Question 4. A recent article in the Wall Street Journal (wage law) described a California law that would raise the minimum wage for the state's fast-food industry to as high as $22 an hour in 2023. How would this law affect the demand for robots in California's fast-food industry?
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- Suppose that you have been given a summer job as an Intern at Issac Alrcams, a company that manufactures sophisticated spy cameras for remote-controlled millitary reconnalssance alrcraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financlal statements before approving the loan. Requlred: Classify each cost listed below as elther a product cost or a perlod cost for the purpose of preparing financial statements for the bank. Costs Product Cost or Period Cost 1. Depreciation on salespersons' cars. 2. Rent on equipment used in the factory. 3. Lubricants used for machine maintenance. 4. Salaries of personnel who work in the finished goods warehouse. 5. Soap and paper towels used by factory workers at the end of a shift. 6. Factory supervisors' salaries. 7. Heat, water, and power consumed in the factory. 8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.) 9. Advertising costs.…Case Study– Requirements. Speedy Burger is a small regional hamburger chain that has 10 stores in Oregon. Recent state legislation has promised to raise the minimum wage from $10 to $15 per hour over the next two years. In addition, there is a serious shortage of labor in the Oregon market at this time. Knowing that their business has marginal returns, the owner, Jason Wilson, decides to investigate the incorporation of a robotics system to reduce his labor costs. Currently, each store employs about 30 part time hourly workers and 3 full-time salaried managers. Speedy Burger stores are open from 10:30am to 10:30pm Monday through Saturday for a total of 72 hours each week. Usually, the store requires 3 cooks, 2 order takers and a worker that gets drinks and assembles meals. Speedy Burger is considering a major change that would have customers order their food through a kiosk system. This is simplified because Speedy Burger has a reductionist menu that consists of hamburgers, fries,…Faced with rising pressure for $14 per hour minimum wage rate, the farming industry is currently exploring the possible use of robotics to replace some farm workers. The Lettuce Techis one such robot; its job is to thin out a field of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following facts: One Lettuce Tech would do the work of 25 farm workers. 2. Each farm worker typically works 45 hours on the lettuce thinning process each year. 3. Each farm worker would earn $14 per hour plus 7.65% payroll tax. 4. The Lettuce Tech is estimated to cost $6,000 plus $900 for delivery. 5. Annual costs of operating the Lettuce Tech are expected to be $1,200. While the Lettuce Tech itself may be in workable condition for up to five years, assume that the farm would view its implementation as a one-year experiment. Requirement Perform a cost-benefit…
- Refer to the Chapter 5 “Start-up Costs” discussion starting on page 5-19, and read the accompanying Examples 27, 28, and 29 very carefully. Dilly’s dream was to open a cookie shop, so she did her homework carefully be-fore finally opening “Dilly’s Delights” on July 1, 2019. Before that date, she had incurred the following “soft costs” – $12,000 realtor’s fee for finding a storefront to rent, $16,000 attorneys’ fees for negotiating a lease and trademark services, $8,000 wage expense for employees during the pre-opening period, and $18,000 for pre-opening TV and other advertising. Calculate and state the exact amount that you, in preparing Dilly’s 2019 return, will enter as her 2019 start-up costs deduction.Don Masters and two of his colleagues are considering opening a law office in a largemetropolitan area that would make inexpensive legal services available to those whocould not otherwise afford these services. The intent is to provide easy access for theirclients by having the office open 360 days per year, 16 hours each day from 7:00 a.m. to11:00 p.m. The office would be staffed by a lawyer, paralegal, legal secretary, andclerk-receptionist for each of the two 8-hour shifts.In order to determine the feasibility of the project, Don hired a marketing consultantto assist with market projections. The results of this study show that if the firm spends$500,000 on advertising the first year, the number of new clients expected each daywould have the following probability distribution:Don and his associates believe these numbers are reasonable and are prepared tospend the $500,000 on advertising. Other pertinent information about the operation ofthe office is as follows.The only charge to…QUESTION 1 Khaled has developed a new technology device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Khaled will rent a small factory for 2,000dhs per month for production purposes. Utilities will cost 500dhs per month, Khaled has already taken an industrial design course at Dubai Men's College to help prepare for this venture. The course cost 800dhs. Khaled will rent production equipment at a monthly cost of 3,000dhs. He estimates the material cost per unit will be 20dhs, and the labor cost will be 12dhs per unit. He will hire workers and spend his time promoting the product. To do this he will quit his job which pays 25,000dhs per month. Advertising and promotion will cost 3,500dhs per month Required: 1- 2- Calculate the total Fixed cost- 3- Calculate the total variable cost per unit 4- If the machine max production capacity is 1000 units per month, what is the selling price he should set to break even monthly?= 5-…
- Don Masters and two of his colleagues are considering opening a law office in a large metropolitan area that would make inexpensive legal services available to those who could not otherwise afford these services. The intent is to provide easy access for their clients by having the office open360 days per year, 16 hours each day from 7:00 a.m. to 11:00 p.m. The office would be staffed by a lawyer, paralegal, legal secretary, and clerk-receptionist for each of the two 8-hour shifts.In order to determine the feasibility of the project, Don hired a marketing consultant to assist with market projections. The results of this study show that if the firm spends $500,000 onadvertising the first year, the number of new clients expected each day would have the following probability distribution: Number of NewClients per Day Probability 20 0.10 30 0.30 55 0.40…F1. Use the Panera annual report to answer this question. You are going to start a fast casual restaurant similar to Panera, You need to figure out what your cost of goods sold will be. You decide to use the 2012 Panera numbers for your assumed cost of goods sold. In particular, you use the "Cost of Food and Paper Products" line item as the basis of your cost of goods sold. You know to compare this to the revenue item "Bakery Cafe Sales, Net". Based on this, what would be a reasonable assumption for your cost of goods sold as a percentage of sales?Use the following information to answer questions 11 and 12:Friedrich’s Bakery (“Friedrich’s”) bakes and sells bread and biscuits. Friedrich uses a lot of freerange eggs (“eggs”) in his bakery and is trying to figure out what the most economic order quantitywill be. Friedrich estimated that he will need on average 80 eggs per day for the 250 days that heintends to bake during the 2021 financial year. He also calculated that it costs him R0,05 per eggper annum to keep the eggs fresh and safely stored. Friedrich is requiring a return of 10% perannum on his investment in the business and purchases the eggs at R3,00 each.His friend, Tsakane, gives Friedrich a discounted rate of R50 ordering cost for each order thatFriedrich places at Tsakane Farming. Friedrich buys all the required eggs exclusively from TsakaneFarming and incurs no internal ordering costs other than the discounted cost per order charged byTsakane.Tsakane Farming uses custom-made packaging cartons that are not similar to…
- Q.Estimate total cost for the Sunset Office Park job. How much would LawnCare USA bid to perform the job?The owner of Barb’s Burgers has suggested the firm should invest in more moderntechnology and created a list of potential changes she thinks may be helpful as aninvestment. She has asked you to analyze the four potential choices and comment onwhat this would change in terms of cost: Allow Barb’s Burgers to be delivered via the pre-existing food delivery systems.For example, allow people from Doordash/Uber Eats to pick-up orders and deliverthem. This would require the firm to make some minor changes and result in fewerparking spaces for customers dining at the restaurant. • Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust the amount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving? Also mention the parking space.Tupper Inc. and Victory Inc. are two small clothing companies that are considering leasing a dyeing machine together. The companies estimated that in order to meet production, Tupper needs the machine for 950 hours and Victory needs it for 700 hours. If each company rents the machine on its own, the fee will be $85 per hour of usage. If they rent the machine together, the fee will decrease to $80 per hour of usage. Read the requirements. Requirement 1. Calculate Tupper's and Victory's respective share of fees under the stand-alone cost-allocation method. (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) Stand-alone Tupper Victory