Goal Definition: Advise Management on the various options regarding the outsourcing contract and the decision to proceed with JAFAR contract. Quantitative Analysis: • Exhibit 1 shows the effects of the external procurement of CTR1 units. Accepting the outsourcing contract was overall unfavorable to Seagull as it is costing the company $600K per year. • Exhibit 2 shows the net income effect if the outsourcing contract is cancelled or modified. Reducing the order to 2 000 units is the most financially favorable option for the company as a whole.
c) Prepare all the journal entries for Kingdom for 2012. Assume a calendar year fiscal year. Correct Answer: The lease is a sales-type lease because: (1) the lease term exceeds 75% of the asset’s estimated economic life, (2) collectibility of payments is reasonably assured and there are no further costs to be incurred, and (3) Kingdom Leasing Inc. realized
I would recommend that CCL make the above changes immediately so that the financail statements are not incorrect. These changes would help CCL reduce its future taxable income when it may be more profitable. 2. Allowance for Doubtful
In groups of three or four, make a list of possible reasons that the actual ending inventory might not agree with the ending inventory according to a computer system. Jason Tierro, an inventory Jason Tierro, an inventory clerk at Lexmar Company, is responsible for taking a physical count of the goods on hand at the end of the year. He has been performing this duty for several years. This year, Jason was very busy due to a shortage of personnel at the company, so he decided to just estimate the amount of ending inventory instead of doing an accurate count. He reasoned that he could come very close to the true amount because of his past experience working with inventory.
It takes about 36 hours to make the switch. This down time for set up is costing them a lot of money. Their competitors, who may operate more efficiently, aren’t loosing this time and money. Albatross Anchors charges $8 per pound for the bell anchors and $11 per pound for the snag hook anchors so they are charging about the same price as their competitors and with their slower production time, it’s almost impossible for them to be
If a new business opens and has one or both of these products in stock, we would likely lose potential customers. If they follow a similar marketing plan, we could lose our client referrals to a business with more diverse products. We’ve seen tremendous growth this year, going from taking a $4000 loss in the first year, to a $30,000 profit this year. These risks are most likely not detrimental to our business, but could prevent a profit decrease due to
Write at least one paragraph. Buying an extra copier would probably be a good choice, since the amount of revenue lost almost doubles (US$17,805.50 vs. US$8,000.00) the cost of buying an extra copier. I feel confident with my answer, although there are some limitations to it. As was mentioned before, the sum of the weeks will not always add up to 1 years’ worth, so that needs to be taken into account. Also, this simulation must be run several times to find the average amount
The learning curve will present challenges in that, employees will maintain the need to refer to the old system to proceed with business as usual. Possible struggles presented by the learning-curve are expected from several employees. Some will adjust more than others, but the main challenge is in the adaptation or orientation phase. Technologically, since the system is equipped with back up software, it should eventually eliminate the need for hard copy records and files. This will save time in the long run, which should encourage most employees despite their initial frustration with the management system change.
The conflicts raised by this case are typical from projects that are not closely monitored, resulting in a lack of overall control of tasks. Better reading and quicker response would probably avoid the failure of the partnership. Improvement in the organizational side is needed in order to embrace new technologies, as well as the leadership behavior of the project manager. Negotiation and development of new agreements on how to handle future conflicts, re-evaluation of the tasks required, tracking process on a daily basis and scheduling overtime could help to put the project back in time. A clearly defined escalation process, rethink the tasks allocation to future milestones and co-locating teams with similar activities would help the project
Budgeting is a subsidiary of planning. In order for the team to have an easy time, they would be required to have a significant cash reserve to cater for their escalating and unanticipated expenditure. The world cup is bound to be around for up to 1 month after the qualification matches. Failure to plan for such a big event would end up being disastrous. Up to $15million would be sufficient for a team preparing for the tournament (Bill, 2009).