investment opportunity rate, k 10% a.) Calculating the total cost of the current cash concentration system Total Cost = FEE + ( k * (ACB - ((SC - FEE) / ((1 - rr) * (ecr )))) Total Cost = 0 + (0.10 / 52) * (15,000 - ((10.00 - 0) / ((1 - 0.10) * (0.045 /52)))) Total Cost = $4.15 Note: ecr must be expressed on a weekly basis. Required Collected Balance (RCB) = (SC - FEE) / ecr (1 - rr) = $12,840 Weekly opportunity cost = (0
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customer; Trust & Investment division involved in setting up Due bills accounts and in providing Data processing services. Finance division was responsible for Cost and profit allocation between divisions. There were two reasons led to conflict between Treasury division and Metro division: a) Inappropriate allocation of costs and profits between Treasury division and Metro division. It’s clear from Exhibit 4 below : Due bills T & I administrative expenses were completely charged to Metro
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decisions can be made to minimize cost. Startup cost, opportunity, and value are some things that need to be considered. The advice of the co-workers is friendly advice but not good business advice to make a decision. It is easy just to be speculative but a good thorough analysis would provide information, including any factual data. Land costs would total $800,000 which was accumulated from save bonuses. There are a number of other things to consider. Fixed and variable costs would need to be given consideration
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Hospital Community Health Network is high cost provider, whose unit of service costs had been rising at a rate of 10% per year. The first step for managers of Network to reduce expenditure while maintain the quality of service is to understand the detailed cost information, however, the current cost system seems cannot fulfill this requirement. 3. The drawbacks of current cost system The current step down method could not accurately represent the true cost of the intern/resident program, the interpretive
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3 Components To A Successful Concept July 17, 2008 The only way to create a financially successful restaurant, in any market, is to have sales great enough to cover your costs--including your development costs. Today’s blog topic is my follow up to last week’s thoughts on seeing the unseen. Sometimes coming up with a concept seems like magic, but generally it is a result of a lot of research because seeing the unseen is more than hocus pocus. There are three components to examining a market
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the industry has been slow to bounce back from the recession of 2008. Import penetration from countries with emerging economies is putting pricing pressures on domestic furniture manufacturers. To leverage its key success factor of low shipping costs and short delivery times Palliser has focused on strategic locations for their factories by identifying the different target markets for its comprehensive product lines and have made expansion decisions appropriately. Our recommendation is that
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Will anyone buy the product or service? Can it make a profit? While the questions are straightforward, the answers are anything but. These two simple questions quickly lead you to a raft of others that you will address in the following sections: • Opportunity or need • Product/Service description • Target market • Unique benefits • Competitive analysis • Sustainable competitive advantage? • Risks • Profitability, break-even and investment required • Conclusions • Recommendations For high-tech ventures
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Northco Case Analysis Johannes Röder, 154BB14B 1. How should Michaels think about the costs of over and under-stocking? Identify the elements of over and under-stocking cost in this case. These two cost factors result from the lack of the ability to match supply with demand. The costs of overstocking depict the cost per unit that arise if actual demand is lower than the expected one. In this particular case the elements of overstocking are the orders of customers in advance without payment
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groups, the factors that affect those decisions and how those decisions affect others". Microeconomic decisions by both firms and individuals are motivated by cost and benefit considerations. Costs can be either in terms of financial costs such as average fixed costs and total variable costs or they can be in terms of opportunity costs, which consider alternatives foregone. Prior to formulating strategy, a manager must of course have knowledge of what he/she wants to accomplish. The key component
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unexpected sources 2. Opportunities- trying to make the movie going experience something special through offering various pricing, using an all-digital approach, and better amenities Threats- Youtube, consumers perception of the movie theaters cost, noise, inconvenience, uncomfortable seating, crowded, and too many reviews/commercials before the movies 3. Movie theater chains’ corporate headquarters strategic decision makers will be interested in entertainment costs, wages in the area in
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