in an "assembly–line" style. As Exhibit 4 shows, flow controllers have substantially more
production runs, shipments, and engineering work than valves and pumps, despite having the least
production and machine hours per work. The large number of production runs and hours of
engineering work are due to the unique nature of each product, requiring more detailed engineering
and different components for each product. Since each flow controller is relatively unique, it is more
difficult for Wilkerson to ship in bulk, which explains the fact that over 70% of Wilkerson's total
shipments are allocated to flow controllers. Despite all this, Wilkerson maintains a healthy 41%
gross margin on flow controllers, even after raising prices by 10% of the target price. This is likely
due to either a high–quality product relative to its competitors, or the standard unit cost of flow
controllers being

Nfl Diversified Pricing Strategy
The NFL uses a diversified pricing strategy making it possible for fans with different budgets to
attend games. The National Football League offers club seating with cushion seats, extended leg
room and gourmet food for those customers willing to pay the premium. While offering normal
seating with traditional food stands for those customers who aren't able to afford such a premium.
This is very similar to other professional sports companies, as most have them adopted a similar
strategy due to its inherent profitability.
The level of pricing is directly related to the location of the seats in the stadium. If a customer
purchases seats in section 300, prices will be cheaper than those in section 100 or 200. Also, those
customers attending games in box seating will be subjected to the highest ticket prices in the entire
stadium. As for prices for season tickets, the prices are based on the section of seating with a
discount since a customer will reserve those seats all season rather than the seat not being sold. The
prices for the season ticket provided by DirecTv is set by the company, and no other television
provider has no other offer in the market currently. ... Show more content on Helpwriting.net ...
The National Football League and its' franchises uses big data and statistical reports on attendance
over the years to find a relative price that a customer finds reasonable for the experience. However,
customers should expect high prices since a customer is paying for a better experience than
watching the game through television. Customers are sensitive to price changes since this is a leisure
activity. When economy is not well, the less customers are willing to purchase game tickets and
merchandise since the customers have less spending money (IBIS World 2016). Therefore, the
franchises have to monitor the economy to adjust the

Game 3 Game Analysis
The basic way that I used to make profit is Trade on spread. I would take a long or short position
based on the dynamic difference between the spot price and future price. Normally, I am willing to
trade on the size of 20 contracts to ensure that I have sufficient margin to use when I firstly make a
loss on these contracts. Some other matters will be explained in the following games that I have
played in my personal game order.
In Game 2, what I need to do is try to avoid trade losses and achieve net profits at the end of the
game. At the beginning, the spot price and future price were a bit sticky to each other, the future
price fluctuated within 10 cents for quite a long time, so I chose to sell(buy) it at the higher(lower)
price and then to buy(sell) it at the relative lower (higher)price to make a small profit. In session 2, I
made a loss based on my wrong expectation so I should take a bit more risk to recover my losses in
later sessions. For example, If I short many contracts but the market is going up and the basis is
widening, then I need to buy the contracts to close my position as soon as possible, at the same time,
I will long more contracts and sell them when the market go further high to cover my losses and
make profits.
In Game 3, I would be riskier to make profit. I take a ... Show more content on Helpwriting.net ...
I made the trade in every session to catch the opportunity for profits. The main thing is that I want
big profit, which means I should focus on a long–term position and increase my trade size as well.
In facts, If I see the basis keeps widening because the decrease of spot price is larger than the
decrease of future price, I will sell the contracts right away. However, it is not serious if I make a
loss just because of the fluctuation of future price, what I can do is to wait next session begin and
buy the contracts to close my position when the market falls further based on my right

How Much Is The Cost Of Zero Cost?
How Much is the Cost of Zero Cost?
To a neo–classical economist zero is just another price. To the average coustemer it brings to the
mind the word of free. We are always trying to get something for nothing so if something is free
then consumers impulsively take the option. Ariely shows how this impulse comes with hidden costs
that debunk the myth of rational consumers. Whether it's from eating too much free food or
accumulating worthless free pens, clickers etc, people are always trying to get a free lunch.
As usual (this is what is so great about the book) Ariely did an experiment to find the answer. He set
up a stall with offering two piles of chocolates, the first being Lindt truffles and the second being
Hershey kisses. He sold the Lindt for 15 cent and the Hershey for 1 cent. Due to their superior
quality 73% choose Lindt and 27% chose Hershey's. So far, so good. An economist would say that
Lindt was obviously a superior product and as the benefit from it outweighed its cost better than
Hershey did, it sold better. So Ariely knocked one cent off the price of each chocolate, so that the
Lindt truffle cost 14 cent and the Hershey kiss was free . If Lindt was a superior product then it
should hold its place as its relative price hadn't changed, it still cost 14 cent more than Hershey. Sure
the proportions had changed, but one cent is the same amount in your pocket regardless of
proportions. You don't buy goods in proportions; you buy them in absolute amounts. Any

AP Economics: Case Study
Cameron Thomas
AP Economics / 3rd Period
November 11th, 2015
Hill
The Market
The market is a place where buyers and sellers can interact with one another to exchange goods and
services. Markets facilitate trade between the consumer and producer to perform transactions free
from government involvement, laissez–faire. In this case the market would be considered a free–
market, the government would not intervene through use of taxes, price ceilings and more, unless
the situation is dire. There are a variety of market types, there are physical consumer markets,
physical business markets, virtual markets and financial markets. As of a study conducted by the
SBA (The Small Business Administration), small businesses make up 99.7% of the ... Show more
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The demand curve is used to show and predict future changes in the market. The demand curve is
plotted on a grid with the prices on the y–axis and the quantity of good on the x–axis. The demand
curve's plots are made with lines that slope. When changes occur in the market, the demand curve
will shift accordingly. When income increases the demand curve will shift outwards due to more
goods being requested. Shifts can be caused due to a multitude of reasons including, but not limited
to: changes in income, changes in preferences, changes in expectations, changes in the prices of
competitors, changes in population and more. When the demand curve is combined with a supply
curve, it can function as a multi–purpose graph that can also depict the equilibrium quantity, or the
most efficient quantity of goods to be produced at the best

Framing Effects the Sales Promotion by Referring to the...
The concept of framing which is a part of prospect theory (Kahneman and Tversky 1979) is closely
related to the formation of reference price in the consumer's mind. Outcomes above the consumer's
reference point are presented as gains and it affects choice, judgment, and risk–taking differently
than the same alternatives which are below the reference point and are coded as losses by the
consumer. In extant literature, there have been efforts to explain the framing effects of sales
promotion by referring to mental accounting theory. Thaler and Johnson (1986) have proposed that
consumers use hedonic rules to edit their mental accounts, therefore when they see a small gain
(e.g., price discount) relative to a big loss (e.g., purchasing cost), they prefer to separate them
psychologically into two different accounts rather than integrate them. This is the silver lining
principle (based on prospect theory) and it also says that utility functions are concave for gains and
convex for losses, and the curve for losses is steeper than that for gains. Because the size of a
promotion is usually small relative to the purchasing cost, consumers should create a new account
for the promotion rather than integrate it into the purchasing cost, regardless of the promotional
types.
This proposed study aims to use mental accounting theory and sales framing concepts to upgrading
promotions and compare the attractiveness of non–monetary promotions versus price discount
promotions in a

RR Atletico Oaklawn Analysis: Separate Units Of Accounting
RR Atletico Oaklawn Analysis 1
Requirement 1:
What are the accounting issue(s) and the relevant components of the authoritative literature?
The case focuses on a sales agreement with multiple deliverables. The critical issue is determining
whether there are separate units of accounting in the sales agreement. In other words, should the
multiple deliverables be accounted for as one unit of accounting or as two or more separate units of
accounting? Guidelines that assist with evaluating sales transactions that involve multiple
deliverables can be found in subtopic 605–25, ''Revenue Recognition–Multiple–Element
Arrangements,'' in the Codification.
Requirement 2: What are the separate units of accounting in the sales agreement ... Show more
Question 2, above, is not relevant and need not be considered because there is no general right of
return provided by AOI in its agreement with CMI.
Requirement 3: How much of the arrangement consideration should be allocated to each unit of
accounting? Be sure to identify any other issues that must be resolved to determine how revenue
should be allocated.
AOI must now allocate the arrangement consideration between the two separate units of accounting.
As discussed in FASB ASC 605–25–30–2, arrangement consideration should be allocated using the
relative selling price method. The case asks to ''identify any other issues that must be resolved to
determine how revenue should be allocated.'' To apply the relative selling price method, AOI must
determine whether it has vendor–specific objective evidence (VSOE) of selling price (as defined
below) for either or both of the separate units of accounting. If AOI has VSOE of selling price for a
unit of accounting, it should use that selling price in the relative selling price method. If AOI does
not have VSOE of selling price for a unit of accounting, it should determine whether it has third
party evidence (TPE) of selling price (as defined below). If AOI does not have VSOE of selling
price, but does have TPE of selling price for a unit of accounting, then AOI should use TPE of
selling price in the relative selling price method. If AOI has neither VSOE of selling

Wilkerson Company
CASE REPORT
DATE: 03/01/2015
GROUP 5: Oliver Principe, Jorge Colorado, Manwinder Singh, Amanpreet Mann
SUBMITTED TO: Prof. Ting He
CASE: Wilkerson Company
Introduction
Wilkerson Company is in the business of manufacturing valves, pumps and flow controllers.
Wilkerson is currently faced with declining profit margins relative to industry competitors. Severe
industry wise price cuts in the pump business, which is Wilkerson's major product line, has badly
affected the company's margins (Gross margin below 20% as against a planned gross margin of
35%). The firm has identified the need to investigate its costing mechanisms and determine their
credibility comparable to those exercised elsewhere in the market. The need of the hour for ... Show
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Batch level: These activities must be performed for each batch of products; a setup has to be
performed each time a batch of components have to be machined in a production run; people in the
receiving and production control departments ordered, processed, inspected and moved each batch
of components for a production run; in the packaging and shipping area each time products were
packaged and shipped, about the same amount of work was required, regardless of the number of
items in the shipment.
Product–sustaining level: Activities that are needed to support an entire product line, engineering
labor cost
Facility level: No facility level cost pool was identified in the case
Machine
Related
$336000
Setup
$40000
Receiving / Production
$180000
Engineering
$100000

Packaging /Shipping
$150000
Overhead Costs
Total manufacturing overhead (March 2000) $806000
Activity
Cost
Pools
Unit
Level
Batch
Level
Product–Sustaining
Level
Facility
Level
ABC Stage Two
First, cost drivers for each activity cost pool are identified, and then from Knight's team data, we get
the cost driver quantity.
ABC Calculations 1) Activity cost pool ÷ Cost driver quantity = Pool rate 2) Product line pool rate
X Cost driver quantity for each product line = Activity cost product line 3) Activity cost for each
product

Analysis Of The Article ' Ending A Price Promotion '
Ending a Price Promotion:
Reflecting It in One Step or Phasing It out Gradually
Description of the basic purpose/focus of the article and the research questions addressed–
Concisely describe the purpose or goal of the research, including the primary research questions
posed by the authors, the primary variables under discussion, and why the authors believed this
research is important.
Numerous studies have been conducted on how price promotions have been proven to be profitable
in the long run. "The greater the reward, the less effort required to obtain it, and the sooner it is
obtained after the behavior, the more likely the promotion will be influential" (Peter & Olson, 2013).
The article shows the distinction between everyday low ... Show more content on Helpwriting.net ...
The author's believe that this research is significant because they see that a pricing tactic appears to
have marketplace potential.
Description of the procedure used – Provide a clear overview of the methods used in the research
such as interviews, surveys, etc. Also include the number or respondents and the types of analysis
(including statistical analysis) that was involved.
Given the research between hi–lo pricing, alternative pricing (SDD) and EDLP, There are 4 studies
that were used to examine the effectiveness of these tactics. In a theoretical framework, the first
study indicates steadily decreasing discounts generates higher future price expectations, leads to
greater anticipated inaction regret each of which affects purchase likelihood and generates more
revenue than hi–lo or EDLP. The second study shows firsthand support that there are no negative
perceptions for employing SDD tactics effectiveness. Thirdly, the study examined the relativeness of
hi–lo pricing to SDD tactics which resulted in revenues being higher when using SDD method.
Finally, in the fourth panel approach a scanner panel data was to uncover several instances of the
effectiveness of the SDD. This scanner allows companies for monitoring a number of stages in a
purchase sequence (Peter & Olson, 2013). This system predicts which

Reacted Irrational By Dan Ariely
The book "Predictably Irrational" was written by Dan Ariely in 2008, and it is considered to be a
best–seller in the United States. Dan Ariely is a professor of Duke University and works in the new
field of Behavioral Economics. The book is mostly focused on helping us better understand our
decision–making processes, and also become an unavoidable source of information when creating
public policy. Ariely focused in why people make irrational decisions, He conducted 13 experiments
and he explains every single one of them. He also teaches us that we have no idea of things and also
keeping too many doors open has a higher than what those opportunities really worth. In addition
Dan Ariely want to teach us the mysterious way of the human mind, of why we do what we do in
certain situations and why we act totally irrationally. The author gives different examples on
experiment made on top universities.i will give brief summary of most of the chapters, in order to
better understand the main idea that the author tried to bring by writing the book.
The book starts with an introductory chapter, were Ariely described how it came to their research
area after a very painful experience: for years he endure medical treatment for third degree burns
sustained in 70% of the body in an accident. His first research was on the ways in which people face
the pain, and how, specifically, nurses who generously assisted in his treatment, appeared to be
victims of certain bias or prejudice that affected

Gross Margin Percent Essay
Unitron Corporation The RSV method has a number of twists that can result in many different unit
costs for the five
Question 1 products. For inventory costing purposes, any The idea here is to construct a "Produced
systematic cost allocation system will do. The basic
As/Sold As Matrix" (400,000 x 400,000). Obviously, idea of the relative sales value scheme is that
all sales the possible combinations are endless, so how does one should show gross margin percent
equal to the average choose a "best" approach? The "best" solution is to gross margin percent across
the full joint product set. start with demand for the highest value product (405) This average is 19%
[(246 – 200) (246)]. This does and work back unsold production to the ... Show more content on
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Otherwise, given the of $456), it is necessary to consider all 6000 of the uncertainly about by–
product revenues in the case, even items shipped to be 401's. This means violating the average cost
calculation becomes very complex. the costing rule. Use a 401 cost, not a 402 cost, for If the "by–
product" units (400s) are the 402's shipped as 401's. considered a joint product, the average cost is
$0.40 per unit ($200,000 ( 500,000 units).
This question in the case is a set–up to see if But, whether 400's are considered joint you will be
more concerned about consistent products or by–products doesn't really change the application of
rules or consistent application of the economics of the toy company offer. The "Relevant basic idea
underlying the rules. Our experience is that Cost" for the "seconds," for purposes of evaluating most
students see the rules as more important than the this offer is Opportunity Cost. concept! They will
use method (A) here far more often If I sell them now for $0.15, will I lose an than method (B). We
believe only method (B) is opportunity to sell them later for enough more than proper, but we have
had CPAs argue otherwise in class! $0.15 to make up for the time value of the foregone cash Since
some 402's will be sold as 401's during inflow? the year anyway, the issue really is one of Annual
output is 100,000 units and inventory manufacturing scheduling! Is it

Test Mkt 402 Essay examples
Question 1 ©
0 out of 2 points Customer–driven pricing may depress profits because _____.
Answer
Selected Answer: customers will only pay so much for a product
Correct Answer: pricing for short term sales objectives often undermines perceived value by
customers Question 2
2 out of 2 points Cost–plus pricing is effectively opposite of a prudent pricing strategy because
_____.
Answer
Selected Answer: it leads to overpricing in weak markets and underpricing in strong markets
Correct Answer: it leads to overpricing in weak markets and underpricing in strong markets
Question 3
2 out of 2 points Proactive, value–based, and profit–driven principles are typically embodied by ...
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Answer Selected Answer: value–based, proactive, and profit–driven
Correct Answer: value–based, proactive, and profit–driven Question 9
2 out of 2 points Proactive pricing suggests that _____.
Answer
Selected Answer: a company develops strategies to maintain profitability in anticipation of a
changing market
Correct Answer: a company develops strategies to maintain profitability in anticipation of a
changing market Question 10
0 out of 2 points The practice of financial prudence is often associated with _____ as it focuses on
fair return over all costs.
Answer
Selected Answer: share–driven pricing
Correct Answer: cost–plus pricing Question 11
2 out of 2 points A value–based price structure can result in poor sales when _____.
Answer
Selected Answer: prices are not justified to the customer in terms of the value of the product
Correct Answer: prices are not justified to the customer in terms of the value of the product
Question 12
2 out of 2 points Price–cutting is one strategy of share–driven pricing to achieve sales objectives but
_____.
Answer

Selected Answer: it doesn't sustain a long term market advantage unless competitors cannot match
the price cut
Correct Answer: it doesn't

Pharmaceutical Companies and the Availability of Hiv Drugs...
1) Is the monopoly on patented pharmaceuticals warranted? What barrier to entry prevents the re–
importation into the United States of pharmaceuticals sold at lower prices abroad (say, in Canada)?
Pharmaceutical companies try to maintain a monopoly in the early stages of a drug in order to
recover R&D investment. During this period of exclusivity they will try to make a fair profit.
This is not a monopoly in the true sense of the word because this period is limited in time. It is
perhaps better to describe it as a limited warranty. There are also other limitations. Pharmaceutical
companies in some countries may not respect intellectual property and may copy or produce generic
drugs even before the patent expires.
An important ... Show more content on Helpwriting.net ...
The successful products must therefore provide sufficient margins to recover R&D costs and to
finance future projects. Packaging and transportation will also result in significantly higher costs
than say the manufacture of cereal.
Another factor for higher margins is the greater risk that pharmaceutical companies take on. It is
impossible to tell whether a viable drug that is safe for the public will emerge, and competitors may
launch a better drug in the time period between submission and regulatory approval. Because of
grey trade, the company may also find its profit margin in high–priced markets being eroded.
Suggest an approach to the big pharmaceutical company problem of differential pricing in the US,
Western Europe, and Japan versus the less–developed world.
At the moment, differential pricing is the pharmaceutical industry's preferred solution to inadequate
financial access to anti–retroviral (ARV) therapies for AIDS. Differential pricing permits drugs to be
sold cheaply in low–income countries, while maintaining high prices in markets like the United
States.
The alternative to differential pricing would be uniform pricing, wherein the wherein the seller sets
one price, adjusted for transport, distribution and other costs, for all consumers and markets. Under
such pricing, the seller maximizes his profits against global demand or

Soren Chemical Case Study
1. Why is Soren Chemical struggling to sell Coracle? In particular, please discuss how the channel
structure affects the sales of Coracle.
Soren Chemical is new to developing a consumer brand (it partners with formulators to use private–
label branding for its Kailan MW line). Therefore, they are relatively inexperienced with marketing
consumer–oriented brands whereby they have to handle directly with wholesalers and also market to
retailers, pool service professionals and consumers. This inexperience might have caused
miscommunication between channels as seen when pool service professionals and specialty retailers
had made inquires about Coracle but only 30% recalled receiving the Coracle material. Also 70% of
them stated that Coracle ... Show more content on Helpwriting.net ...
To calculate the annual EVC, we need to take reference value plus differentiation value. The
reference value is the cost of substitute, which is ClearBlu's annual cost of $56.25. The
differentiation value includes Coracle's increase in chemical savings. Coracle reduces the need for
additional chlorine, shock treatments and enzymes, thus reducing pool owners' annual chemical cost
by 20% to 30% (average of 25%). ClearBlu reduces annual chemical cost by 15%, thus the increase
in savings by Coracle is 10% (25%– 15%). The annual chemical cost (excluding clarifiers) is $300.
Calculation of Coracle's annual EVC: $56.25+ 0.1x $300= $86.25.
3. Should Soren Chemical adopt a "push" or a "pull" strategy? Why?
Coracle, being a new brand should first adopt a push strategy since there is low brand loyalty and
low brand awareness. This will generate exposure and encourage distributors to stock up on Coracle.
Only 25% of consumers understand and use clarifiers regularly. This shows that there is low
involvement in purchasing decision and perhaps an impulse item as a residential clarifier. And thus a
push strategy is a good way to promote the product. However, since product benefits are not well
understood by consumers, Soren can also adopt a pull strategy in communicating the actual value of
Coracle, and let consumers know about the annual EVC rather than unit cost. It is hard to promote
Coracle to the distributors since they understand that low annual cost of Coracle comes

Marketing Strategy: Marketing Objectives Of Coconut Ketchup
B. Marketing Objectives
The marketing objectives of TEAM TOCOK are to be able to introduce a new product made out of
coconut which is abundant at our target location Barangay Tococ, San Fabian, the decided product
would be ketchup wherein we will be substituting coconut for its base. We believe that Coconut
Ketchup will be able to compete against other competitors because of its healthiness, this includes
fat loss, better brain function and various other amazing benefits, another way we can compete well
is increasing our brand awareness through active advertising via social networking sites, not only
are we able to increase awareness but we will also be able to communicate with them. To increase
the success rate of this feasibility study we will be conducting surveys to determine what the
potential consumers want and expect of the product. ... Show more content on Helpwriting.net ...
Marketing Strategy
No one strategy is best for all companies. Each company must determine what makes the most sense
give its position in the industry and its objectives. Each company must determine what makes the
most sense give its position in the industry and its objectives.
Our product's winning strategies would include: Description
1. Overall cost leadership Our company will work hard to achieve the lowest production cost and
distribution costs. We will introduce our product in the market at low price, but not to sacrifice
profit. Low costs price lower than its competitors will win large market share and eventually
competitive with the leading brands.
2. Differentiation Here our company concentrates on creating a highly differentiated product line.
Our product's main ingredient is coconut which makes is very unique with other common leading
brands in the market. Consumers would be curious to try our product.
3. Focus Here, the company focuses its effort on serving smaller market by making them available
in the locality of San Fabian, Pangasinan rather than going to a large market.
4. Customer

What Are The Three Reasons The Aggregate Demand Curve...
a. Two macroeconomic variables that decline when the economy goes into a recession are real GDP
and investment spending. GDP will decrease because the economy will be producing fewer goods
and services overall. Investment spending, spending on new capital, will decrease in order to
conserve and spend in other areas. The unemployment rate is one macroeconomic variable that will
rise during a recession. If an economy begins producing fewer goods and services, businesses will
need fewer employees to meet the production demand. 3.) List and explain the three reasons the
aggregate–demand curve slopes downward.
a. Three reasons the aggregate–demand curve slopes downward are the wealth effect, the interest–
rate effect, and the exchange rate effect. The wealth effect explains that when the price level
decreases, each consumer is wealthier because the real value of his or her dollar has increased.
Wealthier consumers spend more, increasing the demand for consumption goods and services.
Conversely, if the price level rises, the real value of the dollar will decrease, effectively making
consumers poorer. Poorer consumers will spend less on consumption, decreasing the demand for
goods and services.
The interest–rate effect explains that when the price level decreases, consumers have more money
left over after consumption (because prices have dropped) which they can then place in financial
intermediaries (banks) who can in turn loan those funds out. An increase in the supply of

Burger King Marketing Plan
BURGER KING
Team Members:
Ahmed El Salawy 20050026
Gina Mostafa Hassan 20050106
Jala Wageh Younan 20050097
Mohamed Babers 20050275
| |
| |
Table of Content
1. Executive summary
2. Introduction.
1. Brief History.
2. Burger King Egypt.
2. Mission.
3. Forces Driving Industry Competition: ... Show more content on Helpwriting.net ...
1. Introduction:
Brief history:
– Burger King 's first restaurant, originally called Insta Burger King, was opened on December 4,
1954 in a suburb of Miami, Florida by James McLamore and David Edgerton; both alumni of the
Cornell University School of Hotel Administration.

– In 1967, after eight years of private operation, the Pillsbury Company acquired Burger King and
its parent company Burger King Corporation. At the time of the purchase, BK had grown to 274
restaurants in the United States.
– When Burger King Corporation began franchising in 1967, it relied on a regional franchising
model where franchisees would purchase the right to open stores within a defined geographic
region. These franchise agreements granted BKC very little oversight control over its franchisees
and resulted in issues of product quality control, store image and design and operations procedures.
Burger King Egypt:
The opening of the first Burger King® restaurant will took place during the second quarter of 2007
at Egypt 's City Stars Mall, Cairo, one of the largest shopping malls in the region. A further two
openings are due to follow shortly in Sharm El Sheikh, Signaling the beginning of a large expansion
program that will follow over the next five years
2. Mission:
"We will prepare and sell quick service food to fulfill our guest 's needs more accurately, quickly,
courteously, and in a cleaner environment than our competitors. We will

What Is Price
# What is price?
The answer depends upon whether the concept is viewed from the market place or from the stand
point of costs. Consumers view price as a monetary expression of the value for dimensions of
quality or features benefits for a given products or services. This relationships can be expressed as
follows:
Price = Quality Value
In other words , Price is the payment for quality as interpreted by the valuation of the marketplace.
From a psychological standpoint , price represents a quantitative estimate and or subjective image of
the benefits from a selective group of product features for a good or service. As such psychological
prices serve as expected prices or references points in ... Show more content on Helpwriting.net ...
The consumers total utility is maximized by selecting the Combination of X and Y that enables the
individual to reach the highest feasible point on the utility surface. This is the point at which the
budget line just touches the highest indifference curve .
CRITICAL FACTORS IN THE PRICING DECISIONS:
The price of a product determines that products contributions to profit ability. The motivation in
setting a high price is that it creates bigger margins , which in turns lead to increased profits with
low prices the opposite happens margins are reduced and there is less contribution from the
particular product .The factors which are related to the pricing decision are discussed below:
Effective cost information: Management needs to look carefully at the cost involved in the
allocation of resources to create and define the product. This mean of only manufacturing and
distribution costs, but special management and technological costs .
Customer valuation : Rather than compete on price alone , marketers must think in terms of total
value as perceives by the customer , or the combination of features and experience that create a total
customer perception of value
Conuptualization of providing total value to customers Customer segment
Market Targets : The total market for a product /service package can be segmented because of the
differences between groups of customers .These differences may allow for product and

Advantages Of Ricardia
Comparative Advantage:
Comparative advantage is a condition when country can produce goods with lower opportunity costs
compare with other countries. Opportunity costs here means the costs that we choose over other
things (we gave up on other goods and spend cost for goods that gives more benefit). For example:
Indonesia import some machine from China because China offer lower price rather than if Indonesia
want to produce it in Indonesia. Because if Indonesia lack of raw materials and knowledge, but
Indonesia is good at producing spices. So the opportunity costs of Indonesia is by allocating costs
for producing machine to producing spices and sell it to China. And Indonesia also has comparative
advantage of spices because the availability of resources that make the costs can be lower. ... Show
more content on Helpwriting.net ...
Countries sometimes protects industries from foreign competition. It is costly to transport goods and
services.
Transportation costs can reduced the gaining from trade, because it will affect the price (the price
will be higher) and it also risky sometimes. The affect of transportation costs will make goods
become non–traded goods because country thinks that it is better to produce it rather than buy it
from foreign with high transport costs. Other non–traded goods is services etc.
Empirical evidence of the Ricardian Model:
There are numbers of way which Ricardian model makes misleading predictions. First Ricardian
model is a simple model that predicts an extreme degree of specialization that we not observed in
real world. Second, it assumes away effects of international trade on the distribution of income
within country thus it makes a prediction that country will always gain from trade. Third, the cause
of trade missing an important aspect of trading system. So, some of theory in Ricardian model is
unrealistic but its basic prediction has been confirmed by numbers of

Gains From Trade Essay
Another theory, which explains the gains from trade, is specific–factors model. It is similar to the
Ricardian Model, but it is more complicated since it takes into account two more factors of
production: land and capital. This model assumes there is two–country world, in which only two
goods are traded. It is assumed that labour and capital are used in the manufacturing industry.
Moreover, labour and land are used in the agricultural industry. Specific–factors model is short run
model, because the factors of production cannot shift from one industry to another. In each industry,
there is diminishing return to labour.
If trade was not available, both consumption and production coincide in point A, which lies on the
PPF. The PPF in this case is bowed out, because of the diminishing return to labour in both
industries. We assume that the foreign relative price without trade is higher than the Home one.
Now, suppose that countries are no longer restricted to trade. This will lead to an increase in the
relative price of Home country. Consequently, the workers of the home country are more attracted to
manufacturing. This will shift the home production in point B. Thereupon, the Home country will
begin exporting manufactures and importing agriculture, which will shift the home consumption to
point C. Point C is situated on a higher utility curve, which is indicating gain from trade.
Interestingly, the change in relative prices of home country will have an ambiguous

Porter's Five Forces In Automobile Industry
3.2 External Environment Analysis –Industry Analysis (Porter's Five Forces Analysis)
Porter's Five Forces Framework Model analyses the competitive forces within the environment in
which a company operates, to assess the potential for profitability in an industry. Porter consists of
threat of new entrants, threat of substitute, buyer power, supplier power, and rivalry among existing
competitors. The change in any forces normally requires firms to observe the market and make the
decision in overall change of industry information. Firms are able to apply their core competencies,
business model or network to achieve a profit above the industry average.
Threat of New Entrants
Profitable industries that yield high returns will attract new firms. New competitors may force
existing firms to be more efficient and to learn how to compete on new dimensions. Threat of new
entrants is high when it is easy for new competitors to enter a market ad low when there are
significant entry barriers to entering a market. These entry barriers make it difficult for new firms to
enter an industry and often place them at a competitive disadvantage even when they are able to
enter. The domestic cars that have produce in Malaysia are Proton and Produa. This can be seemed
that in automobile industry, there have ... Show more content on Helpwriting.net ...
Firms can take measures to reduce buyer power such as given discount by helps the company to find
out which is firm's loyal customers. Buyers' power is high if buyers have many alternatives and it is
low if they have few choices given. The buyer power increases when the Produa products are
differentiated or standardized. Buyers pose a credit threat to integrate backward into the sellers'
industry. For example, buyers might influence by price which buyers wants the cheap and adorable
car. They also have the option to choosing types of cars, colour and others additional

Management Discussion And Analysis : Social Konnections Inc.
General Background Info
Social Konnections Inc. (SKI) is an international corporation that runs a large and popular social
media platform designed for networking. Since its launch in 2005, SKI is developing at a steep rate
of growth. SKI's initial public offering was in 2010 and now has over 500 million active users. In
the previous fiscal year, almost all of the company's revenue came from advertisers who place their
product ads on the social media website and it's corresponding mobile platforms. Remaining
immaterial revenues are recognized as payments received from fees associated with the sale of
virtual goods/services by third party application developers who use SKI's service platforms.
SKI has recently acquired an entity that manages ... Show more content on Helpwriting.net ...
By reading SKI's disclosed accounting policies and conducting inquiries of the company's internal
control employees, such as Bill Cook (revenue controller), Ms. Drew becomes concerned about
several findings she encountered regarding SKI's revenue recognition policies.
Identifying Potential Revenue Recognition Issues
ASC 605–50–25–3,7 advises that when dealing with multiple arrangements the arrangements must
be identified and can be recognized as either a single contract with multiple deliverables or a
compilation of individual contracts for one customer. SKI's general advertising services involve
multiple arrangements since each contract they make is tailored to meet the needs of individual
clients. The potential issue concerning SKI's advertising revenues involves the facts that these sales
agents are given significant latitude in securing these contracts. This creates many differences
among the contracts and raises the issue on how SKI is supposed to recognize the revenues from
their contracts that all have varying terms. Following ASC 605–50–25–3,7; Guidance characterizes
these contracts that are substantially different as multiple deliverables and that the consideration of
these arrangements must be allocated to the deliverables as separate units of accounting. This
allocation is done by determining a relative sales price for the nature of the arrangements and to
allocate them respectively. Kristine Drew could recommend that SKI could

Mkt 402 Wk 8 Assignment 2 Policies and Strategies
MKT 402 WK 8 ASSIGNMENT 2 POLICIES AND STRATEGIES
To purchase this visit here: http://www.activitymode.com/product/mkt–402–wk–8–assignment–2–
policies–and–strategies/ Contact us at:
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MKT 402 WK 8 Assignment 2 – Policies and Strategies Imagine that you work for a pricing strategy
consulting business. Select a business that will be your next client. Write a six to eight (6–8) page
paper in which you:
1. Create a scenario that would result in your client seeking advice from your consulting business.
2. Create a pricing policy for the selected client and scenario.
3. Analyze the best price setting process used to establish sustainable and profitable ... Show more
Activity Mode aims to provide quality study notes and tutorials to the students of MKT 402 WK 8
Assignment 2 Policies and Strategies in order to ace their studies.
SUPPORT@ACTIVITYMODE.COM
MKT 402 WK 8 Assignment 2 – Policies and Strategies Imagine that you work for a pricing strategy
consulting business. Select a business that will be your next client. Write a six to eight (6–8) page
paper in which you:
1. Create a scenario that would result in your client seeking advice from your consulting business.
2. Create a pricing policy for the selected client and scenario.
3. Analyze the best price setting process used to establish sustainable and profitable prices for the
client. 4. Evaluate key pricing considerations and strategies relative to the product life cycle of your
client's three (3) top sellers. More Details hidden... Activity Mode aims to provide quality study
notes and tutorials to the students of MKT 402 WK 8 Assignment 2 Policies and Strategies in order
to ace their studies.

Exchange Rate Volatility Measure And Relative Price
3.2 Exchange Rate Volatility measure and relative price An important issue in this topic is how to
choose the appropriate technique to estimate the exchange rate volatility. However, wide variety of
measures have been discussing in the literature, but there is no right or wrong measure of exchange
rate volatility. Mckenzie (1999) provides a brief over–view of different methods to measure
exchange rate volatility, such average absolute difference between the previous forward and current
spot rate, variance of the spot exchange rate around its trend, absolute percentage change of the
exchange rate and the moving average of the standard deviation of the exchange rate. A moving
standard deviation of nominal or real exchange rate seems to be the most commonly used method in
the empirical literature. Hence, we will construct the moving average standard deviation of the
monthly real exchange rate volatility with the same spirit as Serenis and Tsounis (2014) and a
moving standard deviation of real exchange rate can be expressed as:
Where R_t is logarithm of nominal or real exchange rate and m is the number of periods which can
be range from 4 to 12.In this paper, we will use the moving average of the standard deviation of
exchange rate as the measure of exchange rate volatility by using the real exchange rate and the
order m is set to be 12. Koray and Lastrepes (1989) have shown that the moving average of the
standard deviation of the exchange rate captures the variation in the

Airtel Merger Essay
B. APPLYING PREDATORY PRICING
The newly created firm will have a market share of 27.14% after summing the market of share of
14.5. % for Tigo and 12.6% for Airtel respectively. The combine market shares (27.1%) of the two
firms is lesser than that of MTN with market share of 48.5% .Using the market shares reveals that
MTN will still have more dominance in the market than the newly created firm from the merger.
This provides proof of the fact that the newly created firm would not have much control over the
market in using predatory pricing to drive competitors and potential competitors out of the market.
The merger should be approve as competition in market will be maintained after the merger.
C. APPLYING ANTI COMPETITIVE ISSUES
MONOPOLY ... Show more content on Helpwriting.net ...
The concern of the regulator will be to determine if the merger could raise or reduce the welfare of
consumers. That is if the reduction in cost measured by the lower average cost would be sufficiently
large relative to the rise in price, then the merger would improve welfare of consumers as cost saved
will be greater than deadweight loss. But if the rise in price after the merger is sufficiently large
relative to the reduction in average cost then the merger lowers welfare (deadweight loss).The
antitrust authorities can determine if the merger would enhance welfare or not depending on how
reacts to the merger. The goal of competitors is to determine whether the merged firm will provide
quality or worse services compared to the combined premerger services provided by the firms
engage in the merger. If the quality of services provided by the merged firms falls then competitors
will be better off, since demand for their service is likely to increase. The increase in demand for the
services of competitors induces them to provide more to the market, but on the net the total quality
of service provided in the industry would falls creating higher prices, in that case the merger will not
be challenge by the competitors. The higher price resulting from the merger reduces welfare as
consumer surplus falls. On the other hand if the new firm provides better quality services

The Impact Of Technological Change On The British...
Technological change was at the heart of driving the British Industrial Revolution over the late 18th
and early 19th century. A series of significant inventions such as steam engines, spinning jenny and
water frame had precipitated British economy's evolution from pre–modern to sustained economic
growth. To explain the radical change in technology, two competing factors are highlighted in
literature. Economists like Sir John R.Hicks outlined that "the real reason for the predominance of
labour–saving inventions is surely that ... a change in the relative prices of the factors of production
is itself a spur to innovation and to inventions" (). In contrast, Joel Mokyr argued that it was the
right combination of useful knowledge generated by scientists, engineers and inventors to be
exploited by a supply of skilled craftsmen in an institutional environment that produced the correct
incentives for entrepreneurs (Crafts, 2010, p155–156). By comparing the impacts of factor prices
and institutions on technological change in Industrial Revolution, the former is evidently more
important than the latter.
Britain's peculiar wage and price structure was decisive in motivating dramatic technological change
over industrial revolution. The abundance of coal's supply made energy very cheap (Allen, 2009,
p82). Other than that, the relative price of labour to capital and energy had been surging from the
mid–17th century (Allen, 2009, pp171–172). Due to the factor price structure of British

Ticket Prices On The Sports Industry
Ticket Prices in the Sports Industry Why are tickets to sporting events so expensive? Ticket resale
has been a concern to people who determine ticket price as well as the fans. If tickets are too
expensive to begin with, then there will be a lot of unsold tickets. If tickets are very cheap, they will
be purchased from the primary market quickly, and then sold on the secondary market at an
increased price. Owners of sports teams and the league should allow the market to control ticket
prices. Ticket prices are based off the demand of the game, team, and league which has resulted in
tickets being sold at market value rather than face value. Ticket prices vary across the leagues as
well as pricing strategies. Teams should continue to profit–maximize by charging various amounts
for tickets in order to charge the closest amount to first–degree price discrimination.
TICKET PRICE
Prices for a good or service is determined by supply and demand. For tickets to sporting events,
there are a set number of tickets which means the quantity is limited and set long before the season
starts. The supply curve is perfectly inelastic at the stadium's capacity. This means that the marginal
cost is close to zero until the stadium's capacity is reached. Depending on where this quantity lies
relative to the demand curve determines whether the team will decide to sell out or have empty
seats. If the team maximizes profits by not selling out, then the team will decide to have empty

Explain the mechanism referred to in the above statement...
"Trade between advanced countries that are abundant in capital and skill and NIEs (Newly
Industrialising Economies) with their abundant supply of unskilled labour was raising the wages of
highly skilled workers and lowering the wages of less–skilled workers in the skill– and capital–
abundant countries " (Krugman, Obstfeld and Melitz). Explain the mechanism referred to in the
above statement using the Heckscher–Ohlin model.
The Heckscher–Ohlin model is extremely useful when illustrating how endowments of a particular
resource can influence trade between economies. The model shows us how comparative advantage
is explained somewhat by the relative abundance of certain resources, such as land, labour or
capital.
The Heckscher–Ohlin (HO) ... Show more content on Helpwriting.net ...
Assuming the demand schedule is identical in both countries, then without trade, Foreign's own
market equilibrium is at '1' and Home's equilibrium for cars is at '2'. When the two countries trade,
the relative 'world' price converges to a point somewhere in between these two points at '3'.
We can see from the above illustration that trade leads to a convergence of world prices at point 3.
The Foreign economy will therefore export the good that has seen an increase in its relative price.
Now that we have seen how prices change under the assumptions of the HO model, I will now
explain how these changes have an impact on the distribution of income in countries open to trade.
A rise in the prices of cars increases the purchasing power of skilled labour (the abundant factor) in
the foreign country in terms of both goods. At the same time it decreases the purchasing power of
unskilled labour (the scarce factor) in terms of both goods. So by opening up to trade, the owners of
the abundant factor become better off, whilst owners of the scarce factor become worse off.
Theoretically, opening to trade should increase the consumption possibilities for the whole economy,
allowing everyone to gain a higher utility. So why do some people become worse off, post–trade
under the HO model? The underlying issue is that trade only changes relative prices of factors,
which has a direct effect on the relative earnings of those

Quiz 3 Marketplace
SSA 2015 MAR 4804
Test
Strategic Marketing
Quarters 3 & 4 decisions
NOTE: Use the Question numbers below (59 through 99) in completing the Blue Sheet
59. The issue of pricing does not need to be addressed during your brand design efforts.
a. True
b. False
60. When deciding on price you should consider
a. What the market will bear
b. Your production costs
c. The price your competition will charge
d. All of the above
61. As a general guideline, your selling price should be approximately what percent more than your
cost of goods?
a. At least 50% more
b. At least twice the cost
c. Two to three times the production cost
62. Why would you want to use a ... Show more content on Helpwriting.net ...
Which of the following is not considered an operating expense?
a) Sales office leases
b) Sales force expenses
c) Ad creation/ revision cost
d) Cost of goods sold
81. Which of the following is not considered part of the gross margin?
a) Revenue
b) Rebates

c) Cost of goods sold
d) Sales office leases
82. What is operating profit?
a) Profit from financing
b) Profit from sales
c) Profit from investments
d) None of the above
83. Which of the following is an engineering cost?
a) Design cost for a new brand
b) Sales office lease
c) Rebates
d) Sales force expense
84. Salary, benefits, and training costs are considered sales force expenses.
a) True
b) False
85. Which of the following is considered a good price judgment by the end of the exercise?
a) 50
b) 70
c) 95
d) 85
86. In Quarter 4, what is considered to be a good ad judgment?
a) 55
b) 50
c) 60
d) 75
87. Which of the following is considered a good brand judgment in Quarter 4?
a) 50
b) 70
c) 95
d) 85
88. Your customers will give the highest ratings to ads that mention the most benefits.
a) True
b) False
89. Is it OK to copy another competitor's ad?
a) Yes
b) No
90. Of the following, which will have the greatest effect on your demand?

a) The number of firms competing in your markets
b) The amount of advertising you do
c) The economic environment
91. If your competitors' prices are below your prices, then which of the following is most likely to
happen, all other things

Competitive Strategies
5. Company's competitive strategy in entry–level cameras
Fast and Furious will employ a global low–cost leadership strategy and pursue a competitive
advantage by having lower costs and selling entry level cameras at low prices relative to rivals. We
designed our cameras with basic features and mid level product enhancements, to produce a two star
level product. Some of these specifications include 8mm image sensors, 230k pixel lcd display
screens, 2704x1520 pix image quality, etc. By producing a lower quality camera, we were able to
manufacture and sell our product at a lower cost. This allowed us to gain a competitive advantage
and outsell our competitors from the get–go. Many of our competitors adopted this strategy later in
the simulation, ... Show more content on Helpwriting.net ...
Similar to our cameras, we designed our drones with basic features and mid level product
enhancements, to produce a two point two star level product. Some of these specifications include
front and rear obstacle sensors, 6 rotors, and an 8 minute battery pack, etc. By producing only three
models of low quality drones, we were able to manufacture and sell our product at a lower cost. We
produced our drone for $460.85 and sold it for $1150 to $1550. Similar to our cameras, we invested
in research and development, longer warranties, and retailer support/recruitment. Furthermore, our
investment in our website product displays and info increased in all regions over the years as we
realized a rise in e–commerce for UAV drones, and reacted in order to remain competitive. Our
business strategy and operations varied globally considerably more than it did for our entry level
cameras. Since we had the lowest market share in North America, we invested a large amount of our
marketing efforts in this region. However, consumers in this region were willing to pay more for our
product, and our profit margin was highest in this region (56.9%). Our investment in search engine
advertising was also significantly higher in this region because North Americans are highly engaged
with search engines. Buyers of UAV Drones in Latin America and the Asia–Pacific regions are the
most sensitive to price differences across brands, so we balanced factors like quality, profit, and
competition in order to create the ideal selling price. As a result of this, we also offered high
discounts for third party retailers in Asian pacific and Latin America, 20% and 25% respectively,
which was more than double the discount offered in North America and

Ready to Eat Cereal
Ready To Eat Cereal
1) The Big Three firms, Kellogg, General Mills, and Philip Morris, formed practically an oligopoly
in the RTE cereal market. Their price and cost levels moved in lockstep, following signals sent
mostly by the biggest player, Kellogg, while their tactics could be used against outside competition,
as suggested in the scenario below. Although RTE cereal is a basic food item and production
technology stabilized for about half century, the industry had effective barriers to entry. The
competition between incumbents was friendly while most of the inputs came from a perfectly
competitive market, agriculture. Major customers, the food stores, were coopted in perpetuating
barriers to entry in the form of shelf space "slotting". ... Show more content on Helpwriting.net ...
This left a segment open for new entrants to come with no competition from incumbents. Private
labels also did not do product proliferation and were focused on limited popular brands at low costs.
This helped them save costs in R&D of new products and also save costs by not experimenting
new products. They did not compete with the Big 3 on all possible niches. Also, from the table
below, we see that the total costs of the private label are 40% less than the Big 3 brands, which
helped them to target the price sensitive customers. They are several strategies that the private labels
applied which resulted in reduced cost structure. First of all, they did not use coupons, which had
accounted for 23% of the total costs for Big 3 brands. The private label also offered higher margins
to retailers (15%) in comparison to Big 3(12%) in order to get premium shelf space and signage.
The private labels reduced packaging costs by supplying cereals in clear plastic bags. They also used
less labor intensive manufacturing process and fewer expensive fruits and nuts. | Big 3 | Private
Label Cost Structure | Comments/Assumptions | Raw Materials | 0.42 | 0.36 | Fewer expensive nuts
so assuming costs less by15% | Packaging | 0.19 | 0.14 | 25% less (no boxes) | Labor and indirect
mfg | 0.52 | 0.44 | 10–20% lower: less labor intensive and fewer expensive fruits and nuts. Let 's take
avg 15% | Distribution | 0.14 | 0.16 | 10% margin on

Corporate Finance Test with Answers
Corporate Finance: An Introduction (Welch)
Chapter 1
Introduction
1.1 The Goal of Finance: Relative Valuation
1)
Which of the following statements is true? A)
In finance, it is important to determine an asset 's absolute value. B)
The relative value of any asset is, at best, a lucky guess. C)
The true value of an asset is unaffected by externalities such as interest rate levels, the state of the
economy, etc. D)
Valuation is not an exact science. Answer:
D
Diff: 1 Topic:
Valuation
2)
The law of one price stipulates that A) identical goods must be sold to all buyers at the same price;
otherwise price discrimination occurs. B) ... Show more content on Helpwriting.net ...
B)
Although most projects involve both financial and non–financial costs and benefits, the non–
financial items are typically minor and can be ignored when estimating a project 's value. C)
Opportunity costs––e.g., cash flows that would be generated by an alternative project––should be
included in your cash flow analysis. D)
Both B and C are false statements. Answer:
B
Diff: 1 Topic:
Project cash flows
3)
David owns the building out of which he operates a small graphic arts business. He has extra space
available and is considering converting the extra space into a gourmet coffee shop that he would
also run. A local businesswoman has offered to rent the extra space from him for her own needs. She
has suggested she would be willing to pay $1,000 a month in rent. In estimating the cash flows

associated with the gourmet coffee shop, David should A) include the $1,000 rent as a cash inflow.
B) include the $1,000 rent as a cash outflow. C) ignore the $1,000 rent since it is a non–issue if
David decides to undertake the coffee shop project. D) consider the $1,000 as an added benefit.
Answer:
B
Diff: 2 Topic:
Project cash flows
4)
You own a firm if A) you own all the outstanding stock. B) you own all the outstanding bonds. C)
you own all the outstanding stock and bonds. D) you own all the

Velocity Cellular Case Essays
Velocity Cellular Case Study
1– a. According to ASC 605–25–25–5 , a delivered item in an arrangement with multiple
deliverables shall be considered a separate unit of accounting if the following criteria are met:
* The delivered item or items have value to the customer on a standalone basis, which is satisfied in
this case. * When vendor–specific objective evidence or third–party evidence of selling price for
deliverables is absent, the vendor is allowed to give an objective estimation of the price of
deliverable unit on standalone basis (in accordance with ASU No.2009–13), which is generally
satisfiable. * If the arrangement includes a general right of return relative to the delivered item,
where the delivery or ... Show more content on Helpwriting.net ...
Additionally, both of the following conditions shall be met: The services are not essential to the
functionality of any other element of the transaction, and the services are described in the contract
such that the total price of the arrangement would be expected to vary as the result of the inclusion
or exclusion of the services.
Also the deliverables in this case do meet the general separation criteria under FASB ASC 605–25–
25–5. This is because the software does have a standalone value to the customer, and there is an
objective and reliable evidence of fair market value for the installation, and there is no reference or
evidence that a general right of return granted by the supplier. Therefore we can consider the units in
this arrangements as separate entities and use the relative selling price method to account for them.
250,000 + 5,000 + 57,500 = 312,500 total base . 250,000/312,500 = 80% of the actual price of the
arrangement to be allocated to the software. 5,000/ 312,500 = 1.6% of the actual price of the
arrangement to be allocated to the installation. 57,500/ 312,500 = 18.4% of the actual price of the
arrangement to be allocated to the technical support. The relative price of the software would be
$240,000, the relative price of the installation would be $4,800 and the

Advantages Of Subsidies
Objectives
Subsidies, by means of creating a difference between consumer prices and producer costs, brings
change in demand/ supply decisions. Subsidies are often aimed at :
1. inducing higher consumption / production.
2. achieving social policy objectives including redistribution of income, population control, etc.
3. offsetting market imperfections including internalisation of externalities;
TRANSFERS AND SUBSIDIES
Transfers which are straight income supplements are different from subsidies. An unconditional
transfer to an individual would add to his income and would be distributed over the entire range of
his expenditures. A subsidy however relates to a particular good, the relative price of which has been
lowered because of the subsidy ... Show more content on Helpwriting.net ...
It is the richer farmers who may derive relatively larger benefits because of their capacity to use
these allied inputs.
Subsidies to elementary education form about half of the total subsidies on general education.
However, this is not true for all individual States: the share of elementary education is lowest in the
high income States and the highest in the low income States (Goa, Punjab and West Bengal actually
give higher subsidies to secondary education than primary education).A negative correlation
between the level of per capita income and the share of subsidies to elementary education is thus
discernible. Most subsidies to higher education accrue predominantly to the better–off sections of
society as they have an overwhelming advantage in competing out prospective candidates from the
poorer sections in getting admission to courses that are characterised by scarcity of seats.
For subsidies of health, the greater emphasis on curative health care expenditure often reflects a bias
towards the better–off people whereas preventive health care expenditure with much larger
externalities would clearly be of greater help to the economically weaker sections of the society.
AGENDA FOR

Statistics 101
1. Determine whether the evaluated group is a population or a sample
A. Based on a randomly selected group of 500 patients with high cholesterol, it was found that 67%
have heart disease. Is this a population or a sample; explain your answer.
Answer: The evaluated group of 500 patients within this study is considered to be a sample. The 500
patients whom possess high cholesterol are comprised of the larger group of patients of which serve
holistically as the population. The 500 patients randomly selected from the total population with
high cholesterol of which 67% were found with heart disease constitute as the sample.
B. An investigation of 150 randomly selected local restaurants concluded that 42% of local
restaurants have ... Show more content on Helpwriting.net ...
Of this research the researcher discovered that a particular percentage of the building possessed
ventilation complications.
B. After taking the first exam, 15 of the students dropped the class. Is this a statistic or a parameter;
explain your answer.
Answer: Sample statistics are understood as numerical ascriptions given towards a sample of which
is determined by the consolidation or summarizing of collected data within research (Bennett,
Briggs, & Triola, 2014). This definitional explanation shares that the given example is that of a
sample statistic. The example provides no understanding of a viable population of which has been
studied or the total numerical identification of the complete student population of which participated
within the exam. Rather it only shares that 15 students, after participating within the first exam,
dropped the course.
3. Identify the type of sampling used.
A. A tax auditor selects every 1000th income tax return that is received. What type of sample is this
and why?
Answer: The example displays that of systematic sampling. This conclusive answer developed from
the tax auditor's desire to select a random selection of every 1000th income tax return.
B. The name of each contestant is written on a separate card, and the cards are placed in a bag with
three names being picked from the bag. What type of sample is this and

Costing and Pricing Decisions
Running head: COSTING AND PRICING DECISIONS
Costing and Pricing Decisions
Cost Allocations
Cost allocation is the process of assigning the indirect costs of producing a product. These indirect
costs may be shared by multiple products. This is where cost allocation comes into play. Indirect
costs can be allocated to products, services and departments. Cost allocation allows a company to
calculate fully cost of their products. This provides them the ability to price products accurately.
Three common costs that need to be considered when allocating costs include joint costs, sunk costs
and opportunity costs (Jiambalvo, 2007).
Joint Costs When at least two products come out of a common input they are considered joint
products. ... Show more content on Helpwriting.net ...
This helps to avoid making decisions based on sunk costs.
A third way to avoid the sunk cost effect that Roberto, 2009 writes about is to take a look at the
assumptions being made and discover is they are reality. There are assumptions being made about
the company's ability to recover lost project. Taking a look at these assumptions and determining if
they are actually accurate assumptions or just optimism about something that is not possible. The
last way Roberto, 2009 writes about to avoid making decisions based on sunk costs is to determine
the opportunity costs of continuing with the project instead of ending it. Making decisions based on
sunk costs can lead a company to making poor financial decisions and in turn have an effect on
being able to price their future products appropriately.
Opportunity Costs
An opportunity cost is a cost that is caused by making one choice over another. An example of this
would be if you purchased season tickets to the Ravens with your tax return instead of paying your
credit card off with the money. The interest that you continue to pay on your credit card as a result
of not paying it off with your tax return would be considered the opportunity cost (Jiambalvo, 2007).
Pricing Decisions McKinsey & Co., 2004 write about the difficulty of pricing an item. The
article explains that charging too much for an item is much easier to fix

Impact Of News And Information Releases Relative On Stock...
Literature Review
Since its foundation events study has paved the opportunity for scholars to investigate the impact of
news and information releases relative to stock price in the markets. Its roots can be traced back as
early as in 1930's. According to a study by MacKinlay (1997) in his paper, cited an early paper was
pioneered by Dooley (1933) who examined the stock price reaction to stock split announcements. In
subsequent years, the significance of events study became an irresistible subject as it attracted the
attention of John H. Myers and Archie Bakay (1948), C. Austin Baker (1956, 1957, 1958), and John
Ashley (1962) who used events study methodology. A substantial number of studies have
investigated the reaction of stock prices ... Show more content on Helpwriting.net ...
Using a sample data comprised 297 NYSE and American Stock Exchange companies for 1977 to
1980–time period, indicating twelve quarterly announcements for each of the company. MacKinlay
(1997) utilised 30 companies which comprised into Dow Jones Industrial Index, as a sample to test
the impact of quarterly earnings announcements to stock prices. The researcher examined totally
600 quarterly announcements, thus MacKinlay (1997) obtained stock price response separately to
bad news, good news and no news cases of earnings per share (EPS) announcements.
A great number of studies further identified several factors which particularly concerns market
capitalisation, effective of stock market, etc., which explains the dynamic forces of stocks returns
during the earnings announcements date in an organised manner. For instance, Atiase (1985) found
that unexpected information pass on to the market by actual earnings report is inversely correlated to
the company's capitalisation. Grant (1990) observed that the market in which a company's securities
are traded often determined the behaviour of stocks return around the earnings announcements.
Several other studies have aimed to organise for synchronise factors by using time series data such
as intra–day and daily data. However, a fairly number of more robust studies has examined the
information content of macroeconomics news releases. Elsharkawy and Garrod (1996), Pope and
Inyangete (1992).

Objectives Of The Operations Of Housing And Facilities For...
document. Under LogCap III and Operation Iraqi Freedom (OIF), KBR built and maintained the
majority of U.S. military bases in Iraq. In terms of the value chain disaggregation, the focus of this
paper will be on the maintenance of housing and facilities for U.S. military personnel in the Iraqi
theater of operation.
Value Chain Considerations
In terms of LogCap III, to achieve sustainable competitive advantage, KBR must disaggregate the
value chain and focus on activities affecting cost, price, or both in relation to the services offered by
competitive rivals (Porte, 1985). Wherever possible, KBR should focus on differentiation by
providing value through a unique mix of services. For example, economies of scale, achieved
through the value ... Show more content on Helpwriting.net ...
Inbound logistics – Property and materials are the lifeline for the continuing operations of base
camps. Tangible assets are considered to be property. Tangible property may include vehicles, tools,
generators, sanitation, sleeping containers, coolers for food and many other items. Materials include
consumables that are used to sustain day to day activities to complete the mission. Property and
material must be accounted for throughout the materials life–cycle. Consequently, from the time a
purchase order is generated through consumption of materials, or disposition for property, each
items must be tracked through the approved system of record.
2. Operations – Operations is the nerve center for the base camp. The site manager oversees the
operations of the base camp. The site manager coordinates KBR's services with the Mayors Cell. In
terms of O&M, all service requests are initiated through the Service Desk controlled by operations.
3. Outbound logistics – In a war zone, outbound operations are an extremely important aspect of the
mission. The timely delivery of property and materials, from outside vendors, may be challenging.
As a result, when the need arises, base camps and forward operating bases (FOB's) "borrow"
materials from one another. Consequently, outbound logistics is fundamentally important to the
success of the mission. Outbound logistic activities are initiated through a

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