With the cost of diesel gas almost breaking five and a half dollars per gallon, many companies cannot afford to transport their product. The expectation of this effect can only be that the economy will almost literally die; if people don’t first. Everyday food is only one product that is mass transported around the world. With the addition to the rest of the products that are transported this world’s economy seems doomed. Besides gasoline there are many major uses of petroleum – everything from cosmetics to ballpoint pens, nylons, and even the waxes in chewing gum.
Continue to look into the “Andy Defresne” marketing program responsible for the variation. e) Per the Inventory Manger, the increase in inventory is due to a combination of happenings throughout the year. $5,000,000 of the increase is attributable to a decrease in sales and a higher turnover rate. $11,000,000 of the increase in inventory is due to the purchase of materials from suppliers to receive a cheaper rate for the long haul. $3,000,000 of the inventory happened secondary to a reversal of a previous write down, which was incurred in 2002.
One of the main ways monopolies abuse market power is by using their market share to price higher than what they would in a competitive industry. To me, this is the part where the case seems to break down. Microsoft had over 90% of the market share in the Intel-compatible PC market. With that type of pull, Microsoft’s economist estimated that Microsoft OS should’ve been selling for a monopoly price of $1,800. At the time though, Windows was selling their OS to OEM’s for quantity discounts that ended up at $40-60 dollars on average per OS sold.
Likewise, more women than men tend to apply for lower-paying cashier positions-a trend that inadvertently skews averages down for women. This is what makes it seem that women and men are paid differently. Walmart has taken the steps to reduce the disparity occurring in the promotion and pay of women and men. They told their 50,000 managers to promote more women and minorities, with 15 percent of the managers’ bonuses tied to achieving
The VP of Operations argued to cut prices by 20% on all paint products in order to be more price-competitive in the market. With an already low contribution margin of 35%, lowering our prices will only bring down profit margins. The President of the company explained that they would need to cut prices by 40% to become competitive with lower priced paints in the market. We don’t believe that Janmar could make up their loss in margin through increasing sales volume. The VP of Finance suggests that we continue on the same track and keep the current 35% contribution margin.
If the sales outlook for the coming three years was only 20,000,000 and B.E. continued producing at the rate of 30,000,000 units, a total of 10,000,000 units would be dumped into ending inventory at the end of each year once again reducing costs of goods sold and falsely increasing income. By the end of year 2013, B.E. Company would have 35,000,000 units sitting in ending inventory taking up space and costing money to store. Once again if the president’s bonus is based off of net income, this situation is the most favorable for a high paying bonus and encourages stockpiling inventory to inflate net income.
This was a reactionary move spurred by the need to get sales off to a quick start. The second cut they made was to workforce. They cut their global workforce by about 50,000 jobs in reaction losing profits. I will also say I struggled with whether or not to also say that GM has shown traits of being analyzers. I think that by looking at what other companies have done with lowering platforms (Ford and Volkswagen) and by changing the plan with the incentives they were really taking
c) Federal government imposes a price ceiling of $2 per liter to stop price gauging d) Toyota launches a new superhybrid vehicle that gets 50 km per liter. e) The price of parking increases dramatically in a number of major urban areas. f) Resorts announce price cuts in reaction to light bookings so far year-end school holiday 2. Find a recent newspaper or magazine article that discuses recent price changes for a particular good,
The pumps markets were even larger than valves, specifically, valves occupying 24%of the company revenues, pumps at 55% and flow controllers taking up 21%. However, their competitors’ reducing the pump price affected the major production line badly, which also caused a lower profit than before. After analysis the reason for competitors’ reducing pumps price, they were confronted with the problem that the traditional cost system caused high product cost. Comparing the three cost systems, it can be found that the amount of direct material and direct labor was same. Only in revised cost system, set-up labor is allocated in direct cost.
Capital is mobile: when it is taxed heavily here, it flees somewhere else, meaning lower investment and employment in the United States, and because capital income taxes discourage investment or drive it overseas, they generate little if any tax revenue. Bush's tax cut substantially increased economic growth, boosted the stock market, and increased business investment. The jewel of Bush tax plan was the elimination of the dividend tax on individuals. Another key economic growth provision of the tax plan was the acceleration of income tax rate reductions. According to economic experts, if fully implemented, the Bush tax cut would increase stock values immediately by 5% to 15% and would reduce the cost of capital for businesses by 10% to 30%, depending on the industry.