Proposition 8 Assignment Example | Topics and Well Written Essays - 250 words

Proposition 8 - Assignment Example persons along with their addresses and financial contribution towards the campaign has been recorded for the future references through social networking websites. However, the data recorded as public information is inconvenient to access and possesses the risk of privacy breach (California Secretary of State Debra Bowen, 2008). With the emergence of internet, privacy is the most essential concern for users accessing internet. The development of information technology and computer science has both positive and negative effects and on the negative side, it has led to different unethical practices. Hackers and intruders are identified to access confidential information through unauthorized access on the system. In this regard, it can be possible for cyber criminals to access data of the married persons unethically, which may raise problems for donors providing private information such as address and credit card information among others. Thus, it can be asserted that Proposition 8 may raise challenges in terms of breach of privacy rights as well as threats for donors providing private information (Sembok, 2003). It can be evidently asserted that the actions undertaken in the Proposition 8 of providing private information publicly through social networking websites have raised problems relating to inconvenience of accessing information and breach of privacy. Additionally, the actions of providing private information without appropriate privacy measures and security tools may assist intruders and hackers in breaching information of donors efficiently (Perlroth, 2012; Sembok,

Mcdonalds vs Burger King Essay Example for Free

Mcdonalds vs Burger King Essay Let’s look at fast food restaurants. When you hear someone say, â€Å"Let’s go to McDonalds or Burger King,† what comes to mind would you consider the Big Mac or a Whopper? Think of how many calories that goes into each one. When you look at the Big Mac your calorie count is, â€Å"540 with 29 grams of fat and 45 grams of carbohydrates. † The Whopper shows, â€Å"670 calories, 39 grams of fat and 51 grams of carbohydrates. †(www. associatedcontent. com) So which is healthier, McDonald’s wins this one. Less calories in the Big Mac than the Whopper even though Burger King promotes flame broil is better and much healthier. When walking in the restaurants of McDonald’s you get the since of not welcomed until it is your turn to order. Looking around the place, it is clean yet not many people stay to eat there. One or two people will sit and chat for a while before leaving and making their order. One thing is true about McDonald’s, if they mess up your order while you are still there, they will make it correctly and bring it to your table nice and hot no matter what it was you ordered. Now for Burger King, when you enter their door the cashier says â€Å"Welcome to Burger King, can I take your order,† this research has been done in several restaurants in the area. Once you have placed your order you are given a number and a cup to fill your drink, by the time you are done filling your drink you food is ready to go. Looking around the restaurant there are a number of patrons sitting eating laughing and joking around with one another so the atmosphere is a warm and inviting one. McDonald’s seems to be more of a get it and go type of place and Burger King was sit for a while and chat. The goals of each restaurant are simple. The customer is first, satisfaction is a must. We all know that it’s not as simple as it sounds. Let’s compare the two, at Burger King’s customers are greeted with a smile when you walk in, when a customer places an order they have a choice of dining in or take it to go. The customer is given an option to say, â€Å"I will dine in or take it to go,† this shows they are given customers a choice of what they want to do. McDonald’s on the other hand, satisfaction is number one also, but you’re not greeted with a smile, sometimes it seems that the cashiers don’t want to work there or they just seem so tired. When placing an order the customer have to wait for at least five minutes before it is ready. Not so good in the fast food world of service, but satisfaction is what they are striving to have. They both share the same goals but one is more of an over all than the other. McDonald’s have a goal of satisfying their customers at 100% but they sometimes fail at making this goal work. How does the public differ in the choices of McDonald’s over Burger King? For one which taste better, which has better quality, would the customer prefer flame broiled over fried. Take a taste test first, McDonald’s signature burger the Big Mac; as the commercial says, â€Å"Two all beef patties, special sauce, lettuce, cheese, pickle and onions on a sesame seed bun. † When the customer orders it in the restaurant, it is in fact, much smaller compared to the advertisement suggest. When doing this research, two out of five people got what they really wanted; the other three had to ask for more sauce and less lettuce. When the order was received, it was sloppy, sauce on the sides of the bun and not on the burger. The taste was satisfactory but if you present something that isn’t prepared right the taste falls short. Burger King’s signature burger the Whopper; â€Å"Beef patty, sesame seed bun, mayonnaise, lettuce, tomato, pickles, ketchup, sliced onions, flamed broiled on a sesame seed bun. † Research shows out of the five customers that were tested at Burger King, each customer got exactly what they ordered and was satisfied with the taste of the meal. One even asked for an extra slice of cheese. Burger King satisfied more customers in the area of taste. Which has better quality of food? This falls very hard when thinking about both restaurants. McDonald’s and Burger King have in fact, had good quality but one out shines the other. As it was stated before McDonald’s Big Mac was served sloppy that was not quality service. In terms of Burger King, the customers were very satisfied with the quality of food and service that they received. Looking at the companies goals is a major difference. Lets take the Mc Donalds organization, one hundred percent customer satisfaction. When looking at this goal, its not always reachable. When this goal is not met, they will do what ever it takes to fix the problem. The next goal that puts them at a higher standard than other competitors, its founded on giving back to the community with the Ronald Mc Donald House and Ronald McDonald Childrens Charities. In each restaurant and drive thru theres a donation box so money can be placed into helping the charities. So many times there have been full boxes of money given. Over the years McDonalds has given millions of dollars back to communities in an effort to help children in need of care. Burger King was founded in 1953, the worlds #2 hamburger chain since McDonalds. All of the burgers cooked at Burger King are prepared by grilling over flamed fire. When looking at how the structure works for them, Burger King doesn’t advertise their products like most competitors. There is no way Burger King can produce more sales than McDonalds due to their marketing strategy which puts them at a disadvantage with McDonalds. Where they can improve on this, they can do more advertisement of their products and open more chains around the world. Burger King does offer its â€Å"own in house charitable organizations† and programs which is the â€Å"Have It Your Way Foundation,† which is also a â€Å"US based non-profit corporation to alleviate hunger and disease prevention. (http://en. wikipedia. org) However Burger King also offers Scholarship Programs for millions of high school children across the United States which is in the memory of the co-founder James W. McLamore. This year alone they have awarded more than $1. 4 million in scholarship funds to 1,258 students and they also have four new awards that they give out but the major scholarships includes one King $25,000 and three James W. McLamore Whopper scholarship $50,000. (Burger King Corporation) The interaction with the public for both restaurants is very different. When walking in the restaurant the employees are very busy taking orders. The sense of urgency is upon them to get the food out fast and perfect. Once the order is placed, there is no time to talk however at Burger King, while waiting on your order the manager has time to chit chat with you. Managers make sure that the environment is warm and inviting. The employees that are cleaning around the tables and chairs make sure that they do notice you. There have been times where the employee asks if they could get something more or a refill. This is what customer service should be like. McDonald’s, on the other hand, there is no sense of warmth. Maybe one person may look your way and ask is everything’s alright, but that’s as far as the conversation will go. At both restaurants there is a difference between the employee and manager. They both have different shirts and tags. Sometimes though it could be hard to tell the difference because if you go to the restaurant late at night it’s more lax than the day time hours where you will have employees and mangers playing around but still doing their jobs. One other thing that these companies do, they do hire the less fortunate, meaning people with disabilities. Both companies start with their signature logo and end with their logo, major difference McDonald’s only takes the order. Sometimes it’s hard to understand what is being said over the pa and the order may get mixed up but there is time when getting to the window to fix it. Not all the time at McDonald’s does the employee have the food ready so the customer is asked to pull over and food will be brought out to them? On one occasion, while waiting for the order as the minutes passed by, no order was delivered. The customer had to go into the restaurant to get the order and it was still not what the customer ordered. One would wonder how many times this has happen in the past. Is drive thru really fast and easy? Thinking it may be better to order inside so the order can be done properly. Burger King Employees smile when taking and giving the orders. Even in the drive thru, the smile can be heard over the pa when placing an order. If a customer has to wait on their order thru the drive thru, they are asked to pull around the front and someone will be out with the order. It is never long that you will have to wait maybe two minutes at the most and the food is hot when it is received. There are healthy choices on the both menus, but do customers often choose the healthy choice? Not always. Looking at the choices of the menus: In some states McDonald’s is required to show the calorie count for the customers. On their boxes that the food comes in, there is also a calorie count that the customer can look at and see just how many calories is listed for the choice that was made for the order.

Psychoanalysis in Dostoevskys Crime and Punishment Essay -- Crime and

Analyzing the mind of a sociopath has been one of the most important tasks that psychoanalysts face today. The more they know and understand the complexities of the disturbed, the more they hope to find treatments and eventually a cure for the illness that they believe can cause the ultimate violent criminal. Perhaps Dostoevsky himself wanted to weigh in on the mind of the sociopath and the journey toward their violent lives. Due to his vivid description of Raskolnikov, Dostoevsky shows his readers first hand what a sociopath is like. First one must understand that there is no such affliction as sociopath. The technical name is antisocial personality disorder and there are certain criteria a person must meet in order to receive this diagnosis. It is reserved for the most violent criminal minds and therefore is taken very seriously by the psychiatric community. In order to be diagnosed, one must have been previously diagnosed as having a conduct disorder by the age of fifteen. This is what many refer to as the child version of antisocial personality disorder. â€Å"Along with depression and anxiety, the individual also exhibits an increase in antisocial behavior, aggression, destruction of property, and deceitfulness or theft† (Strickland). They may also act out against small er things that they can control, such as smaller siblings and/or animals. Once a person with conduct disorder turns eighteen and is considered to be a legal adult, they are re-evaluated and then diagnosed with antisocial personality disorder. The Gale Encyclopedia of Psychology, 2nd Edition lists the criteria that psychologists use to base their diagnosis. They must meet three of the following. 1. fails to conform to social norms, as indicated... ...order, examining Raskolnikov’s actions and personality, and taking a closer look at arrogance, we can assert that Raskolnikov is simply an arrogant man; viewing himself as superior to society. Raskolnikov’s actions were done through purely selfish motives and the mentality that he should not be punished, because the paramount of his actions benefited society. This is the profile of a man that is arrogant and selfish, not the profile of an individual suffering from a mental illness. Works Cited Dostoevsky, Feodor. â€Å"Crime and Punishment†. A Norton Critical Edition 3rd Ed. Levinson, David. Encyclopedia of Crime and Punishment Vol. III. Sage Publications. London, 2002. Merriam-Webster. â€Å"Merriam-Webster Online†. http://www.m-w.com. December 18, 2005. Strickland, Bonnie. The Gale Encyclopedia of Psychology 2nd Ed. Gale Group. Detroit, 2001.

An Analysis of a Totalitarian Society Essay

â€Å"Totalitarianism: Of, relating to, being, or imposing a form of government in which the political authority exercises absolute and centralized control over all aspects of life, the individual is subordinated to the state, and opposing political and cultural expression is suppressed,† (dictionary.com). Essentially, totalitarianism is a type of government in which the person or people in power seek to maintain absolute control over every person under their authority, with virtually all importance eliminated from the concept of an individual. The term was characterized by Hannah Arendt, the German-American political theorist who wrote The Origins of Totalitarianism, inspired by Hitler and Stalin of the just-finished World War II and just-starting Cold War. Responding to the terrors of WWII that she experienced firsthand, Arendt describes the evils of totalitarianism as she saw them. George Orwell, an author living at the same time as Arendt, responded similarly to the widespread war and terrifying totalitarianism. In his 1984, Orwell creates a strictly totalitarian society, offering an alarming glimpse into a possible future. Orwell’s society shows every characteristic named above in the definition of totalitarianism, its government’s sole goal to maintain power. The society of 1984 functioned on the belief that control over the human mind is control over reality. As O’Brien, an important member of the Orwellian government referred to as the Party, says, â€Å"Reality is not external. Reality exists in the human mind, and nowhere else. Not in the individual mind, which can make mistakes, and in any case soon perishes; only in the mind of the Party, which is collective and immortal. Whatever the Party holds to be truth is truth. It is impossible to see reality except by looking through the eyes of the Party,† (205). The Party is not concerned with objective facts. They argue that reality can only become reality when it is believed; additionally, the believed reality is the only reality. When O’Brien tells Winston that 2 plus 2 equals five, Winston must believe it, for he is not permitted any other option. Expanding on that idea, the Party states, â€Å"Who controls the past controls the future; who controls the present controls the past,† (204). Only the present out of the three times is tangible, so the others do not really exist. And since reality exists only in the human mind, the Party has only to control the thoughts of that mind to control the  reality of past, present, and future. In their attempt to control the human mind, the Party seeks to eliminate all thoughtcrime, the crime of thinking anything against the infallible Big Brother, the intangible being by which everything is ordered. The act of thinking about committing a crime is, as Orwell describes it, â€Å"the essential crime that contained all others in itself,† (19). That action is considered by the Party the most horrible, for only with thought and a conscious decision to take action will any action be performed; without thoughtcrime, no crime would be committed. As such, the Party utilizes every possible method of eliminating thoughtcrime. Winston Smith, the main character in 1984, commits a thoughtcrime at the beginning of the book when he purchases a diary and in it writes, â€Å"Down with Big Brother,† (19). He then reflects on the inevitable consequences of his action: â€Å"Whether he went on with the diary, or whether he did not go on with it, made no difference. The Thought Police would get him just the same,† (19). The Party has the power to realize any committed thoughtcrime and to punish the criminal. Their ability to do so is even seen in the language; the English language is developed to satisfy the ideological needs of the society, creating Newspeak. One man says, † ‘Don’t you see that the whole aim of Newspeak is to narrow the range of thought? In the end we shall make thoughtcrime literally impossible, because there will be no words in which to express it,† (46). Without fail, the Party maintains their control over all of the society. In order to follow the society conceived in 1984, a method of thinking is absolutely essential; the action of doublethink. Doublethink is a method of reality control; the Party’s ultimate goal in all their actions. As Orwell describes it, â€Å"Doublethink means the power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them,† (176). It is the principle on which Ingsoc (the society of 1984) is founded. Ingsoc’s basic tenets are as follows: War is Peace, Freedom is Slavery, and Ignorance is Strength. It is possible to deliberately speak a lie while firmly believing in what one says- through doublethink. One’s memory can be  rearranged and memory altered- through doublethink. Though to our unenlightened minds these terms may seem to be contradictory, the process of doublethink eliminates all confusion. Clearly, these statements are far from oxymorons; rather, they are absolute truth. Doublethink allows for all of the society’s actions that would otherwise seem to be ridiculous; once again, the Party’s ultimate power is revealed. The Party’s absolute control is maintained through various methods, one such being the infliction of threats and pain. Every member of the society knows that once a thoughtcrime is committed, that criminal is taken by the Thought Police. When Winston is arrested, he is able to experience firsthand the punishment constructed by the Party. He is taken to the Ministry of Love- an instance of Newspeak’s use, the meaning of love is utterly reversed- where he is to be made sane. The Party fully believes in the importance and rightness of their actions, and O’Brien explains how their society is different: † ‘We are not content with negative obedience, nor even with the most abject submission. When finally you surrender to us, it must be of your own free will†¦Everyone is washed clean,’ † (210). Winston must fully surrender to O’Brien. It does not matter what he says, but rather what he believes, for in the mind lies the ultimate powe r. Describing the process enacted in the Ministry of Love, O’Brien says, † ‘There are three stages in your reintegration†¦There is learning, there is understanding, and there is acceptance,† (215). In order to attain the state desired by the Party, one deemed mentally deranged must undergo all three of these stages, as Winston eventually does. However, Winston initially is unable to truly believe everything said by the Party. He is able to say that he believes, and perhaps wants to believe, but doubt still remains. As the final push to belief, Winston is taken to the infamous Room 101. O’Brien tells Winston, † ‘The thing that is in Room 101 is the worst thing in the world†¦[it]varies from individual to individual,’ † (233). The greatest possible torture is individualized, and with this torture, comes anything. In Room 101, one is forced to face his greatest fear. Out of his absolute terror, Winston betrays the one he vowed never to betray- Julia, the girl with whom he had a love affair. He finally realizes that love of a fellow common person like himself is futile; only the love of Big Brother is important. At the end of  the book, Orwell writes, â€Å"He had won the victory over himself. He loved Big Brother,† (245). Ultimately, the absolute power of the Party allows Winston t o believe in everything that society does. Realizing the importance of the human mind, the Party not only threatens the society, but also channels the people’s potential into actions to benefit the Party. At all times, Oceania is at war with either Eurasia or Eastasia. It is not certain whether war actually exists, but the actual fact is not important, for reality exists only in the mind, and the Party tells us that a war is occurring. In doing so, the Party assures themselves of ultimate faithfulness from the society, for anyone to go against a society in wartime must surely be denounced as unpatriotic. Furthermore, the Party institutes the Hate Period: for two minutes every day, a film of Emmanuel Goldstein, the pronounced Enemy of the People, is shown, and the viewers driven to a frenzy. As Winston declares, â€Å"The horrible thing about the Two Minutes Hate was not that one was obliged to act a part, but that it was impossible to avoid joining in,† (12). By utilizing the power of the human mind, the Party is able to further their control over their society. The society created in Orwell’s 1984 was undoubtedly an effective society, but the qualities held by that society go against all principles which we now hold to be essential to life. We assume that we have the right to freedom of speech, and that our language cannot be corrupted, yet Orwell says, â€Å"Political language- and with variations this is ture of all political parties, from Conservatives to Anarchists- is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind,† (â€Å"Politics and the English Language†). We assume that we have the right to challenge anything, yet Orwell tells us, â€Å"Anyone who challenges the prevailing orthodoxy finds himself silenced with surprising effectiveness. A genuinely unfashionable opinion is almost never given a fair hearing.† Today, Orwell’s terms- Big Brother, doublethink, newspeak, and others- are heard when discussing our own government. Though 1984 is a fictious story written over 50 years ago, its message is still relevant today. We all must realize Orwell’s warning  that he sought to make clear over half a century ago- at any time, we all face a common danger; that of conforming; that of losing our individuality, our thoughts, and all qualities valued in humanity.

Objections and Rebuttals

Objections and Rebuttals Whenever a customer has an objection to the offer or price, the problem is not that offer or the price it is actually that we as advocates have failed to build enough value in the product to justify the price. So in actuality the reason for the objection more often than not is that the customer is telling us that they are not willing to pay $19. 95/$24. 99 at this moment. The best way to combat this is to use an intelligent and informed rebuttal, do this by keeping the conversation going don't get flustered or aggravated Listen Think & Respond. Show empathy with the customer let them know you are here to solve their problem, remember we have to make the customers objections seem miniscule and offer a reasonable solution to get the sale. DO NOT LET AN OBJECTION TURN INTO A VERBAL BATTLE BETWEEN YOU AND THE CUSTOMER, YOU WILL LOOSE. How to address an objection: Step 1 – Cushion the objection by saying, â€Å" I totally understand but†¦ † Step 2 – Question the objection. I know this is a hurdle for some of us but we have to be confident remember these customers called us for a solution. Use what they revealed in the probing and call them out on it. Step 3 – Build more value tie the benefits directly to the objection. Again remind them why they called Paint a Picture for the customer help them visualize the results. Step 4 – Close. Don't wait after making a relevant rebuttal that makes purchasing the product today logical ask for the sale. Now lets explore some common objections and rebuttals for those objections. Objection: â€Å"I don't have a credit card! † Rebuttal: â€Å"I totally understand, many people don't use credit cards. This is when we need to go back to the hot button, remind the customer of their answers to your probing questions. Build value by tying the benefits directly to their reason for calling. This is were we need to make an affirmative statement â€Å"If I can guarantee you that for $19. 95/$24. 99 Proactiv would finally get rid of your acne or you get a full refund of the purchase price don't you agree that that would b e a full-proof investment? It's a win win situation you can't loose with this offer. If the customer still says they don't have a card we have to give them every option available such as â€Å"Is there someone there that understands what your going through that could let you use their card and you could give them the cash? † or â€Å"Is there someone that you can call to help you out with this I don't mind holding while we figure this out? † This particular objection can seem tough at first again DONT GET FRUSTRATED display your dedication in finding a solution for the customer. Objection: â€Å"I'm going to think about it† this particular objection should make our blood boil. What's to think about after talking to a knowledgeable advocate such as yourself, Right? Rebuttal: â€Å" I totally understand but don't you agree that the best way to think about this product is to actually use it in your home and get real time results, because that is exactly what this Risk-Free promotion is about† or â€Å"I totally understand but let's be honest with ourselves are you really going to go home and think about having clear skin? We all know life is hectic and putting this off will only make that clear and healthy skin be further out of your reach we are halfway there its time to take control† remember some of these customers are very indecisive we need to be the deciding factor in the phone call and we do this by displaying confidence in our rebuttals. Objection: â€Å"I need to talk to† this is usually just the customer backing out Rebuttal: â€Å"I totally understand but that is why we have the Risk-Free trial so there are no strings attached , if you thought enough of this person(or yourself) to call then I am positive that this is the solution for them/you the results will speak for itself† Objection: â€Å"I will call back† this one you have to do additional probing WHY do they need to call back Rebuttal: â€Å"May I ask why you would need to call back† it will most likely turn into another objection , at this point we need to build more value and create urgency in ordering today. Objection: â€Å"I thought it was FREE† this is the one we get the most do not get frustrated Rebuttal: Agree with the free â€Å"I totally understand the commercial does mention free gifts, and you are going to be receiving some really great free gifts today $35 worth in fact. But we give these free gifts to you when you purchase the Risk-Free trial, we simply want to prove to you how great Proactiv will work for you and what a difference it will make in your life. † Objection: â€Å"I'm driving and I cannot get to my card at the moment† we need to make this seem very miniscule Rebuttal: â€Å" I totally understand and honestly your calling off our radio add and 80% of our callers are calling in while driving, not a problem happens all the time. I'm willing to wait until you get to a safe spot or stop because I can tell your really interested and we can get that part done and it will take less then a minute† Then go on talking to the customer, if you have not received the address info do this first and take your time. If you have already took the address info then talk with the customer a little bit waiting 3 to 5 min is totally worth the sale Now not all of these rebuttals will work like magic and some of them you will have to do some improvising to tailor to your particular call. The key is not to give in until every option has been explored. Remember we want the customer to USE Proactiv and if it does not give them the results they are looking for then that is why we have the MBG. Let the customer know that the reason we have the MBG is because â€Å"We are so confident that this product will absolutely work for you that we just want to prove that and give you the clear healthy skin you deserve† Also after an objection the rebuttal should include some other values that have not previously been stated to entice the customer to buy instead of repeating what the customer has already heard. Ex. if the customer was already not aware that Proactiv is #1, its also great skin care system, they will always receive free gifts, mix and match, always have a MBG if that is a concern, able to get a hold of us 2 diff. ays to answer any questions and concerns, customizable accounts, free rush, upsells at $5 each, catalog has 25% discount off retail price,  Proactiv's Micro Crystals are exclusively with us, Proactiv was the first acne treatment with 3 steps â€Å"Combination Therapy† etc.. Some of these can be used in the presentation to boost confidence and sh ow great value before going into offer and also using the V/P/V (Value price Value) format. If we can do a great job with the presentation this will cut out some of those objections and make that price seem smaller, making an easy and quick sale.

Rituals of the Umuofian Culture essays

Rituals of the Umuofian Culture essays In the novel Things Fall Apart by Chinua Achebe, many cultural values are demonstrated through special ceremonies. The Ibo inhabitants of the land Umuofia perform ceremonies of many different sorts. Today, in modern America, we brush our teeth, take showers and go to school, but in this text, the Umuofian villagers break kola nuts, have bride-prices, and sacrifice living organisms. These rituals are not just done for any reason, but they have special importance towards each clan. We may think the rituals to be odd, but in a peculiar way, it relates to many customs we do today. He who brings kola nut brings life. But I think you ought to break it, replied Okoye, passing back the disc. No, its for you... (pg. 6) One must be wondering what a kola nut is and why it is so important. The breaking of the kola nut (somewhat like a coconut) shows status, respect and honor. As we have the custom of unscrewing the cork in a wine bottle, they break a kola nut. Normally, the oldest in the family would unscrew the cork, like how the eldest or higher status one in the feast would break the nut. He then broke the kola nut and threw one of the lobes on the ground for the ancestors. (pg. 165) The villagers of Umuofia always seem to sacrifice to their ancestors. Ancestors are well respected, but in some cases they go a little overboard with what they are willing to give up. Not so far away, lay the Evil Forest, which entrusted in it are all of the bodies of the ill-fated men and women who died from evil causes. Twins were also thrown into the Evil Forest because of the clans superstition. The story did not mention a particular reason, but one would think it to be another interesting custom they used. It is more difficult and more bitter when a man falls alone. (pg. 25) Unoka, Okonkwos father was also laid in the Evil Forest to rest because he had...

The Red-Haired Man by Danill Khrams

The Red-Haired Man by Danill Khrams Free Online Research Papers â€Å"The Red-Haired Man† by Danill Khrams We began to research who Danill Kharms’ was before reading the text and decided what was more interesting for us to perform. After we read all the stories together we resulted in choosing â€Å"The Red-Haired Man† because we all understood the text in a similar way. Then we all read silently the useful questions to ask when considering the â€Å"story†. Where is the story set? At that moment we were thinking about the life of Danill Kharms’ †¦ Our groups’ main objective was to use what we have learned during the lectures and to try to pass from one text to the reality in a way that we could be active within the society. We all believe in the social context of the message to create ‘alive theatre’. We were really concerned with the concept of being understood. So we picked the key point of the story: if the red-haired man does not have anything he does not exist. But he exists because he has red hair so he is against what is happening and no one wants to listen (to be red means to be in the inferior level of society). For us Danill Kharms’ was telling children his own story. The avant-garde literary societies that Kharms’ was associated with were banned by the Stalin regime. He could not write freely, he did not have a voice. â€Å"He writes the poem in 1937 and dies starving in jail in 1942.† The story is written for children which is why he uses this language and imagery. He wanted to talk. This was the platform for our performance. â€Å"There was a man†¦,† we created a neutral character that loses the energy and disappears. The character appears in front of the audience with a strong presence yet neutral body, however, when sat on the chair his presence weakens due to the entry of the remaining characters (i.e. the society in general). These other characters cover his eyes, his nose, his mouth†¦ with the same sequence that happens in the text. During each of these movements we used a sound of a gun in a way to create curiosity in the audience and a connection with the rest of the performance. The sound was used to create an image of war in the audience and was representing the idea that every time that we block one of someone’s five senses, the person dies or disappears. This interpretation has to be our response considering the date the text was created. By the time that Danill Kharms’ wrote this text, Russia was at the peak of a communist Era. Stalin was in power, the state was extremely repressive and people had no freedom of speech. All property was controlled by the state, individuals possessed nothing. The world was on the verge of The Second World War. People were struggling to survive. We pass from the chair scene to another where is a man on stage at a superior level (as he is on a platform) above three women side by side. This was the area I took responsibility for in the oral presentation. The man represents the power and ownership over people exercised by the state in 1937 and also in a way reflects upon what occurs today. He is ripping questionnaires with audience’s identities and there are three women positioned like in the army, just to reinforce the war image in people’s minds. The soldiers become women weeping progressively more. The audience is alerted to the connection between the past and the present and that they are also part of a society which has its own problems. We connected Danill Kharms’ absurd style of writing with the absurdity of the weeping women. This has been done in a ‘clown’ way because initially the story was created for children and we were devising the text for our five minutes performance. In this scene, we were also looking for a break in the routine. The cry was not fitted on the original text, but it was implicit. It was a very serious issue. After this each one of the three women steps to the front and in their own language tell us of a very actual social issue they were experiencing. They spoke in their own language because we wanted to express the world’s multiculturalism. This scene was portrayed in a grand playful manner. We worked ensemble. The last scene sums the entire story up with each one of the women sitting again on the chair doing nothing. We did not have any specific intention in doing this, but looking back at it I now think this is representative of people’s apathy. The whole performance finishes with one more gunshot. We tried to keep repeating the use of certain props, such as the gun and the chair. Our characters experienced different feelings, ranging from the neutral in the beginning, passing through fake and real emotions because we are learning and we have to experience as much as we can. We were concerned about using the space properly. In the end we did what we could within the time we had available. The theme could be expressed more strongly but we didn’t intent because the all audience researched about it. After the performance we realised some surprising facts, such as there being more women than men filling in the forms, some students suggested new ideas to use this fact in the play. The absurdity of the cry was discussed as fake, we took the risk and we assume the responsibility. Our group were very happy because we performed and achieved our goal of engaged the audience and make them think about society in our days. During the time that our group have been together everyone was always full of new ideas to try to improve our performance that is why was so exciting to do this work. Research Papers on â€Å"The Red-Haired Man† by Danill KhramsThe Masque of the Red Death Room meaningsAnalysis Of A Cosmetics AdvertisementMind TravelStandardized TestingHarry Potter and the Deathly Hallows EssayWhere Wild and West MeetHonest Iagos Truth through DeceptionThe Hockey GameComparison: Letter from Birmingham and CritoRelationship between Media Coverage and Social and

ESL Conversation Lesson Points of View

ESL Conversation Lesson Points of View Points of view is an intermediate to advanced level discussion lesson that asks students to rate their opinions from one to ten (1 - strongly agree/10 - strongly disagree) on a number of controversial issues. The worksheet can be used in a number of ways, and for a number of purposes during any course. Below is a suggestion for integrating this discussion plan into your lesson. Aim: Helping students express their opinions and explain their reasoningActivity: A classroom survey on a number of controversial subjects.Level: Intermediate to advanced Outline Points of View Discussion Distribute Points of View sheet. Ask students to rate their opinions from one to ten: 1 - strongly agree/10 - strongly disagree.Divide students into small groups and ask them to discuss their responses to the statements.Listen in on the various groups and take notes on common language mistakes while students are presenting their various points of view.At the end of the group discussions, write a number of the most common mistakes on the board and ask other students to correct the mistakes.Make sure to suggest standard formulas for stating ones opinion if these formulas do not come up during the correction process (i.e. in my opinion, Do you really think that, As far as Im concerned, etc.)As a class, go through each point asking for someone who (relatively) strongly agrees to explain his or her point of view. Do the same for someone who (relatively) strongly disagrees with the statement.As a follow-up activity, ask students to write a short composition on one of the statements. Points of View Worksheet Rate your opinion from one to ten on the following statements. 1 strongly agree/10 strongly disagree Making mistakes in English is OK as long as people understand you.My friends should come from the same social background as I do.It is impossible to have a happy family life and a successful career.War is not an option for solving international disputes.Multinational global corporations are to blame for most problems in the world today.Women will never be equal to men in the workplace.Marriage is outdated. There is no need for state or church approval or recognition of a partnership.Gay marriage is wrong.The death penalty is acceptable in some cases.Celebrities earn too much money.Foreigners should not be allowed to vote.The government is responsible for making sure that all citizens of a country have at least a minimum living wage job.Quality of life will greatly improve in the future.Teachers give too much homework.Military service should be obligatory.

Stress Implications for College Students Research Paper

Stress Implications for College Students - Research Paper Example However, this generation has adopted certain ineffective and unconstructive methods to overcome stress and consequently stays more troubled (Bland et al. 362). As a result of majority of students being troubled and stressed out, it raises concern as to what underlying root sources are involved and what solutions shall work best to combat these causes. I believe that the college students of this generation suffer largely from stress because of financial issues, transitional difficulties and technicalities of burdensome study courses. Therefore, after conducting comprehensive research and studying various pieces of literature, this paper has been prepared to identify and analyze most common and major reasons that have exposed college students to stress and anxiety. Masses around the globe have suffered from recessionary downfall and inflationary pressures. Inflation has caused an increase in costs of living and competition, resulting in stressful circumstances for students joining coll ege. The added expenditure of tuition fees, purchase of books and other supplementary necessities covers a substantial proportion of any household income. Consequently, families suffer from liquidity difficulties and students get tensed about their financial burdens being borne by their caretakers. Moreover, if students approach the college trust for financial aid, then it creates a stressful burden of liability that must be eventually repaid and settled by them. In fact, â€Å"62% of students say that over the past three months financial worries have had some/a lot of impact on the stress the experience in their daily life† (MtvU 2). Students, who are already facing increased expectations and demands for academic performances from their families and mentors, also have to go through additional stressful factors pertaining to college studies, including regular tuition fees, study material expenses, hostel or alternate residing arrangements, traveling and entertainment expenses and other miscellaneous outflows that come part and parcel with college life (May & Stephen 264).  

The Youngest Daughter by Cathy Song Essay Example | Topics and Well Written Essays - 1000 words

The Youngest Daughter by Cathy Song - Essay Example Therefore, without any choice, the youngest daughter has to look after her mother and take care of her, returning all the mother’s sacrifices for her, her siblings and even their father. In trying to understand more clearly the matters the speaker is bringing to the reader’s attention, the speaker will be discussed further in detail together with the setting, style, ambiguity reflected in the poem and also the impact the poem has on this author. Reading the poem once may not bring much sense because of the ambiguity of words used. One can never tell what the poet is really talking about not unless he knows pretty well Asian traditions which are pertinent in the poem. From the point of view of someone who is blinded about Asian traditions, the literal meanings can be understood but somehow, he would notice that obviously, the poet is saying something else other than what is literally meant by the words. For instance, the phrase, â€Å"The sky has been dark for many year s†, could be well understood literally. However, it seems to be unrelated to the succeeding lines of the first paragraph so that one cannot help but question what the poet is trying to say behind such words. Similarly, the phrase also seems to have no relevance to the other paragraphs. In fact, the images created in each paragraph appear to be just separate circumstances in the speaker’s life which do not really give a clear overview of what she is presenting. Nevertheless, a little background about Chinese traditions, assuming that the speaker is Chinese because the author is of Chinese descent, will greatly help in understanding the poem. It is expected of the youngest Chinese daughter not to marry in order for her to be able to take care of the aging parents. If she marries, she will still have the responsibility of taking care of them especially when they are sick. Considering the burdens of having one’s own family and the need to take care of one’s pa rents, it would perhaps be best for the youngest daughter not to marry. In the poem, it is obvious that the daughter opted for the latter. The phrase â€Å"The sky has been dark for many years†, now has a figurative meaning, describing how dark the years have gone by for the youngest daughter who has done nothing but take care of her ailing mother. From the fourth stanza, one can suppose that the youngest daughter has been attending to her mother’s needs for thirty years and that long a time could really put someone in a melancholic life and yearn for an escape. The youngest daughter, despite her obligations, still tries to dream about her future. Perhaps she has been doing that for the past thirty years so that thinking of her freedom now deeply hurts her. In the second stanza, the speaker says, â€Å"when I touch my eyelids, my hands react as if I had just touched something hot enough to burn†. Touching one’s eyelid could be an effort to clear oneâ€⠄¢s eyes, for her to look more clearly. However, whenever she looks at the realities of life, at the fact that she actually does not have to take all the obligations of taking care of her mother, she pains so much and therefore has to remove her hands away from her eyelids immediately. For the Chinese, it is almost a crime to leave aged parents in the care of other people. They cling to Confucius’ teachings that children have the responsibility of returning the care their parents have lavished on them.     Ã‚  

To Whome do we belong Essay Example | Topics and Well Written Essays - 1000 words

To Whome do we belong - Essay Example nts and tragedies forces an individual to change his true self and wipes away everything he believes in forcing him to acquire a new identity in an unimaginable way. The work of Victor E. Frankl, Man’s Search for Meaning, will be used as a reference for the purpose of this paper. Obi was an ordinary Nigerian man, of the Igbo tribe, who was brought up in the best of moral character within the conservative Nigerian cultural setting. His problems began when he undertook a scholarship to further his education in Britain. The Western culture in Britain did not hesitate to influence him to a multi-cultured person, obviously bringing in conflict. In Britain, it was alright to take bribes, to marry a person from any tribe or race and to have sexual relations with them even before marriage. Actually, it was alright to do a lot of things. End of four years of study in Britain and Obi is ready to return to home sweet home. The only problem is the people back home are still the same as he left them four years ago: the same culture, same mind set, same believes, same everything. They do not allow marriage to certain casts (Obi’s girlfriend was from a cast that was considered an outcast, Osu) leaving him with no choice but to perform an abortion for the girl who was carrying his child. Bribery was an abomination and unheard of especially from a son of the village whom the community had made a collection for him to take higher studies so as to come back and help the village people maneuver around the new white-dominated Nigeria. Within a few years, he had changed a lot, but he was the one who changed not the world and now he was back to reality: he has roots as a traditional Nigerian man and uprooting them was hard if not impossible. He had no choice but to adapt to his old ways of life. Within no time, Ibo finds himself a prisoner of his multiple identity in a conflict that would later tear down his whole life; career wise, socially and morally, eventually turning him

The Alder Grove Regional Park Essay Example | Topics and Well Written Essays - 1250 words

The Alder Grove Regional Park - Essay Example The object of analysis for the purpose of this assignment is the Alder Grove Regional Park (ARP) that is located in the middle of Fraser Valley straddling the municipal boundary of the City of Abbotsford and Township Langley. A range of recreational opportunities are provided by the park and the main one is, the opportunity of hosting overnight events. The ARP preserves significant cultural resources, supports conservation and research projects for endangered and threatened species and provides a wetland habitat along the Pepin Brook corridor. In 2012, ARP hosted 342,000 visitors and the main attraction was the 11.8km of trails which are common for jogging, walking, equestrian and cycling use. Alder Grove Park consists of 280 hectares of secondary growth forests, meadows, wetlands, and fields. The current program and facilities of ARP have evolved over time. This evolvement is in response to the demand of the public for basic access, influences like community initiatives, pre-existin g amenities, and gravel extraction. A management process was initiated in 2011 to clarify the program of the park, its services, conservation and priorities for development for a period of 20years. The rural setting, with a surrounding landscape dominated by active farming interspersed with recreational, industrial and residential land uses characterize Alder Grove Regional Park. Mushroom barns, livestock operations, annual crops, berry crops, pasture, and vineyard are dominant on the landscape. Industries situated in the vicinity of the park include; soil medium operations, waste transfer site, the former landfill, and gravel extraction operations. The rich agricultural landscape located in the watersheds of Pepin, Fish Trap, and Bertrand Creek give way to suburban and urban areas of the City of Abbotsford and Township of Langley.

Response to chapter 7 STRAIN OF TWO CITIES in the book Inside Rikers Essay

Response to chapter 7 STRAIN OF TWO CITIES in the book Inside Rikers - Essay Example Nevertheless, the criminal has to make the decision of maximizing these opportunities in order to be released from the cycle of imprisonment, criminality, and poverty. Society provides the conditions for poverty, which easily breeds criminality. Angel is one of Wynn’s students at Fresh Start (Wynn, 2001). For his first job, he earned eight dollars an hour as a handyman in a hospice for people with AIDS (Wynn, 2001). Unfortunately, his contract changed, so he shifted from a full-time job to a part-time one (Wynn, 2001). Wynn was amazed that Angel did not revert back to a life of crime. Angel admitted that being poor and an ex-convict sharply decreases opportunities for advancement (Wynn, 2001). He complained about not being able to get jobs because of his criminal record: â€Å"I feel like I’ll never stop paying for the past. I’ve done my time, but it doesn’t seem to matter† (Wynn, 2001). At the same time, he did not have healthcare insurance, so when he got sick, he waited to be sick enough to be brought to the emergency room (Wynn, 2001). Wynn had to help him get a free checkup. Angel provides proof that society tends to push people to poverty, which facilitates criminal conduct. Society can reverse these conditions by offering opportunities for education and employment. John Wareham is an international executive recruiter, a psychologist, and famous business lecturer who joined Fresh Start as a teacher (Wynn, 2001). Wynn narrated a debate that John initiated, where three lawyers and writers debated with three convicts on the topic of robbing a bank versus working at McDonalds. The lawyers and writers argued for robbing the bank, while the convicts argued against it. Wynn stressed that the convicts used their hearts and minds to support their arguments. John said that this change in thinking and behavior would get

The Alder Grove Regional Park Essay Example | Topics and Well Written Essays - 1250 words

The Alder Grove Regional Park - Essay Example The object of analysis for the purpose of this assignment is the Alder Grove Regional Park (ARP) that is located in the middle of Fraser Valley straddling the municipal boundary of the City of Abbotsford and Township Langley. A range of recreational opportunities are provided by the park and the main one is, the opportunity of hosting overnight events. The ARP preserves significant cultural resources, supports conservation and research projects for endangered and threatened species and provides a wetland habitat along the Pepin Brook corridor. In 2012, ARP hosted 342,000 visitors and the main attraction was the 11.8km of trails which are common for jogging, walking, equestrian and cycling use. Alder Grove Park consists of 280 hectares of secondary growth forests, meadows, wetlands, and fields. The current program and facilities of ARP have evolved over time. This evolvement is in response to the demand of the public for basic access, influences like community initiatives, pre-existin g amenities, and gravel extraction. A management process was initiated in 2011 to clarify the program of the park, its services, conservation and priorities for development for a period of 20years. The rural setting, with a surrounding landscape dominated by active farming interspersed with recreational, industrial and residential land uses characterize Alder Grove Regional Park. Mushroom barns, livestock operations, annual crops, berry crops, pasture, and vineyard are dominant on the landscape. Industries situated in the vicinity of the park include; soil medium operations, waste transfer site, the former landfill, and gravel extraction operations. The rich agricultural landscape located in the watersheds of Pepin, Fish Trap, and Bertrand Creek give way to suburban and urban areas of the City of Abbotsford and Township of Langley.

Sales and Distribution Management Assignment Example | Topics and Well Written Essays - 4000 words

Sales and Distribution Management - Assignment Example To solve the solve both the sales and distribution problem the company finds itself confronted with, it is important to objectively outline the situation. The situation, as it currently stands, is that our company had contracted with a sales/distribution company to both sell and distribute 3,000 tones of our toys across the United Kingdom in time for Christmas. The goods have been loaded onto the Emma Maersk and will arrive in the United Kingdom on the due date. The problem lies in the sales and distribution of the unloaded cargo to stores across the UK, given that the company which had originally been contracted to handle this process has gone out of business. As we have exactly three weeks to resolve this problem, the imperatives of immediately deciding upon a model for the effective and efficient sales and distribution of the unloaded cargo are inarguable. There are two steps to the resolution of the above-described problem. The first step involves motivating and managing a sales team to sell the goods within the specified time-frame and the second involves distributing the goods within that same time-frame. Our ability to do satisfy the first depends on our understanding of team behaviour and the ways and means by which to motivate sales teams. As for the second, the resolution of the distribution problem lies in the implementation of a modified version of the Just-In-Time paradigm. 2 Sales Team Management Models Researchers who study general team characteristics often examine and reference the models of Gladstein (1984), Hackman (1987), and Campion et al. (1996). These three key models are discussed below. 2.1 Gladstein's model Gladstein's (1984) model categorized the variables and labeled them as either input, process, or output (Figure 1). Gladstein defines inputs as contributions from individual, group, and organization for group effectiveness. Gladstein categorized the inputs into two levels: group and organizational. Process refers to the activities of decision-making and output refers to the outcomes of the team activities. Group task moderates the relationship between group process and group effectiveness. Group level inputs and organizational level inputs directly affect group effectiveness. Both levels of inputs indirectly affect the group process. Gladstein's model defines team effectiveness based on the performance of the team and the satisfaction of the team members. Figure 1 General Model of Group Behavior: Constructs and Measured Variables. From "Groups in context: a model of task group effectiveness," by D. Gladstein, 1984, Administrative Science Quarterly, 29, p. 502. 2.2 Hackman's model Hackman (1987) created a practical framework for team studies (Figure 2). Hackman's model (1987), like Gladstein's model (1984) uses an "input-process-output" framework for analyzing group behavior and performance. Hackman's model consists of six major variables: organizational context, group design, group synergy, process, group task, and group effectiveness. In Hackman's model, organizational context, refers to the reward system, the education system, and the information system, all of which support the work of the team. Organizational context, along with group design and group synergy, influences how well team members are able to apply their skill and knowledge to the team task. The model defines group synergy as interactions between members, which increases group progress and decreases

The Schlieffen plan Essay Example for Free

The Schlieffen plan Essay Explain how the Schlieffen plan was meant to work. The Schlieffen plan was the strategy Germany planned to adopt in the event of a war in 1914. It was intended to bring a fast, effective victory for Germany, and was devised by Count Alfred von Schlieffen who was the Chief of the General Staff of the German Army. If a war broke out, Germany would be faced with a war in the west against France, and a war on the east against Russia. German generals knew that they could not sustain this war on both fronts, and the Schlieffen plan was devised to deal with this. It was calculated that if a war started, Russia would take a long time to mobilize, and therefore Germany planned to defeat France before Russia had enough time to mount an invasion. They would do this by sending the majority of the German forces to attack France, leaving the eastern boarder vulnerable to attack. This was a risky strategy, as if Russia mobilized quickly, than Germany could be easily invaded. As a result of the Franco-Prussian war, ending in 1871, France had built strong defences around the French-German boarder to prevent another German invasion. Rather than invading through the heavily defended boarder at Alsace-Lorraine, the German army was to attack France through neutral Belgium. By using overwhelming force, it was planned that the German army would surround Paris within six weeks, thus causing France to surrender. Afterwards, the German army could be turned around back to Germany and concentrate their force on the Russian army to the East. The Schlieffen Plan was a huge gamble on the German behalf, as for it to work several assumptions would have to remain correct. It was predicted that Belgium would not resist against a German invasion, and British intervention was completely unaccounted for. It was also assume that  the capture of Paris would lead to the defeat of France. However, the success of the plan pivoted on the time Russia spent to mobilize, and was the fundamental assumption required for the plan to work. For the Schlieffen plan to be successful, all these assumptions would have to remain correct, showing that even before it was put into practise, it was already fundamentally flawed. b). Why did a stalemate develop on the Western Front? At the beginning of the war, both sides predicted that the fighting would be based upon a war of movement. With more devastating technology and effective weaponry, it was harder for either side to advance with resulting in heavy casualties, which contributed towards the establishment of the trench system. No one had predicted the effects modern technology would have on warfare, and is partly responsible for the stalemate that developed on the Western Front. However, there were other factors and contributing events that also lead towards the stalemate. Perhaps the most significant cause of the stalemate was the failure of the Schlieffen plan. This was because many of the assumptions that the plan depended on were wrong. Firstly Germany had not accounted Belgium resistance or the involvement of the British Army in the fighting. However, the intervention of these two counties slowed the German advance into France, which reduced the likelihood of Germany defeating France within the allotted six weeks. The Belgium army was outnumbered ten to one, however they managed to slow the rapid German advance, which was essential for the success of the Schlieffen Plan. British involvement was also unexpected, as the British-Belgium treaty dated back to 1839. The Kaiser did not believe that Britain would go to war over a scrap of paper. However, Britain did uphold their alliance with Belgium, and on 4th August 1914 declared war on Germany and sent 120,000 troops across the channel to meet the German advance. Also Russian army mobilized quicker than Germany had anticipated, resulting  in many German soldiers being withdrawn from the west to be used to stop the Russian invasion in the east. This considerably weakened the German invasion into France, and as a result the German troops were forced to advance east of Paris, away from their original goal. This over-stretched the German supply lines, and after weeks of fighting, eventually exhausted the German army. The German 1st Army encountered French troops returning from the failed Plan XVII at the Battle of the Marne on 6th September 1914, resulting in around 250,000 casualties for both sides. Although the German army were not beaten, all hopes for a quick decisive victory had been dashed. As a result, German forces retreated to higher ground, where they dug a series of trenches to protect themselves. The British and French forces soon followed suit, however they were forced to construct their trenches in the flood-prone lower ground. This was the start of the trench warfare that would dominate the Western Front for the next four years. As both fatigued armies rested, their trench systems became more intricate and fortified, and eventually both Allied and German troops were to heavily dug in to be forced out of their trenches by a single attack or offensive. As a result, little ground was gained by either side. This was the start of the stalemate that would remain throughout the duration of the war, until the final German offensive in March 1918. c). Why was the stalemate broken on the Western Front? The German surrender on 11th November 1918 was due to a number of different factors and events. Each contributed to the final end of the war, and were all of significant importance. Some factors contributed towards the armistice more than others however combined they resulted in the end of the war. The first contributing factor was the introduction of modern technology, such as gas shells and tanks. This was of vital importance, as with improved  methods and machinery, it was hoped that the stalemate would be broken more easily. It was hoped this would happen in 1916, where tanks were first used in the Battle of the Somme. However, although the appearance of tanks took the Germans by surprise, there were not enough to have the intended effect. Many tanks broke down in no-mans land or became stuck in shell holes, and were generally very unreliable. As they were a new aspect of warfare, the Allied commanders had no experience of how to command tanks, and as a result they were not used effectively, resulting in hundreds being destroyed. However, by 1918 the design of the tanks had been greatly improved, and the importance of them on the battlefield had been widely recognised. Tanks were being used to break German lines whilst protecting troops from machine gun fire. This was illustrated at the Battle of Cambrai on 20th November 1917, where 378 tanks advanced six kilometres into German territory. However, the use of tanks had not yet been perfected by the Allies, as there was often not enough infantry to follow behind a tank assault, leaving gaps in the Allied lines. However, even though Cambrai was not without losses, it clearly demonstrated how the effective use of tanks could play a decisive role in a battle. Trench warfare had begun in 1914, and was the ultimate cause of the stalemate, with both sides only making small advances at a time. The war was expected to be a war of movement, however this prediction was evidently prove incorrect after only a few weeks of fighting. However, as new weapons and technology were introduced, it became easier for either side to advance and to capture the enemy trenches. An example of this would be the introduction of the gas shell. They were first used by the Germans in the Second Battle of Ypres on 22nd April 1915. At first, only mild tear gas was used, however it was not long before chlorine and mustard gas shells were being used. By using gas attack, it was hoped the enemy would be forced out of their trenches, proving a dangerous yet deadly form of weaponry. With such effective methods being used to a greater extent, it became evident that trench warfare could not sustain such forms of fighting, thus contributing towards the overall breaking of the stalemate. America entering the war was another important aspect in the breaking of the stalemate. For most of the war, America had not intervened with the fighting in Europe. However, Germany had decided to attempt to force Britain out of the war by cutting off all its supplies, and hoping to force the British into submission. This involved the sinking of American cargo ships, which crossed the Atlantic delivering resources to Britain. The German high command knew that this decision was a gamble, and would ultimately result in America entering the war, but hoped that a German victory would be achieved before America had the chance to play a significant role in the fighting. In February 1917, Germany began unrestricted submarine warfare, which authorised German U-boats to sink any ships suspected of carrying supplies to Britain. This was yet another risk taken by Germany in the course of the war, which failed, as America joined the war earlier than expected. On 6thApril 1917, America declared war on Germany before a German victory could be achieved. America took a long time to mobilize, but eventually over 250,000 American troops were being sent to the Western Front by March 1918. This was a disastrous event for Germany as America was strong military and economically, and its participation in the war proved a huge threat to Germany, and seriously jeopardised the likelihood of a German victory. The role of the British Navy in the war also helped to bring about the end of the stalemate. The Navys primary responsibility was to enforce a naval blockade around German ports that would cut off supplies reaching Germany, thus weakening the country both economically and military. Without sufficient resources, Germany would not be able support its soldiers on the Western Front, as a restriction of food and munitions would cut off the vital resources needed to sustain the German army in France. The Allies planned to take full advantage of the blockade, and combined with the new American force, were in a position to weaken the German army, and  swing the war into their favour. The Naval blockade also provoked angry riots in Berlin and other German cities, as the inhabitants began to starve as a result of the limited food supplies reaching Germany. It is estimated that over a quarter of a million Germans starved to death as a result of the British Naval blockade. This pressurised the authorities to take action, and relieve the strain the blockade was causing on Germany, before they were forced into a state of collapse. As a responsive to the growing number of Allied forces on the Western Front, and the strain of the Naval blockade, Germany mounted a huge offensive. Russia had recently pulled out of the war as Lenin took power, resulting in the end of the fighting on the Eastern front, and also leaving thousands of spare soldiers that could be used to fight in the west. In their unusually strong state, the German commanders believed they could drive back the Allies in the west before the port blockades and extra American troops begun to take effect. General Ludendorff ordered the training of many stormtrooper units. These were troops specialized in close range fighting, and were used to attack the length of the Allied line. In March 1918, the Germany army began a huge assault on the Western Front, involving the majority of its military force. This was a gamble on the German behalf, however there were no alternative strategies that would achieve a fast victory, as the port blockade and increase in Allied soldiers were already starting to weaken Germanys military strength. The stormtrooper attacks worked well, and within a week the German front line had advanced by 60km, and by April the Germany army was only 80km away from their original goal of Paris. The Allies ended up retreating over the ground they had spent years trying to gain. However, their rapid advance cause the German lines to over extended  themselves, and coupled with the limited food imports, few supplies were reaching the German army at such a distance into France. As a result, the German advance came to a halt, prompting a vicious counter-attack from the combine British, French and American forces. The Germans fell back to their heavily fortified Hidenburg line, however this was taken by the overwhelming force of the Allies on 26th September 1918, resulting in over 400,000 German soldiers being captured. The offensive had backfired tremendously, and left over 1 million German soldiers dead. Faced with the extinction of their whole army, Germany asked for peace, and the Kaiser fled to Holland. The Armistice was signed and the war came to an end on 11th November 1918. This was a result of a series of cumulative events and factors. Ultimately, it was the German offensive in 1918 that was the event which lead to the end of the stalemate, as the German attacks and British counter-attacks broke the trench system, and for the last few week before the armistice, the war was again a war of movement. However, the German offensive would have never taken place if it were not for the other contributing factors already discussed. The impacts of new technology, as well as the strain put on Germany by the American entry into the war and the port blockades forced the German commanders to respond with the offensive, which resulted in the end of the war. Although the offensive was the most important factor, the stalemate would have never been broken if it wasnt for the effect of the other factors, proving that they were all significant contributors to the breaking of the stalemate in 1918.

A Brief History of Alaska

A Brief History of Alaska A Brief History of Alaska Alaska, the 49th State, has a rich history behind it. From the Paleolithic period to the present, Alaskas natural beauty, and its rich resources have been the lands bane and boon to its natives. The Russians, Spanish, British, and Americans have at one time or another exploited Alaskas otters for their fur, and the land for its oil. Paleolithic Inhabitants Alaskas original inhabitants were of Asiatic descent. By that era, the natives of Alaska already had an organized society, which was segregated into three classes of people: the Honorables, which included the respected whalers and elders; the Commoners; and the Slaves. Their society was known to practice mummification at death just like the Egyptians. Occasionally, a slave was killed in honor of their dead, which means they also practice human sacrifice. Alaskas Discovery Alaskas discovery happened in 1741 by a Danish seafarer aboard a Russian ship. The sailors hunted the animals and took their furs back to the Old World. The people were amazed by the quality of the furs that they were sought after. Because of the demand for more furs, Alaska became a favorite hunting and trading post. Catherine the Great, who was the monarch during this period, urged the hunters to treat the Native Aleuts with compassion. However, the hunters obsessive quest for furs made this impossible. The Spanish Expeditions Alaska eventually became part of Russia and this did not sit well with the Spanish monarch, King Charles the III. Between 1774 and 1791, King Charles sent out Spanish expeditions to the area. His efforts to claim even a part of Alaska for the glory of Spain were thwarted at every opportunity by the Russian armies. Eventually, King Charles abandoned his attempts at getting a piece of the Alaskan peninsula from the Russians. He decided both the Russians and the Natives were too formidable for the Spanish. British Subjects During this same period, the British also attempted to get a piece of the Alaskan territory. The possible uses of Alaskas sea otters were too profitable for British navigators to ignore. Captain James Cook and his crew set sail to explore the Alaskan territory in 1778. When they returned to England, they showed off their beautiful fur coats that were taken from Alaskas freshly killed otters. Upon seeing these fur coats, the British decided to send out more expeditions to Alaska. As a result, the town of Wrangell became subject to British rule. How Alaska Became Part of America The United States purchased Alaska from the Russians for 7.2 million dollars in April 9, 1867. It did not become a state of the United States until July 7, 1958 when President Dwight D. Eisenhower signed the Alaska Statehood Act. On that day, Alaska became the 49th state of the United States of America. All through the period when Alaska was a part of America, it primarily served as a rich source of gold. Many miners, opportunists, and explorers from all over the States migrated to Alaska because of the gold rush. Eventually, they settled there and made the wintery land their home. Later, oil was discovered at Prudhoe Bay on the Arctic coast. A proposal for constructing a pipeline to distribute oil to the other states was originally denied because there was a land dispute in that area with Native Americans. Unless the dispute was settled, no pipeline would be built. The discovery of â€Å"black gold† together with the claims of Native Americans to take back the land that was originally theirs led to the signing of the Alaska Native Claims Settlement Act. The Act required the Native Americans to relinquish their claims on that particular area in exchange for 44 million acres of land in other parts of Alaska. In addition to that, they were also awarded 963 million dollars.

Insurance Mandate Essay -- Healthcare

1. (a) Why was the requirement of an insurance mandate for all citizens so important that it was supported by the Heritage Foundation a right wing conservative think tank, former Speaker of the House and presidential candidate Newt Gingrich, former Senate Majority Leader and presidential candidate Bob Dole and former Governor and presidential candidate Mitt Romney who made it a provision of the Massachusetts health care law? The requirement of an insurance mandate for all citizens was so important to conservatives â€Å"because it called for individual responsibility to address what economists call the "free-rider effect†Ã¢â‚¬  (http://www.npr.org/templates/story/story.php?storyId=123670612). This keeps individuals who become injured from being able to get a free ride off the backs of other citizens who have insurance. The mandate would require individuals to take responsibility for their own health care needs. Having a mandate would also prevent premiums from escalating because an affordable policy would be easy to come by. The mandate likewise gives momentum for employers to offer health care benefits to their employees. Furthermore, today’s individual mandate â€Å"won’t allow high-deductible, lower cost plans that pay only for catastrophic illness. And some low-wage workers who get "mini-med" coverage through employers will likely have to buy more comprehensive policies† (http://www.politifact.com/georgia/article/2012/mar/26/health-care-debate-switching-sides-individual-mand/). No one would be able to purchase just a new bare necessities policy, and employers would most likely beef up their benefits packages to employees. Denying people coverage with pre-existing conditions will also not be allowed. This precedence would back up the co... ...rk: Longman, 2011. 348. Print. Young, Jeffrey. "Supreme Court Health Care Reform: Without Mandate, Nightmare Awaits Insurers, Uninsured." The Huffington Post. TheHuffingtonPost.com, 28 Mar. 2012. Web. 13 Apr. 2012. http://www.huffingtonpost.com/2012/03/28/supreme-court-health-care_n_1385710.html. Works Cited The Economist. The Economist Newspaper. Web. 13 Apr. 2012. http://www.economist.com/economics-a-to-z/d. "Federal Open Market Committee." FRB:. FRB. Web. 13 Apr. 2012. http://www.federalreserve.gov/monetarypolicy/fomc.htm. "Strategic Defense Initiative (SDI) (United States Defense System)." Encyclopedia Britannica Online. Encyclopedia Britannica. Web. 13 Apr. 2012. http://www.britannica.com/EBchecked/topic/568214/Strategic-Defense-Initiative-SDI/. Volkomer, Walter E. "Chapter 13." American Government. New York: Longman, 2011. 352-353. Print.

Cases for Management Decision Making

Cases for Management Decision Making CA-1 suggested uses of cases Case CASE 1 Greetings Inc. : Job Order Costing CASE 2 Greetings Inc. : Activity-Based Costing CASE 3 Greetings Inc. : Transfer Pricing Issues CASE 4 Greetings Inc. : Capital Budgeting CASE 5 Auburn Circular Club Pro Rodeo Roundup CASE 6 Sweats Galore CASE 7 Armstrong Helmet Company Overview This case is the first in a series of four cases that presents a business situation in which a traditional retailer decides to employ Internet technology to expand its sales opportunities. It requires the student to employ traditional job order cost- ing techniques and then requests an evaluation of the resulting product costs. (Related to Chapter 2, Job Order Costing. ) This case focuses on decision-making benefits of activity-based costing relative to the traditional approach. It also offers an opportunity to discuss the cost/ benefit trade-off between simple ABC systems versus refined systems, and the potential benefit of using capacity rather than expected sales when allocating fixed overhead costs. (Related to Chapter 4, Activity-Based Costing. This case illustrates the importance of proper transfer pricing for decision making as well as performance evaluation. The student is required to evaluate profitability using two different transfer pricing approaches and comment on the terms of the proposed transfer pricing agreement. (Related to Chapter 8, Pricing. ) This case is set in an environment in which the company is searching for new op- portunities for growth. It requires evaluation of a proposal based on initial esti- mates as well as sensitivity analysis. It also requires evaluation of the underlying assumptions used in the analysis. Related to Chapter 12, Planning for Capital Investments. ) This comprehensive case is designed to be used as a capstone activity at the end of the course. It deals with a not-for-profit service company. The case involves many managerial accounting issues that would be common for a start-up business. (Related to Chapter 5, Cost-Volume-Profit; Chapter 7, Incremental Analysis; and Chapter 9, Budgetary Planning. ) This case focuses on setting up a new business. In planning for this new busi- ness, the preparation of budgets is emphasized. In addition, an understanding of cost-volume-profit relationships is required. (Related to Chapter 5, Cost-Volume- Profit, and Chapter 9, Budgetary Planning. ) This comprehensive case involves finding the cost for a given product. In addi- tion, it explores cost-volume-profit relationships. It requires the preparation of a set of budgets. (Related to Chapter 1, Managerial Accounting; Chapter 5, Cost- Volume-Profit; Chapter 9, Budgetary Planning; Chapter 10, Budgetary Control and Responsibility Accounting; Chapter 11, Standard Costs and Balanced Scorecard; and Chapter 12, Planning for Capital Investments. CA-2 case 1 ?Greet ings Inc. Greetings Inc. : Job Order Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. has operated for many years as a nationally recognized retailer of greeting cards and small gift items. It has 1,500 stores throughout the United States located in high-traffic malls. As the stock price of many other companies soared, Greetings’ stock price re- mained flat. As a result of a heated 2010 shareholders’ meeting, the president of Greetings, Robert Burns, came under pressure from shareholders to grow Greetings’ stock value. As a consequence of this pressure, in 2011 Mr. Burns called for a formal analysis of the company’s options with regard to business op- portunities. Location was the first issue considered in the analysis. Greetings stores are located in high-traffic malls where rental costs are high. The additional rental cost was justified, however, by the revenue that resulted from these highly visi- ble locations. In recent years, though, the intense competition from other stores in the mall selling similar merchandise has become a disadvantage of the mall locations. Mr. Burns felt that to increase revenue in the mall locations, Greetings would need to attract new customers and sell more goods to repeat customers. In order to do this, the company would need to add a new product line. However, to keep costs down, the product line should be one that would not require much addi- tional store space. In order to improve earnings, rather than just increase rev- enues, Greetings would have to carefully manage the costs of this new product line. After careful consideration of many possible products, the company’s management found a product that seemed to be a very good strategic fit for its existing products: high-quality unframed and framed prints. The critical el- ement of this plan was that customers would pick out prints by viewing them on wide-screen computer monitors in each store. Orders would be processed and shipped from a central location. Thus, store size would not have to in- crease at all. To offer these products, Greetings established a new e-business unit called Wall Decor. Wall Decor is a â€Å"profit center†; that is, the manager of the new business unit is responsible for decisions affecting both revenues and costs. Wall Decor was designed to distribute unframed and framed print items to each Greetings store on a just-in-time (JIT) basis. The system works as follows: The Wall Decor website allows customers to choose from several hundred prints. The print can be purchased in various forms: unframed, framed with a steel frame and no matting, or framed with a wood frame and matting. When a CA-3 Greet ?ings CA-4 ase 1 Cases for Management Decision Making customer purchases an unframed print, it is packaged and shipped the same day from Wall Decor. When a customer purchases a framed print, the print is framed at Wall Decor and shipped within 48 hours. Each Greetings store has a computer linked to Wall Decor’s Web server so Greetings’ customers can browse the many options to make a selection. Once a selection is made, the customer ca n complete the order immediately. Store em- ployees are trained to help customers use the website to shop and to complete their purchases. The advantage to this approach is that each Greetings store, through the Wall Decor website, can offer a wide variety of prints, yet the indi- vidual Greetings stores do not have to hold any inventory of prints or framing materials. About the only cost to the individual store is the computer and high- speed line connection to Wall Decor. The advantage to the customer is the wide variety of unframed and framed print items that can be conveniently purchased and delivered to the home or business, or to a third party as a gift. Wall Decor uses a traditional job order costing system. Operation of Wall Decor would be substantially less complicated, and overhead costs would be sub- stantially less, if it sold only unframed prints. Unframed prints require no addi- tional processing, and they can be easily shipped in simple protective tubes. Framing and matting requires the company to have multiple matting colors and frame styles, which requires considerable warehouse space. It also requires skilled employees to assemble the products and more expensive packaging pro- cedures. Manufacturing overhead is allocated to each unframed or framed print, based on the cost of the print. This overhead allocation approach is based on the assumption that more expensive prints will usually be framed and therefore more overhead costs should be assigned to these items. The predetermined over- head rate is the total expected manufacturing overhead divided by the total ex- pected cost of prints. This method of allocation appeared reasonable to the ac- counting team and distribution floor manager. Direct labor costs for unframed prints consist of picking the prints off the shelf and packaging them for ship- ment. For framed prints, direct labor costs consist of picking the prints, framing, matting, and packaging. The information in Illustration CA 1-1 for unframed and framed prints was collected by the accounting and production teams. The manufacturing overhead budget is presented in Illustration CA 1-2. Illustration CA 1-1 Information about prints and framed items for Wall Decor ?Unframed Steel-Framed Print, Wood-Framed Print, Volume—expected units sold Cost Elements Direct materials Print (expected average cost for each of the three categories) Frame and glass Matting Direct labor Picking time Picking labor rate/hour Matting and framing time Matting and framing rate/hour Print 0,000 $12 10 minutes $12 No Matting 15,000 $16 $4 10 minutes $12 20 minutes $21 with Matting 7,000 $20 $6 $4 10 minutes $12 30 minutes $21 ?Greet ?ings ?case 1 Cases for Management Decision Making CA-5 Illustration CA 1-2 Manufacturing overhead budget for Wall Decor ?Manufacturing Overhead Budget Supervisory salaries Factory rent Equipment rent (framing and matting equipment) Utilities Insurance Information te chnology Building maintenance Equipment maintenance Budgeted total manufacturing overhead costs $100,000 130,200 50,000 20,000 10,000 50,000 11,000 4,000 $375,200 Instructions Use the information in the case and your reading from Chapters 1 and 2 of the text to answer each of the following questions. 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job order costing system. 2. What are the advantages and disadvantages of using the cost of each print as a man- ufacturing overhead cost driver? 3. Using the information in Illustrations CA1-1 and CA1-2, compute and interpret the predetermined manufacturing overhead rate for Wall Decor. 4. Compute the product cost for the following three items. a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat (base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). 5. (a) How much of the total overhead cost is expected to be allocated to unframed prints? (b) How much of the total overhead cost is expected to be allocated to steel framed prints? (c) How much of the tot al overhead cost is expected to be allocated to wood framed prints? (d) What percentage of the total overhead cost is expected to be allocated to un- framed prints? . Do you think the amount of overhead allocated to the three product categories is rea- sonable? Relate your response to this question to your findings in previous questions. 7. Anticipate business problems that may result from allocating manufacturing over- head based on the cost of the prints. case 2 ?Greet ings Inc. Greetings Inc. : Activity-Based Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Mr. Burns, president of Greetings Inc. created the Wall Decor unit of Greetings three years ago to increase the company’s revenue and profits. Unfortunately, even though Wall Decor’s revenues have grown quickly, Greetings appears to be losing money on Wall Decor. Mr. Burns has hired you to provide consulting serv ices to Wall Decor’s management. Your assignment is to make Wall Decor a profitable business unit. Your first step is to talk with the Wall Decor work force. From your conver- sations with store managers you learn that the individual Greetings stores are very happy with the Wall Decor arrangement. The stores are generating addi- tional sales revenue from the sale of unframed and framed prints. They are espe- cially enthusiastic about this revenue source because the online nature of the product enables them to generate revenue without the additional cost of carry- ing inventory. Wall Decor sells unframed and framed prints to each store at product cost plus 20%. A 20% markup on products is a standard policy of all Greetings intercompany transactions. Each store is allowed to add an additional markup to the unframed and framed print items according to market pressures. That is, the selling price charged by each store for unframed and framed prints is determined by each store manager. This policy ensures competitive pricing in the respective store locations, an important business issue because of the intense mall competition. While the store managers are generally happy with the Wall Decor products, they have noted a significant difference in the sales performance of the unframed prints and the framed prints. They find it difficult to sell unframed prints at a competitive price. The price competition in the malls is very intense. On average, stores find that the profits on unframed prints are very low because the cost for unframed prints charged by Wall Decor to the Greetings stores is only slightly be- low what competing stores charge their customers for unframed prints. As a re- sult, the profit margin on unframed prints is very low, and the overall profit earned is small, even with the large volume of prints sold. In contrast, stores make a very good profit on framed prints and still beat the nearest competitor’s price by about 15%. That is, the mall competitors cannot meet at a competitive price the quality of framed prints provided by the Greetings stores. As a result, store managers advertise the lowest prices in town for high-quality framed prints. One store manager referred to Wall Decor’s computer on the counter as a â€Å"cash machine† for framed prints and a â€Å"lemonade stand† for unframed prints. In a conversation with the production manager, you learned that she be- lieves that the relative profitability of framed and unframed prints is distorted CA-6 ?Greet ?ings ?case 2 Cases for Management Decision Making CA-7 ecause of improper product costing. She feels that the costs provided by the company’s traditional job order costing system are inaccurate. From the very beginning, she has carefully managed production and distribution costs. She explains, â€Å"Wall Decor is essentially giving away expensive framed prints, and it appears that it is charging the stores too much for unframed prints. † In her office she shows you her own product costing system, which supports her point of view. Your tour of the information technology (IT) department provided additional insight as to why Wall Decor is having financial problems. You discovered that to keep the website running requires separate computer servers and several in- formation technology professionals. Two separate activities are occurring in the technology area. First, purchasing professionals and IT professionals spend many hours managing thousands of prints and frame and matting materials. Their tasks include selecting the prints and the types of framing material to sell. They also must upload, manage, and download prints and framing material onto and off of the website. The IT staff tells you much of their time is spent with framing and matting material. Only a highly skilled IT professional can properly scan a print and load it up to the site so that it graphically represents what the print will look like when properly matted and framed. In addition, you discover that a different team of IT professionals is dedi- cated to optimizing the operating performance of the website. These costs are classified as manufacturing overhead because a substantial amount of work is required to keep the site integrated with purchasing and production and to safe- guard Wall Decor’s assets online. Most time-consuming is the effort to develop and maintain the site so that customers can view the prints as they would appear either unframed or framed and matted. A discussion with the IT professionals suggests that the time spent develop- ing and maintaining the site for the unframed prints is considerably less than that required for the framed prints and in particular for the framed and matted prints. Developing and maintaining a site that can display the unframed prints is relatively straightforward. It becomes more complicated when the site must al- low the customer to view every possible combination of print with every type of steel frame, and immensely more complicated when one considers all of the pos- sible wood frames and different matting colors. Obviously, a very substantial portion of the IT professionals’ time and resources is required to present the over 1,000 different framing and matting options. Based on your preliminary findings, you have decided that the company’s ability to measure and evaluate the profitability of individual products would be improved if the company employed an activity-based costing (ABC) system. As a first step in this effort, you compiled a list of costs, activities, and values. Your work consisted of taking the original manufacturing overhead cost ($375,200, provided in Case 1) and allocating the costs to activities. You identified four ac- tivities: picking prints; inventory selection and management (includes general management and overhead); website optimization; and framing and matting cost (includes equipment, insurance, rent, and supervisor’s salary). The first activity is picking prints. The estimated overhead related to this ac- tivity is $30,600. The cost driver for this activity is the number of prints. It is ex- pected that the total number of prints will be 102,000. This is the sum of 80,000 unframed, 15,000 steel-framed, and 7,000 wood-framed. Illustration CA 2-1 Information for activity 1 ?Estimated Activity Cost Driver Overhead Picking prints Number of prints $30,600 Expected Use of Cost Driver (80,000 15,000 7,000) 102,000 prints Greet ?ings CA-8 case 2 Cases for Management Decision Making The second activity is inventory selection and management. The estimated overhead related to this activity is $91,700. The cost driver for this activity is the number of components per print item. An unframed print has one component, a steel-framed print has two components (the print and the frame), and a wood- framed print has three components (the print, the mat, and the frame). The total number of components is expected to be 131,000. Illustration CA 2-2 Information for activity 2 ?Activity Inventory selection and management Cost Driver Number of components: Print (1) Print and frame (2) Print, mat, and frame (3) Estimated Overhead $91,700 Expected Use of Cost Driver Prints: 80,000 components Print and frame: 15,000 2 30,000 components Print, mat, and frame: 7,000 3 21,000 components Total 131,000 components The third activity is website optimization. The total overhead cost related to website optimization is expected to be $129,000. It was difficult to identify a cost driver that directly related website optimization to the products. In order to re- flect the fact that the majority of the time spent on this activity related to framed prints, you first split the cost of website optimization between unframed prints and framed prints. Based on your discussion with the IT professionals, you de- termined that they spend roughly one-fifth of their time developing and main- taining the site for unframed prints, and the other four-fifths of their time on framed prints, even though the number of framed prints sold is substantially less than the number of unframed prints. As a consequence, you allocated $25,800 of the overhead costs related to website optimization to unframed prints and $103,200 to framed prints. You contemplated having three categories (unframed, steel-framed, and wood-framed with matting), but chose not to add this addi- tional refinement. Illustration CA 2-3 Information for activity 3 ?Activity Website optimization: Unframed Framed Cost Driver Number of prints at capacity Number of prints at capacity Estimated Overhead $25,800 $103,200 Expected Use of Cost Driver Unframed prints: 100,000 print capacity Framed and/or matted prints: 25,000 print capacity (16,000 steel; 9,000 wood) Once the $129,000 of the third activity was allocated across the two broad product categories, the number of prints at operating capacity was used as the cost driver. Note that operating capacity was used instead of expected units sold. The overhead costs related to website optimization are relatively fixed be- cause the employees are salaried. If a fixed cost is allocated using a value that varies from period to period (like expected sales), then the cost per unit will vary from period to period. When allocating fixed costs it is better to use a base that does not vary as much, such as operating capacity. The advantage of using operating capacity as the base is that it keeps the fixed costs per unit stable over time. ?Greet ?ings ?case 2 Cases for Management Decision Making CA-9 The final activity is framing and matting. The expected overhead costs re- lated to framing and matting are $123,900. None of this overhead cost should be allocated to unframed prints. The costs related to framing and matting are rela- tively fixed because the costs relate to equipment and other costs that do not vary with sales volume. As a consequence, like website optimization, you chose to base the cost driver on levels at operating capacity, rather than at the expected sales level. The cost driver is the number of components. Steel-framed prints have two components (the print and frame), and wood-framed prints have three components (the print, mat, and frame). The total components at operating ca- pacity would be steel frame 32,000 or (16,000 2) and wood frame 27,000 or (9,000 3,000). Illustration CA 2-4 Information for activity 4 ?Activity Framing and matting cost (equipment, insurance, rent, and supervisory labor) Cost Driver Number of components at capacity Estimated Overhead $123,900 Expected Use of Cost Driver Print and frame: 16,000 2 32,000 components at capacity Print, mat, and frame: 9,000 3 27,000 components at capacity Total 59,000 components To summarize, the overhead costs and cost drivers used for each product are expected to be: Illustration CA 2-5 Summary of overhead costs and cost drivers ?Cost Activity Driver 1. Picking Number of prints prints Steel- Wood- Framed, Framed, No with Unframed Matting Matting Total 80,000 15,000 7,000 102,000 80,000 30,000 21,000 131,000 Overhead Cost $ 30,600 91,700 25,800 103,200 123,900 $375,200 ?2. Inventory selection and management 3. Website optimization 4. Framing and matting Number of components Number of 100,000 prints at capacity Number of components at capacity na 16,000 32,000 9,000 27,000 100,000 25,000 59,000 Instructions Answer the following questions. . Identify two reasons why an activity-based costing system may be appropriate for Wall Decor. 2. Compute the activity-based overhead rates for each of the four activities. 3. Compute the product cost for the following three items using ABC. (Review Case 1 for additional information that you will need to answer this question. ) (a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat ( base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). ? Greet ?ings CA-10 ase 2 Cases for Management Decision Making 4. 5. 6. 7. In Case 1 for Greetings, the overhead allocations using a traditional volume-based approach were $3. 36 for Lance Armstrong, $4. 48 for John Elway, and $5. 60 for Lam- beau Field. The total product costs from Case 1 were Lance Armstrong $17. 36, John Elway $33. 48, and Lambeau Field $48. 10. The overhead allocation rate for unframed prints, such as the unframed Lance Armstrong print in question 3, decreased under ABC compared to the amount of overhead that was allocated under the traditional approach in Case 1. Why is this the case? What are the potential implications for the company? Explain why the overhead cost related to website optimization was first divided into two categories (unframed prints and framed prints) and then allocated based on number of prints. When allocating the cost of website optimization, the decision was made to initially allocate the cost across two categories (unframed prints and framed prints) rather than three categories (unframed prints, steel-framed prints, and wood-framed prints with matting). Discuss the pros and cons of splitting the cost between two categories rather than three. Discuss the implications of using operating capacity as the cost driver rather than the expected units sold when allocating fixed overhead costs. 8. (a) Allocate the overhead to the three product categories (unframed prints, steel- framed prints, and wood-framed prints with matting), assuming that the estimate of the expected units sold is correct and the actual amount of overhead incurred equaled the estimated amount of $375,200. (b) Calculate the total amount of overhead allocated. Explain why the total overhead of $375,200 was not allocated, even though the estimate of sales was correct. What are the implications of this for management? case 3 ?Greet ings Inc. Greetings Inc. : Transfer Pricing Issues Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Two years ago, prior to a major capital-budgeting decision (see Case 4), Robert Burns, the president of Greetings Inc. , faced a challenging transfer pricing issue. He knew that Greetings store managers had heard about the ABC study (see Case 2) and that they knew a price increase for framed items would soon be on the way. In an effort to dissuade him from increasing the transfer price for framed prints, several store managers e-mailed him with detailed analyses show- ing how framed-print sales had given stores a strong competitive position and had increased revenues and profits. The store managers mentioned, however, that while they were opposed to an increase in the cost of framed prints, they were looking forward to a price decrease for unframed prints. Management at Wall Decor was very interested in changing the transfer pric- ing strategy. You had reported to them that setting the transfer price based on the product costs calculated by using traditional overhead allocation measures had been a major contributing factor to its non-optimal performance. Here is a brief recap of what happened during your presentation to Mr. Burns and the Wall Decor managers. Mr. Burns smiled during your presentation and graciously acknowledged your excellent activity-based costing (ABC) study and analysis. He even nodded with approval as you offered the following suggestions. 1. Wall Decor should decrease the transfer price for high-volume, simple print items. . Wall Decor should increase the transfer price for low-volume, complex framed print items. 3. Youranalysispointstoatransferpricethatmaintainsthe20%markupovercost. 4. Adoption of these changes will provide Wall Decor with an 11% return on investment (ROI), beating the required 10% expected by Greetings’ board of directors. 5. Despite the objections of the store managers, the Gr eetings stores must ac- cept the price changes. Finishing your presentation, you asked the executive audience, â€Å"What questions do you have? † Mr. Burns responded as follows. Your analysis appears sound. However, it focuses almost exclu- sively on Wall Decor. It appears to tell us little about how to move for- ward and benefit the entire company, especially the Greetings retail stores. Let me explain. CA-11 Greet ?ings CA-12 case 3 Cases for Management Decision Making I am concerned about how individual store customers will react to the price changes, assuming the price increase of framed-print items is passed along to the customer. Store managers will welcome a decrease in the transfer price of unframed prints. They have complained about the high cost of prints from the beginning. With a decrease in print cost, store managers will be able to compete against mall stores for print items at a competitive selling price. In addition, the increase in store traffic for prints should increase the sales revenue for related items, such as cards, wrapping paper, and more. These are all low- margin items, but with increased sales volume of prints and related products, revenues and profits should grow for each store. Furthermore, store managers will be upset with the increase in the cost of framed prints. Framed prints have generated substantial rev- enues and profits for the stores. Increasing the cost of framed prints to the stores could create one of three problems: First, a store manager may elect to keep the selling price of framed-print items the same. The results of this would be no change in revenues, but profits would de- cline because of the increase in cost of framed prints. Second, a store manager may elect to increase the selling price of the framed prints to offset the cost increase. In this case, sales of framed prints would surely decline and so would revenues and profits. In addition, stores would likely see a decline in related sales of other expensive, high-quality, high-margin items. This is because sales data indicate that customers who purchase high-quality, high-price framed prints also purchase high-quality, high-margin items such as watches, jewelry, and cosmetics. Third, a store manager may elect to search the outside market for framed prints. † Mr. Burns offered you the challenge of helping him bring change to the company’s transfer prices so that both business units, Greetings stores and Wall Decor, win. From his explanation, you could see and appreciate that set- ting the transfer price for unframed and framed prints impacts sale revenues and profits for related items and for the company overall. You immediately rec- ognized the error in your presentation by simply providing a solution for Wall Decor alone. You drove home that night thinking about the challenge. You recognized the need and importance of anticipating the reaction of Greetings store customers to changes in the prices of unframed and framed prints. The next day, the market- ing team provided you with the following average data. For every unframed print sold (assume one print per customer), that cus- tomer purchases related products resulting in $4 of additional profit. †¢ For every framed print sold (assume one print per customer), that customer purchases related products resulting in $8 of additional profit. †¢ Each Greetings store sets its own selling price for unframed and framed prints. Store managers nee d this type of flexibility to be responsive to com- petitive pressures. On average the pricing for stores is as follows: unframed prints $21, steel-framed without matting $50, wood-framed with matting $70. Instructions Answer each of the following questions. 1. Prepare for class discussion what you think were the critical challenges for Mr. Burns. Recognize that Wall Decor is a profit center and each Greetings store is a profit center. ?Greet ?ings ?case 3 Cases for Management Decision Making CA-13 2. After lengthy and sometimes heated negotiations between Wall Decor and the store managers, a new transfer price was determined that calls for the stores and Wall Decor to split the profits on unframed prints 30/70 (30% to the store, 70% to Wall Decor) and the profits on framed prints 50/50. The following additional terms were also agreed to: †¢ â€Å"Profits† are defined as the store selling price less the ABC cost. †¢ Stores do not share the profits from related products with Wall Decor. †¢ Wall Decor will not seek to sell unframed and framed print items through anyone other than Greetings. †¢ Wall Decor will work to decrease costs. †¢ Greetings stores will not seek suppliers of prints other than Wall Decor. †¢ Stores will keep the selling price of framed prints as it was before the change in transfer price. On average, stores will decrease the selling price of unframed prints to $20, with an expected increase in volume to 100,000 prints. Analyze how Wall Decor and the stores benefited from this new agreement. In your analysis, first (a) compute the profits of the stores and Wall Decor using traditional amounts related to pricing, cost, and a 20% markup on Wall Decor costs. Next, (b) compute the profits of the stores and Wall Decor using the ABC cost and negoti- ated transfer price approach. Finally, (c) explain your findings, linking the overall profits for stores and Wall Decor. The following data apply to this analysis. (Round all calculations to three deci- mal places. ) Average selling price by stores before transfer pricing study Average selling price by stores after transfer pricing study Volume at traditional selling price Volume at new selling price Wall Decor cost (traditional) ABC cost Unframed Print $21 $20 80,000 100,000 $17. 36 $15. 258 Steel-Framed, No Matting $50 $50 15,000 15,000 $33. 48 $39. 028 Wood-Framed, with Matting $70 $70 7,000 7,000 $48. 10 $55. 328 3. Review the additional terms of the agreement listed in instruction 2 above. In each case, state whether the item is appropriate, unnecessary, ineffective, or potentially harmful to the overall company. case 4 ?Greet ings Inc. Greetings Inc. : Capital Budgeting Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. stores, as well as the Wall Decor division, have enjoyed healthy prof- itability during the last two years. Although the profit margin on prints is often thin, the volume of print sales has been substantial enough to generate 15% of Greetings’ store profits. In addition, the increased customer traffic resulting from the prints has generated significant additional sales of related non-print products. As a result, the company’s rate of return has exceeded the industry average during this two-year period. Greetings’ store managers likened the e-business leverage cre- ated by Wall Decor to a â€Å"high-octane† fuel to supercharge the stores’ profitability. This high rate of return (ROI) was accomplished even though Wall Decor’s venture into e-business proved to cost more than originally budgeted. Why was it a profitable venture even though costs exceeded estimates? Greetings stores were able to generate a considerable volume of business for Wall Decor. This helped spread the high e-business operating costs, many of which were fixed, across many unframed and framed prints. This experience taught top manage- ment that maintaining an e-business structure and making this business model successful are very expensive and require substantial sales as well as careful monitoring of costs. Wall Decor’s success gained widespread industry recognition. The business press ocumented Wall Decor’s approach to using information technology to in- crease profitability. The company’s CEO, Robert Burns, has become a frequent business-luncheon speaker on the topic of how to use information technology to offer a great product mix to the customer and increase shareholder value. From the outside looking in, all appears to be going very well for Greetings stores and Wall Decor. How ever, the sun is not shining as brightly on the inside at Greetings. The mall stores that compete with Greetings have begun to offer prints at very com- petitive prices. Although Greetings stores enjoyed a selling price advantage for a few years, the competition eventually responded, and now the pressure on sell- ing price is as intense as ever. The pressure on the stores is heightened by the fact that the company’s recent success has led shareholders to expect the stores to generate an above-average rate of return. Mr. Burns is very concerned about how the stores and Wall Decor can continue on a path of continued growth. Fortunately, more than a year ago, Mr. Burns anticipated that competitors would eventually find a way to match the selling price of prints. As a conse- quence, he formed a committee to explore ways to employ technology to further reduce costs and to increase revenues and profitability. The committee is com- prised of store managers and staff members from the information technology, CA-14 ?Greet ?ings ?cacaseses 14 Cases for Management Decision Making CA-15 marketing, finance, and accounting departments. Early in the group’s discussion, the focus turned to the most expensive component of the existing business model—the large inventory of prints that Wall Decor has in its centralized ware- house. In addition, Wall Decor incurs substantial costs for shipping the prints from the centralized warehouse to customers across the country. Ordering and maintaining such a large inventory of prints consumes valuable resources. One of the committee members suggested that the company should pursue a model that music stores have experimented with, where CDs are burned in the store from a master copy. This saves the music store the cost of maintaining a large inventory and increases its ability to expand its music offerings. It virtually guarantees that the store can always provide the CDs requested by customers. Applying this idea to prints, the committee decided that each Greetings store could invest in an expensive color printer connected to its online ordering system. This printer would generate the new prints. Wall Decor would have to pay a roy- alty on a per print basis. However, this approach does offer certain advantages. First, it would eliminate all ordering and inventory maintenance costs related to the prints. Second, shrinkage from lost and stolen prints would be reduced. Finally, by reducing the cost of prints for Wall Decor, the cost of prints to Greetings stores would decrease, thus allowing the stores to sell prints at a lower price than competitors. The stores are very interested in this option because it enables them to maintain their current customers and to sell prints to an even wider set of customers at a potentially lower cost. A new set of customers means even greater related sales and profits. As the accounting/finance expert on the team, you have been asked to per- form a financial analysis of this proposal. The team has collected the informa- tion presented in Illustration CA 4-1. Illustration CA 4-1 Information about the proposed capital investment project ?Available Data Cost of equipment (zero residual value) Cost of ink and paper supplies (purchase immediately) Annual cash flow savings for Wall Decor Annual additional store cash flow from increased sales Sale of ink and paper supplies at end of 5 years Expected life of equipment Cost of capital Amount $800,000 100,000 175,000 100,000 50,000 5 years 12% ?Instructions Mr. Burns has asked you to do the following as part of your analysis of the capital investment project. 1. Calculatethenetpresentvalueusingthenumbersprovided. Assumethatannualcash flows occur at the end of the year. 2. Mr. Burns is concerned that the original estimates may be too optimistic. He has sug- gested that you do a sensitivity analysis assuming all costs are 10% higher than ex- pected and that all inflows are 10% less than expected. 3. Identify possible flaws in the numbers or assumptions used in the analysis, and iden- tify the risk(s) associated with purchasing the equipment. . In a one-page memo, provide a recommendation based on the above analy- sis. Include in this memo: (a) a challenge to store and Wall Decor management and (b) a suggestion on how Greetings stores could use the computer connection for re- lated sales. case 5 Auburn Circular Club Pro Rodeo Roundup Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION When Shelley Jones became president-elect of the Circular Club of Auburn, Kansas, she was asked to suggest a new fundraising activity for the club. After a consider- able amount of research, Shelley proposed that the Circular Club sponsor a profes- sional rodeo. In her presentation to the club, Shelley said that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community. Shelley’s goal was to have an activity that would become an â€Å"annual community event† and that would break even the first year and raise $5,000 the following year. In addition, based on the experience of other communities, Shelley believed that a rodeo could grow in popularity so that the club would eventually earn an average of $20,000 annually. A rodeo committee was formed. Shelley contacted the world’s oldest and largest rodeo-sanctioning agency to apply to sponsor a professional rodeo. The sanctioning agency requires a rodeo to consist of the following five events: Bareback Riding, Bronco Riding, Steer Wrestling, Bull Riding, and Calf Roping. Because there were a number of team ropers in the area and because they wanted to include females in the competition, members of the rodeo committee added Team Roping and Women’s Barrels. Prize money of $3,000 would be paid to winners in each of the seven events. Members of the rodeo committee contracted with RJ Cattle Company, a live- stock contractor on the rodeo circuit, to provide bucking stock, fencing, and chutes. Realizing that osts associated with the rodeo were tremendous and that ticket sales would probably not be sufficient to cover the costs, the rodeo com- mittee sent letters to local businesses soliciting contributions in exchange for various sponsorships. Exhibiting Sponsors would contribute $1,000 to exhibit their products or services, while Major Sponsors would contribute $600. Chute Sponsors would cont ribute $500 to have the name of their business on one of the six bucking chutes. For a contribution of $100, individuals would be included in a Friends of Rodeo list found in the rodeo programs. At each performance the rodeo announcer would repeatedly mention the names of the businesses and in- dividuals at each level of sponsorship. In addition, large signs and banners with the names of the businesses of the Exhibiting Sponsors, Major Sponsors, and Chute Sponsors were to be displayed prominently in the arena. ?CA-16 case 5 Cases for Management Decision Making CA-17 A local youth group was contacted to provide concessions to the public and divide the profits with the Circular Club. The Auburn Circular Club Pro Rodeo Roundup would be held on June 1, 2, and 3. The cost of an adult ticket was set at $8 in advance or $10 at the gate; the cost of a ticket for a child 12 or younger was set at $6 in advance or $8 at the gate. Tickets were not date-specific. Rather, one ticket would admit an individual to one performance of his or her choice— Friday, Saturday, or Sunday. The rodeo committee was able to secure a location through the county supervisors board at a nominal cost to the Circular Club. The arrangement allowed the use of the county fair grounds and arena for a one- week period. Several months prior to the rodeo, members of the rodeo commit- tee had been assured that bleachers at the arena would hold 2,500 patrons. On Saturday night, paid attendance was 1,663, but all seats were filled due to poor gate controls. Attendance was 898 Friday and 769 on Sunday. The following revenue and expense figures relate to the first year of the rodeo. Illustration CA 5-1 Revenue and expense data, year 1 ?Receipts Contributions from sponsors $22,000 Receipts from ticket sales 28,971 Share of concession profits 1,513 Sale of programs 600 Total receipts Expenses Livestock contractor 26,000 Prize money 21,000 Contestant hospitality Sponsor signs for arena 1,900 Insurance 1,800 Ticket printing 1,050 Sanctioning fees 925 Entertainment 859 Judging fees 750 Port-a-potties 716 Rent 600 Hay for horses 538 Programs 500 Western hats to first 500 children 450 Hotel rooms for stock contractor 325 Utilities 300 Sand for arena 251 Miscellaneous fixed costs 105 Total expenses Net loss $53,084 ?3,341* ?61,410 $(8,326) *The club contracted with a local caterer to provide a tent and food for the contestants. The cost of the food was contingent on the number of contestants each evening. Information con- cerning the number of contestants and the costs incurred are as follows: Contestants Friday 68 Saturday 96 Sunday 83 Total Cost $ 998 1,243 1,100 $3,341 On Wednesday after the rodeo, members of the rodeo committee met to discuss and critique the rodeo. Jonathan Edmunds, CPA and President of the Circular Club, commented that the club did not lose money. Rather, Jonathan said, â€Å"The club made an investment in the rodeo. † CA-18 case 5 Cases for Management Decision Making Instructions Answer each of the following questions. . Do you think it was necessary for Shelley Jones to stipulate that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community? Why or why not? 2. What did Jonathan Edmunds mean when he said the club had made an investment in the rodeo? 3. Is Jonathan’s comment concerning the investment consistent with Shelley’s idea that t he club should have a fundraiser that would (1) continue to get better each year, (2) give back to the community, and (3) provide the club a presence in the community? Why or why not? 4. What do you believe is the behavior of the rodeo expenditures in relation to ticket sales? 5. Determine the fixed and variable cost components of the catering costs using the high-low method. 6. Assume you are elected chair of the rodeo committee for next year. What steps would you suggest the committee take to make the rodeo profitable? 7. Shelley, Jonathan, and Adrian Stein, the Fundraising Chairperson, are beginning to make plans for next year’s rodeo. Shelley believes that by negotiating with local feed stores, innkeepers, and other business owners, costs can be cut dramatically. Jonathan agrees. After carefully analyzing costs, Jonathan has estimated that the fixed expenses can be pared to approximately $51,000. In addition, Jonathan estimates that variable costs are 4% of total gross receipts. After talking with business owners who attended the rodeo, Adrian is confident that funds solicited from sponsors will increase. Adrian is comfortable in budgeting revenue from sponsors at $25,600. The local youth group is unwilling to provide con- cessions to the audience unless they receive all of the profits. Not having the person- nel to staff the concession booth, members of the Circular Club reluctantly agree to let the youth group have 100% of the profits from the concessions. In addition, mem- bers of the rodeo committee, recognizing that the net income from programs was only $100, decide not to sell rodeo programs next year. Compute the break-even point in dollars of ticket sales assuming Adrian and Jonathan are correct in their assumptions. 8. Shelley has just learned that you are calculating the break-even point in dollars of ticket sales. She is still convinced that the Club can make a profit using the assumptions in number 7 above. (a) Calculate the dollars of ticket sales needed in order to earn a target profit of $6,000. (b) Calculate the dollars of ticket sales needed in order to earn a target profit of $12,000. 9. Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated in number 8 above to earn a $6,000 profit? Show calcula- tions to support your answers. 10. Prepare a budgeted income statement for next year using the estimated revenues from sponsors and other assumptions in number 7 above. In addition, use ticket sales based on the target profit of $12,000 estimated in 8(b). The cost of the livestock con- tractor, prize money, sanctioning fees, entertainment, judging fees, rent, and utilities will remain the same next year. Changes in expenses include the following: Members of the Club have decided to eliminate all costs related to contestant hospitality by soliciting a tent and food for the contestants and taking care of the â€Å"Contestant Hospitality Tent† themselves. The county has installed permanent restrooms at the arena, eliminating the need to rent port-a- potties. The rodeo committee intends to pursue arrangements to have hotel rooms, hay, and children’s hats provided at no charge in exchange for sponsorships. The cost of banners varies with the number of sponsors. Signs and More charged the Circular Club $130 for each Exhibiting Sponsor banner and $48 for each Major Sponsor banner. At this time there is no way to know whether additional sponsors will be Exhibiting Spon- sors or Major Sponsors. Therefore, for budgeting purposes you should increase the cost of the banners by the percentage increase in sponsor contributions. (Hint: Round ase 5 Cases for Management Decision Making CA-19 all calculations to three decimal places. ) By checking prices, the Circular Club will be able to obtain insurance providing essentially the same amount of coverage as this year for only $600. For the first rodeo the Club ordered 10,000 tickets. Realizing the con- straints on available seating, the Club is ordering only 5,000 tickets for next year, and th erefore its costs are reduced 50%. The sand for the arena for next year will be $300, and miscellaneous fixed costs are to be budgeted at $100. 11. A few members in the Circular Club do not want to continue with the annual rodeo. However, Shelley is insistent that the Club must continue to conduct the rodeo as an annual fundraiser. Shelley argues that she has spent hundreds of dollars on western boots, hats, and other items of clothing to wear to the rodeo. Are the expenses re- lated to Shelley’s purchases of rodeo clothing relevant costs? Why or why not? 12. Rather than hire the local catering company to cater the Contestant Hospitality Tent, members of the Circular Club are considering asking Shady’s Bar-B-Q to cater the event in exchange for a $600 Major Sponsor spot. In addition, The Fun Shop, a local party supply business, will be asked to donate a tent to use for the event. The Fun Shop will also be given a $600 Major Sponsor spot. Several members of the Club are opposed to this consideration, arguing that the two Major Sponsor spots will take away from the money to be earned through other sponsors. Adrian Stein has explained to the members that the Major Sponsor signs for the arena cost only $48 each. In ad- dition, there is more than enough room to display two additional sponsor signs. What would you encourage the Club to do concerning the Contestant Hospitality Tent? Would your answer be different if the arena were limited in the number of additional signs that could be displayed? What kind of cost would we consider in this situation that would not be found on a financial statement? case 6 Sweats Galore Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his disci- pline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business: 1. He wanted to do something that he would enjoy. 2. He wanted a business that would give back to the community. 3. He wanted a business that would grow and be more successful every year. 4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have cus- tom sweatshirts made using a silk-screen process. When student organiza- tions wanted sweatshirts for their members or to market on campus, the offi- cers had to make a trip to a city 100 miles away to visit â€Å"Shirts and More. ’’ Michael had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his crite- ria. Michael set up an appointment with Jayne Stoll, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Jayne liked Michael and was intrigued by his entrepreneurial spirit, she answered many of Michael’s questions. In addition, Jayne provided information concerning the type of equipment Michael would need for his business and its average useful life. Jayne knows a competitor who is retiring and would like to sell his equipment. Michael can purchase the equipment at the beginning of 2011, and the owner is willing to give him terms of 50% due upon purchase and 50% due the quarter following the purchase. Michael decided to purchase the following equipment as of January 1, 2011. CA-20 case 6 Cases for Management Decision Making CA-21 Hand-operated press that applies ink to the shirt Light-exposure table Dryer conveyer belt that makes ink dry on the shirts Computer with graphics software and color printer Display furniture Used cash register Cost $7,500 1,350 2,500 3,500 2,000 500 Useful Life yrs. 10 yrs. 10 yrs. 4 yrs. 10 yrs. 5 yrs. Michael has decided to use the sweatshirt supplier recommended by Jayne. He learned that a gross of good-quality sweatshirts to be silk-screened would cost $1,440. Jayne has encouraged Michael to ask the sweatshirt supplier for terms of 40% of a quarter’s purchases to be paid in the quarter of purchase, with the re- maining 60% of the quarter’s purchases to be paid in the quarter following the purchase. Michael also learned from talking with Jayne that the ink used in the silk- screen process costs approximately $0. 75 per shirt. Knowing that the silk-screen process is somewhat labor-intensive, Michael plans to hire six college students to help with the process. Each one will work an average of 20 hours per week for 50 weeks during the year. Michael estimates to- tal annual wages for the workers to be $72,000. In addition, Michael will need one person to take orders, bill customers, and operate the cash register. Cary Sue Smith, who is currently Director of Student Development at Eastern University, has approached Michael about a job in sales. Cary Sue knows the officers of all of the student organizations on campus. In ad- dition, she is very active in the community. Michael thinks Cary Sue can bring in a lot of business. In addition she also has the clerical skills needed for the posi- tion. Because of her contacts, Michael is willing to pay Cary Sue $1,200 per month plus a commission of 10% of sales. Michael estimates Cary Sue will spend 50% of the workday focusing on sales, and the remaining 50% will be spent on clerical and administrative duties. Michael realizes that he will have difficulty finding a person skilled in com- puter graphics to generate the designs to be printed on the shirts. Jayne recently hired a graphics designer in that position for Shirts and More at a rate of $500 per month plus $0. 10 for each shirt printed. Michael believes he can find a uni- versity graphics design student to work for the same rate Jayne is paying her designer. Michael was fortunate to find a commercial building for rent near the uni- versity and the downtown area. The landlord requires a one-year lease. Although the monthly rent of $1,000 is more than Michael had anticipated paying, the building is nice, has adequate parking, and there is room for expansion. Michael anticipates that 75% of the building will be used in the silk-screen process and 25% will be used for sales. Michael’s fraternity brothers have encouraged him to advertise weekly in the Eastern University student newspaper. Upon inquiring, Michael found that a 3 3 ad would cost $25 per week. Michael also plans to run a weekly ad in the local newspaper that will cost him $75 per week. Michael wants to sell a large number of quality shirts at a reasonable price. He estimates the selling price of each customized shirt to be $16. Jayne has sug- gested that he should ask customers to pay for 70% of their purchases in the quarter purchased and pay the additional 30% in the quarter following the purchases. After talking with the insurance agent and the property valuation adminis- trator in his municipality, Michael estimates that the property taxes and insur- ance on the machinery will cost $2,240 annually; property tax and insurance on display furniture and cash register will total $380 annually. CA-22 case 6 Cases for Management Decision Making Jayne reminded Michael that maintenance of the machines is required for the silk-screen process. In addition, Michael realizes that he must consider the cost of utilities. The building Michael wants to rent is roughly the same size as the building occupied by Shirts and More. In addition, Shirts and More sells ap- proximately the same number of shirts Michael plans to sell in his store. Therefore, Michael is confident that the maintenance and utility costs for his shop will be comparable to the maintenance and utility costs for Shirts and More, which are as follows within the relevant range of zero to 8,000 shirts. Shirts Sold January 2,000 February 2,110 March 2,630 April 3,150 May 5,000 June 5,300 July 3,920 August 2,080 September 8,000 October 6,810 November 6,000 December 3,000 Maintenance Costs $1,716 1,720 1,740 1,740 1,758 1,818 1,825 1,780 1,914 1,860 1,855 1,749 Utility Costs $1,100 1,158 1,171 1,198 1,268 1,274 1,205 1,117 1,400 1,362 1,347 1,193 Michael estimates the number of shirts to be sold in the first five quarters, beginning January 2011, to be: First quarter, year 1 Second quarter, year 1 Third quarter, year 1 Fourth quarter, year 1 First quarter, year 2 8,000 10,000 20,000 12,000 18,000 Seeing how determined his son was to become an entrepreneur, Michael’s fa- ther offered to co-sign a note for an amount up to $20,000 to help Michael open his sweatshirt shop, Sweats Galore. However, when Michael and his father ap- proached the loan officer at First Guarantee Bank, the loan officer asked Michael to produce the following budgets for 2011. Sales budget Schedule of expected collections from customers Shirt purchases budget Schedule of expected payments for purchases Silk-screen labor budget Selling and administrative expenses budget Silk-screen overhead expenses budget Budgeted income statement Cash budget Budgeted balance sheet The loan officer advised Michael that the interest rate on a 12-month loan would be 8%. Michael expects the loan to be taken out as of January 1, 2011. Michael has estimated that his income tax rate will be 20%. He expects to pay the total tax due when his returns are filed in 2012. Instructions Answer the following questions. 1. Do you think it was important for Michael to stipulate his four criteria for the busi- ness (see page CA-21), including the goal of generating a net income of at least $25,000 annually? Why or why not? case 6 Cases for Management Decision Making CA-23 2. If Michael has sales of $12,000 during January of his first year of business, deter- mine the amount of variable and fixed costs associated with utilities and mainte- nance using the high-low method for each. 3. Using the format below, prepare a sales budget for the year ending 2011. SWEATS GALORE Sales Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Expected unit sales Unit selling price x Budgeted sales revenue $ 4. Prepare a schedule of expected collections from customers. SWEATS GALORE Schedule of Expected Collections from Customers For the Year Ending December 31, 2011 Quarter 234 Accounts receivable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total collections 5. Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25% of the next quarter’s sales. Prepare a shirt purchases budget for shirts using the format provided. SWEATS GALORE Shirt Purchases Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Shirts to be silk-screened Plus: Desired ending inventory Total shirts required Less: Beginning inventory Total shirts needed Cost per shirt Total cost of shirt purchases 6. Prepare a schedule of expected payments for purchases. SWEATS GALORE Schedule of Expected Payments for Purchases For the Year Ended December 31, 2011 Quarter 1234 Accounts payable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total payments CA-24 case 6 Cases for Management Decision Making 7. Prepare a silk-screen labor budget. SWEATS GALORE Silk-Screen Labor Budget For the Year Ended December 31, 2011 Quarter 2 3 4 Year Units to be produced Silk-screen labor hours per unit Total required silk-screen labor hours Silk-screen labor cost per hour Total silk-screen labor cost 8. Prepare a selling and administrative expenses budget for Sweats Galore for the year ending December 31, 2011. SWEATS GALORE Selling and Administrative Expenses Budget For the Year Ended December 31, 201 1 Quarter 1 2 3 4 Year Variable expenses: Sales commissions Total variable expenses Fixed expenses: Advertising Rent Sales salaries Office salaries Depreciation Property taxes and insurance Total fixed expenses Total selling and dministrative expenses 9. Prepare a silk-screen overhead expenses budget for Sweats Galore for the year end- ing December 31, 2011. SWEATS GALORE Silk-Screen Overhead Expenses Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Variable expenses: Ink Maintenance Utilities Graphics design Total variable expenses Fixed expenses: Rent Maintenance Utilities Graphics design Property taxes and insurance Depreciation Total fixed expenses Total silk-screen overhead Direct silk-screen hours Overhead rate per silk-screen hour case 6 Cases for Management Decision Making CA-25 10. Using the information found in the case and the previous budgets, prepare a bud- geted income statement for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 11. Using the information found in the case and the previous budgets, prepare a cash budget for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Cash Budget For the Year Ended December 31, 2011 Quarter 1234 Beginning cash balance Add: Receipts Collections from customers Total available cash Less: Disbursements Payments for shirt purchases Silk-screen labor Silk-screen overhead Selling and administrative expenses Payment for equipment purchase Total disbursements Excess (deficiency) of available cash over disbursements Financing Borrowings Ending cash balance 12. Using the information contained in the case and the previous budgets, prepare a bud- geted balance sheet for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Balance Sheet December 31, 2011 Assets Cash Accounts receivable Sweatshirt inventory Equipment Less: Accumulated depreciation Total assets ? CA-26 case 6 Cases for Management Decision Making Liabilities and Owner’s Equity ? 13. (a) Accounts payable Notes payable Interest payable Taxes payable Total liabilities Michael Woods, Capital Total liabilities and owner’s equity Using the information contained in the case and the previous budgets, calculate the estimated contribution margin per unit for 2011. (Hint: Silk-screened labor and the taxes are both fixed costs. ) (b) Calculate the total estimated fixed costs for 2011 (including interest and taxes). c) Compute the break-even point in units and dollars for 2011. 14. (a) Michael is very disappointed that he did not have an income of $25,000 for his first year of budgeted operations as he had wanted. How many shirts would Michael have had to sell in order to have had a profit of $25