Social Entrepreneurship Essay Example | Topics and Well Written Essays - 2250 words

Social Entrepreneurship - Essay Example es mainly address the social needs in the society through offering products and services that aim at meeting the cultural, social and environmental needs in the society (Paton, 2003 p. 89). The bank commenced operations in 1984 providing trade union banking services while observing the founding principles. The trade unions offered provided equity capital of 1.25 million pounds while the Co-operative Bank added 2.6 million pounds to the start up capital. In the first year, the bank operated as a licensed deposit taking institution providing its clients a range of banking services. In the first year, the balance sheet figures in terms of assets grew to over 40 million pounds with the deposits reaching 35 million pounds. The Bank offered a rights issue in 1986 thus enabling more trade unions to buy shares. Fifty-eight trade unions were now members of the bank. After the passage of Public services (social value) Act 2012, Birmingham has experienced the emergence of many social enterprise s. The Act enables the stakeholders to become members of the social enterprises and introduces several tools for the identification of the social impact (Price, 2009 P. 52). The major responsibilities of social enterprises include encouraging community involvement, encouraging of equal opportunities and supporting a green economy. Social enterprises should also encourage sustainability initiatives like recycling and encourage fair trading practices (Doherty & Thompson, 2006 p.40). Social enterprise based organisations have innovative and people-friendly solutions that aim at creating positive change in the society unlike the traditional corporate world that is geared at profit maximisation (Nicholls, 2006 p.18). Most social enterprise based organisations work with poor communities and provides the staff with flexible working schedules. According to the UK department of Trade and Industry (DTI), socially based enterprises have primary social objectives whereby the surplus is reinvested

Evaluation report Assignment Example | Topics and Well Written Essays - 250 words

Evaluation report - Assignment Example It has also helped me overcome my initial hesitation in confronting and communicating before an audience. Besides, the detailed lectures augmented by relevant notes from my tutor have helped me to organize my ideas and present them in a comprehensive and coherent manner through the assignments given in the class. Another significant aspect of the class has been the manner in which it has imbibed in me a sense of responsibility and the need to submit assignments in time by honoring the deadline. Thus, I have been able to hand in the print out of my assignment in time without any hassles. In view of the major benefits the class has offered me, I have not been able to discern any significant shortcomings in the class. The only minor issue that I can point out is the delay in updating the grades and communicating it so that I can know my position. I personally feel that if instructor could return the marked assignments with feedback a bit earlier, it will help the students to avoid similar mistakes in the next assignments. Such feedback, if received earlier, will help them to significantly increase their scores in future tasks. Similarly, it will make the learning process easier and less cumbersome, if the assignments during summer are reduced as this is not a convenient season to spend long hours on

Cogeneration And Trigeneration Methods Engineering Essay

Cogeneration And Trigeneration Methods Engineering Essay Cogeneration and trigeneration are methods used for producing more than one useful form of energy from only one energy source. These two methods in todays world are very important because efficiency, fuel prices and emissions are a great a concern. Both methods give the opportunity to increase efficiency drastically up to 60% to 80% which is much more than the conventional power plant which has an efficiency of about 30%.  [1]   The 60% to 80% efficiencies that both methods present have a great effect on cost savings, reduced air pollution, greenhouse gas emissions, increased power reliability and quality, reduced grid congestion and avoided distribution losses.  [2]  All these factors mentioned, as discussed before are all important and cogeneration and trigeneration help achieve this. Both systems are normally combined but I will explain both cogeneration and trigeneration separately and then give examples were these systems are used in real life. Cogeneration Cogeneration is also known as combined heat and power (CHP). Plants using a cogeneration system use the exhaust of for example a reciprocating engine to heat the premises. This means that instead of throwing away the exhaust, it is being reused but this time as heat energy. This is done by using a heat exchanger to transfer heat from the exhaust gas to process heat. Cogeneration produces a given amount of electric power and process heat with 10% to 30% less fuel than it takes to produce the electricity and process heat separately.  [3]   Cogeneration Combined Heat and Power Figure 1: Cogeneration diesel engine generator plant  [4]   Figure 1 above shows a diesel engine driving a generator. Fuel in the form of natural gas, bio gas or bio diesel is used to run the engine. The engine is coupled to a generator which produces electricity. The plant above shows two heat exchangers, one for cooling the engine and raising the used cold water coming from process heat and the other is an exhaust gas heat exchanger only to raise again the temperature of the water for process heat. The water cooling the engine which is normally at around 90oC enters the heat exchanger (bottom one) which by heat transfers and the second law of thermodynamics is cooled but the cold waters temperature is raised. In the exhaust gas heat exchanger the temperature of the water already heated in the bottom heat exchanger is heated again and sent for process heat. A simple example is, imagine a hotel having a generator to produce electricity and at the moment its full of guests and the ambient temperature outside is around 2oC below zero. This means that the central heating needs to be running constantly to keep the guests in a comfortable environment. Therefore a lot of fuel is being used to heat up the boilers to produce steam for central heating. Imagine the hotel employs the plant shown in figure 1. No fuel will be used for heating because the fuel used to run the engine is also being used (indirectly) for process heat. There exist two main types of cogeneration techniques which are topping cycle and bottoming cycle plants. Topping cycle cogeneration plant Topping cycle plants generate electricity or mechanical power first. Some facilities may generate the electricity for themselves only and some may even sell any power that is not being used. There exist four types of topping cycle cogeneration plants. Combined cycle topping system The first type burns fuel in a gas turbine as shown in figure 2 or diesel engine to produce electrical or mechanical power. Process heat, or steam that then drives the secondary steam turbine is produced by the exhaust entering a heat recovery boiler.  [5]   Figure 2: Combined cycle topping system  [6]   Steam turbine topping system The second type of system burns fuel which can be any type to produce high-pressure steam that then passes through a steam turbine to produce power. The exhaust provides low-pressure process steam as shown in figure 3.  [7]   Figure 3: Steam turbine topping system  [8]   Heat recovery topping system This type burns a fuel such as natural gas, diesel etc. The cooling system (engine coolant) goes to a heat recovery boiler, where it is converted to process steam and hot water for space heating. Figure 4: Heat recovery topping system Therefore this type produces electricity, process steam, hot water supply and heating as shown above in figure 4.  [9]   Gas turbine topping system This type of system uses a natural gas turbine to drive a generator. The exhaust gas goes to a heat recovery boiler that makes process steam and process heat as shown in figure 5.  [10]   Figure 5: Gas turbine topping system  [11]   Bottoming cycle plants These type of plants are less common then topping cycle plants. Normally this type of plant is used in heavy industries where high temperature furnaces are used. https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhtieUKiVDJaL-zseFmqTP1GKX83Q8Mm-UkZSiqtTcBl9LuBitsUN2NFyfT2RhANWLRDuGZCBJBAXmN5PsY-GEZ05DbajP5dQKusdyVB5JXygXdMmAmESBLcptvy-h5DjPuh78RZf4xCMg/s1600/bottoming-cycle-system-cogeneration.jpg Figure 6: Bottoming cycle system  [12]   After heating the furnace or any manufacturing heating process the waste heat is then passed through a recovery boiler. The waste heat is used to produce heat which then drives a steam turbine to produce electricity. Trigeneration Trigeneration also referred to combined heating, cooling and power (CHCP) is a system where this time three types of energies are produced from one energy source. The difference between cogeneration and trigeneration is that in trigeneration chilled water for air conditioning or process use is produced. This is done by using an absorption or adsorption chiller. Just as a cogeneration power plant captures and makes use of the waste heat, absorption or adsorption chillers capture the waste (or rejected) heat and produce chilled water.  [13]   Therefore the major advantage over cogeneration is that now if a plant works using trigeneration, hot water, air conditioning (using chilled water) and power generation. Therefore an industry having this system will spend less money due to having a more efficient plant when compared to cogeneration and especially when compared to conventional plants. Adsorption Chiller An adsorption chiller works purely using hot water. It uses the principle of using solid sorption materials such as silica gel and zeolites. http://www.raee.org/climatisationsolaire/graph/new/adsorption_sh.gif Figure 7: Schematic for an adsorption chiller  [14]   These type of chillers have a strong structure and are easy to install. There are no possibilities of crystallization, corrosion, hazardous leaks, and the electricity consumption is minimal  [15]  . They are commonly used in a commercial environment. Absorption Chiller An absorption chiller works by using hot water, steam or combustion. The solution used contains water and lithium bromide salt to absorb heat from the surroundings. No refrigerant is used which means no harm is done to the environment. http://www.raee.org/climatisationsolaire/graph/new/absorption.gif Figure 8: Schematic for an absorption chiller  [16]   Absorption chillers are the most distributed worldwide and they are more efficient. Their lifetime is much longer than adsorption chillers. Moreover they have high maintenance time and low corrosion protection.  [17]   Say something small about trigenerators and put schematic of plant.

Parked Cars Can Be Death Traps for Kids :: Safety Death Children Essays

Parked Cars Can Be Death Traps for Kids Imagine sitting in a hospital waiting room anticipating the results of the tests being run on your only child. You were lucky though; at least he is alive. You had no idea that he was in your car. You can not imagine how traumatic it could have been for him to be trapped in his own car. Finally the doctors come to tell you the news. He has brain damage, and he will never fully recover. He may never walk again and he will never live the life of a normal child. These events occurred because you did not make the effort to assure your child was not unattended in your vehicle. â€Å"At least 19 children died during the summer of 1999 because they were trapped in hot cars, according to data being released by a children’s safety group† ( O’Donnel 1). Some parents run in the post office, pay for gas, buy a pack of cigarettes, or even go shopping while their children sit in a hot vehicle. â€Å"A National Safe Kids Campaign survey shows that 10% of parents believe that children can be unattended in a car. That number increases to 20% for parents 18 to 24 years old. And 50% of parents report that they don’t lock their vehicles† ( O’Donnel 5). Children should not be left unattended in a car for any reason. A child left unattended in a car could die. The extreme temperatures cause the child to overheat, which leads to death. The child could have severe brain damage. The heat could not be so extreme it causes death, but brain damage can be just as traumatic. The child could climb into the car if left unlocked. Many parents are not aware that their children are in their vehicles. The results of leaving a child unattended in a car can be fetal. Many parents don’t understand the severity of leaving a child alone in a vehicle. Assuring that your child is never unattended in a vehicle is very important during hot weather when temperatures inside a parked car can soar to deadly levels in minutes. â€Å"John McDonnel put a thermometer, which was set at about 98 – degrees, and let it sit in a car in the hot sun for several hours.

My Life Without Me †Individuality in conflict with societal roles Essay

Sacrificing one’s own options and choices in life, making decisions based on the role of being a good parent and aiming to advance future generations by renouncing own opportunities are ideals that have sustained in many cultures. But why is there a stronger emphasis on fulfilling societal roles and sacrificing own interests to fulfil such norms, if individualisation is such a high value in modern, especially western, society? There are dire consequences for society when people sacrifice their own self-fulfilment in order to fulfil obligations that have been thrust upon them. In the first few moments of My Life Without Me (Coixet 2003) Ann explains the problem with the life that she has lived up to that point. As the title suggests, she has lived it without her self: she explains who she is, as if realising for the first time that she actually exists and is a real person, a character. Ann is merely 23 years old and has lived her life up to the expectations that have been forced upon her: she gets pregnant with 17 and from then on she is but a mother and a wife and the main breadwinner of her family. In western modern society the concept of individualisation as the social advancement of individual ideals, autonomy, freedom and the pursuit of happiness is repeatedly referred to as one of the most important rights an individual has. In addition, an increase in the legitimacy and postulation of individual self-realisation and the cultivation of individual originality has taken place (Willems 2012: 147). With Ann we are shown an example of the problem that occurs, when there is a plain conflict of interest between the roles that have been sprung upon an individual, such as the role of a mother, even at merely 17, and the development of an individual identity, self-realisation and pursuing ones own personal interests. Even in the list of the ten things Ann wishes to do before she dies, her priorities are clear: the first half of the list are all things immediately associated with her role in her family. The things she wants to do for herself come last. In one scene, when she is asked in a bar what her favourite music is, she starts by saying she hasn’t listened to music in a long time, and that she used to like Nirvana. Immediately she drifts off to talking about how she met her husband there. She isn’t able to say what her favourite music is now, because she has ceased to do anything for herself. Ann, as an individual, faces society, while the society is made entirely out of individuals that have norms and expectations. If one considers these two components separately and ignores the context and reciprocal relationship, one creates an unbridgeable gap, which can lead to problems in the analysis of Ann’s character and the conflict she finds herself in. If one takes into consideration Ann’s circumstances, it becomes clear that Ann lives in Canada and finds herself in a religious society, that does not accept abortion for example as a given privilege and choice. When she realises she is pregnant at 17, it is obvious that she must get married, assume her role as a mother and must prioritise this role over all else. As Marcuse describes, two manifestations of the individual have developed in recent history, and although they are related to each other reciprocally, this dichotomy leads to a conflict in society. First, there is a tendency towards the development of a free individual and intellectual subject, and on the other hand there is the development of a free economic subject in free competition. A separation occurs between the struggle of the individual for his autonomy and the development of his self, and, at the same time, in a fight for its existence. Ann is forced to work and provide for her family, while her autonomy is strongly compromised. She takes care of the children, fully assuming and prioritising that role, rather than pursuing or even having dreams of her own. This shows that there is not only pressure from society to survive and provide financially for herself and her family, but also a moral obligation to prioritise her role as a wife and mother. Ann does not become aware of the compromises she has made towards her own identity and individuality, until she knows she is going to die soon. Through the role she has assumed, her self-fulfilment and expression presenting her individuality have been compromised. This is the price she has to pay for fulfilling her material and moral obligation. Questionably, compromises like these have consequences for societal structures as well as for the individuals one finds therein. The film depicts a subtle answer to the question of what the consequences from such compromises and conflicts are. An important factor is that Ann never tells anyone she is going to die. She solves the conflict of interest in her life by living her up to her new-found individuality separate from her traditional family life. The integration of these two lives would be ever so filled with conflicts, that she decides to start living a double-life instead: one in which she lives up to the expectations and her role as a loving wife and mother and another in which she pursues all the things she feels she has missed out on, like smoking, drinking and sleeping with another man. These two currents are not reconcilable. Another consequence is that Ann has very concrete plans for how the life of the others should go on, once she is gone. She acts manipulatively, by trying to introduce her husband to a woman she thinks should take her place, or by recording birthday messages for her children and advising them on how to act. Though one sympathises with Ann as a loving mother and wife that wants the best for her family even after she is gone, it seems paternalistic. While it seems selfless and kind of her to want her husband to have a nice children-loving companion when she is gone, the way she chooses someone over his head and manipulates the situation without his knowledge or his say to the matter, seems downright scheming and even patronising. While it is beautiful and touching of her to record all the messages for her childrens’ birthdays for them, it seems like she does not only have loving and encouraging words to stay, but is much rather trying to influence them on how to act and to behave in the future. It seems like the price she has paid in fulfilling her role, rather than indulging her own self, has had this effect on her. This very much reminds me of the sacrifices that many parents make for the next generations to come, especially of young immigrants, that wish for a better life for their children. Parents, as the first reference of what is right and wrong and important, influence their children strongly, especially in respect to education and how to determine their life. A mediation of the parents’ culture on to the children takes place and while the participatory influence parents have is hard to measure and define, it is obvious that a lot of elements in the behaviour of second-generation immigrants can be accounted to their parents (Farsi 2013: 100 ff. ). These parents sacrifice their home country and the fulfilment of their own dreams and individuality, in order to fulfil the obligation that has been thrust upon them: to provide the best chances and education they can for their children. While these intentions, like the intentions of Ann, are noble and entrenched with morality, the outcome is often paternalism. If one sacrifices self-realisation, self-fulfilment and the expression of ones own individuality for the role of being a great parent, the outcome is often a paternalistic attitude towards the pursuit of the rest of the family, especially the children. Furthermore when Ann knows she will die and leave her family, she knows she will lose her influence on them, which is why she decides to influence them as much as she can before, and ensure that her daughters and her husband live their life the way she thinks they should. The influence of parents that are immigrants lessens when the are in a different atmosphere and culture. The values they have been brought up with often get lost in western society, especially when they come from a middle eastern background. Much like Ann’s death, that will eliminate her influence on her family, it seems the influence of cultural values also â€Å"dies† once the environment is changed by the removal and replacement through modern western societal values. The stand-up comedian Amir K. explains this matter in his sketch on his father (K. 2011). The reason the audience appreciates and laughs about his performance, lies in the woeful cliche of the portrayal of his father. He depicts the disappointment of a typical middle eastern father who shouts at his son for pursuing a career in a path he does not deem appropriate, in his case stand-up comedy. He quotes his father in saying â€Å"You waste of education, waste of my money† or â€Å"You’re a fucking clown? I brought you to this country to be a clown? You can be a lawyer, you can be a doctor, you can open up a bank†¦ [but instead you choose a career in comedy]†. The reason especially young immigrants of the second generation can laugh at this is because it is so common for parents to have paternalistic expectations towards the career paths and norms and values that their children should live by. Similar to the case of Ann, it seems that the sacrifice of their own individuality for their role as a good parent, and the loss of their influence on the other hand, could lead to such a paternalistic attitude and the attempt to manipulate and coerce their values and their idea of how the children should live their lives. While I do not wish to condemn Ann’s love and care for her children, just like the sacrifices immigrant parents make for future generations, one must take into consideration that when dynamics of society thrust roles onto individuals that imply sacrifice of ones own self for the well-being of another and giving up the pursuit of one’s own expression of individuality, problematic, paternalistic relationships can occur. What begins as a well-intended sacrifice out of love, could end in a relationship in which choosing ones own path is something that none of the parties involved can pursue without a feeling of guilt. Bibliography Farsi, Armand (2013): Migranten auf dem Weg zur Elite? Zum Berufserfolg von Akademikern mit Migrationshintergrund. Online-Ausg. : Berlin [u. a. ] : Springer, 2013. DOI: 10. 1007/978-3-658-01564-0 Marcuse, Herbert (1970): Ideen zu einer kritischen Theorie der Gesellschaft. Suhrkamp Verlag, Frankfurt am Main Willems, Herbert (2012): Synthetische Soziologie – Idee, Entwurf und Programm. VS Verlag fur Sozialwissenschaften, Wiesbaden Internetquellen: K. , Amir (2011): Middle Eastern Dad. http://www. youtube. com/watch? v=JCxMWWf4_Ww Seen 24. 11. 13 20:11.

Net Present Value/Present Value Index

Net Present Value/Present Value Index The management team at Savage Corporation is evaluating two alternative capital investment opportunities. The first alternative, modernizing the company’s current machinery, costs $45,000. Management estimates the modernization project will reduce annual net cash outflows by $12,500 per year for the next five years. The second alternative, purchasing a new machine, costs $56,500. The new machine is expected to have a five-year useful life and a $4,000 salvage value. Management estimates the new machine will generate cash inflows of $15,000 per year.Savage’s cost of capital is 10%. Required a. Determine the present value of the cash flow savings expected from the modernization program. Using the data from Appendix on page 1169 of our text 15000*3. 790787 = 47,385, which should be the PV cash flow savings expected from the first option of modernization program. b. Determine the net present value of the modernization project. I believe the NPV of the 1st project is calculated by subtracting current machinery, costs $45,000 from the figure above which equals 2,385. 00 c. Determine the net present value of investing in the new machine.This is determined by valuing the future cash flows. Using the same appendix in table 2 data, annual cash flow of 15,000 * 3. 790787 =56862. 00 Salvage cost of 4,000 * . 620921 (table 3 on page 523) = 2484. 00 Total=59,346. 00 less the cost of machinery 56,500 = 2486. 00 as the NPV d. Use a present value index to determine which investment alternative will yield the higher rate of return. PI= $15,000*. 620921/56,500 = . 16 This investment is not acceptable because it has a PI of less than 1. 0 therefore the modernization project or the first alternative will have higher rate of return.Exercise 24-4A Determining the present value of an annuity The dean of the School of Social Science is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machi ne would add to student convenience, but the dean feels compelled to earn an 8 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $8,000 per year.The machine is expected to have a three-year useful life with a zero salvage value. Required a. Use Present Value Table 1 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine. Years 1 – 3; where N = 1 r at 8%, N =2, [email  protected] 8%, N = 3 r @ 8% 8000*. 925926 = 7,407. 41 8000*. 857339 = 6,858. 71 8000*. 793832 = 6,350. 66 Present Value / Ordinary Annuity = ($) 20,617. 00 Present Value / Annuity-Due = ($) 22,266 b. Use Present Value Table 2 in Appendix A to determine the maximum amount of cash the dean should be willing to pay for a copy machine.Based on table 2 in appendix a, the maximum am ount of cash the Dean should be willing to pay for a copy machine is ($) 20,617. 00 c. Explain the consistency or lack of consistency in the answers to Requirements a & b. The consistency in the answers are so seeing that table 2 in appendix A appears to be the sum of the PV for each of the 3 years in table 1. Exercise 24-8A Determining the internal rate of return Medina Manufacturing Company has an opportunity to purchase some technologically advanced equipment that will reduce the company’s cash outflow for operating expenses by $1,280,000 per year.The cost of the equipment is $6,186,530. 56. Medina expects it to have a 10-year useful life and a zero salvage value. The company has established an investment opportunity hurdle rate of 15 percent and uses the straight-line method for depreciation. Required a. Calculate the internal rate of return of the investment opportunity. YearExplanationCash FlowDiscount Factor 1 (hurdle rate of 15)DiscountDiscount Factor 2Cash Flow @Disc ount 0Cost to purchase some technologically advanced equipment(6,186,530. 56)(6,186,530. 56) 1,280,0005. 01877$6,424,0264. 6565,959,680Net present value$$237,495($226,851) b. Indicate whether the investment opportunity should be accepted. The Internal Rate of Return appears to be higher than the established investment opportunity hurdle rate of 15 percent therefore it would be a good idea to accept this investment opportunity. Exercise 24-6A Determining net present value Travis Vintor is seeking part-time employment while he attends school. He is considering purchasing technical equipment that will enable him to start a small training services company that will offer tutorial services over the Internet.Travis expects demand for the service to grow rapidly in the first two years of operation as customers learn about the availability of the Internet assistance. Thereafter, he expects demand to stabilize. The following table presents the expected cash flows. Year of Operation Cash Infl ow Cash Outflow 2006 $5,400 $3,600 2007 7,800 4,800 2008 8,400 5,040 2009 8,400 5,040In addition to these cash flows, Mr. Vintor expects to pay $8,400 for the equipment. He also expects to pay $1,440 for a major overhaul and updating of the equipment at the end of the second year of operation. The equipment is expected to have a $600 salvage value and a four-year useful life. Mr. Vintor desires to earn a rate of return of 8 percent. Year ExplanationinflowsoutflowsNet Discount @8%Discounted 2006 beginningCost of equipment $ – $ 8,400 $ (8,400)1 $ (8,400) 2006Operational cash flows $ 5,400 $ 3,600 $ 1,800 0. 925926 $ 1,667 007Operational cash flows $ 7,800 $ 4,800 $ 3,000 0. 857339 $ 2,572 2007Major overhaul $ – $ 1,440 $ (1,440)0. 857339 $ (1,235) 2008Operational cash flows $ 8,400 $ 5,040 $ 3,360 0. 793832 $ 2,667 2009Operational cash flows $ 8,400 $ 5,040 $ 3,360 0. 73503 $ 2,470 2009Salvage value of equipment $ 600 $ – $ 600 0. 73503 $ 441 Net present value of Investment Opportunity $ 182 Required (Round computations to the nearest whole penny. ) a. Calculate the net present value of the investment opportunity. . Indicate whether the investment opportunity is expected to earn a return that is above or below the desired rate of return and whether it should be accepted. General rule with NPV is that if NPV of a prospective project is positive, it should be accepted. However, if NPV is negative it should not be accepted. The calculations, If correct present a positive NPV therefore the investment opportunity should be accepted. Problem 19-24A Assessing simultaneous changes in CVP relationships Green Shades Inc. (GSI) sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each.GSI incurs $250,000 of fixed operating expenses annually. Required a. Determine the sales volume in units and dollars required to attain a $50,000 profit. Sales = Contribution Margin per Unit = Revenues per Unit – Variable Expenses per U nit = 250,000 + 50,000/125 – 75= 6,000 in units Verify your answer by preparing an income statement using the contribution margin format. Break-even Sales Dollars = Sales Price per Unit ? Break-even Sales Units Break-even Point in Sales Dollars = 125 * 6000 = 750,000 Income Statement Green Shades Inc. As of October 17, 2012 Sales750,000 Variable Costs(450,000)Contribution Margin300, 000 Fixed Costs250,000 Net Income 50,000 b. GSI is considering implementing a quality improvement program. The program will require a $10 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional $20,000 for advertising. Assuming that the improvement program will increase sales to a level that is 3,000 units above the amount computed in Requirement a, should GSI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. Income Statement Green Shades Inc. As of October 17, 2 012Sales1,125,000 Variable Costs(765,000) Contribution Margin360, 000 Fixed Costs(270,000) Net Income 90,000 The company might want to consider going forward seeing the likelihood of profitability. c. Determine the new break-even point in units and sales dollars as well as the margin of safety percentage, assuming that the quality improvement program is implemented. Fixed Costs/Contribution Margin per Unit = 270,000/ 125-85 = 6750 Break-even Sales Dollars = Sales Price per Unit ? Break-even Sales Units Break-even Point in Sales Dollars = 125 * 6750= 843,750 Margin of SafetyMeasured in UnitsMeasured in DollarsSales @ Budged 90001125000 Break Even6750843,750 Margin2250281,250 281250/1125000 =. 25 or 25% Problem 18-17B Process cost system cost of production report At the beginning of 2004, Dozier Company had 1,800 units of product in its work in process inventory, and it started 19,200 additional units of product during the year. At the end of the year, 6,000 units of product were in t he work in process inventory. The ending work in process inventory was estimated to be 50 percent complete. The cost of work in process inventory at the beginning of the period was $9,000, and $108,000 of product costs was added during the period.Required Prepare a cost of production report showing the following. a. The number of equivalent units of production. Equivalent units of production ACTUALEquivalent Beginning 1,800 Additional units of product19,200 Total21,000 Ending6,000 @50%3,000 To be transferred15,000 @100%15,000 Total21,00018,000 b. The product cost per equivalent unit. Beginning is 9,000 added to production of 108,000 to total 117,000 c. The total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts. 117,000/18,000 = 6. 50 cost per unit 15000*6. 50 = 97,500 finished goods 000 of equivalent units above*6. 50= 19,500 Total 117,000 Problem 15-17A Identifying cost behavior Required Identify the following costs as fixed or varia ble. Costs related to plane trips between San Diego, California, and Orlando, Florida, follow. Pilots are paid on a per trip basis. a. Pilots’ salaries relative to the number of trips flown. variable b. Depreciation relative to the number of planes in service. variable c. Cost of refreshments relative to the number of passengers. variable d. Pilots’ salaries relative to the number of passengers on a particular trip. ixed e. Cost of a maintenance check relative to the number of passengers on a particular trip. fixed f. Fuel costs relative to the number of trips. variable National Union Bank operates several branch offices in grocery stores. Each branch employs a supervisor and two tellers. g. Tellers’ salaries relative to the number of tellers in a particular district. variable h. Supplies cost relative to the number of transactions processed in a particular branch. variable i. Tellers’ salaries relative to the number of customers served at a particular br anch. Fixed j.Supervisors’ salaries relative to the number of branches operated. Fixed k. Supervisors’ salaries relative to the number of customers served in a particular branch. Fixed l. Facility rental costs relative to the size of customer deposits. Fixed Costs related to operating a fast-food restaurant follow. m. Depreciation of equipment relative to the number of restaurants. variable n. Building rental cost relative to the number of customers served in a particular restaurant. Fixed o. Manager’s salary of a particular restaurant relative to the number of employees.Fixed p. Food cost relative to the number of customers. variable q. Utility cost relative to the number of restaurants in operation. variable r. Company president’s salary relative to the number of restaurants in operation. Fixed s. Land costs relative to the number of hamburgers sold at a particular restaurant. Fixed t. Depreciation of equipment relative to the number of customers served at a particular restaurant. fixed Exercise 15-6B Fixed versus variable cost behavior Professional Chairs Corporation produces ergonomically designed chairs favored by architects.The company normally produces and sells from 5,000 to 8,000 chairs per year. The following cost data apply to various productions activity levels. Number of Chairs5,0006,0007,0008,000 Total costs incurred Fixed$ 84,000 Variable 60,000 Total costs$144,000 Per unit chair cost Fixed$16. 80 Variable12. 00 Total cost per chair$28. 80 Required a. Complete the preceding table by filling in the missing amounts for the levels of activity shown in the first row of the table. b. Explain why the total cost per chair decreases as the number of chairs increases.Exercise 15-12B Effect of cost structure on projected profits Logan and Martin compete in the same market. The following budgeted income statements illustrate their cost structures. Income Statements Company Logan Martin Number of Customers (a) 160 160 Sales Reven ue (n x $75) $12,000 $ 12,000 Variable Cost (n x $0) 12,800 Contribution Margin 12,000 (800) Fixed Cost (6,400) 0 Net Income (Loss) $ 5,600 $ (800) Required a. Assume that Logan can lure all 80 customers away from Martin by lowering its sales price to $75 per customer.Reconstruct Logan’s income statement based on 160 customers. b. Assume that Martin can lure all 80 customers away from Logan by lowering its sales price to $75 per customer. Reconstruct Martin’s income statement based on 160 customers. c. Why does the price-cutting strategy increase Logan’s profits but result in a net loss for Martin? This is so in that when sales to 160 clients at 75 (12,000), more revenue is produced as opposed to sales to a lesser amount (80 clients) at 125 (10,000). Fixed costs contributes to Logans increases in sales revenue. Exercise 16-9A Allocating overhead cost to accomplish smoothingMimosa Corporation expects to incur indirect overhead costs of $72,000 per month and direc t manufacturing costs of $11 per unit. The expected production activity for the first four months of 2007 is as follows. January February March April Estimated production in units 4,000 7,000 3,000 6,000 Required a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year. MonthJanuaryFebruaryMarchApriltotalEstimated production in units 400070003000600020000 72000*4/20,000=14. 40 per unit b. Allocate overhead costs to each month using the overhead rate computed in Requirement a. MonthJanFebMarchAprilTotal Rate14. 4014. 4014. 4014. 40 Base4,0007,0003,0006,000 Cost57,600100,80043,20086,400288,000 c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b. MonthUnits (A)Overhead (B)Cost (A*11)TotalCost Per Unit (d/a) Jan4000576004400010160025. 40 Feb70001008007700017780025. 40 March300043200330007620025. 40 April6000864006600015240025. 40