Module 3 Lecture (Ch. 15): Jobs & Unemployment
WHAT IS ‘UNEMPLOYMENT’?
At first glance this seems like a rather stupid question; yet, in reality, it’s a tough question to answer. We must have a fairly reliable method of measuring unemployment because of the tremendously adverse effect a high unemployment rate has upon the economy of a society as a whole. The Bureau of Labor Statistics’ official unemployment definition is “…the total of all unemployed as a percent of the entire civilian labor force”. Realizing that this is too simplistic a definition, the Bureau divides the unemployed into six different categories. Each of these categories represents the different variables that must be taken into account when measuring the number of unemployed in our society. The above definition represents the first three tiers of unemployment definitions starting with just that group of individuals unemployed for 15 weeks or longer. The last three tiers include:
· Discouraged Workers M
· The “semi-hidden” unemployed
· Marginally Attached Workers: Those not working nor are they actively looking for a job, but they are available to work and have looked for work recently.
IS SOME LEVEL UNEMPLOYMENT BENEFICIAL?
The intention of the classification of unemployment is an attempt to measure how an economy is doing at providing jobs for the people who want them, not just the percentage of people in an economy who are not employed.
Think about the unemployment of things rather than people. Look around the campus and notice all the unemployed automobiles in the parking lots/stations. Notice the unemployed classrooms early in the morning and late at night. Notice the unemployed seats in Starbucks. Look around the city and notice all the unemployed automobiles in the car sales lots. Try to make a reservation at any of the hotels in the city and notice that you can almost always get a room—hence, lots of unemployed hotel rooms.
Does all this unemployment bring benefits? Obviously, it would be very costly to organize rental markets in which cars don’t sit idle all day, classrooms utilized 24/7, hotel rooms booked 100% all of the time and so on. Do the same ideas apply to unemployed people? Certainly, unemployment causes misery and heartache to those who have been laid off or can’t find work. It is definitely quite costly both emotionally and economically; however, there are potential benefits to a certain level of unemployment.
As noted in the examples above (autos, hotel rooms, empty classrooms etc.) imagining an economy without any unemployment is nearly impossible. If consumers are free to change their decisions about what they want to buy, some goods and services must fall out of favor when others come into favor. The firms making the products falling from favor fall on hard times and often their workers are fired or laid off. Sure, these laid-off workers could start work right away, cleaning shoes, selling flowers at intersections, etc., but they are better off (in t.
Mattingly "AI & Prompt Design: Named Entity Recognition"
Module 3 Lecture (Ch. 15) Jobs & UnemploymentWHAT IS ‘UNEMPLOYM.docx
1. Module 3 Lecture (Ch. 15): Jobs & Unemployment
WHAT IS ‘UNEMPLOYMENT’?
At first glance this seems like a rather stupid question; yet, in
reality, it’s a tough question to answer. We must have a fairly
reliable method of measuring unemployment because of the
tremendously adverse effect a high unemployment rate has upon
the economy of a society as a whole. The Bureau of Labor
Statistics’ official unemployment definition is “…the total of all
unemployed as a percent of the entire civilian labor force”.
Realizing that this is too simplistic a definition, the Bureau
divides the unemployed into six different categories. Each of
these categories represents the different variables that must be
taken into account when measuring the number of unemployed
in our society. The above definition represents the first three
tiers of unemployment definitions starting with just that group
of individuals unemployed for 15 weeks or longer. The last
three tiers include:
· Discouraged Workers M
· The “semi-hidden” unemployed
· Marginally Attached Workers: Those not working nor are they
actively looking for a job, but they are available to work and
have looked for work recently.
IS SOME LEVEL UNEMPLOYMENT BENEFICIAL?
The intention of the classification of unemployment is an
attempt to measure how an economy is doing at providing jobs
for the people who want them, not just the percentage of people
in an economy who are not employed.
Think about the unemployment of things rather than people.
Look around the campus and notice all the unemployed
automobiles in the parking lots/stations. Notice the unemployed
classrooms early in the morning and late at night. Notice the
unemployed seats in Starbucks. Look around the city and notice
all the unemployed automobiles in the car sales lots. Try to
make a reservation at any of the hotels in the city and notice
2. that you can almost always get a room—hence, lots of
unemployed hotel rooms.
Does all this unemployment bring benefits? Obviously, it would
be very costly to organize rental markets in which cars don’t sit
idle all day, classrooms utilized 24/7, hotel rooms booked 100%
all of the time and so on. Do the same ideas apply to
unemployed people? Certainly, unemployment causes misery
and heartache to those who have been laid off or can’t find
work. It is definitely quite costly both emotionally and
economically; however, there are potential benefits to a certain
level of unemployment.
As noted in the examples above (autos, hotel rooms, empty
classrooms etc.) imagining an economy without any
unemployment is nearly impossible. If consumers are free to
change their decisions about what they want to buy, some goods
and services must fall out of favor when others come into favor.
The firms making the products falling from favor fall on hard
times and often their workers are fired or laid off. Sure, these
laid-off workers could start work right away, cleaning shoes,
selling flowers at intersections, etc., but they are better off (in
their own opinion) being frictionally unemployed and searching
for new jobs. To eliminate this source of unemployment we
would need to forbid consumers from changing their buying
plans or insist that no one remain idle and get on with doing any
job even if it doesn’t earn a wage. Note that if this is how we
ran our economy we’d still be using coal-fired stoves and the
pony express, and we’d be wearing coonskin caps. There would
be no McDonald’s, Federal Express, or Nike shoes.
WHY IS THE ABILITY TO MEASURE THE AMOUNT OF
UNEMPLOYMENT SO IMPORTANT?
The unemployment level is a key indicator of economic activity.
High unemployment levels usually signal an economy that at
best is stagnating or experiencing a reduction in economic
growth at its worst. It represents the waste of a valuable
resource with the effect of a huge wave crashing through a
vulnerable society leaving economic and emotional destruction
3. in its wake. It may adversely affect everything from consumers’
purchasing habits, new technology, and business growth to
crime rates, public services, emotional depression, and an
overall skepticism concerning society’s leadership, both in
business and government.
The years 2008 and 2009 in the U.S. will be especially
memorable because of the skyrocketing unemployment rates
caused in part by financial meltdowns in the real estate and
stock markets. The percent of people unemployed in the U.S.
workforce as of July 2009 was 9.4% (compare that to 5.5% in
2004). To put this in perspective, there was an average of
645,000 workers laid off PER MONTH from November of ’08
through April of ’09. The effects of these massive layoffs will
be felt for years to come.
WHAT CAUSES HIGH UNEMPLOYMENT?
Answers to this may vary, but a high unemployment rate over a
long period of time (six months to a year) is usually caused by a
decrease in a society’s output of goods and services. Here’s
where you get kind of a snowball effect often associated with
economic fluctuations discussed at the end of Chapter 14.
· When there is an initial decrease in consumer demand, the
manufacturer will produce less which means he/she will need
fewer workers.
· After laying off several workers throughout the economy,
there is now even less money in the hands of the consumers
(more people without jobs, less income to spend) who will
demand even less than before
· causing the manufacturer to again lay off more workers
because of another reduction in productivity.
You see how this ‘snowball’ effect keeps going until the
manufacturers go out of business and the country finds itself in
a deep economic recession. The charts below help illustrate the
interrelationship between unemployment, real GDP, and
investment spending.
As you look at these charts, start from the bottom chart (Real
4. GDP). I’ve drawn dotted lines through specific time periods of
recession (specifically 1970-71, 1974-75, 1980, 1982, 1991,
2001-2002). Notice as you move upward the interrelationship
between ‘real’ GDP and investment spending (spending by
private businesses, corporations, and banks). Both curves follow
the same pattern. As investment declines so do growth
(investment).
Notice the almost inverse (opposite) relationship between
unemployment and both GDP and investment spending.
This point is also made by the author of your text on pg. 414,
Figure 15.5 which I’ve reproduced for you below:
As investment spending decreases, forcing a decrease in ‘real’
GDP (the ‘output’ gap), unemployment rates begin to rise. Note
in the above figure that for every dip in productivity (output
gap) there is also an almost equal corresponding increase in
unemployment. The output gap referred to in the above figure is
the difference between real GDP and Potential GDP.
Put another way, it’s the difference between an economy’s
output at full employment (Potential GDP) minus real GDP.
Obviously, when less is produced, less labor is required, which
means less income, which means a shift in the demand curve
downward and to the left (intersecting the supply curve at a
lower price for a lesser quantity) which means more layoffs
and…well, you get the picture.
NOTE: Be sure to read the article accompanying the lecture it
illustrates most of the points discussed in this module in real
life situations.
Another example I can give here is an article published in The
San Diego Union-Tribune by Dean Calbreath (Recession Sting a
Lasting Ache for Job Market. San Diego Union-Tribune.
9/7/2009) concerning the state of the U.S. labor economy as of
August 2009.
Notice the two charts. Unemployment in a year and a half has
jumped from just above 4% to almost 10%. Also, notice the
length of this recession – at 20 months and counting. In the
5. chart below the line chart notice that the cumulative loss of jobs
has jumped from zero in 2007 to 6.8 million as of August 2009.
Read the entire article, and you’ll get a real- world idea of what
I’ve discussed in this module
image1.png
image2.png
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design 1/4
Industry 94 DECISION HISTORY — All Years Company C
AC Camera Design Year 6 Year 7 Year 8 Year 9 Year 10 Year
11 Year 12 Year 13 Year 14 Year 15
Product
Enhancements
($ spent per camera)
Camera Housing
Editing / Sharing
Included Access.
Image Sensor Size
LCD Display Screen
Image Quality (maximum resolution)
Number of Photo Modes (video / still)
Extra Performance Features
Number of AC Camera Models
Product R&D Expenditures ($000s)
8. 20000
13mm
920k
3840×2160
10 / 4
10
11
12
4
4
20000
UAV Drone Design Year 6 Year 7 Year 8 Year 9 Year 10 Year
11 Year 12 Year 13 Year 14 Year 15
Built-In Camera (company's best model +)
GPS / WiFi / Bluetooth
Battery Pack (max. flight time in minutes)
Number of Rotors
Rotor Performance
Body Frame Construction
Obstacle Sensors
Camera Stabilization Device
Extra Performance Features
Number of UAV Drone Models
Product R&D Expenditures ($000s)
Min Upgrd
Enhanced
27. 260 days
405
5.6
3.8
13.89
3,042
2,350
15 wks/ 20.5 %
330 days
UAV Drone Marketing Year 6 Year 7 Year 8 Year 9 Year 10
Year 11 Year 12 Year 13 Year 14 Year 15
Retail Price ($/unit to online customers)
Discount to 3rd-Party Retailers
Website Displays/Info ($000s)
Search Engine Advertising ($000s)
Retailer Recruitment ($000s)
Warranty Period
NORTH AMERICA
1,200
15%
2,000
1,500
1,144
90 days
1,300
15%
43. 1,683
257.47
245 days
2,206
12.0 %
5.5★
3.0
1,967
2,275
328.45
290 days
2,372
13.0 %
5.8★
2.8
1,875
2,508
367.47
330 days
AC Camera Workforce Comp. Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Base Wage (per PAT member)
Assembly Quality Incentive ($ per unit)
Attendance Bonus ($ per unit)
Fringe Benefit Package ($ per year)
45. +7 %
3.50
1100
2800
2500
UAV Drone Workforce Comp. Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Base Wage (per PAT member)
Assembly Quality Incentive ($ per unit)
Attendance Bonus ($ per unit)
Fringe Benefit Package ($ per year)
Training & Productivity Imp. ($ per PAT)
+3 %
5.00
900
2200
1500
+4 %
5.20
950
2600
1750
+4 %
5.20
950
2600
1750
46. +5 %
5.40
1000
2600
1750
+7 %
6.20
1100
3200
2250
+7 %
6.20
1100
3200
2250
AC Camera Assembly Facility Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Facility Expansion (new spaces added)
Newly Installed Workstations
Robotics Upgrade (for all workstations)
0
2
No Upg
0
0
No Upg
47. 0
0
No Upg
0
0
No Upg
10
3
Init Upg
0
0
Init Upg
UAV Drone Assembly Facility Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Facility Expansion (new spaces added)
Newly Installed Workstations
Robotics Upgrade (for all workstations)
0
2
No Upg
0
0
No Upg
49. NORTH AMERICA
0 % 0 % 0 % 18 % 5 % 0 %
Include Projected Outcomes in Y6 No No No No No No
Discount Offer (% off of standard price)
EUROPE-AFRICA
0 % 0 % 0 % 15 % 5 % 0 %
Include Projected Outcomes in Y6 No No No No No No
Discount Offer (% off of standard price)
ASIA-PACIFIC
0 % 0 % 0 % 20 % 5 % 0 %
Include Projected Outcomes in Y6 No No No No No No
Discount Offer (% off of standard price)
LATIN AMERICA
0 % 0 % 0 % 18 % 5 % 0 %
Include Projected Outcomes in Y6 No No No No No No
Corporate Social Responsibility Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Charitable Contributions Dollars (000s)
% of Profit
Improved Working
Conditions
50. Cafeteria/Child Care
Saftey Equipment
Green Initaitives (environmental sustainability)
Renewable Energy Program ($000s)
Supplier Code of Conduct / Monitoring
0
1.0 %
No
500
Yes
Yes
Yes
0
1.0 %
No
500
Yes
Yes
Yes
0
1.0 %
No
500
Yes
Yes
Yes
51. 0
1.0 %
No
500
Yes
Yes
Yes
0
1.0 %
No
500
Yes
Yes
Yes
0
1.0 %
No
500
Yes
Yes
Yes
Finance and Cash Flow Year 6 Year 7 Year 8 Year 9 Year 10
Year 11 Year 12 Year 13 Year 14 Year 15
1-Year Bank Loan ($000s)
5-Year Bank Loan ($000s)
10-Year Bank Loan ($000s)
Stock Issue (000s of shares)
52. SOURCES OF ADDITIONAL CASH
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
200,000
0
0
0
0
0
0
0
Early Repayment of
Bank Loans
Loan #
Loan #
54. 0
0
4.00
0
Projected vs. Actual Performance Year 6 Year 7 Year 8 Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
Net Revenues ($000s)
Net Profit ($000s)
Earnings Per share (EPS)
Return On Equity (ROE)
Credit Rating
Image Rating
PERFORMANCE PROJECTIONS
452,592
43,609
2.18
32.0 %
A–
76
555,671
76,559
3.83
41.9 %
A
76
573,996
60. 3 Drexel Cams 115 86 93 1 94
4 B-Vision 116 80 89 2 91
5 Emeron 114 75 85 1 86
6 Cruising-PRO 107 72 81 1 82
Investor
Expectation
Score (I.E.)
Investors and company boards of directors have established
targets for the
five key performance measures that appear on pages 2 and 3 of
this report.
The I.E. score ranges from 0 to 120 (if all targets are exceeded
by 40% or
more). Click the Help button (upper-right) for more
information.
Best-In-
Industry
Score (B-I-I)
The B-I-I score measures each company's performance relative
to the best
performing company on each key scoring measure. The B-I-I
score ranges
from 0 to 100. To score 100 a company must be the best
performing company
in the industry on all five key performance measures.
Weighted
Average
Score
The weighted average score combines the Investor Expectation
Score and the
61. Best-In-Industry Score using a 25%-25% weighting as specified
by the
course instructor. Detailed explanations of scoring are provided
in the Help
sections asociated with pages 1, 2, and 3 of this report.
10/20/22, 6:23 PM GLO-BUS Decisions & Reports
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Industry 94 Camera & Drone Journal Year 10
Key Performance Measures
Earnings Per Share ($)
Earnings Per Share scores are based on a 20% or 20 point
weighting. Bolded numbers indicate achievement of the investor
expected EPS
shown below each yearly column head. Highlighted numbers
indicate best-in-industry performances for each year. Game-To-
Date scores
are based on a weighted average of the annual EPS
performances. For more information, click the Help button
(above-right).
Y6
(1.25)
Y7
(2.00)
Y8
63. F 2.46 4.70 5.41 8.02 11.73 6.30 24 20 24 20 F
Return On Equity (%)
Return On Equity scores are based on a 20% or 20 point
weighting. Bolded numbers indicate achievement of the investor
expected ROE
shown below each yearly column head. Highlighted numbers
indicate best-in-industry performances for each year. Game-To-
Date scores
are based on a weighted average of the annual ROE
performances. For more information, click the Help button
(above-right).
Y6
(17.5)
Y7
(20.0)
Y8
(25.0)
Y9
(30.0)
Y10
(35.0)
Y11
(40.0)
Y12
(42.5)
Y13
64. (45.0)
Y14
(47.5)
Y15
(50.0)
Wgt. Avg.
(25.5) I.E. B-I-I
Y10 Score
I.E. B-I-I
G-T-D Score
A 48.5 53.2 33.2 32.0 52.0 42.3 24 10 24 15 A
B 26.0 44.4 35.4 38.0 38.5 37.3 21 8 24 13 B
C 23.1 34.2 22.5 31.6 40.8 31.7 22 8 22 11 C
D 30.5 44.1 41.2 42.3 44.1 41.7 23 9 24 15 D
E 26.9 41.7 30.6 29.8 30.3 31.4 17 6 22 11 E
F 35.5 45.2 39.5 55.2 100.1 55.3 24 20 24 20 F
Stock Price ($ per share)
Stock Price scores are based on a 20% or 20 point weighting.
Bold numbers indicate achievement of the investor expected
stock price
shown below each yearly column head. Highlighted numbers
indicate best-in-industry performance for each year. Game-To-
Date scores are
based solely on the most recent year's stock price. For more
information, click the Help button (above-right).
Y6
(20.00)
67. Y9
(A–)
Y10
(A–)
Y11
(A)
Y12
(A)
Y13
(A)
Y14
(A)
Y15
(A) I.E. B-I-I
Y10 Score
I.E. B-I-I
G-T-D Score
A A A A A+ A 22 19 22 19 A
B A– A A A A+ 24 20 24 20 B
C A– A A A+ A– 20 18 20 18 C
D A– A A A A 22 19 22 19 D
E A– A A A A+ 24 20 24 20 E
F A– A A A A– 20 18 20 18 F
Image Rating
Image Rating scores are based on a 20% or 20 point weighting.
68. Bolded image ratings indicate achieving or exceeding the
investor expected
image rating shown below each yearly column head.
Highlighted numbers indicate best-in-industry performances for
each year. Game-To-
Date scores are based on an average of each company's image
ratings for the most recent three years.
Y6
(70)
Y7
(72)
Y8
(72)
Y9
(75)
Y10
(75)
Y11
(77)
Y12
(77)
Y13
(80)
Y14
(80)
Y15
69. (80)
Y8-Y10
Average I.E. B-I-I
Y10 Score
I.E. B-I-I
G-T-D Score
A 71 74 70 76 76 74 20 18 20 18 A
B 76 77 76 78 72 75 19 17 20 19 B
C 74 79 82 77 80 80 21 19 21 20 C
D 73 78 75 79 82 79 21 20 21 20 D
E 73 73 79 76 78 78 20 19 21 19 E
F 76 75 77 81 84 81 21 20 21 20 F
High Average Low
Total Dollars ($000s)
High Average Low
Per Unit Sold ($/unit)
Industry 94 Cash Outlays for Corporate
Social Responsibility and Citizenship
High Average Low
Image Rating Points
Generated from
CSRC Expenditures
Year 6 10,757 5,516 0 10.48 5.34 0.00 5 3 0
Year 7 9,607 4,472 0 11.31 4.68 0.00 8 4 0
Year 8 9,749 5,297 2,100 12.64 5.84 2.01 11 6 1
71. Industry 94 Camera & Drone Journal Year 10
Bonus Point Awards
BULL'S EYE AWARD
for Accurately Forecasting Total Revenues,
Earnings Per Share, and Image Rating
One bonus point added to any company's game-to-date score
when
actual performance on Total Revenues AND Earnings Per Share
vary by
no more than 5% from projected performance AND when Image
Rating
varies by no more than 4 points from the projected image rating.
Year 10
Forecast
Year 10
Actual
Percent
Variance
Revenues (within ± 5%)
Year 10
Forecast
Year 10
Actual
72. Percent
Variance
EPS (within ± 5% or ± 10¢)
Year 10
Forecast
Year 10
Actual
Point
Variance
Image Rating (within ± 4 points) Year 10
Bull's Eye
Award
Cumu-
lative
Awards
A 640,065 626,389 -2.1 % 10.62 10.19 -4.0 % 77 76 -1 pts. Yes
2 A
B 691,404 697,567 +0.9 % 8.00 8.17 +2.1 % 71 72 +1 pts. Yes
1 B
C 652,244 671,639 +3.0 % 6.06 6.54 +7.9 % 79 80 +1 pts. No 0
C
D 821,361 782,669 -4.7 % 10.16 9.23 -9.2 % 82 82 0 pts. No 0
D
E 634,072 678,116 +6.9 % 6.23 7.09 +13.8 % 77 78 +1 pts. No
0 E
F 733,306 732,726 -0.1 % 11.88 11.73 -1.3 % 85 84 -1 pts. Yes
2 F
73. Trends in Variances Between Projected and Actual Performance
(company and industry variances bertween projected and actual
revenues, EPS, and image rating)
Industry 94
Variance
Largest
Average
Smallest
Company C Variance
+16.0 %
+9.7 %
+3.0 %
+14.3 %
Year 6
+11.1 %
+4.9 %
+2.2 %
+11.0 %
Year 7
+13.7 %
+8.6 %
+1.4 %
+12.0 %
Year 8
+8.0 %
+2.8 %
77. https://www.glo-bus.com/users/program21/cdj/page2 5/8
Industry 94 Camera & Drone Journal Year 10
Industry Overview
Action-Capture Camera Global Statistics (industry totals)
North
America
Europe-
Africa
Asia-
Pacific
Latin
America
Overall
NOTES
Average Wholesale Price ($/unit)
% Change from Year 9
467
+8.1 %
483
+9.8 %
78. 418
+8.9 %
405
+9.8 %
443
+9.1 %
◄ Average wholesale prices in Year 10
were much higher than in Year 9
AC Camera Demand (000s of units) 1,296 1,098 1,170 870
4,434 ◄ -9.1% lower than forecast.
Units Assembled/Shipped/Sold 1,296 1,098 1,170 870 4,434 ◄
Down by -2.5% from Year 9.
Unsatisfied Demand (000s of units) 0 0 0 0 0 ◄ Assembly
capability industry-wide
was adequate to satisfy Year 10
demand.
Demand Forecast
(000s of units)
Year 11
Year 12
Year 13
1,344 1,134 1,248 930 4,656
1,391 1,173 1,335 994 4,893
1,439 1,213 1,428 1,063 5,143
◄ Demand for AC Cameras is expected
79. to increase by about 5.1% annually.
Action-Capture Camera Global Trends
(industry average price, P/Q Rating, and number of performance
features)
UAV Drone Global Statistics (industry totals)
North
America
Europe-
Africa
Asia-
Pacific
Latin
America
Overall
NOTES
Average Wholesale Price ($/unit)
% Change from Year 9
2,714
+8.2 %
2,630
+3.5 %
80. 2,464
+9.8 %
2,372
+7.5 %
2,545
+7.2 %
◄ Average wholesale prices in Year 10
were much higher than in Year 9
UAV Drone Demand (000s of units) 336 276 204 126 942 ◄
0.7% higher than forecast.
Units Assembled/Shipped/Sold 336 276 204 126 942 ◄ Up by
11.3% from Year 9.
Unsatisfied Demand (000s of units) 0 0 0 0 0 ◄ Assembly
capability industry-wide
was adequate to satisfy Year 10
demand.
Demand Forecast
(000s of units)
Year 11
Year 12
Year 13
364 302 226 138 1,030
387 320 246 150 1,103
410 339 268 164 1,181
◄ Demand for UAV Drones is expected
84. Industry 94 Camera & Drone Journal Year 10
Financial Performance Summary
Income Statement Data ($000s)
AC Camera UAV Drone Total
Net Sales Revenues Cost of
Goods Sold
Delivery
Costs
Marketing
Costs
Admin
Expenses
Operating
Profit
Interest
Exp (Inc)
Income
Taxes
Net
Profit
A 290,820 335,569 626,389 269,006 31,236 50,400 8,884
266,863 4,717 78,644 183,502 A
B 309,595 387,972 697,567 359,318 34,189 64,950 7,822
231,288 3,895 66,718 155,675 B
85. C 312,668 358,971 671,639 372,973 36,947 68,200 9,499
184,020 4,754 53,228 124,198 C
D 360,981 421,688 782,669 387,207 41,507 90,500 8,602
254,853 4,853 75,000 175,000 D
E 317,866 360,250 678,116 344,825 31,563 84,600 9,735
207,393 4,822 60,771 141,800 E
F 318,213 414,513 732,726 308,477 36,057 87,850 9,696
290,646 1,620 86,708 202,318 F
318,357 379,827 698,184 340,301 35,250 74,417 9,040 239,177
4,110 70,178 163,749
Balance Sheet Data ($000s)
Cash
On Hand
Current
Assets
Fixed
Assets
Total
Assets
Current
Liabilities
Long-Term
Loans
Total
Liabilities
Beginning
86. Equity
Stock Sales
(Purchases)
Earnings
Retained
Ending
Equity
Shareholder Equity
A 66,967 168,295 206,370 374,665 59,996 30,000 89,996
420,773 -319,607 183,502 284,669 A
B 225,181 354,581 154,448 509,029 61,008 0 61,008 360,707 -
63,595 150,912 448,021 B
C 225,919 347,772 212,628 560,400 273,280 30,000 303,280
352,167 -143,240 48,198 257,120 C
D 147,961 288,638 260,054 548,692 84,423 30,000 114,423
359,038 -85,556 160,787 434,269 D
E 268,978 402,865 232,023 634,888 72,469 30,000 102,469
404,617 0 127,800 532,419 E
F 19,630 134,686 216,260 350,946 68,886 135,000 203,886
257,306 -303,934 193,693 147,060 F
159,106 282,806 213,631 496,437 103,344 42,500 145,844
359,101 0 144,149 350,593
Selected Financial and Operating Statistics
Dividend
Per Share
($/share)
87. Total Div
Payment
($000s)
Payout
(percent of
net profit)
Dividend Data
Debt :
Equity
(D%:E%)
Interest
Coverage
Ratio
Current
Ratio
Credit Rating Measures
Gross
Profit
Margin
Operating
Profit
Margin
Net
89. 10/20/22, 6:23 PM GLO-BUS Decisions & Reports
https://www.glo-bus.com/users/program21/cdj/page2 7/8
Industry 94 Camera & Drone Journal Year 10
Action-Capture Camera Benchmarks
Assembly and Production Benchmarks
Low Average High
Industry 94 Company
C
Camera Components
and Features
($ per unit)
Image Sensor 9.60 12.76 19.78 19.78
LCD Screen Display 6.79 9.76 14.40 9.20
Image Quality 7.20 10.74 12.61 11.96
Photo Modes 8.64 12.17 20.70 12.88
Camera Housing 10.00 13.00 15.00 10.00
Editing/Sharing Capabilities 11.00 12.33 15.00 11.00
Included Accessories 12.00 14.50 17.00 12.00
Extra Performance Features 11.85 17.71 32.40 11.85
Total Cost of Camera Components and Features ($ per unit) *
93.22 102.98 121.80 98.67
R&D Expenditures
($000s)
Year 10 Expenditures 0 11,333 24,000 20,000
Cumulative Expenditures 87,000 115,000 161,000 145,000
90. Workforce Statistics Total Compensation ($ per employee)
23,766 29,084 32,385 32,385
Productivity (units per PAT per year) 2,992 3,176 3,496 3,496
Labor Cost ($ per unit assembled)) 25.31 30.60 39.26 29.59
Total Camera Production/Assembly Cost (manufacturing cost
per unit) 177.00 202.84 249.34 210.15
Assembly Facility
($000s)
Workstation Spaces (plant size) 300 320 350 310
Installed Workstations 285 313 350 285
* The total of all the component/feature cost items may not
equal the figures on the Total Cost of Camera Components and
Features line because the low,
average, and high costs for each component/feature may come
from different companies.
Geographic Operating Benchmarks
Low Average High
Industry 94 Company
C
North America Delivery Cost ($ per unit sold) 5.00 5.33 6.00
5.00
Marketing Cost ($ per unit sold) 22.55 44.97 56.90 56.90
Operating Profit ($ per unit sold) 153.79 166.61 180.85 172.82
Operating Profit Margin (%) 34.5 % 39.1 % 43.2 % 38.0 %
Warranty Claim Rate (%) 18.0 % 35.2 % 39.5 % 39.4 %
Warranty Repair Cost ($ per unit sold) 9.01 17.61 19.76 19.70
92. UAV Drone Benchmarks
Assembly and Production Benchmarks
Low Average High
Industry 94 Company
C
Drone Components
and Features
($ per unit)
Built-In Camera 199.25 251.71 292.02 282.90
GPS / WiFi / Bluetooth 72.75 92.50 102.90 72.75
Battery Pack 97.00 129.83 147.00 97.00
Rotor Performance / Flight Controller 38.80 84.92 120.54 38.80
Body Frame Construction 16.49 39.27 44.10 16.49
Obstacle Sensors 43.65 82.81 119.56 43.65
Camera Stabilization Device 17.46 30.52 37.24 17.46
Extra Performance Features 84.68 137.96 195.93 84.68
Total Cost of Drone Components and Features ($ per unit) *
653.73 849.52 994.17 653.73
R&D Expenditures
($000s)
Year 10 Expenditures 0 11,500 24,000 24,000
Cumulative Expenditures 81,000 100,000 126,000 126,000
Workforce Statistics Total Compensation ($ per employee)
32,366 35,561 43,096 32,366
Productivity (units per PAT per year) 1,694 1,799 2,102 1,694
Labor Cost ($ per unit assembled)) 37.19 56.28 74.98 59.44
93. Total Drone Production/Assembly Cost (manufacturing cost per
unit) 1,018.11 1,210.48 1,403.46 1,053.18
Assembly Facility
($000s)
Workstation Spaces (plant size) 110 122 140 120
Installed Workstations 100 116 131 105
* The total of all the component/feature cost items may not
equal the figures on the Total Cost of Drone Components and
Features line because the low,
average, and high costs for each component/feature may come
from different companies.
Geographic Operating Benchmarks
Low Average High
Industry 94 Company
C
North America Delivery Cost ($ per unit sold) 40.02 46.26
52.48 46.48
Marketing Cost ($ per unit sold) 101.90 241.49 376.91 101.90
Operating Profit ($ per unit sold) 488.13 1,038.99 1,648.74
488.13
Operating Profit Margin (%) 28.7 % 39.5 % 48.4 % 28.7 %
Warranty Claim Rate (%) 41.1 % 44.4 % 47.7 % 47.7 %
Warranty Repair Cost ($ per unit sold) 123.53 133.22 143.07
143.07
Europe-Africa Delivery Cost ($ per unit sold) 114.34 146.83
177.72 114.34
Marketing Cost ($ per unit sold) 132.01 255.85 384.30 132.01
95. rise since 1960. Identify 2 specific reasons for this.
2. Identify 3 reasons why the participation rate of men in the
work force has been declining since 1960.
3. Part time jobs are attractive to many workers as well as many
employers. Explain.
4. If there were 1.5 million people unemployed in Canada with
15.5 million people employed and a population of 20 million,
what would the unemployment rate equal? What would be the
participation rate? (When calculating, remember that the
unemployment rate is calculated upon the number of people in
the labor market while the participation rate is calculated upon
the entire population- Refer to Checkpoint 15.1, pg. 404).
5. Assume that the government decides to drastically decrease
welfare, social security, and unemployment payments. How
would this action change the unemployment rate? How would it
change the labor participation rate?
6. Look at Figure 15.5, pg. 414. Explain what the author means
by the ‘output gap’ in the 2008-2009 recession.
7. Frictional unemployment is considered to be a “…permanent
and healthy phenomenon in a dynamic, growing economy”.
Identify 3 different causes of frictional unemployment.
8. Susan Sampson lost her job as a bank teller in the early
1970’s when automatic teller machines were introduced.
Identify and define the type of unemployment this would be.
9. Assume that you are the president of the US, and you have
the tools necessary to create higher levels of employment
among workers in the US.
a. Identify two methods you might use to decrease the
unemployment level in the US.
b. Many members of Congress want you to initiate programs
that would eliminate unemployment altogether (0%
unemployment rate). Explain why you either would or would
not initiate programs to eliminate all unemployment.
10. Assume that you have a job working as a buyer for a major
department store. Your salary is $100,000 per year as well as
96. another $15,000 in benefits. The economy slips into a recession
and you are laid off. After looking for a similar position with
similar pay for several months you finally take a job waiting
tables in a local restaurant making $36,000 per year including
tips. Obviously this is not the job you wanted but must settle for
just to pay basic bills. Once you take this job should you be
counted as part of the employed labor force? Explain why or
why not taking into account the’ discouraged worker’
phenomenon.
11. Identify at least 3 changes in the last decade that have
caused structural unemployment.
12. The federal and some state governments have recently
increased minimum wage requirements. Why might this actually
increase unemployment and leave workers worse off?
13. Assume that you are a member of a labor union which has
just bargained with your employer to raise everyone’s wages by
10% and provide full health coverage. What potential harm
could this do to the workforce?
