Rochelle decided to compare two plants for 50 days, Memphis plant-which will have the vector drive and Birmingham plant-which will use the existing system and prepare a report. The financial analysts believe that the purchase can be justified if the equipment leads to the average increase in production of atleast 10,000 bricks per day. Since we have to check whether the difference between the mean value of the bricks per day at Memphis plant and Birmingham plant is greater than 10000(for purchase to be justified), we will use hypothesis testing for means and compare the sampling distribution of the mean value of bricks produced in a day. This method is the typical method to solve these kind of problems. Data available is Plant Total Bricks produced in 50 days S (standard deviation) x̄ (mean) Memphis 7484500 3402.46 149690 Birmingham 6902350 3364.68 138047 Hypothesis test In a hypothesis test we assume Ho to be true and try to find evidence that shows otherwise.
I believe Union Carbide invested in India because there was a need for their chemical process in that country. They obviously needed the technology, since the Indian government allowed Union Carbide to have a majority ownership (50.9 %) in the plant. The project was also a technology transfer project that would yield profit for Union Carbide. They would establish the plant and transfer their know-how and skills to the Indian workers who would then continue to run the plant. Since India is a third world country and a large market, Union Carbide wanted to partner with them so they could achieve first mover advantages of developing petrochemical plants.
The applicable MACRS rates are 33%, 45%, 15%, and 7%. If the computer is purchased, a maintenance contract must be obtained at a cost of $25,000, payable at the beginning of each year. After 4 years, the computer will be sold. Millon’s best estimate of its residual value at that time is $125,000. Because technology is changing rapidly, however, the residual value is uncertain.
Also he explained the importance of the company’s orientation in the future. He marked that CEO partners care much more about what we and they can make their business be worth 3-5 years from now than the valuation they put on the business today. The deal with Spyder, CHB took between a 20% and 80% stake in a company. The CHB team working on the Spider had a strong rapport with Jacobs. Also CHB was prepared to invest about $5 million in Spyder and was willing to accept a minority stake, the company was intent on arranging a deal which would yield a minimum 30% return.
Currently, Rohm & Haas enjoys a 75% margin, Formulators also get 75%, and dealers claim they can sell this product for $6/packet, which translates to a 400% margin. R&H should increase its price to formulators, as they are not getting enough share of the profit. Tactics It is mission critical for Rohm & Haas to get the formulators on board with this product before any sales will show any such increase. The formulators are the lifeblood of the distribution network, which ultimately extend to the target market (Industrial Supply and Machine Tool Shops). Katham MWX should be sold as a maintenance package, as Katham 886 MW had much success with this packaging method.
The first signs of disruption that led to the general strike was the fact that other countries such as Poland were becoming a more predominant exporter of coal, and the only way to stop Britain’s coal industry was to higher the price of coal, extend miners working hours and reduce pay. Obviously not favoured by the miners. Many British mines were old and needed modernisation, mine owners didn’t want to do this and there was a feeling of the miners wanting the mines to be nationalised. To make matters worse, the government decided to put Britain back on the gold standard, the pre-1914 exchange rate. British coal exports were more costly, this again led to mine owners wanting wage cuts and longer working hours, however these were rejected, this lead to multiple threats of a lockout, were the miners wouldn’t get paid al all as the were not allowed to work.
Wal-Mart , with its power over suppliers and strong credit quality, can thus efficiently manage its working capital. Below we briefly discuss the components of Wal-Mart's working capital, and how they together add value to the company. Rotating Inventory: Wal-Mart had an inventory of close to $34.5 billion at the end of 2008 and around $33 billion at the end of 2009. With annual sales of more than $400 billion 2009, the company is rotating about its entire inventory almost every month. The purpose of keeping inventory low is to reduce overhead costs related to inventory management as well as reduce the risk of inventory obsolescence (leading to markdowns).
According to the case study, “business anticipated spending more than $10 million each year on PCBs”. As a result, Stryker would like to become a competitive and well establish corporation in this market. Furthermore to solve this problem, the manufacturing managers have three options to improving the situation. 1. Maintain the current basic sourcing policy for PCBs, but with important modifications 2.
Palladium Door, Inc. 11/02/11 Problem Identification and Justification * The major problem Palladium Door, Inc. faces is whether their current distribution approach would allow them to reach their corporate sales goal of $12.5 million in 2004. In addition, are Palladium Door’s current dealerships capable of reaching this sales goal with the current distribution strategy? * This goal of $12.5 million in sales was driven primarily by suppliers, in respects to the raw materials needed to make the steel doors. It was agreed upon by company executives that more sales were needed in order to keep a stable buying position with these suppliers. In addition, it was also agreed upon that Palladium doors needed to increase the amount spent on promotions and advertising to achieve the sales goal.
Prepare the necessary journal entries from the following information for Kingston Company: a. Purchased raw materials on account, $ 45,000. b. Raw materials requisitioned for use in production. Direct Materials $ 23,000; Indirect materials, $ 12,000. c. Salaries and wages cost incurred: Direct Labor cost, $ 47,000; Indirect Labor Cost, $ 15,000. d. Depreciation on Factory Equipment, $ 12,000. e. Depreciation on Office