Consider a fast food café of your choice. Apply 4 V’s of Operation. Describe each V as ‘High’, ‘Low’ or ‘Moderate’ with one liner reason.
4 V's of Operation
The 4 V's of operation are Volume, Variety, Variation, and Visibility. Let us take Mrs. Happy Food Cafe with over 100 outlets in Fiacton Town, as an example to illustrate the 4 V's of operation.
Volume: As a food cafe, the volume of production that will be required for some foods and drinks is so high that their provision requires repetitive tasks. Based on this, procedures are normally standardized in order to achieve low cost for foods and drinks. However, it is harder to standardize services, since personal touches are added by the servers based on their individual perceptions and abilities.
Variety: Mrs. Happy Food Cafe tries to bring some variety in her offerings to satisfy the various needs of her customers. While variety is naturally low in the Food Cafe sector, some cafes like Mrs. Happy Good Cafe, try to satisfy customers' demands by varying the foods with Continental, African, Latino cuisines and dishes.
Variation: At Mrs Happy Food cafes, the food and drinks do not vary much as customers expect to be served the same quality of services at any of their cafes. This is because the processes are standardized to achieve low cost. So, the variation is moderate.
Visibility: Customers of Mrs Happy Food cafes are not able to see and track their experiences of the the processes for the food preparation that they order. But, they can track the processes for the services because services are consumed as they are offered. So, visibility is 'Moderate," as it is divided between the hard goods and the soft goods. With respect to goods visibility is 'Low.' However, with respect to the services the customers' visibility of processes is high.
The 4 V's of operation describe the different characteristics of the processes that various entities use to transform their inputs into outputs of goods and services. They may be high, low, or moderate. They include, volume, variety, variation, and visibility.
Stonehall Inc. recently borrowed $685,000 from its bank at a simple interest rate of 10 percent. The loan is for eight months and, according to the loan agreement, the interest should be added to the amount borrowed and the total amount will be repaid in monthly installments. The loan's annual percentage rate (APR) is:________a. 20.00% b.18.25% c. 15.05% d. 13.33%
Monthly loan payment
= (685000*10%*8/12 + 685000)/8
PV = -685000
Nper = 8
Using RATE function
Therefore, The loan's annual percentage rate (APR) is 20%.
Illegal multilevel marketing gimmick that promises commissions on one's own sales as well as on the sales of recruits
Illegal multilevel marketing gimmick that promises commissions on one's own sales as well as on the sales of recruits called Pyramid scheme.
What is pyramid scheme?
A pyramid scam is an unethical and unreliable investment pitch that depends on guaranteeing irrational profits on fictitious investments. The fact that the early investors receive these substantial returns prompts them to endorse the program to others. Returns to investors are paid from fresh capital coming in. When there are no more investors left, the pyramid eventually falls.
These businesses, sometimes known as pyramid schemes, are prohibited in the United States.
What is multi level Marketing?
Distributors profit from the sale of tangible goods and from commissions on the purchases and sales of the distributors they have recruited through Multi-Level Marketing operations (MLMs), which are respectable business schemes.
Although they sometimes pass for MLMs, pyramid schemes are more concerned with the fees from recruiters than the money from product sales.
2. "Because corporations do not actually raise any funds in secondary markets, secondary markets are less important to the economy than primary markets." Do you agree with this argument? Why, or why not?
I disagree with this argument, it can be said that the secondary market is equally or more important than the primary market, due to the fact that it is the secondary markets that determine what will be the prices that the companies that issue bonds will sell in the primary market.
Secondary markets can also be considered to be responsible for making securities easier to sell in the primary market due to their greater liquidity.
Review the liabilities section of the balance sheet for Rings and Things. What problem can you identify with the payroll information, particularly as it relates to how much the one employee gets paid? What solution would you offer Janet and Omar?
The question asks to identify a problem in the liabilities section of a balance sheet, specifically in the payroll information, and suggest a solution. Possible issues could be inaccurate payroll calculations or inconsistencies between records. A possible solution could be auditing the payroll and implementing regular checks.
The question asks you to review the liabilities section of the balance sheet for a company named Rings and Things with a focus on the payroll information. It's important to note that without specific details from the balance sheet and payroll information, a precise issue can't be identified. However, typical problems in this area could include inaccurate payroll calculations or discrepancies between the balance sheet and payroll records.
A solution to these issues could involve auditing the payroll procedures to identify and rectify any errors or inconsistencies. Furthermore, regular checks and audits could be implemented to prevent these types of issues from occurring in the future. It’s fundamental that Janet and Omar ensure all records are meticulous and accurate to maintain a healthy balance sheet.
Most of the liability costs are coming from payroll, the individual salesperson. This employee only worked for 20 hours during April, and yet still makes an income of $1000 dollars. This means they have an hourly rate of $50 an hour, which is way more than the standard employee should be making. I would recommend Janet and Omar to decrease the hourly rate to something more standard, like minimum wage. This would decrease their liability costs by more than 50% because California's minimum wage rate is only about $12-13.
An All-Pro defensive lineman is in contract negotiations. The team has offered the following salary structure: Time Salary 0 $ 5,700,000 1 4,300,000 2 4,800,000 3 5,300,000 4 6,700,000 5 7,400,000 6 8,200,000 All salaries are to be paid in a lump sum. The player has asked you as his agent to renegotiate the terms. He wants a $9.2 million signing bonus payable today and a contract value increase of $1,200,000. He also wants an equal salary paid every three months, with the first paycheck three months from now. If the discount rate is 4.7 percent compounded daily, what is the amount of his quarterly check? Assume 365 days in a year. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)
PTM $ 1,225,900.379
We will calculate the present value of the contract.
Then we will increase by 1,200,000
Next, we subtract the 9.2 bonus payable today
and distribute the rest under quarter payments:
We use present value of a lump sum
0 5,700,000 5,700,000
1 4,300,000 4,102,588.223
2 4,800,000 4,369,383.7
3 5,300,000 4,603,035.135
4 6,700,000 5,551,785.732
5 7,400,000 5,850,312.795
6 8,200,000 6,185,156.501
Then we add them: 36,362,262.09
We increase by 1,200,000
and subtract the 9,200,000 initial payment
this is the present value fothe quarterly payment
Next we calculate the equivalent compound rate per quarter:
equivalent rate: 0.002954634
Now we claculate the PTM of an annuity of 24 quearter at this rate: