Archives: Solution Manual

CHAPTER 26 Capital Investment Analysis Prob. 26–3A (Concluded) $7,208,500 $8,000,000 *Rounded 3. The computer network has the largest present value index. Although ramp facilities has the largest net present value, it returns less present value per dollar invested than does […]

MODULE 45: Store Cards, Search Engines, and Customer Data Core Module Issues: • Should a company every sell customer data to other companies? • What if the company runs a search engine, and the data is a customer’s searches? Module […]

2. The principal limitations of the cash payback method are its failure to consider cash flows occurring after the payback period and its failure to use present value concepts. 3. The average rate of return is not based on cash […]

MODULE 44: Using “Bad” Things to Increase Profits Core Module Issues: • What, if any, legal products and services are “bad”. • Can companies ethically profit from selling such products and services? Module Teaching Notes Some students will be surprised […]

MODULE 43: Microinsurance Core Module Issues: • It is wrongful to offer “microinsurance” at prices that are not even close to the costs of providing the service? • Should companies be required to give consumers more information about microinsurance? Module […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Retail Store in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs […]

MODULE 42: Lending Practices Core Module Issues: • When are credit card interest rates unacceptably high? • When are payday loan interest rates unacceptably high? • Under what circumstances is it acceptable for credit card companies to lower customers’ credit […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue Discontinue Cups Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of […]

MODULE 41: Customer Deception: Who’s to Blame? Core Module Issues: • When are customers “unacceptably deceived”? • When customers are mislead, who is most to blame? Module Teaching Notes This module begins a new unit on special obligations to customers. […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Prob. 25–5A (Concluded) 6. a. Differential Reject Accept Effect Order Order on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $0 $180,000 $180,000 Differential Analysis Reject Order (Alt. 1) or Accept […]

MODULE 40: Rawls’ Veil of Ignorance and Fair Compensation Systems Core Module Issues: • What is Rawls’ Veil of Ignorance? • Is it a reasonable justification for egalitarian policies? Module Teaching Notes Many thinkers have offered arguments in favor of […]

CHAPTER 25 Differential Analysis, Product Pricing, and Activity-Based Costing Ex. 25–12 (Concluded) c. The price of Decaf Columbian would need to decrease to $11.50 per pound in order for the differential analysis to yield neither an advantage nor a disadvantage […]

MODULE 39: Taxes and Salaries: Egalitarian and Libertarian Policies Core Module Issues: • Should compensation policies be more egalitarian or libertarian? • Should taxation policies set by the government be more egalitarian or libertarian? Module Teaching Notes This module introduces […]

MODULE 38: CEO Compensation Core Module Issues: • At what point, if any, does executive compensation become excessive? • Does it matter whether a company is performing wel or poorly? • What, if anything, should be done about the issue? […]

MODULE 37: Job Applicants and Credit Reports Core Module Issues: • Should companies check applicants’ or employees’ credit scores? • If so, at what point should applicants be excluded from consideration, or employees be fired, because of their credit scores? […]

MODULE 36: Background Checks and Social Networking Websites Core Module Issues: • Should a company look at Facebook pages when making hiring decisions? • If so, what kinds of postings should hurt an applicant’s chances of being hired? Module Teaching […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Electronics Division: […]

MODULE 35: Drug Testing and Polygraph Testing Core Module Issues: • When should a company require employees to submit to drug testing? • When should a company require employees to submit to polygraph (lie detector) testing? • What should a […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Customer service salaries Insurance […]

MODULE 34: Email Surveillance Core Module Issues: • Should companies make “targeted searches” of employee computers if the employee behaves suspiciously? • Should employees be fired if incriminating evidence is uncovered? Module Teaching Notes The last module looked at whether […]

An asterisk (*) will appear to the right of an incorrect entry. Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Less service department charges: Tech Support Dept. Purchasing Dept. Income from continuing […]

MODULE 33: Monitoring Software Core Module Issues: • Is it reasonable for a company to use software to monitor what its employees do with their computers? • If so, should the workers be given notice? • Should workers be fired […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–3B 1. Fee revenue Mutual Fund Division: $1,159,200 $4,140,000 $4,140,000 $5,175,000 = 28.0% × 0.80 = 22.4% Electronic Brokerage Division: $268,800 $3,360,000 $3,360,000 $1,120,000 ROI = × = 8.0% × 3.00 = […]

MODULE 32: Employee Behavior Away from the Office Core Module Issues: • When should “off duty” behavior have an effect on an employee’s job? • How should a worker who misbehaves while off duty be disciplined? In the scenario, seven […]

CHAPTER 24 Performance Evaluation for Decentralized Operations Prob. 24–1A 1. Over Under Budget Actual Budget Budget Customer service salaries $ 546,840 $ 602,350 $ 55,510 Insurance and property taxes 114,660 110,240 $ 4,420 2. The customer service and marketing salaries […]

MODULE 31: Resume Fraud Core Module Issues: • Are there “degrees” of resume fraud, or are all misrepresentations equally unacceptable? • Should candidates be automatically disqualified for any resume misrepresentation? Module Teaching Notes You might want to start this discussion […]

1. In a centralized operation, all major planning and operating decisions are made by top management . In a decentralized operation, managers of separate divisions or units are delegated operating responsibility. The division (unit) managers are responsible for planning and […]

MODULE 30: Firing Workers Responsible for a “Big Problem” Core Module Issues: • When a “big problem” emerges, does a company need to find a “fall guy” and fire him? • If so, who should the “fall guy” be? • […]

MODULE 29: The Family and Medical Leave Act and “Fake Illnesses” Core Module Issues: • How much should a company investigate if an employee claims an illness? • What should a company do if evidence emerges that the employee is […]

MODULE 28: Employee Perspective: Sexual Harassment and Workplace Dating Core Module Issues: • Are employees ethically required to strictly adhere to dating restrictions in contracts? • If not, why not? Module Teaching Notes This module compliments the last one, and […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a.  Manufacturing costs: Direct labor Direct materials Factory overhead Total b. (Favorable) Unfavorable Manufacturing costs:  Direct labor Direct materials […]

MODULE 27: Company Perspective: Sexual Harassment and Workplace Dating Core Module Issues: • Should companies seek to prevent employees from becoming romantically involved by creating no dating policies? • If so, what should the consequences be if workers do become […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Prob. 23–5B 1. Actual hours provided (3 × 40 hrs.)…………………………………………… … 120 Standard hours required for the original plan*……………………………… … 117 2. Actual hours provided (3 × 40 hrs.)…………………………………………… … 120 […]

MODULE 26: “Don’t be a Hero” Policies Core Module Issues: • Are businesses, and especially retailers, wise to have policies that prohibit employees from intervening to stop shoplifting and other kinds of crime? • If so, is it appropriate to […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Prob. 23–3A (Continued) c. Variable factory overhead controllable variance: $16,680 Fixed factory overhead volume variance: Normal capacity at 100%……………………………………… 3,200 hrs. Standard for amount produced……………………………… 3,000 Productive capacity not used……………………………… … […]

MODULE 25: Layoffs and Health Care Core Module Issues: • Should an organization every consider a worker’s need for company– sponsored health care when making decisions about downsizing? • If so, under what circumstances? Module Teaching Notes Even more than […]

CHAPTER 23 Performance Evaluation Using Variances from Standard Costs Ex. 23–15 Direct labor hours 18,000 20,000 22,000 Variable overhead cost: Indirect factory labor $162,000 $180,000 $198,000 Power and light 10,800 12,000 13,200 LENO MANUFACTURING COMPANY Factory Overhead Cost Budget—Press Department […]

MODULE 24: No Compete Agreements and Arbitration Clauses Core Module Issues: • Are no compete agreements acceptable? If so, when? • Are arbitration clauses acceptable? If so, when? Module Teaching Notes This module examines two issues that are related in […]

MODULE 23: Workplace Diversity Core Module Issues: • Should organizations adopt diversity/affirmative action policies? • If so, under what circumstances? • If not, why not? Module Teaching Notes This module focuses squarely on diversity in the workplace, and on affirmative […]

chapter 23 Performance Evaluation Using Variances from Standard Costs ______________________________________________ OPENING COMMENTS Standard cost systems set budgets for the materials, labor, and factory overhead used by a manufacturer to produce its product. Deviations from these standards are reported as variances. […]

MODULE 22: Layoffs in Good Economic Times Core Module Issues: • When can a company ethically terminate workers who are performing reasonable well? • Is the answer different in good and bad economic times? Module Teaching Notes Since most workers […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. June July August Estimated cash receipts from: Cash sales Collections […]

MODULE 21: Extreme Hours Core Module Issues: • Is it reasonable for companies to require workers to put in 50, 60, or 70 hours a week? • Are extreme workweeks contributors to societal problems? • Should the Fair Labor Standards […]

Fabrication Assembly Department Department Total Hours required for production: Bird house 634 951 Bird feeder 1,192 1,043 5. Power and light 6,000 Insurance and property tax 5,000 Total 109,000$ Indirect factory wages 75,000$ Depreciation of plant and equipment 23,000 6. […]

MODULE 20: Weight Discrimination Core Module Issues: • Is it ever acceptable to discriminate on the basis of weight? • If so, under what circumstances? • Are distinctions based on weight equally acceptable/unacceptable when they impact customers and employees? religion, […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent 8″ x 10″ Frame: East Central West 12″ x 16″ Frame: East Central West 2. 2017 2016 Percentage Budgeted Actual Increase Units […]

MODULE 19: Marketing in the Public Schools Core Module Issues: • When is it appropriate to advertise products in the public schools? • When is it appropriate to sell actual items in the public schools? Module Teaching Notes This final […]

An asterisk (*) will appear to the right of an incorrect entry. Rubber Steel Belts Total Pounds required for production: Passenger tires 1,470,000 210,000 Truck tires 1,482,000 152,000 Score: Instructions Answers are entered in the cells with gray backgrounds. ON […]

MODULE 18: Ethical Selling: Labeling Sleight-of-Hand Core Module Issues: • Do food producers have any labeling obligations beyond those strictly imposed by law? • Is the answer different if a company deliberately tries to stretch laws as far as possible? […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. Enter a zero in cells you would otherwise leave blank. a. September October November December Estimated cash receipts from: Part-time job […]