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Task 1 Case Study 1
Iceberg Tool
1.
Explain what happened in this case study.
-
Wilde’s Bramble started selling organic products to a small customer base, but due to popularity they quickly expanded the number of customers. To keep up with increased demand they grew their operation; causing them to go into debt. They are now in a vicious cycle.
2.
Explain how people reacted/responded to what happened. -
Alder and Calla Wilde responded to the increased pressure to produce by heavily investing in
their business and going into debt to keep up with the increased costs. 3.
Comparing the beginning of the case and the end, explain what changed and what continues the
same.
-
In this case study the only thing I found that stayed the same was that the Wilde’s Bramble continued to produce high quality organic products. -
In this case study, there were quite a few changes: the rapidly increasing sales and debt, as well as their profits which started low, peaked, and then went back down.
4.
Given the case study, what would you anticipate will happen next? How could the involved parties plan or prepare for that?
-
I anticipate that due to the Wilde’s increasing debt, they will not be able to keep up with it and will eventually go bankrupt. I think that the main thing that would help them is to lower costs to produce and increase prices of their products so that they can start to pay off their debt. After doing so, they should reduce the number of customers, and therefore the pressure to produce. 5.
Explain the patterns you see in this case study, why they exist, and how they affect the system.
-
The pattern I see throughout this case study is centered around Wilde’s Bramble’s pressure to produce. As their pressure to produce has gone up they have made purchases to be able to produce more products. As they make these production purchases their debt goes up which causes their profit to go down. When profit goes down, they feel an increased pressure to produce, which drives them to make more sales, and that in turn also increases the pressure to produce. There was also very low delay between these steps in the cycle, which caused even more debt to accrue. -
This pattern exists because the Wildes invested too heavily in their business too quickly, and it has created a system that reinforces the process of creating more debt and increasing the pressure to produce.
6.
Explain how you could design or create a solution to transform this system and address the problem?
-
I believe that the Wildes invested in their business too heavily and too quickly. They should have made a sustainable number of sales and saved their money. Then they could take the saved money and safely reinvest it in their business to increase production and gain more customers. It would have been a much slower growth, but it would have created a process that reinforced their profits and a growing business rather than growing debt.
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Related Questions
Question 20 of 20
Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering
and could easily go to work for his brother's company earning $76000 a year, his true passion is for cheese. Consider the list of
Reggie's revenue and expenses from last year. Please use the information provided to answer the questions.
Revenue from 2010
$90000
Rent
$18000
Equipment
$6000
Supplies
$3000
What is Reggie's accounting profit?
What is Reggie's economic profit?
-$13000
$63000
$3000
O -$13000
-$63000
$3000
$63000
-$63000
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3
General purpose
An organizational format that arranges information in logical categories
◇ The objective you want to accomplish in a speech
O Describing the order in which things must be done from first, to second, to third,
etc.)
○ “President Rabbit, president of our Maintown branch, claims the product increased
work productivity by 50 percent."
○ Get the audience's attention, state your central idea, tell them how they'll benefit,
and preview the speech
Speech style that is well-prepared, rehearsed, and delivered in conversational style
O Practicing out loud, and with a live audience, where you attend to your body and
voice
Ideas and graphics that you can add to your speech
Designed to encourage people to believe or do something
O Designed to teach people how to do something or how something works
arrow_forward
solve the problem and provide an excel spreedsheat of the answer and the steps used to get the answer.
in your solutions ensure to answer these questions You are asked to make recommendations for improving Darby Company’s supply chain. Your report should address, but not be limited to, the following issues: 1. If the company does not change its current supply chain, what will its distribution costs be for the following quarter? 2. Suppose that the company is willing to consider dropping the distribution center limitations; that is, customers could be served by any of the distribution centers for which costs are available. Can costs be reduced? If so, by how much? 3. The company wants to explore the possibility of satisfying some of the customer demand directly from the production plants. In particular, the shipping cost is $0.30 per unit from San Bernardino to Los Angeles and$0.70fromSanBernardinotoSan Diego. The cost for direct shipments from El Paso to San Antonio is $3.50 per…
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Gloria decided to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $50,000, $60,000, and $70,000. What is Gloria's economic profit from running her own business?
Question 5 options:
a)
-$75,000
b)
-$20,000
c)
$20,000
d)
none of the above
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Padico , Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which of the following is a key activity that the proposed control system should perform?
a.
performance measurement
b.
corporate governance
c.
organizational structuring
d.
organizational planning
Clear my choice
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Question:
1. What is the effect of the decline of Ford Australia’s productivity on its cost efficiency, production, and profit? Discuss.
PLEASE ANSWER
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Topic: Theory of Firm: Production & CostPlease help me answer all of these.
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Question:
How does the average hourly manufacturing salary in Australia affect cost efficiency? How does the average hourly manufacturing salary in Asia and nearby countries impact Ford’s decisions to halt production? Elaborate and explain.
need help
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Question:
How does the average hourly manufacturing salary in Australia affect cost efficiency? How does the average hourly manufacturing salary in Asia and nearby countries impact Ford’s decisions to halt production? Elaborate and explain.
please answer
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c) Explain how you found your price and minimum number of kayaks from part b above. (Use a minimum of 3 sentences.)
d) Suppose after a few weeks the company is in the red. The company is not selling enough kayaks to stay operable and must file for bankruptcy unless something changes quickly. Write a script that you would use to pitch to the CEO and CFO explaining a change (or changes) that can be quickly implemented to generate the revenue the company needs to refrain from going under. (Use a minimum of 6 sentences.)
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9. The chicken farming industry in Northern New York is extremely profitable and I would
really like to enter that market. Unfortunately, suitable land has become very difficult to find as
public health policies prevent raising chickens near any flowing water supply. I cannot find any
land for my new chicken farm. What is the economic term for this?
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Table 2-
The following table presents cost and revenue information for John's Vineyard.-
COSTS-
REVENUES
Marginal
Cost
Quantity
Total
Quantity
Total
Marginal
Produced-
Cost
Demanded
Price
Revenne Revenne-
0.
0.
0.
80.
1.
50
1.
80.
2.
102-
2.
80-
3.
157.
3.
80
4-
217.
4.
80-
5.
285
5.
80.
6.
365.
6.
80.
7.
462
7.
80-
8.
582.
8.
80.
Refer to Table 2. At what quantity does John's Viney
ard maximize profits?
A
3
B
C
7
D
8.
CO
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Happy Go Lucky Electric Company is the only company
providing electric power to the city of Go Lucky. The
accompanying graph depicts their marginal costs (MC),
total costs (ATC), demand (D), and marginal
average t
revenue (MR).
Move point E to the firm's profit maximizing price and
quantity.
At the profit maximizing point, what is Happy Go Lucky
level of profit?
0 $150
$90
-$30
Price and Costs ($/unit)
10
9
8
7
6
10
4
3
2
1
0
0
5
10
15
20
25
30
35
MR
MC
0
ATC
D
40 45 50
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Harvey develops gaming apps from home instead of working as an engineer and earning $50,000 a year. He has
invested $20,000 to upgrade to the hardware that he needs and estimates his expenses at $17,000 a year. Downloads
generated $130,000 in revenue during the first year. What is his accounting profit?
Selected Answer:
b. $37,000
Answers:
a. $50,000
b. $37,000
c. $130,000
d. $43,000
e. $93,000
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Give typing answer with explanation and conclusion
1.Sara knits 20 scarves and sells them for $25 each. What is her total revenue?
$50
$250
$45
$500
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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5. El Sol Inc. produces beach towels. The cost of each towel is $ 4.00 and it sells for $ 10.00 after the markup on its cost. Similar towels sell for $ 8.00. How much should each towel cost you to be able to adjust to the market price and keep your profit margin?
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+
Output Variable Total AFC AVC ATC Marginal Price
Cost
Cost
Cost
$100
300
$150
350
$210 410
$300
500
$430 630
1
2
3
4
5
6
7
$600
$819
800
1019
180
170
160
150
140
130
120
Total
Revenue
MR
Assume the producer was planning to produce a quantity of six
units. What would you advise the producer to do in terms of
production and pricing to maximize their profit? Provide an
explanation of your reasoning. Be specific in your price and
quantity targets.
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Question:
What is the effect of the decline of Ford Australia’s productivity on its cost efficiency, production, and profit? Discuss.
arrow_forward
Question 17:
The sequence of processes required to produce and distribute a product is know as
A
Supply chain
B
Conglomeration
C
Integration
D
Process Management
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QUESTION 6
Max earns a yearly salary of $120,000 per year from his job and $1,000 per year in interest on his savings. After
he quits his job to start a company, he uses all his savings to purchase manufacturing equipment for his
company. Max's first year in business his revenue was $300,000 and his explicit costs were $175,000. How
much economic profit or loss does Max earn?
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Solve the problem.
19) A company manufactures two ballpoint pens, silver and gold. The silver requires 3 min in a
grinder and 4 min in a bonder. The gold requires 3 min in a grinder and 8 min in a bonder. The
grinder can be run no more than 87 hours per week and the bonder no more than 51 hours per
week. The company makes a $8 profit on each silver pen sold and $12 on each gold. How many of
each type should be made each week to maximize profits?
A) Silver pens: 0
Gold pens: 381
C) Silver pens: 1359
Gold pens: 381
B) Silver pens: 1
Gold pens: 382
D) Silver pens: 382
Gold pens: 1359
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._______ A person or organization purchasing a franchise.
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8
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4. Ball Bearings, Inc., faces costs of production as follows:
Quantity Total Fixed Cost Total Variable Cost
$100
$0
1
100
50
2
100
70
100
90
4
100
140
5
100
200
100
360
b. The price of a case of ball bearings is $50. Seeing
that he can't make a profit, the chief executive
officer (CEO) decides to shut down operations.
What is the firm's profit/loss? Was this a wise
decision? Explain.
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7. A company's profit maximization is equal to the output rule. This is MR =_MC_
8. A firm's decision on how much to produce and whether to stay is business is based on
profit. (Choose economic or accounting)
_accounting_
9. Profit can be determined in two ways:
ATR (this is price) – ATC = price/quantity
Profitable: Price (pick one: >, =, , =, , =, , =, , =, , =,
TC
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SEE MORE QUESTIONS
Recommended textbooks for you
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Related Questions
- Question 20 of 20 Reggie owns and operates a cheese shop in the village of Somerset. Although Reggie has a degree in mechanical engineering and could easily go to work for his brother's company earning $76000 a year, his true passion is for cheese. Consider the list of Reggie's revenue and expenses from last year. Please use the information provided to answer the questions. Revenue from 2010 $90000 Rent $18000 Equipment $6000 Supplies $3000 What is Reggie's accounting profit? What is Reggie's economic profit? -$13000 $63000 $3000 O -$13000 -$63000 $3000 $63000 -$63000arrow_forward3 General purpose An organizational format that arranges information in logical categories ◇ The objective you want to accomplish in a speech O Describing the order in which things must be done from first, to second, to third, etc.) ○ “President Rabbit, president of our Maintown branch, claims the product increased work productivity by 50 percent." ○ Get the audience's attention, state your central idea, tell them how they'll benefit, and preview the speech Speech style that is well-prepared, rehearsed, and delivered in conversational style O Practicing out loud, and with a live audience, where you attend to your body and voice Ideas and graphics that you can add to your speech Designed to encourage people to believe or do something O Designed to teach people how to do something or how something worksarrow_forwardsolve the problem and provide an excel spreedsheat of the answer and the steps used to get the answer. in your solutions ensure to answer these questions You are asked to make recommendations for improving Darby Company’s supply chain. Your report should address, but not be limited to, the following issues: 1. If the company does not change its current supply chain, what will its distribution costs be for the following quarter? 2. Suppose that the company is willing to consider dropping the distribution center limitations; that is, customers could be served by any of the distribution centers for which costs are available. Can costs be reduced? If so, by how much? 3. The company wants to explore the possibility of satisfying some of the customer demand directly from the production plants. In particular, the shipping cost is $0.30 per unit from San Bernardino to Los Angeles and$0.70fromSanBernardinotoSan Diego. The cost for direct shipments from El Paso to San Antonio is $3.50 per…arrow_forward
- Gloria decided to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business, she turned down three separate job offers with annual salaries of $50,000, $60,000, and $70,000. What is Gloria's economic profit from running her own business? Question 5 options: a) -$75,000 b) -$20,000 c) $20,000 d) none of the abovearrow_forwardPadico , Inc., has struggled to meet projected revenues for each of the past ten quarters. The firm hired Mark Adams to design a control system and offer suggestions to improve the firm's performance. Which of the following is a key activity that the proposed control system should perform? a. performance measurement b. corporate governance c. organizational structuring d. organizational planning Clear my choicearrow_forwardQuestion: 1. What is the effect of the decline of Ford Australia’s productivity on its cost efficiency, production, and profit? Discuss. PLEASE ANSWERarrow_forward
- Topic: Theory of Firm: Production & CostPlease help me answer all of these.arrow_forwardQuestion: How does the average hourly manufacturing salary in Australia affect cost efficiency? How does the average hourly manufacturing salary in Asia and nearby countries impact Ford’s decisions to halt production? Elaborate and explain. need helparrow_forwardQuestion: How does the average hourly manufacturing salary in Australia affect cost efficiency? How does the average hourly manufacturing salary in Asia and nearby countries impact Ford’s decisions to halt production? Elaborate and explain. please answerarrow_forward
- c) Explain how you found your price and minimum number of kayaks from part b above. (Use a minimum of 3 sentences.) d) Suppose after a few weeks the company is in the red. The company is not selling enough kayaks to stay operable and must file for bankruptcy unless something changes quickly. Write a script that you would use to pitch to the CEO and CFO explaining a change (or changes) that can be quickly implemented to generate the revenue the company needs to refrain from going under. (Use a minimum of 6 sentences.)arrow_forward9. The chicken farming industry in Northern New York is extremely profitable and I would really like to enter that market. Unfortunately, suitable land has become very difficult to find as public health policies prevent raising chickens near any flowing water supply. I cannot find any land for my new chicken farm. What is the economic term for this?arrow_forwardTable 2- The following table presents cost and revenue information for John's Vineyard.- COSTS- REVENUES Marginal Cost Quantity Total Quantity Total Marginal Produced- Cost Demanded Price Revenne Revenne- 0. 0. 0. 80. 1. 50 1. 80. 2. 102- 2. 80- 3. 157. 3. 80 4- 217. 4. 80- 5. 285 5. 80. 6. 365. 6. 80. 7. 462 7. 80- 8. 582. 8. 80. Refer to Table 2. At what quantity does John's Viney ard maximize profits? A 3 B C 7 D 8. COarrow_forward
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SEE MORE QUESTIONS
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Recommended textbooks for you
- Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning