FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 9, Problem 9.12EYCT
CONSIDERING PEOPLE, PLANET, AND PROFIT
The March 6, 2012, edition of the Wall Street Journal Online contains an article by David Kesmodel entitled “Air War: ‘Winglet’” Versus ‘Sharklet’.” This article demonstrates how a company focused on green technology' has also been profitable.
Instructions
Read the article and answer the following questions.
- (a) Why did Airbus tile a lawsuit against Aviation Partners?
- (b) What are the percentage fuel savings provided by Aviation Partners’ Winglets onBoeing jetliners? How much total jet fuel did Aviation Partners say that its Winglets have provided at the time the article was written?
- (c) Describe the history of the relationship between Aviation Partners and Airbus, and the development of the Airbus Sharklet.
- (d) What would be the likely accounting implications if Aviation Partners were to lose the lawsuit?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015). “There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges, society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”. Now a) Explain the above statement in the context of corporate social responsibility. b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies? Explain.
The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015). “There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges, society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”. Required: a) Explain the above statement in the context of corporate social responsibility.b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies? Explain.
The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015). “There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges, society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”. Required: a) Explain the above statement in the context of corporate social responsibility
Chapter 9 Solutions
FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
Ch. 9 - Prob. 1QCh. 9 - Prob. 2QCh. 9 - Prob. 3QCh. 9 - Prob. 4QCh. 9 - Prob. 5QCh. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - In the fourth year of an assets 5-year useful...
Ch. 9 - Prob. 11QCh. 9 - Prob. 12QCh. 9 - Prob. 13QCh. 9 - Prob. 14QCh. 9 - Prob. 15QCh. 9 - Prob. 16QCh. 9 - Prob. 17QCh. 9 - Prob. 18QCh. 9 - Prob. 19QCh. 9 - Prob. 20QCh. 9 - Prob. 22QCh. 9 - Give an example of an industry that would be...Ch. 9 - Prob. 24QCh. 9 - Prob. 25QCh. 9 - Prob. 26QCh. 9 - Prob. 27QCh. 9 - Prob. 9.1BECh. 9 - Prob. 9.2BECh. 9 - Prob. 9.3BECh. 9 - Prob. 9.4BECh. 9 - Prob. 9.5BECh. 9 - Prob. 9.7BECh. 9 - Prob. 9.13BECh. 9 - Prob. 9.14BECh. 9 - Prob. 9.1DIECh. 9 - Prob. 9.2bDIECh. 9 - Prob. 9.3DIECh. 9 - Match the statement with the term most directly...Ch. 9 - Prob. 9.2ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17ECh. 9 - Prob. 9.19ECh. 9 - Prob. 9.20ECh. 9 - Prob. 9.21ECh. 9 - Prob. 9.23ECh. 9 - Prob. 9.24ECh. 9 - Prob. 9.1APCh. 9 - Prob. 9.7APCh. 9 - Prob. 9.2EYCTCh. 9 - Prob. 9.3EYCTCh. 9 - Prob. 9.6EYCTCh. 9 - Prob. 9.7EYCTCh. 9 - Prob. 9.8EYCTCh. 9 - Prob. 9.10EYCTCh. 9 - CONSIDERING PEOPLE, PLANET, AND PROFIT The March...Ch. 9 - Prob. 9.1IECh. 9 - Prob. 9.2IECh. 9 - Prob. 9.3IECh. 9 - Prob. 9.4IE
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following quote appeared in an article entitled ‘Business and society in the coming decades’, which was available on the website of McKinsey & Company (accessed in October 2015).“There are compelling reasons companies should seize the initiative to drive social and business benefits. First, in an interconnected world facing unprecedented environmental and social challenges,society will demand it. Increasingly, a basic expectation among customers, governments, and communities will be that the companies they do business with provide a significant net positive return for society at large, not just for investors. This will be part of the implicit contract or license to operate”.Required:a) Explain the above statement in the context of corporate social responsibility. [Word limit 150-200words] b) Further, do you think such a statement would impact the perceived ‘legitimacy’ of companies?Explain. [Word limit 200 – 250]arrow_forwardWhat drives the basic economies of the airline industry? The refining industry?2. How is Delta different from other airlines?3. How would owing the Trainer Refinery help Delta manage its fuel costs in the future? Is this offset by operation cost?4. What impact does buying an oil refinery have on Delta as a company? Is this a good strategic move? Why/why not?5. How does the merger between Delta and Virgin Airlines impact the company as a whole?arrow_forwardSnowDelight operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. (Click the icon to view the information.) Read the requirements. Requirement 1. If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate SnowDelight's projected income Revenue at market price Less: Total costs Operating income Requirements 1 If SnowDelight cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? 2 Assume SnowDelight has found ways to cut its fixed costs to $36.000,000 What is its new target variable cost per skier/snowboarder?arrow_forward
- Choose a company (local or multinational) of your choice and discuss how this Covid-19 pandemic might have impacted the financial performance of the company.Your discussion should not be more than 150 words.arrow_forwardConsider the following series of independentsituations in which a firm is about to make a strategic decision.Decisionsa. Julian Phones is about to decide whether to launch production and sale of a cell phone with standardfeatures.b. Flint Computers is trying to decide whether to produce and sell a new home computer softwarepackage that includes the ability to interface with a thermostat and a refrigerator. There is no suchsoftware currently on the market.c. Maria Cosmetics has been asked to provide a “store brand” facial cream that will be sold at discountretail stores.d. Jansen Computers is considering developing a special line of computers that can be both a tablet anda computer.1. For each decision, state whether the company is following a cost leadership or a product differentiationstrategy.2. For each decision, discuss what information the management accountant can provide about the sourceof competitive advantage for these firms.arrow_forwardInvestment Proposals for Orio Coffee House Daniel Jackson, CEO of OCH, has approached you to work on 2 investment proposals that the company is considering: 1. Buying coffee roaster plant in Mexico. 2. The Reconstruction of coffee shops to add the selling of yogurt. Mr. Daniel reminds you to consider only relevant expense and income. “Relevant costs have to be occurring in the future,”He said. “And have to be unique from the status quo. For example, if we choose to buy the roaster plant, it is only the incremental revenue and costs related to the purchase that should be considered. We also need to take into account the opportunity cost associated with the alternatives.” More details on both of investment proposal is written below. Mr. Daniel wants you to recommend after evaluation, if OCH should invest in one, both, or none of the investment proposals. Required Return Mr. Daniel wants you to use 7% as the discount rate (i.e., the required return). First Proposal of Investment in…arrow_forward
- Skiable Acres operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Click the icon to view the information.) Read the requirements. Requirement 1. If Skiable Acres cannot reduce its costs, what profit will it earn? State your answer in dollars and as a percent of assets. Will investors be happy with the profit level? Complete the following table to calculate Skiable Acres' projected income. Revenue at market price Less: Total costs Operating incomearrow_forwardRuby Airlines offers its passenger the opportunity to join Ruby Express Club that entitles a traveler to use the club facilities at any Malaysian airports. Club privileges include a private lounge and restaurant, discounts on meals and beverages and use of a small health spa. As with other airlines around the globe, Ruby has been facing a decline in profit attributable to the Covid19 pandemic movement restriction. The Club, in particular, has shown consistent loss. The recent statement follows: Sales revenue RM150,000 Variable expenses: Food and beverages Personnel Variable overhead (70,000) (40,000) (25,000) Contribution margin 15,000 Fixed expenses: Club building Depreciation Supervisory salary Airport fees General overhead (allocated) (30,000) (25,000) (15,000) (10,000) Profit (loss) (65,000) All Club’s variable expenses can be avoided should the club be discontinued. However, Ruby will continue to own the club building. The…arrow_forwardRuby Airlines offers its passenger the opportunity to join Ruby Express Club that entitles a traveler to use the club facilities at any Malaysian airports. Club privileges include a private lounge and restaurant, discounts on meals and beverages and use of a small health spa. As with other airlines around the globe, Ruby has been facing a decline in profit attributable to the Covid19 pandemic movement restriction. The Club, in particular, has shown consistent loss. The recent statement follows:(see the photo) All Club’s variable expenses can be avoided should the club be discontinued. However, Ruby will continue to own the club building. The supervisory staff will no longer be employed if the club closes. Ruby will no longer pay the airport fee. Required: Decide whether Ruby should discontinue the club operations. Show your computation.arrow_forward
- According to Dib (2022), “Sustainable aviation fuel production contributes to ending hunger and malnutrition by promoting resilient agricultural practices that improve productivity and output. The third objective is to ensure healthy lives and promote well-being for all” (para. 7 & 8). Let’s say that you want to create a quantitative study to define forecasts for the sustainable development of air forecasts in the United States. The respondents in the survey are to be airport managers. What sampling method should be used to identify respondents?arrow_forwardIntroduction, key issue/s, analysis and recommendation sections for each separate scenario. ACC2273 “Is there anything wrong?” Scenario 1 You run a small business that takes older machines and refurbishes them to sell at a “charitable” price. You are doing good for the environment and helping those who need these machines get one at a reasonable price when otherwise they would not have been able to afford one. … yes, business is and can be about helping others, it is not all about making a profit and selling stuff to people that don’t necessarily need stuff. As the owner you have hired a few people to run the business. They look after purchasing and selling, collecting and distributing. You charge (sell the machines for) a small “up-charge” of 5% over cost to cover your operating costs. Some pertinent financial data for 2022: beginning inventory $5,000, ending inventory $6,000, purchases for the year $61,000 and sales for the year $15,000. Is there anything wrong with your…arrow_forwardMaximus Steel plans to introduce one of three new products code-named: Wren, Hawk, and Nightingale. The marketing department indicated that the success of any product depends on the market conditions (Favorable, Neutral, or Unfavorable). The profit the company will earn also depends on the market conditions. The table below shows the probability estimated for each market condition and the profits Maximus Steel will realize within those conditions: Product Code Market Conditions Favorable P = 0.2 Neutral P = 0.7 Unfavorable P = 0.1 Wren $120,000 $70,000 ($30,000) Hawk $60,000 $40,000 $20,000 Nightingale $35,000 $30,000 $30,000 Part 1 Instructions: Compute the expected value for each alternative. What is the best option for the company?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial Risks - Part 1; Author: KnowledgEquity - Support for CPA;https://www.youtube.com/watch?v=mFjSYlBS-VE;License: Standard youtube license