Maple Hill Dairy Farm is a small, family-owned business that started its operations in 1996 with...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Maple Hill Dairy Farm is a small, family-owned business that started its operations in 1996 with the goal of using all- natural processes to create high quality dairy products. The company produces several different products sold in health food markets and some of the larger supermarkets in the area as well as in the Maple Hill Country Store, a small retail store located next to the farm. Maple Hills' products are well-known for their quality and have gained a strong brand- loyalty throughout the region in which Maple Hill operates. A key competitive factor for Maple Hill is that is uses only glass bottles in the packaging of its products, which appeals to many of its targeted customers. I Maple Hill's sales have grown rapidly in recent years, but production is currently limited by the number and size of the facilities on site that can only accommodate 300 animals (of which 130 cows are part of the milking herd). As a result. Maple Hill is considering expanding its operations to allow it to meet the increasing demand for its products. In order to expand, Maple Hill would have to buy additional land, build more barns and enlarge the milking facility. Maple Hill's manager, Laura Ashley, is concerned about the potentially large financial outlays that Maple Hill would incur with expansion and she feels that she should examine whether or not current operations are efficient and cost effective before expanding. Laura is also considering the possibility of packaging the farm's product in plastic and paper containers instead of glass bottles. She expects that this would attract new customers, and in addition, it would reduce costs significantly. The direct cost of packaging the product (now $.75 per bottle) would be about one-third the current cost, and the cost of the bottling equipment for filling the plastic or paper containers would fall to one-half the cost of the current equipment within 6-month time. All other costs would remain the same. Also, Laura thinks the sales of the farm's products would grow even faster with the broadened product line the brand reputation of the farm's rodnote could ha ***** Buying Criteria Freshness Packaging Kiry w *** direct cost of packaging the product (now $.75 per bottle) would be about one-third the current cost, and the cost of the bottling equipment for filling the plastic or paper containers would fall to one-half the cost of the current equipment within 6-month time. All other costs would remain the same. Also, Laura thinks the sales of the farm's products would grow even faster with the broadened product line - the brand reputation of the farm's products could be leveraged to bring in new customers, and the use of plastic or paper containers would enable the farm to attract new supermarkets and other retailers that do not presently handle bottles. Laura thinks that the supermarket customers would be willing to pay at least $.40 per quart more for Maple Hill products relative to other store brands. Laura subscribes to the relevant trade journals in dairy farming and has excerpted the following information from a recent issue of one of her journals. It shows the buying criteria of a sample of supermarket customers who were purchasing milk in plastic and paper containers (1-most important, and 5 = least important). The current supermarket prices for these products in Maple Hill's area are $1.25 per quart for each product except eggnog which sells for $1.80. Supermarkets mark up the price of milk by about 40% from dairy cost, so the price received by the dairy is somewhat less. Attribute Importance Ranking, by Product Whole Milk Taste Color and Texture Price 2 16 3 4 5 Low-Fat Skim Milk 2 Milk 3 5 4 4 3 134% T Chocolate Milk 45132 5. Eggnog 4 T3I25 134% e Type here to search +E I A Background about Maple Hill's Operations The main processes involved in milk production are as follows: 1. Milking: An employee begins by sanitizing the cows. Once this is done, the employee attaches the cows to an electronic milking machine. The machine automatically provides information on the number of gallons produced by each cow and pumps the milk into a holding tank before the next process begins. This is a very time- 2 CSAC 2510 Fall 2019 consuming and labor-intensive process because the milking pen currently accommodates 12 cows at a time. The rest of the cows are kept in the milking barn until it is their turn to be milked. Milking the entire milking herd takes between three and four hours per day. 2. 3. Separating: In this process, a machine sorts the cream from the milk. The cream is then stored in a vat until it is made into butter or is added back to the milk to create either low-fat, chocolate, or whole milk or eggnog. Pasteurizing: Pasteurizing the process by which any bacteria in the milk is killed. Milk runs through hot plates, bringing it to a temperature of 175 F degrees. Then, the milk is run through cold plates to bring it to the optimal storage temperature of 38 F degrees. 4. Homogenizing: After pasteurization, the milk is homogenized by breaking up fat molecules in the milk by running the milk through a high-pressure system. This process is done for cosmetic purposes to create a rich. A D Pra, ging wou wiperuure vi ITO unge, ung vi pa so origi optimal storage temperature of 38 F degrees. 4. Homogenizing: After pasteurization, the milk is homogenized by breaking up fat molecules in the milk by running the milk through a high-pressure system. This process is done for cosmetic purposes to create a rich. creamy finished product. This step is the last step in the production process for whole milk, skim milk, and low- fat milk. These three types of milk are then stored in separate holding tanks until the bottling process begins. 5. Mixing: This process is only completed for chocolate milk and eggnog. In this process, sugar and other ingredients are added and mixed into the milk to create the finished product. Bottling: Bottling is a very costly process for Maple Hill. Maple Hill uses glass bottles to package its milk products, which requires more filling time than paper or plastic containers. Before the bottles can be filled, employees must sterilize and sanitize the glass bottles. The clean bottles are then placed on a conveyer belt to be filled. The filling of the bottles is completed by a machine that fills each bottle and also places plastic caps on the bottles. An employee removes the filled bottles from the conveyor belt and places them into crates. 7. Warehousing: When the crates are filled, an employee moves them to the refrigeration room in the warehouse. They are stored in the room until they are shipped. In addition to the refrigeration room, the warehouse also holds new and returned glass bottles as well as ingredients like sugar that are added to the milk in the mixing 6. process. The products produced by Maple Hill and current prices received by Maple Hill are as follows: Whole Milk, $1.90 per quart Low-Fat Milk, $1.90 . . Skim Milk, $1.90 Chocolate Milk, $1.90 Eggnog, $2.25 Bottles are produced in one size-quarts. Whole Milk Low-Fat Milk Skim Milk Choco Milk Eggnog ex pe here to search 134% B Selected data for the most recent year are as follows: Wiew Window Help Tools ? Implementation of.... 166 2 87 0 199 98 730,000 933 66 304 2 422 0 3/6 Eggnog, $2.25 Bottles are produced in one size-quarts. Selected data for the most recent year are as follows: Whole Milk Low-Fat Milk Skim Milk Chocolate Milk Eggnog 145 500 333 455 525 292,000 187,000 511,000 653 219,000 290 373 270 48 85 71 43 236 144 3 3 345 132 0 385 312 187 177 88 433 312 135 4 134% 112 355 177 122 T 5 Number of Invoices Number of Bottles Produced Number of Purchase Orders Number of Customers Labor Hours, Warehousing Number of Quality Checks per Order Machine Hours, Separating Machine Hours, Mixing Machine Hours, Bottling Labor Hours, Clean and Repair Maple Hill's Accounting System Maple Hill has a conventional accounting system which keeps track of overhead costs in four categories: bottling equipment, facilities, processing, and general and administrative. There are sub-accounts in each of these accounts Maple Hill's Accounting System Maple Hill has a conventional accounting system which keeps track of overhead costs in four categories: bottling equipment, facilities, processing, and general and administrative. There are sub-accounts in each of these accounts 3 CSAC 2510 Fall 2019 except for bottling equipment. The accounts, sub-accounts and costs for the most recent operating year are shown in Table 1. These costs are often called resource costs, and are labeled as such in the OROS software system. Maple Hill grows on site most of the feed needed at the dairy farm. The cost of producing the feed and some additional feed purchased during the year is included under labor and materials for other processing costs. Table 1: Overhead (Resource) Costs for Maple Hill Dairy Farm ACCOUNTS SUB ACCOUNTS Bottling Equipment Other Facilities Costs Utilities Depreciation ACTUAL COSTS $1,528,620 72,395 22,976 4/6 Milking Separating, In addition to the overhead costs, Maple Hill has direct costs for bottles and other materials. These materials are purchased from a variety of suppliers. Each glass bottle costs Maple Hill $.75, including both purchase and recycling cost. Other ingredients include cocoa, sugar, and spices. Cocoa, used in the production of chocolate milk, costs $.05 per bottle. Sugar, used in both chocolate milk and eggnog, costs $.05 per bottle. Spices, used to make eggnog, cost 5.08 per bottle. In total, 65,700 ounces of sugar and cocoa were used in the production of chocolate milk, and 76,650 ounces of sugar and spice were used in the production of eggnog. Mixing Bottling 134% Laura has heard from a local vendor that information from an activity-based costing would be helpful to Laura in improving Maple Hill's operations. With some guidance from a cost consultant recommended by the vendor, the following production activities were identified pasteurizing, and homogenizing ▼ Warehousing General and Administrative (G&A) Receiving and Inspecting Cleaning and Repairs Overhead (Resource)-consumption Cost Drivers Laura has further analyzed the cost structure, to determine how the overhead (resource) costs could be allocated to the eight activities identified above. On the advice of the cost consultant, she determined that all costs in the general and Q 5 16 134% in the bottling machine account could be allocated to the bottling activity, and the remainder to the receiving and inspecting activity. Determining how the other processing costs could be related to the activities is not as simple, but after some careful study the following estimates were made for the other processing costs account: Activities Using Other Processing Costs Milking Separating/Pasteurizing/Homogenizing Mixing Bottling Warehousing G&A Receiving and Inspecting Ingredients Cleaning and Repairs Total % Usage of Other Processing Costs 30% 15% 15% 25% 10% 0% 0% . 5% 100% The other facilities cost account includes the costs of maintaining the warehouse and milking barn, and is allocated to the activities on the basis of square feet. Square feet is therefore the resource-consumption cost driver for the other facilities cost account, which is one of Maple Hill's overhead (resource) accounts. Type here to search 0 HI en Activities Milking Separating/Pasteurizing/Homogenizing The other facilities cost account includes the costs of maintaining the warehouse and milking barn, and is allocated to the activities on the basis of square feet. Square feet is therefore the resource-consumption cost driver for the other facilities cost account, which is one of Maple Hill's overhead (resource) accounts. Mixing Bottling Warehousing G&A Cleaning and Repairs Total 5/6 Type here to search 134% At . Activity-consumption Cost Drivers After some additional study, it was decided that the best way to allocate the costs of each activity to the products was to use the following activity-consumption drivers: Square Ft 10,000 2,000 1,000 1.500 12,500 2.000 1.000 30,000 als Implementation of..... Activities Milking Separating/Pasteurizing/Homogenizing Mixing Bottling Warehousing G&A Receiving and Inspecting Cleaning and Repairs 6/6 Activity-consumption Cost Driver Number of bottles produced Machine Hours, Separating Machine Hours, Mixing Machine Hours, Bottling Type here to search Labor Hours, Warehousing Number of Invoices Ounces Labor Hours, Clean and Repair a Fall 2019 Required 1. Assess the competitive environment of Maple Hill Dairy Farm and determine what you think is or should be Maple Hill's competitive strategy and explain why. Evaluate Laura's plan to move from glass bottles to plastic and paper containers. 2. Determine the unit costs for each of the five products given the available information. How could you improve on these calculations what additional information would your request and how would you use it? 3. Use the information in the case above to determine the ABC-based unit costs for Maple Hill's products. How does this information help Laura analyze her decision regarding the change in containers from glass to plastic and paper? Maple Hill Dairy Farm is a small, family-owned business that started its operations in 1996 with the goal of using all- natural processes to create high quality dairy products. The company produces several different products sold in health food markets and some of the larger supermarkets in the area as well as in the Maple Hill Country Store, a small retail store located next to the farm. Maple Hills' products are well-known for their quality and have gained a strong brand- loyalty throughout the region in which Maple Hill operates. A key competitive factor for Maple Hill is that is uses only glass bottles in the packaging of its products, which appeals to many of its targeted customers. I Maple Hill's sales have grown rapidly in recent years, but production is currently limited by the number and size of the facilities on site that can only accommodate 300 animals (of which 130 cows are part of the milking herd). As a result. Maple Hill is considering expanding its operations to allow it to meet the increasing demand for its products. In order to expand, Maple Hill would have to buy additional land, build more barns and enlarge the milking facility. Maple Hill's manager, Laura Ashley, is concerned about the potentially large financial outlays that Maple Hill would incur with expansion and she feels that she should examine whether or not current operations are efficient and cost effective before expanding. Laura is also considering the possibility of packaging the farm's product in plastic and paper containers instead of glass bottles. She expects that this would attract new customers, and in addition, it would reduce costs significantly. The direct cost of packaging the product (now $.75 per bottle) would be about one-third the current cost, and the cost of the bottling equipment for filling the plastic or paper containers would fall to one-half the cost of the current equipment within 6-month time. All other costs would remain the same. Also, Laura thinks the sales of the farm's products would grow even faster with the broadened product line the brand reputation of the farm's rodnote could ha ***** Buying Criteria Freshness Packaging Kiry w *** direct cost of packaging the product (now $.75 per bottle) would be about one-third the current cost, and the cost of the bottling equipment for filling the plastic or paper containers would fall to one-half the cost of the current equipment within 6-month time. All other costs would remain the same. Also, Laura thinks the sales of the farm's products would grow even faster with the broadened product line - the brand reputation of the farm's products could be leveraged to bring in new customers, and the use of plastic or paper containers would enable the farm to attract new supermarkets and other retailers that do not presently handle bottles. Laura thinks that the supermarket customers would be willing to pay at least $.40 per quart more for Maple Hill products relative to other store brands. Laura subscribes to the relevant trade journals in dairy farming and has excerpted the following information from a recent issue of one of her journals. It shows the buying criteria of a sample of supermarket customers who were purchasing milk in plastic and paper containers (1-most important, and 5 = least important). The current supermarket prices for these products in Maple Hill's area are $1.25 per quart for each product except eggnog which sells for $1.80. Supermarkets mark up the price of milk by about 40% from dairy cost, so the price received by the dairy is somewhat less. Attribute Importance Ranking, by Product Whole Milk Taste Color and Texture Price 2 16 3 4 5 Low-Fat Skim Milk 2 Milk 3 5 4 4 3 134% T Chocolate Milk 45132 5. Eggnog 4 T3I25 134% e Type here to search +E I A Background about Maple Hill's Operations The main processes involved in milk production are as follows: 1. Milking: An employee begins by sanitizing the cows. Once this is done, the employee attaches the cows to an electronic milking machine. The machine automatically provides information on the number of gallons produced by each cow and pumps the milk into a holding tank before the next process begins. This is a very time- 2 CSAC 2510 Fall 2019 consuming and labor-intensive process because the milking pen currently accommodates 12 cows at a time. The rest of the cows are kept in the milking barn until it is their turn to be milked. Milking the entire milking herd takes between three and four hours per day. 2. 3. Separating: In this process, a machine sorts the cream from the milk. The cream is then stored in a vat until it is made into butter or is added back to the milk to create either low-fat, chocolate, or whole milk or eggnog. Pasteurizing: Pasteurizing the process by which any bacteria in the milk is killed. Milk runs through hot plates, bringing it to a temperature of 175 F degrees. Then, the milk is run through cold plates to bring it to the optimal storage temperature of 38 F degrees. 4. Homogenizing: After pasteurization, the milk is homogenized by breaking up fat molecules in the milk by running the milk through a high-pressure system. This process is done for cosmetic purposes to create a rich. A D Pra, ging wou wiperuure vi ITO unge, ung vi pa so origi optimal storage temperature of 38 F degrees. 4. Homogenizing: After pasteurization, the milk is homogenized by breaking up fat molecules in the milk by running the milk through a high-pressure system. This process is done for cosmetic purposes to create a rich. creamy finished product. This step is the last step in the production process for whole milk, skim milk, and low- fat milk. These three types of milk are then stored in separate holding tanks until the bottling process begins. 5. Mixing: This process is only completed for chocolate milk and eggnog. In this process, sugar and other ingredients are added and mixed into the milk to create the finished product. Bottling: Bottling is a very costly process for Maple Hill. Maple Hill uses glass bottles to package its milk products, which requires more filling time than paper or plastic containers. Before the bottles can be filled, employees must sterilize and sanitize the glass bottles. The clean bottles are then placed on a conveyer belt to be filled. The filling of the bottles is completed by a machine that fills each bottle and also places plastic caps on the bottles. An employee removes the filled bottles from the conveyor belt and places them into crates. 7. Warehousing: When the crates are filled, an employee moves them to the refrigeration room in the warehouse. They are stored in the room until they are shipped. In addition to the refrigeration room, the warehouse also holds new and returned glass bottles as well as ingredients like sugar that are added to the milk in the mixing 6. process. The products produced by Maple Hill and current prices received by Maple Hill are as follows: Whole Milk, $1.90 per quart Low-Fat Milk, $1.90 . . Skim Milk, $1.90 Chocolate Milk, $1.90 Eggnog, $2.25 Bottles are produced in one size-quarts. Whole Milk Low-Fat Milk Skim Milk Choco Milk Eggnog ex pe here to search 134% B Selected data for the most recent year are as follows: Wiew Window Help Tools ? Implementation of.... 166 2 87 0 199 98 730,000 933 66 304 2 422 0 3/6 Eggnog, $2.25 Bottles are produced in one size-quarts. Selected data for the most recent year are as follows: Whole Milk Low-Fat Milk Skim Milk Chocolate Milk Eggnog 145 500 333 455 525 292,000 187,000 511,000 653 219,000 290 373 270 48 85 71 43 236 144 3 3 345 132 0 385 312 187 177 88 433 312 135 4 134% 112 355 177 122 T 5 Number of Invoices Number of Bottles Produced Number of Purchase Orders Number of Customers Labor Hours, Warehousing Number of Quality Checks per Order Machine Hours, Separating Machine Hours, Mixing Machine Hours, Bottling Labor Hours, Clean and Repair Maple Hill's Accounting System Maple Hill has a conventional accounting system which keeps track of overhead costs in four categories: bottling equipment, facilities, processing, and general and administrative. There are sub-accounts in each of these accounts Maple Hill's Accounting System Maple Hill has a conventional accounting system which keeps track of overhead costs in four categories: bottling equipment, facilities, processing, and general and administrative. There are sub-accounts in each of these accounts 3 CSAC 2510 Fall 2019 except for bottling equipment. The accounts, sub-accounts and costs for the most recent operating year are shown in Table 1. These costs are often called resource costs, and are labeled as such in the OROS software system. Maple Hill grows on site most of the feed needed at the dairy farm. The cost of producing the feed and some additional feed purchased during the year is included under labor and materials for other processing costs. Table 1: Overhead (Resource) Costs for Maple Hill Dairy Farm ACCOUNTS SUB ACCOUNTS Bottling Equipment Other Facilities Costs Utilities Depreciation ACTUAL COSTS $1,528,620 72,395 22,976 4/6 Milking Separating, In addition to the overhead costs, Maple Hill has direct costs for bottles and other materials. These materials are purchased from a variety of suppliers. Each glass bottle costs Maple Hill $.75, including both purchase and recycling cost. Other ingredients include cocoa, sugar, and spices. Cocoa, used in the production of chocolate milk, costs $.05 per bottle. Sugar, used in both chocolate milk and eggnog, costs $.05 per bottle. Spices, used to make eggnog, cost 5.08 per bottle. In total, 65,700 ounces of sugar and cocoa were used in the production of chocolate milk, and 76,650 ounces of sugar and spice were used in the production of eggnog. Mixing Bottling 134% Laura has heard from a local vendor that information from an activity-based costing would be helpful to Laura in improving Maple Hill's operations. With some guidance from a cost consultant recommended by the vendor, the following production activities were identified pasteurizing, and homogenizing ▼ Warehousing General and Administrative (G&A) Receiving and Inspecting Cleaning and Repairs Overhead (Resource)-consumption Cost Drivers Laura has further analyzed the cost structure, to determine how the overhead (resource) costs could be allocated to the eight activities identified above. On the advice of the cost consultant, she determined that all costs in the general and Q 5 16 134% in the bottling machine account could be allocated to the bottling activity, and the remainder to the receiving and inspecting activity. Determining how the other processing costs could be related to the activities is not as simple, but after some careful study the following estimates were made for the other processing costs account: Activities Using Other Processing Costs Milking Separating/Pasteurizing/Homogenizing Mixing Bottling Warehousing G&A Receiving and Inspecting Ingredients Cleaning and Repairs Total % Usage of Other Processing Costs 30% 15% 15% 25% 10% 0% 0% . 5% 100% The other facilities cost account includes the costs of maintaining the warehouse and milking barn, and is allocated to the activities on the basis of square feet. Square feet is therefore the resource-consumption cost driver for the other facilities cost account, which is one of Maple Hill's overhead (resource) accounts. Type here to search 0 HI en Activities Milking Separating/Pasteurizing/Homogenizing The other facilities cost account includes the costs of maintaining the warehouse and milking barn, and is allocated to the activities on the basis of square feet. Square feet is therefore the resource-consumption cost driver for the other facilities cost account, which is one of Maple Hill's overhead (resource) accounts. Mixing Bottling Warehousing G&A Cleaning and Repairs Total 5/6 Type here to search 134% At . Activity-consumption Cost Drivers After some additional study, it was decided that the best way to allocate the costs of each activity to the products was to use the following activity-consumption drivers: Square Ft 10,000 2,000 1,000 1.500 12,500 2.000 1.000 30,000 als Implementation of..... Activities Milking Separating/Pasteurizing/Homogenizing Mixing Bottling Warehousing G&A Receiving and Inspecting Cleaning and Repairs 6/6 Activity-consumption Cost Driver Number of bottles produced Machine Hours, Separating Machine Hours, Mixing Machine Hours, Bottling Type here to search Labor Hours, Warehousing Number of Invoices Ounces Labor Hours, Clean and Repair a Fall 2019 Required 1. Assess the competitive environment of Maple Hill Dairy Farm and determine what you think is or should be Maple Hill's competitive strategy and explain why. Evaluate Laura's plan to move from glass bottles to plastic and paper containers. 2. Determine the unit costs for each of the five products given the available information. How could you improve on these calculations what additional information would your request and how would you use it? 3. Use the information in the case above to determine the ABC-based unit costs for Maple Hill's products. How does this information help Laura analyze her decision regarding the change in containers from glass to plastic and paper?
Expert Answer:
Answer rating: 100% (QA)
Here are the steps involved in making a decision about whether or not to expand Maple Hill Dairy Farm and switch to plastic or paper containers Gather ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
A major airport has been redesigned, with the goal of reducing flight delays. The delays (in minutes) for random samples of flights before and after the upgrade are available in MyStatLab. Create...
-
A major airport has been redesigned with the goal of reducing flight delays. The delays (in minutes) for random samples of flights before and after the upgrade are recorded. Is there evidence, at the...
-
In 2013, CPA Canada was established with the goal of uniting the three accounting designations-CA, CGA, and CMA-into one designation: the CPA, or Chartered Professional Accountant. Each province and...
-
Carlberg Company has two manufacturing departments, Assembly and Painting. The Assembly department started 11,000 units during November. The following production activity in both units and costs...
-
Kerry is a senior auditor and a member of the team auditing a long-standing client, the listed public company Darcy Industries Ltd. Kerry's wife's uncle died recently and his estate is being...
-
Mazzel Company began operations on January 1, 2008, by issuing common stock for $33,000 cash. During 2008, Mazzel received $39,000 cash from revenue and incurred costs that required $66,000 of cash...
-
If a well-behaved investment alternative's internal rate of return (IRR) is equal to MARR, which of the following statements about the other measures of worth for this alternative must be true? 1....
-
For each engagement described below, indicate whether the engagement is likely to be conducted under international auditing standards, U.S. generally accepted auditing standards, or PCAOB auditing...
-
Assumethe following attributes :A, B, C, D, E, F and Gwiththe candidate key :Aand Cand the following functional dependencies : A--> B, F A, C-->D, E F --> G a. Draw the 1NF relational model and...
-
The proposed rates were not in the range the CEO expected given the pricing analysis. The CEO has asked the pricing actuary to verify the total projected loss cost excluding potential large storm...
-
In the object-oriented design of an airline passenger reservation program, suppose that "airplane seat", "aisle seat", and "window seat" have been identified as classes. Focusing specifically on the...
-
Identify the advantage of a partnership. ( Check all that apply ) . Each partner has unlimited liability for the partnership's debts. Partenership interest is not freely transferable. It is easy and...
-
To save money, the Bunny Brigade has been holding recent meetings in Mr. McGregor's garden. Like the squirrels, the bunnies use maple leaves (ML) as currency. The Bunny Brigade will charge bunnies...
-
Dains Diamond Bit Drilling purchased the following assets this year. Asset Purchase Date Original Basis Drill bits (5-year) January 25 $ 90,000 Drill bits (5-year) July 25 95,000 Commercial building...
-
How to complete profitability ratios and liquidity ratios for Macys financial analysis?
-
How can you use this evidence to examine the accuracy of inventory balance on B/S?
-
The Royal Mark hotel chain offers restaurants with the finest service, elevators that run smoothly, and a front desk that checks people in quickly. Often, fresh-cut flowers are in the lobbies and...
-
We all experience emotions, but some people disguise their true feelings better than others. Do you think this is a helpful or harmful thing to do? Under what conditions do you think it would be most...
-
Suppose scientists discover a new way to extract oil from deposits that were previously thought to be unrecoverable. The extra supply of oil leads oil prices to decline by $5 per barrel. Explain the...
-
What is the growth rate of output per person in Figure 6.2? What are the growth rates of output per person before and after the changes in the parameter values in Figures 6.3 and 6.4? Figure 6.2...
-
Suppose that the government fears the economy might be heading into a recession and decides to cut income taxes today in an effort to prevent the recession. (a) How does the Ricardian equivalence...
-
Figure18 . 25 shows the series of Walmart daily closing prices between February 2001 and February 2002 (thanks to Chris Albright for suggesting the use of these data, which are publicly available,...
-
Shipments of Household Appliances. The time plot in Figure 18 . 31 shows the series of quarterly shipments (in million dollars) of US household appliances between 1985 and 1989 (dataare available in...
-
Australian Wine Sales. Figure 18 .32 shows time plots of monthly sales of six types of Australian wines (red, rose, sweet white, dry white, sparkling, and fortified) for 19801994. [Data are available...
Study smarter with the SolutionInn App