"the two best times to keep your mouth shut are when you're swimming and when you're angry."

If amazon had decided to design and manufacture the kindle and all its components in the united states, what do you think the co

Scrat [10]

Answer:

Brief summary of the case:

The case deals about the evolution of kindle by Company A. When the company decided to introduce kindle, its price was $399 in 2007. Company A understood that to be successful against the huge competitors, kindle must be priced low. It must be highly reliable, many features and elegance must be provided in the design of kindle. "Company A- designed kindle in State C where the research and development expertise is available.

Market research firm "IS," estimated that the manufacturing cost of kindle is about $185. The expensive components of the kindle are the display used in the Electronic ink technology and wireless cord. Company A contracted with Country C's company to produce the display. A manufacturer in Continent A produced a wireless cord of $13. Many components were contracted to the different countries to reduce the cost of the kindle to be competitive. Now, kindle became the competitor to the massive companies.

Determine if the company has decided to manufacture all the components of Electronic reader K in Country U:

If Company had decided to manufacture all the components in Country U, then it would have been more expensive. Company A cannot sell that at an affordable price. Increase in the cost of the components would increase the overall cost of the Electronic reader K. The most important strategy of Company A is to minimize the cost of the product to increase the number of sales.

Increase in the manufacturing cost will dilute their competitive advantage and it increases the cost of the product. It will lower the sales and the buyers would prefer to use the competitors' products, which are cheaper.

Determine if the company has decided to manufacture all the components of Tablet F in Country U:

It would be expensive if they decide to manufacture the components in Country U. It will not affect the sales number like Electronic reader K. as Tablet F is multipurpose. People will prefer quality and specifications than price.

Conclusion:

Manufacturing in Country U would be expensive and it increases the overall cost of the product. It would affect sales of the products.

3 0

3 years ago

On march 1, year 1, roland doe bought 200 shares of gummit stock at $40 per share. on april 1, year 2, roland sold short (sold w

laiz [17]

Answer:

1,000 long term capital gain

Explanation:

8 0

3 years ago

The substitution bias in the consumer price index refers to the idea that consumers ______ the quantity of products they buy in

dsp73

Answer:

change; over-estimates

Explanation:

Substitution bias refers to a tendency in which economic index numbers don't include information about the changes in consumer spending when they switch expensive products for cheaper ones or buy less units as prices change. This changes are not reflected in the market basket from which the CPI is built which can cause inflation rates to be over-estimated.

7 0

3 years ago

XYZ Company earned operating income of $1,500,000 before income taxes. Capital employed equaled $10,000,000, of which $1,000,000

m_a_m_a [10]

Answer:

The answer is creating wealth, with the economic value added is $390,000

Explanation:

The company WACC is: Percentage of mortgage bond in capital employed x Cost of mortgage bond x ( 1 - tax rate) + Percentage of unsecured bond in capital employed x Cost of unsecured bond x ( 1 - tax rate) + Percentage of common stock in capital employed x cost of common stock

In which: Percentage of mortgage bond in capital employed = 1,000,000/10,000,000 = 10%

Percentage of unsecured bond in capital employed = 3,000,000/10,000,000 = 30%;

Percentage of common stock in capital employed = (10,000,000 - 1,000,000 - 3,000,000) /10,000,000 = 60%

Cost of common stock = Risk free rate + Risk premium = 10% + 5% = 15%;

Tax rate = 40%

Thus, WACC = 10% x 8% x ( 1- 40%) + 30% x 9% x (1-40%) + 60% x 15% = 11.10%.

Thus, Capital cost per year: Capital employed x WACC = 10,000,000 x 11.10% = $1,110,000.

Economic value added = Operating Income - Capital cost = 1,500,000 - 1,110,000 = $390,000.

3 0

3 years ago

Joey's first task as a new employee at a Technology firm is to write a computer program to perform a predictable task. Joey can

sveticcg [70]

Answer: Option A

Explanation: In simple words, critical thinking refers to the process under which an individual or an entity analyse and evaluate their objectives with the intent of forming a judgement for then purpose.

In the given case, joey has a wide variety of alternatives to choose to how to perform then task and the supervisor will form judgement about his work on the basis of the choices he made for the work assigned.

7 0

3 years ago