Which of the following is relevant to Kitchenware.com’s decision to accept a special order at a lower sale price from a large customer in China? a. The cost of shipping the order to the customer b. The cost of Kitchenware.com’s warehouses in the United States c. Founder Eric Crowley’s salary d. Kitchenware.com’s investment in its Web site
Q: BSF Limited is an Indian multinational company. It ships pre-packaged snacks to Hong Kong, the…
A: Transfer pricing is the price of the goods or services attached to them when goods are transferred…
Q: discount. Assess the problems that this parallel import has on you. How would this parallel export…
A: Parallel importing is a form of unauthorized or unlicensed international trade that some importer…
Q: Draft a one and a half-page memo to your CEO, in bullet format, advising her of the different cost…
A: The decision regarding to moving production facility depends upon various factors like the cost of…
Q: Brabant NV of the Netherlands is a wholesale distributor of Dutch cheeses that it sells throughout…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: Olson Corporation, a retailer and wholesaler of national brand-name household lighting fixtures,…
A:
Q: State the appropriate Pricing policy to be adopted: (i) A perishable item, with more than 80% of…
A: Pricing policy will play an important role in the business as every product of the company needs to…
Q: Evaluate which of the below statements is more convenient for the following: if the Canadian Dollar…
A: Exchange rate is the value of currency versus that of another country's currency.
Q: When the Malaysian government intervenes in a competitive market by imposing an effective price…
A: Government has to look everything, like the prices of the commodities in the market so that they can…
Q: As a Marketer it is challenging to understand Consumer Behavior in today’s fast growing and…
A: Consumer behaviour shows the study of the buying and selling patterns of individuals. This study…
Q: You own a small business, Batterido, in a country called Prica. You import the raw materials that…
A: The currency value rises and falls due to demand of it in the market. Higher interest rates for a…
Q: Consider a Japanese firm that sells product Y in the local market and contemplates sales to the US.…
A: a) : Price of Y P = 250 - Q Marginal revenue = 250 - 2Q Marginal cost = 15 At equilibrium MR = MC…
Q: Please explain all options 1) HST is A) Applicable on all invoices you issue but not on vendor…
A: The question is multiple choice question.
Q: Which of the following statements about producers is false? O a. All the goods and services consumed…
A: Answer- The Incorrect Statement is Option A about producers. Reason being some of the goods and…
Q: a. Paul is preparing a loading plan for an ICC freighter destined for Ghana. An agricultural…
A: A Small Introduction about LP Model Linear programming is utilized for getting the most ideal…
Q: Compute the Payback Period and the Net Present Value [NPV] of the proposal using DeltaTel‘s normal…
A: Net Present Value (NPV) is the sum of the present value of all future cash flows over the entire…
Q: company manufactures clothes in a number of towns and cities in the United Kingdom. These are then…
A: Ans 4) Creditors would expect the following things: - Ability to shorten the cash cycle and faster…
Q: special offer to manufacture a new line of women's clothing for department store chain. DCEI has…
A: Competitive analysis is defined as the weaknesses and strengths assessment of the current as well as…
Q: Looking for the break-even point from the information provided. The Smiths need to develop an…
A: Breakeven point is the point of sales at which the contribution generated is just equal to the fixed…
Q: A specific model of computer servers are being sold by Company A for $26,700 each, offering trade…
A: The transaction, which is measurable in monetary terms, is an economic event with a third party…
Q: Many customers of Apex Restaurant are from USA and Europe. Recently they hav appointing Chinese…
A: Option C is the Correct answer i.e lack of ability to satisfy different customers need.
Q: Global Airlines is a major low-price airline carrier for both domestic and international travel. The…
A: Anti-Trust Laws: They are a form of competition laws regulated by the Government to protect the…
Q: Describing and identifying information relevant to business decisions You are trying to decide…
A:
Q: Suppose Coca-Cola and Pepsi Companies have each one affiliate in Sultanate of Oman. But Coca-Cola…
A: A firm is dealing with foreign exchange may espouse to foreign currency exposure.
Q: Finance The firm you work for has operations in multiple countries. Your boss has tasked you with…
A: The probability that the firm is expected to earn over a specific time period is referred to as…
Q: The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 230, Camera B…
A: Data table in excel enable to find combination of price at which the total revenue will be highest.
Q: Contemporary Interiors (CI) manufactureshigh-quality furniture in factories in North Carolina for…
A:
Q: The average wholesale price a company is charging camera retailers for its models is deemed to be…
A: The question is based on the concept of Accounting theory.
Q: Which of the following is relevant to Kitchenware.com’s decision to accept a special order at a…
A: Answer:
Q: ABC Inc. produces home appliances and sells them in the U.S. It outsources the production of the…
A: Exposure refers to risk involved due to presence of certain factors in environment. In finance,…
Q: Proactive international sourcing: Select one: O a where there are more awareness of the…
A: Basic Concept of accounting in business.
Q: YOUR TASK: Write a letter to Edcadassa ( Columbia 4300, 1425 Buenos Aires, Argentina) requesting…
A: [Your address and contact number] Cxxxxxa 4300, 1425 Bxxxxs Axxxs, Argxxxxxa [Date] Dear Sir/Madam,…
Q: Which of the following is true for the FDI journey of Honda, a Japanese Automobile Company, in the…
A: Foreign direct investment (FDI) is a sort of cross-border investment in which a foreign investor…
Q: 1. If the company accepts this offer and rejects some business from regular customers so as not to…
A: To evaluate the net profitability from a special order and whether to accept or reject a special…
Q: A U.S.-based multinational pharmaceutical firm with four plants in Europe uses traditional methods…
A: U.S. based multi national pharmaceutical firm has 4 plants. Travelling expenses are allocated on…
Q: The following visualization shows the total sales and profits for each state in the USA where a…
A: Through data visualization process we can able to simply the big data into make simple one and easy…
Q: Based on this case study, what issues with China-based suppliers require Numi’s managers to use…
A: Numi is a triple bottom line company which means it takes care of its people, the environment, and…
Which of the following is relevant to Kitchenware.com’s decision to accept a special order at a lower sale price from a large customer in China?
a. The cost of shipping the order to the customer
b. The cost of Kitchenware.com’s warehouses in the United States
c. Founder Eric Crowley’s salary
d. Kitchenware.com’s investment in its Web site
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Which of the following is NOT a reason why companies move into international operations? a. To better serve their primary customers. b. To take advantage of lower production costs in regions where labor costs are relatively low. c. To increase their inventory levels. d. Because important raw materials are located abroad. e. To develop new markets for the firm's products.Question 1 You have the sole distributor for Lafuma products in Australia (you even got an agreement to prove it). Lately, you noticed that someone is importing the same products in huge quantities from Hong Kong (where it is 40% cheaper) and selling them in Paddy’s, Parklea Market, and other outlets (which are not your retailers) at a substantial discount. Assess the problems that this parallel import has on you. How would this parallel export problem affect Lafuma of France in terms of overall worldwide sales?Please answer this question *Explain and discuss the direct and indirect impact of economic exposure on a UK department store (seller of a wide range of iterns; clothes, gifts, toys, electrical goods, etc.) if there were an * unexpected downward movement in the UK & that was expected to last for some vears. The department store has 80% of its stores in the UK and 20% of its stores in France
- Davao has a potential foreign customer that has offered to buy 1,500 tons at P450 per ton. Assume that all of Davao’s costs would be at the same levels and rates as last year. What net income after taxes would Davao make if it took this order and rejected some business from regular customers so as not to exceed capacity? Without prejudice to your answers to previous questions, and assume that Davao plans to market its product in a new territory. Davao estimates that an advertising and promotion program costing P61,500 annually would need to be undertaken for the next two or three years. In addition, a P25 per ton sales commission over and above the current commission to the sales force in the new territory would be required. How many tons would have to be sold in the new territory to maintain Davao’s current after-tax income of P94,500? If the sales volume is estimated to be 2,100 tons in the next year, and if the prices and costs stay at the same levels and amounts next year, the…If goods are shipped FOB destination, which of the following is true? A. Title to the goods will transfer as soon as the goods are shipped. B. FOB indicates that a price reduction has been applied to the order. C. The seller must pay the shipping. D. The seller and the buyer will each pay 50% of the cost.Suppy chain management The following is an excerpt from an article discussing supplier relationships with the Big Three North American automakers. The Big Three select suppliers on the basis of lowest price and annual price reductions, said Neil De Koker, president of the Original Equipment Suppliers Association. They look globally for the lowest parts prices from the lowest cost countries, De Koker said. There is little trust and respect. Collaboration is missing Japanese automakers want long-term supplier relationships. They select suppliers as a person would a mate. The Big Three are quick to beat down prices with methods such as electronic auctions or rebidding work to a competitor. The Japanese are equally tough on price but are committed to maintaining supplier continuity. They work with you to arrive at a competitive price, and they are willing to pay because they want long-term partnering, said Carl Code, a vice president at Ernie Green Industries. They [Honda (HMC) and Toyota (TM)] want suppliers to make enough money to stay in business, grow, and bring them innovation The Big Three's supply chain model is not much different from the one set by Henry Ford. In 1913, he set up the system of independent supplier firms operating at arm's length on short-term contracts. One consequence of the Big Three's low-price-at-all-costs mentality is that suppliers are reluctant to offer them their cutting-edge technology out of fear the contract will be resourced before the research and development costs are recouped. Source: Robert Sherefkin and Amy Wilson, Suppliers Prefer Japanese Business Model," Rubber Plastics News, March 17, 2003, Vol. 24, No. 11. A. Contrast the Japanese supply chain model with that of the Big Three. B. Why might a supplier prefer the Japanese model? C. What benefits might accrue to the Big Three by adopting the Japanese supply chain practices?
- Based on your research of the market in the previous exercises, you have determined the market price for the items your department purchase is 15% below what you are being charged by department A of Marleys Manufacturing. How would you view this as a manager? What steps could you take to solve this discrepancy? What alternatives would you consider, assuming you had control over purchasing decisions?Paterson Company, a U.S.-based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions throughout Europe, including France. Debbie Kishimoto, manager of this division, was hired from a competitor 3 years ago. Debbie, recently informed of a price increase in one of the major product lines, requested a meeting with Jeff Phillips, marketing vice president. Their conversation follows. Debbie: Jeff, I simply dont understand why the price of our main product has increased from 5.00 to 5.50 per unit. We negotiated an agreement earlier in the year with our manufacturing division in Philadelphia for a price of 5.00 for the entire year. I called the manager of that division. He said that the original price was still acceptablethat the increase was a directive from headquarters. Thats why I wanted to meet with you. I need some explanations. When I was hired, I was told that pricing decisions were made by the divisions. This directive interferes with this decentralized philosophy and will lower my divisions profits. Given current market conditions, there is no way we can pass on the cost increase. Profits for my division will drop at least 600,000 if this price is maintained. I think a midyear increase of this magnitude is unfair to my division. Jeff: Under normal operating conditions, headquarters would not interfere with divisional decisions. But as a company, we are having some problems. What you just told me is exactly why the price of your product has been increased. We want the profits of all our European marketing divisions to drop. Debbie: What do you mean that you want the profits to drop? That doesnt make any sense. Arent we in business to make money? Jeff: Debbie, what you lack is corporate perspective. We are in business to make money, and thats why we want European profits to decrease. Our U.S. divisions are not doing well this year. Projections show significant losses. At the same time, projections for European operations show good profitability. By increasing the cost of key products transferred to Europeto your division, for examplewe increase revenues and profits in the United States. By decreasing your profits, we avoid paying taxes in France. With losses on other U.S. operations to offset the corresponding increase in domestic profits, we avoid paying taxes in the United States as well. The net effect is a much-needed increase in our cash flow. Besides, you know how hard it is in some of these European countries to transfer out capital. This is a clean way of doing it. Debbie: Im not so sure that its clean. I cant imagine the tax laws permitting this type of scheme. There is another problem, too. You know that the companys bonus plans are tied to a divisions profits. This plan could cost all of the European managers a lot of money. Jeff: Debbie, you have no reason to worry about the effect on your bonusor on our evaluation of your performance. Corporate management has already taken steps to ensure no loss of compensation. The plan is to compute what income would have been if the old price had prevailed and base bonuses on that figure. Ill meet with the other divisional managers and explain the situation to them as well. Debbie: The bonus adjustment seems fair, although I wonder if the reasons for the drop in profits will be remembered in a couple of years when Im being considered for promotion. Anyway, I still have some strong ethical concerns about this. How does this scheme relate to the tax laws? Jeff: We will be in technical compliance with the tax laws. In the United States, Section 482 of the Internal Revenue Code governs this type of transaction. The key to this law, as well as most European laws, is evidence of an arms-length price. Since youre a distributor, we can use the resale price method to determine such a price. Essentially, the arms-length price for the transferred good is backed into by starting with the price at which you sell the product and then adjusting that price for the markup and other legitimate differences, such as tariffs and transportation. Debbie: If I were a French tax auditor, I would wonder why the markup dropped from last year to this year. Are we being good citizens and meeting the fiscal responsibilities imposed on us by each country in which we operate? Jeff: Well, a French tax auditor might wonder about the drop in markup. But, the markup is still within reason, and we can make a good argument for increased costs. In fact, weve already instructed the managers of our manufacturing divisions to legitimately reassign as many costs as they can to the European product lines. So far, they have been very successful. I think our records will support the increase that you are receiving. You really do not need to be concerned with the tax authorities. Our tax department assures me that this has been carefully researchedits unlikely that a tax audit will create any difficulties. Itll all be legal and above board. Weve done this several times in the past with total success. Required: 1. Do you think that the tax-minimization scheme described to Debbie Kishimoto is in harmony with the ethical behavior that should be displayed by top corporate executives? Why or why not? What would you do if you were Debbie? 2. Apparently, the tax department of Paterson Company has been strongly involved in developing the tax-minimization scheme. Assume that the accountants responsible for the decision are CMAs and members of the IMA, subject to the IMA standards of ethical conduct. Review the IMA standards for ethical conduct in Chapter 1. Are any of these standards being violated by the accountants in Patersons tax department? If so, identify them. What should these tax accountants do if requested to develop a questionable taxminimization scheme?Please explain all options 1) HST is A) Applicable on all invoices you issue but not on vendor invoices B) Applicable on all invoices you pay but not on invoices issued c) 13% is uniformly paid to the federal government in Canada d) A tax you include in your payments to your contractors 2) Competitive advantage can be gained through a) Skimming pricing strategy b) Focusing on distribution of your products in large retail stores c) Customer service enhancements d) Strategically following a low cost strategy 3) Which of the following is not a cash outflow a) Taxes b) Payments for future purchases c) Depreciation d) Payroll costs 4) If cost of goods sold is high relative to sales, it implies a) High variable costs b) That it does not matter c) High profit margin d) High fixed costs 5) Which one of the following is not true about franchising? a) Franchising contracts can include area developers b)Franchisee has full operational freedom c) Franchisor supports the operations of the…
- Looking for the break-even point from the information provided. The Smiths need to develop an analysis of their breakeven point for the plastic display case based on sales of the product directly to the consumer as well as through retailers. If the product were sold to retailers, the price would have to provide retailers with an adequate markup. Exhibit C7.4 presents the expected cost structure for the Unique Display Cases display case developed by their accountant. Based on competitive prices, the Smiths expected to offer their product in direct to consumer sales for $24.99 plus $2.99 for shipping and handling. The price to retailers would have to be negotiated but would be 30–40% less to allow an adequate markup for the retail firms. The production cost of $7.50 was based on a production run of 5000 units in one color. At 10,000 or more units, production cost would drop to $5.75 per unit. The company that would produce the plastic unit had production capacity of 25,000 units a year.…ABC Inc. produces home appliances and sells them in the U.S. It outsources the production of the appliances to a Vietnamese manufacturer, and the imported appliances are priced in dollars. Its major competitor for appliances is located in China. Based on this information, ABC Inc. is subject to ____ exposure. A. economic B. translation C. economic and transaction D. transactionYou are a newly hired accountant for Sushi Beeber, Inc., a retail company specializing in apparel for small pets. The company would like to expand its apparel line to include sweaters for cats. Sushi Beeber has found several manufacturers that offer competitive prices to ensure cost of goods sold is low. Because the company receives merchandise from different manufacturers and the cat sweaters will be commoditized, the company needs to develop an internal accounting system to keep track of inventory cost. You think that the weighted average cost method may help the company stay up-to-date with the inventory cost as purchase cost changes over time. Your task is to create a spreadsheet that can calculate the inventory cost based on purchases and sales for the month. See attached spreadsheet. nventory Weighted Date Purchase/Sale Total Cost Average Cost 1-Oct Purchase 1-Oct Sale 3-Oct Purchase 4-Oct Sale 4-Oct Sale 4-Oct Purchase 7-Oct Sale…
