What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent. What happens to total output (in percent)? The rental price of capital?
Question : (TCO 8) When an industry has excess capacity, market prices may drop well below their historical average. If this drop is temporary, it is called 9. Question : (TCO 8) An advantage of using budgeted costs for transfer pricing among divisions is that 10. Question
Governments may choose to increase minimum wage on an arbitrary basis, making it difficult for companies to hire individuals at a consistent market rate. Government price controls distort the economic theory of supply and demand. Supply and demand is a significant underlying feature of free-market economies. This theory allows individuals and businesses to make decisions based on self-interest. Businesses often pay individuals a wage based on current market standards.
Week 10 Problems 1. Given the following information: Total assets $100,000 Debt (12% interest rate) $80,000 Equity $20,000 Variable costs of production $14 per unit Fixed cost of production $27,000 Units Sold 12,300 Sales price $19.75 per unit What happens to operating income and net income if output is increased by 10 percent? Verify your answer. Revenue: $19.75*(12,300) = $242,925 Expenses: $14*(12,300) = $172,200 Operating Income: $242,925-$172,200 = $70,725 Net Income: $72,725- (.12*$80,000) = $63,125 With 10% increase in revenue: Revenue: $19.75*(13,530) = $267,217.50 Expenses: $14*(13,530) = $189,420 Operating Income: $267,217.50- $189,420 =$77,797.50 Net Income: $77,797.50 - (.12*$80,000) =$38,197.50 Operating Income rose from $70,725 to $77,797.50 for a 91% increase. Net income dropped from $63,125 to $38,197.50 which cuts losses by $24,927.50.
Let (R/P)1 equal the initial value of the real rental price of capital, and (R/P)2 equal the final real rental price of capital after the labour force increases by 10 percent. The rental price increases by The real rental price also increases by 6.9 percent. Let (W/P)1 equal the initial value of the real wage, and (W/P)2 equal the final real wage after the labour force increases by 10 percent. The real wage increases by The real wage decreases by 2.8 percent. c) Using the same logic as (b) So, output increases by about 3 percent.
2.1 Productivity The competitive strategy of increasing productivity is mainly concentrated on enhancement of direct labor productivity. At the very beginning, from the presentation of this strategy, it can be seen that this measure can keep direct labor busy in producing as much product as possible during the regular working hours, contributing to rising work efficiency as well as productivity. The supportive actions, namely cutting down idle man hours between jobs, rising batch sizes to maximize runtime and reducing the setup times, all work to enhance efficiency. Since the manufacturing procedures in this industry are simple, winners in terms of productivity and work efficiency can win more market share and orders in busy times like harvest seasons for farmers (Walker, 2006). Furthermore the operational control system with direct information about earned labor hours can be transmitted to the
Technology Risk Presentation Tammy Radcliffe XACC/210 • Limitations of Technology for E-Business System Technology is crucial in the daily operations of any business. Production of services is related to the technology used and it encourages an increase in productivity. Upgrades in technology gives an organization advantage to the competition. This could be cost effective to the organization compared to hiring new employees and paying high salaries in the long run. Technology has had several downfalls as well.
Case Analysis - 3 Achieving Success in Virtual Teams Overview: In today's competitive world, companies are gradually vacating their cubicles and enter into the virtual workforce to increase work efficiency, reduce cost and resolve organizational problems (Ahmed & Ebrahim, 2009). Nowadays, companies are investing a bulk amount of money on virtual teams to enhance their performance since it has become an indispensable prerequisite for companies to stay in competitive in the era of globalization (Ahmed & Ebrahim, 2009). Virtual teams consist of members from different cultural backgrounds who work in various organizations with different set of standards and members of the virtual teams have the least probability to meet in person (Nelson & Quick, 2013, p. 348). The greater percentages (approximately 90%) of people are responsible for both success and failure of the virtual teams whereas technology plays only 10% role (Nelson & Quick, 2013, p. 348). Communication effectiveness and stimulating work are considered two essential human factors in terms of shaping the success and failure of virtual teams (Nelson & Quick, 2013, p. 348).
Role of Technology Paper Anthony Bando University of Phoenix BIS/318 Damien Edwards October 24, 2011 In today's business society, technology including hardware and software, is a critical role of all major businesses and corporations. Technology is essential in this current place in time to compete in the retail business. Technology can make the lives of a company easier as well as consumers who are willing to use it and save time and sometimes money. Technology can be in many different forms within an organization. Certain technologies enable customers and employees to communicate needs faster.
ESTERLINE TECHNOLOGIES: • What evidence does the case offer regarding Esterline´success? Facilities with decentralized responsibility for different functional areas (engineering, production, marketing, sales, …) Strategy: Lean Manufacturing – Minimize waste; use resources to create added value to end customer – Just In Time and autonomation and/or standardization; Process simplification; centered in production; give some responsibility to operating level employees => lower costs, improve quality, create barriers to entry; Set annual goals by business unit: profitable growth, ROI From… Jumble Flows (people/machines/resources organized by function – adv: high utilization of resources; disadv: create long lead times, complex – IT support is needed) To… Families (people/machines organized in cells arranged sequentially, typical of LEAN System • How does lean differ from more traditional approaches to production ? Traditional manufacturing methods: developed during the age of mass production, focused on economies of scale and massive machine utilization => Goals : Customer satisfaction is achieved by maintaining large inventories in anticipation of customer orders, and to reduce the unit cost. "Batch and Queue" Process - Parts are made in batches and upon completion they are moved and placed into a queue where they wait for the next operation to become available. Main problems with this practice: • machine set-up times define the length of the production run time.