American History. The Trans-Atlantic Slave trade

Think piece #1 I choose to answer the second topic. the dehumanizing forces of the transatlantic slave trade The Trans-Atlantic Slave trade was considered the most abominable and cruel force of slavery, during the trade, the way of obtaining the slave is dehumanizing, if we were to conclude the dehumanizing force in only one word, it would be: the minimum food, clothing, and shelter was given to those slaves who survived the Middle-Passage, and the maximum amount of work was expected of them. The first challenge was on their homeland, they were towed into a forest where no one can see them, then people who work for the capitalist beat the person to faint, and then they were chained together and â€Å"escorted† to the small boat which will send them to the slave boat. After that, when they were on boat, they were put on the lower cabin like cargos, there was almost no room to breathe or take a turn. And the food is horrible as well, the slaves can only get food once or at most twice a day, and the food is at most one-spoon full and the taste is awful. Slaves also have no bowls or spoons to eat; they ate with their bare dirty hands. What is more horrible is that ships often run out of food or sometimes there is infectious disease on board, then the slaves who is extra will be thrown into the sea with a bag of heavy rock tied in the beginning. Thus the survival rate during the transportation is extremely low; the number is only 13% or so. The first reason why that method is employed is that slaves were better used to the tropical weather than the capitalist, what is more, their physical building is tough and the number of slaves is much more than the solders on the ship. If they were treated like a human, whom they can get sufficient food and shelter, there might be a rebellion which may put those capitalist into peculiar situation. And at second, the slaves were considered property instead of human in the mind of those capitalists, thus they will not be treated like human. Despite all those horrible conditions and treatments, black people formed a strong culture tie between one and another to keep their rebellion force. The culture they formed is fusion of their own cultures with that of the white colonists, and the culture varies from country to country, region to region across the Americas. Although the slaves were captured from the same kingdoms, for instance, Louisiana is vastly different from that in Haiti or in Brazil. The differences were due to the differing conditions of slavery and the different input from whites in those places.

Conflicts That Arise from Particular Ways of Seeing the World Are Made Evident Through the Shaping of Texts-Barry Levinson’s Film “Wag the Dog” and Michael Moore’s Documentary “Fahrenheit 9/11” Essay

Conflicts that arise from particular ways of seeing the world are made evident through the shaping of texts. In Barry Levinson’s film â€Å"Wag the Dog† and Michael Moore’s documentary â€Å"Fahrenheit 9/11†, it is clear that the perspectives in which the audience views the world create particular conflicts. In both texts, the conflicting perspectives arise from the way the naà ¯ve public views the world and the way that the government and media view the world through their particular agendas. In â€Å"Wag the Dog†, the plot relies on the alleged sexual impropriety of the president and the way in which particular political powers and the media intervene. In the film it is clear that the audience is seeing two perspectives, that of the public and the private. Though, in the film, Levinson draws the audience in to the political powers. Through the motif of the omnipresent television screen and the use of double images and sounds, the audience is able to see the media and government’s manipulation. Though this is sidelined by Conrad Brean’s rhetorical question of â€Å"what difference does it make if it’s true?†. This question further allows the audience to understand the manipulative techniques of certain power players and the way in which they see the world. The characterisation of Brean and his costuming of a ratty jacket, battered hat, bow-ties with striped clashing shirts, gives him a misleading appearance of incompetence and harmlessne ss. As a figure he would go unnoticed. The dramatic irony is that the audience knows that he is not harmless, but in fact that he is more powerful than the ambiguous President himself. Levinson juxtaposes this character with the character of Winifred Ames to show that even those who seem to be in power, even to themselves, are in reality blind to what is really going on. The use of extreme high-angle close-up shots indicates Brean’s superiority and power as an authoritative figure. Here, the audience is able to see the â€Å"spin-doctors† side of the conflict and a particular way of seeing the world is presented. The other perspective of the film is that of the naà ¯ve public who succumb to the government and media’s images. The audience is extremely aware of this through the use of the â€Å"Albanian girl† scene where through filming and editing, the American people are manipulated into believing a lie. Levinson uses dramatic irony here to emphasise this point to the viewers, who know what the public in the film do not. Brean’s assertion of â€Å"we are giving them what they want† is indicative of a public who â€Å"remember the slogans† but â€Å"don’t remember the wars†. As Brean satirises the perspective of the â€Å"outsider’s† the view in which the American people see the world is seen, especially through the use of the â€Å"Albanian girl† where the audience literally sees what the audience in the film sees and believes. As Brean uses repetition in referring to the Gulf War of ’91, the audience witnesses the verisimilitude that the public so easily succumbs to. Though, his character is portrayed in a different light at the end of the film through the death of Stanley Motts. In this scene his character shifts to that of a menacing, powerful figure. Even though the audience is aware of his significance and power throughout the entire film, the fact that he is the one that orders for Motts to be killed further extrapolates on the idea that the public is naà ¯ve to image, as even the audience watching the film believes that the character of Brean would not commit such an act. As a close-up is utilised at a high angle, high-key lighting shows the authority and clear facial expression of this once benign figure. Here, the audience sees a view of the world not through the government or the public, but through the eyes of the person who is really in control. The main conflict that arises in this case is that of reality against appearance. The documentary â€Å"Fahrenheit 9/11† serves as a treatise against the Bush administration, and highlights what Moore sees as governmental corruption and disinformation by the former president and his staff. He draws the audience into his view of the world at the time of Bush’s presidency to do so. He uses graphic violence of real war-zone footage with formal White House dinners to produce certain reactions to audience. As these images flash before the viewer’s eyes, they are able to clearly see through Moore’s perspective. By juxtaposing iconic symbols and video montages of the former President Bush against war scenes and emotional personal interviews, Moore develops his perspective of events, against the perspective of the government that the public received. One of the most effective scenes in the documentary that Moore uses to reel the audience in to his perspective is when the screen cuts to black for nearly 2 minutes. There is no image on the screen , but the background sounds are instantly recognizable: loud explosions, wailing sirens, screaming people, news reports of aircraft hitting the World Trade Center and weeping women. Through the use of diegetic sound, Moore deftly manipulates his audience, forcing them to relive the tragic events of 9/11 in their own minds. The first words spoken in the documentary are â€Å"Was it all just a dream?†. This rhetorical question relates to â€Å"Wag the Dog† and the fight of reality versus appearance, as an ordinary person displays their point of view against people in power. This shows his side of the story, and as the composition continues he aims to show the perspective of the people in power. Here, two perspectives are shown, though unlike â€Å"Wag the Dog†, the audience sees the view of the public instead of the views of power players. Through the ability of these two texts in depicting the notion that appearance is not always reality, the audience can see that conflicts arise from particular ways of seeing the world. Whether that be the eyes of the public, or the eyes of the government, the ideas in these texts powerfully reveal such conflicts.

Personal life Essay

Quote I chose the quote â€Å"You also have to take time to think about why it is the right thing† this quote with the context of the text is certainly true. Just because all the people including your parents act in certain ways for specific situations, it doesn ´t mean that it ´s the right thing to do. And if you act like you have always seen just to follow everybody else, in my opinion is worst, because you don ´t even know if that actions are the right thing to do, you are just doing what â€Å"everybody does† and for me that is worst than thinking about the situation, taking your own decision, and then if you made it wrong, that helps you learning about good and bad decisions by your own, then you can judge another people decisions, because you have already analyze different situations by your own. Personal Case In the part of the text that shows some examples of ethical dilemmas, the one that says â€Å"should I extend the life of my beloved pet, or should I put an end to its increasing suffering by having it put to sleep?† This reminds me of a pet my dad loved, its name was Toby, it was a little Fox Terrier my dad bought like 10 years ago, it was a very healthy dog, but then when he started getting older, a ball started growing in his throat, so he started having eating and breathing problems, we took him to the vet, and he told us that he had a type of cancer, so he recommended us to put it to sleep, but my father refused. Toby started being skinner, and one day we found him dead in the garden. Maybe I would preferred having it put to sleep, that make him and my dad suffer, because every time my dad saw Toby, he was very sad because of its condition. Main Points This article wants us to understand what ethics is, the main point of it is realize that ethics is present everyday in every activity we do during the day. Also its purpose is to show us some ethic dilemmas to identify whether we have been part of something similar. At the end this article what’s us to realize that we have to take control of our lives, and our ethic decisions, because doing the things just because always he have done it like this, it doesn ´t mean it is the right thing to do.

Comparison of Quality Philosophies Research Paper

Comparison of Quality Philosophies - Research Paper Example While Deming has stressed on the importance of worker involvement and statistical quality control, Juran’s emphasis focuses more on quality planning, measurement and control. On the other hand, Crosby relies on zero tolerance to defects, cost of quality and organizational motivation to explain quality management (Koontz, 2006). In terms of overlapping arguments, all three experts emphasize the importance of defect prevention and mitigation over detection besides promoting quality as a strategic competitive tool for organizations. Each also explains the crucial role of management in total quality improvement. However, there are numerous differences in their approaches over aspects such as the definition of quality, quality measurement, standards, roles of management and determining potential targets for quality improvements. Despite their unique arguments, my research has led me to conclude that Deming’s philosophy offers the best overall approach to quality management i n comparison to other thinkers. The reasons for arriving at this conclusion are discussed below. Deming defines quality as a state with ‘zero defects’ whereby similar products or services have incomparable or minimal variations. Thus, quality according to Deming is a visionary pursuit towards a product with no deficiencies, which ultimately leads to total satisfaction for the customer. On the other hand, Juran and Crosby define quality as ‘fitness for use’ and ‘conformance to requirements’ (Buhler, 2007). While both definitions are customer-centric and view quality as a set of criteria defined by the customer’s expectations, there is no attention to the fact that the customer’s requirements may themselves contain potential deficiencies. In other words, Deming’s theory suggests that companies should evaluate the product for potential deficiencies and try to be innovative in identifying hidden vulnerabilities. By taking a com paratively restricted approach as suggested by Juran and Crosby, firms are in an inhibited position to service their customers (Migliore, 2009). Deming also deviates from the traditional approach by analyzing every aspect from the perspective of quality. He suggests that quality should be the benchmark, which firms should seek to optimize, which will ultimately lead to better productivity, competitive advantage and lower costs (Paulson, 2008). In contrast, Juran and Crosby focus on improving parameters such as productivity, innovation, cost reduction and defects as drivers for improving quality. Thus, quality serves as the ultimate objective in their case, which is estimated by the collective realization of these parameters (Hartman, 2005). While utilizing statistical techniques such as those suggested by Juran

The Differences Between Alexander the Great and Napoleon Essay

The Differences Between Alexander the Great and Napoleon - Essay Example Either way, they were both men of great power. By comparing their differences in personality and ambition, it becomes clear what traits are dominant among those who wish to lead and rule, and what traits are merely quirks of the person. Alexander the third, more commonly known as Alexander the Great of Macedonia, was not the first in his family to be a warrior. His father, King Philip the second had also been a great warrior, bringing together the country of Macedonia. (Brown). For him, conquest was inevitable, as was the taming of his great horse, Bucephalus. Believing himself to be one of the Gods, Alexander took over his father's empire at the age of twenty, when his father was killed. Alexander won conquest after conquest, eventually being named Pharaoh of Egypt. (Brown). Yet as he pushed his men on, they grew resentful, and eventually refused to continue. It was not long after that he because very ill, and died. For Alexander, his ambitions were actually small, but they took on a large meaning. At the time, to be truly the best was to be Greek. Yet he was from Macedonia, a land the Greeks despised. Alexander the third, more commonly known as Alexander the Great of Macedonia, was not the first in his family to be a warrior. His father, King Philip the second had also been a great warrior, bringing together the country of Macedonia. (Brown).   For him, conquest was inevitable, as was the taming of his great horse, Bucephalus. . Believing himself to be one of the Gods, Alexander took over his father’s empire.... force the land and power necessary to become someone great, and indeed, near the end of his conquests he was called the "Lord of Asia" and had conquered many countries. His motivations and ambitions were clear, wealth, fame, power. He also wanted to finish the work of is father, and destroy the Persians, whom the Macedonians thought to be horrible, filthy people. As for his personality, there is much to be seen in some of his earliest moves a nd actions. Bucephalus, his horse, was tamed by him at the age of twelve, when no other man could tame him. Not only was his intelligence clear, but also his sheer determination. When none of the king's men could tame the horse, Alexander said that he could or would pay the cost of the horse. Easily, he noticed that the horse was not unwilling, but his own shadow was scaring him. Turning him into the sun, Alexander easily tamed and rode the horse. It was at this point that his father told him "Oh my son, look thee out a kingdom equal to and worthy of thyself, for Macedonia is too little for thee." (Lamb) The death of his horse some eighteen years later was tragic to Alexander, and he buried his horse in a tomb near a town he named Bucephala, to honor his horse. His kindness to his animals was important; as was his kindness to the people he conquered. Although, like others, he sold women and children into slavery, he was remarkably good to those who did not oppose his rule, and did n ot rape and murder the women, as other leaders might have. He wanted power, but in many ways, it is clear that he also wanted respect. His intelligence is also clear in his ability to understand and learn from Aristotle, one of the greatest philosophers in history.  

Criminal Procedure-Probable Cause Article Summar Essay

Criminal Procedure-Probable Cause Article Summar - Essay Example According to the US constitution, provisions for probable cause allow persons the right to secure their persons and property against unprovoked searches and seizures. However, there are some instances where searches and arrests can be done without warrants. This paper will examine an article from the Seattle Times in 2008, which speaks to the essence of search warrants specifically with regard to traffic stops. The article documents the incident of a traffic stop in Skagit County in 2006. According to the article, following a unanimous ruling, the court held that the smell of pot is not sufficient probable cause to necessitate the arrest and search of all vehicle occupants (Jones, 2008). This article identifies warrant requirements, and the ruling sets the foundation for what may be in the offing regarding probable cause and criminal procedure. Typically probable cause regarding vehicles and occupants should be affirmed by either a search warrant or warrant of arrest. However, in the case, in question, the officer conducted a warrantless search of the vehicle and its occupants in the basis of sheer smell of marijuana emitted from the vehicle. Essentially, the sheer smell of illegal drugs may not be sufficient to support probable cause as the smell of illegal drugs may linger in a vehicle for several days or even weeks. The officer investigating such incident may be forced to result to additional legal outlets that allow for further investigation of the smell. The officer in question should, therefore, have called for a search and arrest warrant on the basis of just cause, i.e. the smell as illicit drugs in the vehicle. This would have given the officer leeway to search, and detain all vehicle occupants and the latter would have been convicted much easier and without the court’s current decision. This is of paramount importance as the case’s police spokesman asserted

M4A1 PART A Essay Example | Topics and Well Written Essays - 500 words

M4A1 PART A - Essay Example Schein (2010) has rightly affirmed that a common pattern of basic assumptions should be shared among the group members so that they can effectively solve the problems; when everyone has the same set of values and norms, then internal integration and external adaptation becomes easier and it has worked positively for the overall organization. The new members of an organization should be taught the same way of perceiving, thinking and feeling about the problems so that the conflicts are avoided. Hence, it is stated by Schein that an effective manager has to ensure that he/she advances in the organizational studies by observing the real behavior of the workforce which are labeled as values, assumptions and artifacts (Bohlander & Snell, 2007). According to Jung et al. (2009), Schein categorized the signals of cultures and subcultures in three stages; the first stage is known as ‘artifacts’ which are the attributes that are evident as they can be heard, felt and seen such as dressing style, communication medium, tone of voice, stories and etc. Artifacts are in the form of company’s mission, slogans, written communication mediums and slogans; all of them are easy for observation but challenging for deciphering (Cameron & Quinn, 2011). The second stage is known as ‘values’ which is slightly complicated in nature but are observable to a certain extent. For instance, during the interview process, a manager can make some judgment about the candidate’s values by observing him/her. Finally, in the third stage which is known as ‘basic assumptions’ are the most difficult ones to be observed as they are deeply embedded in the person’s behavior. They behavior becomes evident when the person starts working in the organization. Hence, all of these stages combine to define the attention aspect for the HR manager because it

The History About Saudi Arabia Research Paper Example | Topics and Well Written Essays - 1500 words

The History About Saudi Arabia - Research Paper Example During its earlier stages, Saudi Arabia came up with strategies such as legalizing international scholarships in besides allowing foreign workers into the nation (Denman & Hilal, 2011). It was due to this move that saw the nation rise to become one of the most developed states in the Middle East. The discovery of oil in the nation was one of the main reasons the Saudi Arabia quickly developed economically despite its located in a desert. The essay will relay more information on the history of Saudi Arabia in terms of its kingdom and culture. This is Saudi Arabia’s ruling family whereby studies contend although it comprised of thousands members, the most influential of all was Saudi Arabia’s kings, who were normally descendants of Muhammad bin Saud. Studies show that the House of Saud is the translation of Al Saud, whereby the latter implies â€Å"family of† hence referring to the kingdom’s founder, Muhammad Bin Saud (Saudi Arabia, 2013). To date, the term Al Saud is a common reference carried by any descendant of Muhammad bin Saud or his brothers who are Mishari, Farhan and Thunayyan. The other family branches of Al Saud the reference is â€Å"Cadet Branches† and its members, just like those of Al Saud, hold high positions in the government. The only difference between Al Saud and cadet branches is that whereas the Al Saud’s are in a position to succeed the line of throne, Cadet Branches do not stand a chance (Saudi Arabia, 2013). Al Saud and cadet members have been close to one another to the extent that they intermarry in a move to reestablish their lineage hence continue wielding influence in the government. Studies contend that Mani’ibn Rabiah Al-Muraydi was the first ancestor of Al Saud, he alongside his clan, Mrudah, settled in Diriyah. For decades, the Mrudah ruled al-Diriyah, which rapidly prospered to become an important settlement for the Nadji. Gradually as the clan grew,

Greek history reading analyze in comparing character of Helen in two Essay

Greek history reading analyze in comparing character of Helen in two reading - Essay Example In this account, Helen is portrayed as a victim of circumstances who had no choice but to go with Paris and succumb to his every whim and demand in order to save her life. In the poem we see Helen "dressed herself in fine silvery linens and came out of her bedroom crying softly" when she heard of Menelaus' attack on Sparta clearly illustrating she had no alternative but to wait and see what the aftermath of the war will bring for her future. Later, talking to Paris's father, she says, "death should have been a sweeter evil to me" explaining that she should have taken her own life than yield to Paris's seizure. She incriminates herself by calling herself a "shameless bitch" for yielding to his demands. Furthermore, she is seen as very embarrassed to have had her family find her in a situation which she apparently had no choice. There are several colors to Helen's character that are portrayed in Homer's Iliad. She calls herself a "hateful wife" when she thinks of Menelaus winning her away from Paris. On Paris's return and eventual defeat in the Trojan War, Helen reproofs him by telling him he should have been killed by Menelaus, a "real hero" In the Iliad, Helen is represented as a prey plucked from her serene life with her husband and taken away by Paris to be subjected to subservience despite her many objections. She is shown to have compassion, guilt, love and even acceptance in the way she lives her life in Paris's kingdom awaiting her end. However, in Helen a play by Euripides, the playwright puts the theory that Helen was a victim of circumstances down and has something else to say. Helen is sought by Menelaus, a grieving husband, who wants to bring her to justice by killing her following the rumors that she went to Paris willingly and was not abducted after all. Hecuba, Paris's mother describes Helen as a woman who "captivates you with longing", "destroys cities" and "sets homes aflame". While Helen defends herself saying that she was bought and sold for her beauty and has been blameless even attempting to run away, Hecuba negates this by saying she should have hung herself if she was so desperate to get out. Helen states she was kept as a wife by her new husband "in defiance of the Trojans" and Hecuba negates that as well. She is characterized as a vicious and calculating woman who Hecuba states "saw my son in the splendor of gold" and "looked forward to a deluge of extravagance" while Helen says she grieves the death of the Trojans. This is a total contradiction to what the Homer states in the Iliad. Essentially, Helen has been depicted as the cause of the war between the Trojans and the Greeks whatever the truth may or may not have been. Homer too has treated Helen as a cause of war but also as a helpless victim of her celebrated beauty. There could be any number of reasons why Euripides depicted Helen in a negative light. Some scholars say that it is impossible for so many heads of states / cities to leave their work to go all the way to Troy to rescue a chit of a woman to whom they did not have much interest in except for her renowned beauty. At the time this story is placed, a lot of women and children were abducted and sold in slavery in Troy and it is thought by some scholars that this was the reason so many city heads brought about the Trojan War. This theory is followed by the hypothesis that Helen never existed! It was all a ply to put the Trojans down for their illegal slave trade. However, if

A scientific report about air pollution due to automotive emissions Lab

A scientific about air pollution due to automotive emissions - Lab Report Example Nevertheless, the increased levels, even in converters that are 10 years old, are still lower than the emissions of engines that do not have converters. The world’s population doubled from 3 billion in 1959 to 6 billion in 1999 (International Data Base, 2008). This rapid rise has led to increased demand and use of modern transportation, majority of which, run on the fossil fuels petroleum and diesel. The burning of fossil fuels to power automotives results in production of compounds that do not burn completely to their elemental forms. These products are carbon monoxide, hydrocarbons, carbon dioxide, and nitrous oxides. Carbon monoxide is toxic even in small amounts. Carbon dioxide is the major greenhouse gas, contributing largely to global warming. Nitrous oxides react with water in the environment and are a major contributor to acid rain and the consequent problems associated with acid rain (Driscoll, 2001). Reducing vehicular emissions can be achieved by the use of a catalytic converter, which first came about in 1975 (Environmental Protection Agency, 1994). This simple device is used to reduce harmful emissions to less harmful forms and amounts. As the name implies, the catalytic converter acts by mediating the conversion of nitrous oxides, carbon monoxide and hydrocarbons to nitrogen gas, oxygen and carbon dioxide. The converter has both reduction and oxidation catalysts consisting of a ceramic structure coated with the metal catalysts (platinum, rhodium and/or palladium, and recently, gold). Gold, aside from being cheaper, increases oxidation by up to 40 percent (Kanellos, 2007). Exhaust coming from the engine passes through the converter and is released after the gases have been transformed to less harmful compounds. The objectives of this experiment were to compare the emission levels of automotive that are run by diesel and petrol without catalytic converters, and to test the effect of converter age and speed of the vehicle

We Real Cool Essay Example for Free

We Real Cool Essay 1) Rhyme Gwendolyn Brooks makes great use of rhyme throughout the poem. She uses words such as cool, school, sin, and gin (Brooks 684-685). These are rhymes that appear at the end of lines. The rhyme scheme used compliments the theme, since it is the directed to a young audience. It is known that Brooks is trying to attract a young crowd because she is talking about young people who are supposed to attend school. The poem has an up tempo beat, almost like a rap. This rap-like sound may also help to appeal young readers. 2) Literary Devices  But as if the rhyming werent enough, Brooks also uses alliteration, the repetition of a particular sound in the first syllables of a series of words or phrases, usually a consonant. â€Å"Lurk late. We†Ã‚  Ã¢â‚¬Å"Strike straight. We† (684)  Sometimes the rhyming doesnt even stop with the two end words: â€Å"Sing† â€Å"sin† â€Å"thin† â€Å"gin† (685). She also uses dialect, a black dialect. 3) Theme This poem describes the lifestyle of young rebels. They are cool having left school, and die soon. The seven players in the poem were victims of self-destruction. Brooks makes the theme evident to the reader with the use of irony. The first line of the poem reads We real cool (684)and the last line read We die soon (685). So, in other words the pool players were too cool for their own good. Brooks expresses the way she feels about school drop outs in a short, yet forceful poem. 4) We Real Cool is very unique definitely has a powerful message behind it. Gwendolyn Brooks illustrates the essence of troubled teenagers who will eventually suffer the ill-fated possibility that life will render a human being if they continue the lifestyle of the streets — â€Å"Die soon†. The poem was written in 1950 (685) during the struggle for African-American civil rights messages and, to appeal to young African Americans of the time. It expresses the problems and also the dangers which affected the young African-American community; and it serves as a way to help the youth realize the ways of their problems and change themselves for their own good and the good of the community.

Teaching grammar Essay Example for Free

Teaching grammar Essay The question to teach or not to teach grammar has always been present for no clear answer could ever be provided; both sides, the advocates and opponents of teaching grammar, keep producing evidence to buttress their own views towards this issue. The former believe that grammar is an important component in language teaching, whereas the latter believe that language can be learnt holistically through the context without explicit instruction. What motivated me to address this question, whether grammar is important in second language teaching, is the claim of some ioneer linguists, Krashen for example mentioned in Ellis, 1985: 230, who maintain that learned knowledge can not convert into acquired knowledge and that consciousness raising of grammar is neither a sufficient nor a necessary condition for mastery of another language. I was taught English in a country where English is a foreign language and I was taught explicit grammar throughout all of my study stages. I can assert that the teaching of grammar could be of great support especially when interacted with communicative context even in later years. I can still retain rules that help me speak properly and accurately and I can claim by now that all the grammatical knowledge I learned in my study years has already converted into acquired knowledge. It is beyond doubt that ignoring such rules would be an obstacle in forming and uttering the simplest sentences in English. Native speakers of English, even when they have not studied grammar, can form accurate grammatical sentences because they unconsciously internalize grammar rules while they are growing up. There is a general consensus among learning theorists, educational psychologists, and teaching professionals that language is a rule-governed behaviour and it is a rule-bound system in both standard and non-standard varieties and in both spoken and written modes (Brindley, 1996: 224). Cook, 2001: 19 states that grammar is considered by many linguists the central area of language around which other areas such as pronunciation and vocabulary revolve.

The Ritz Carlton Hotel Company In Jamaica Tourism Essay

The Ritz Carlton Hotel Company In Jamaica Tourism Essay Introduction Executive Summary: Ritz Carlton was founded by Mr. Cesar Ritz who initially worked in finest Hotels and restaurants in Paris. He owned grand Hotel Ritz and within one year he expanded wings in London and opened Hotel Carlton which became Ritz Carlton Hotel Company. He believed in excellent personalized services which satisfied the discerning guest. Ritz Carlton expanded to North America and ownership changed during 1983 to Johnson Company. During 1983 1987 Ritz Carlton expanded domestically and internationally under new ownership.  [i]   During 1997 Marriott International purchased Ritz Carlton and by 2000 it became primarily a management company operating 38 Hotels and resorts worldwide with minority stake in 10 properties and outright ownership of 3 hotels. The company used to obtain management contracts for new hotels and resorts around the world. Over the years hotel conglomerate won acclaimed for its services and had been awarded Best Hotel in Asia Pacific in the eight Business Traveler Asia / Pacific magazine Travel Awards Subscribe Survey and for two consecutive years Best Business Hotel in Malaysia. The Ritz Carlton Hotel Company for the first time now wants to open a hotel in historic Foggy Bottom district of Washington D C in Multi Use facility complex owned by Millennium Partners. The Hospitality Complex is 162 Luxury Condominiums, sports club, splash Spa, three restaurant, and 40,000 square feet of street -level restaurants and retail shops and 300-room hotel. Millennium partners founded in 1990 that set up high end luxury apartments and Lincoln square four building complex in New York was their first project and exhibited their future intensions. Millennium partners ended up in hotel business. In this case study Essence of Ritz-Carlton experience, the Ritz-Carlton selling, how the Ritz-Carlton creates Ladies and Gentlemen in only 7 days. Also McBride, Ritz-Carlton GM, to lengthen the amount of time spent on training hotel employees before hotel opening. McBride should consider a total overhaul of the hotel opening process. Products and Services Ritz-Carlton Hotel Company develops and Operates luxury hotels. Hotels are designed and identified to appeal to and suit the requirements of major customers including meeting event planners, Business travelers and leisure travelers. Ritz- Carlton set out to open any new hotel Ritz-Carlton including detailed analysis of site selection, new product and service development and feasibility study. The detailed analysis also includes target customers, their needs and expectations. The each hotel customized to meet local market demand. Innovation through make use of latest technology for enhancing customer satisfaction level Link restaurant services through internet KobaltExpress.com. It allows customers to decide menus ahead of time and also select the choice of table. Differential aesthetic look and best quality interior was few of the additional features. Core Values Business Model Following are the core values and Business model exist at Ritz Carlton: Core values: Trust, honesty, integrity and commitment. A great emphasizing on human resources, believes it important and biggest assets Foster work environment to fulfill individual aspirations Focus on Service but not sales Guest greets at Airport with mimosas and discount coupons on a silver tray Airport check in concierge Techno savvy to ensure customers needs satisfied Event Planners Ritz -Carlton managed properties for Millennium partners who were one of several hotel owners. Ritz Carlton charged management fees of 3% of total revenue besides wholly owned luxury hotels around the world. The customer segment was Independent travelers and Meeting Event planners. The key success indicators of hotel business were Average Daily Rate and Revenue per Available Room. Independent travelers were influenced through special services like providing discounting coupons at airports, created hotel room at airport and also introduced Technology Butler. The specialized services increased customer convenience and outpaced the competition. The nature of services is perishable and individual travelers are aiding in profitability. The event business / meeting business are growing and desirable for the sustainable profitability. The management contracts tend to meet needs of owners and operators. Quality at Ritz Carlton: Ritz Carlton has a great emphasizing on human resources. Robust HRM practices envisage right people for the right job and inducted to become perfect lady and gentleman. The total quality management philosophy began to permeate the organization. Company focused on new activities and measures including quality standards, continuous improvements for delivering better service quality. New programs designed to meet customer specific need and service quality indicators. The Quality policy believes in Exceeding Standards. Warm and sincere greeting, anticipation and compliances of guest needs and warm good bye are key service steps. Human resources at Ritz Carlton: Human resources is critical element in the process for understanding of the service to be delivered and priorities in doing so, are aligned closely with customers expectations and marketing communications by the organization. For managers, the service climate needs to support and reward employees in their efforts to deliver the service product reliably at the promised standard. The value creation for customer If the customer perceives quality of the service to be higher than the cost incurred, the customer receives value. The greater the difference between the quality of service and the cost, greater will be the satisfaction or dissatisfaction. Ritz Carlton turnover rate was 20% compared to hotel industry average rate of 100%. This exhibits how Ritz Carlton cares about their employees and viewed their employees as one of the important and biggest assets and has passion for the people. Ritz Carlton nurtured and maximizes talent of each individual. Through the extensive formal and informal training employee were prepared to meet current obligations and also higher responsibilities in future. Employees were also trained to meet futuristic obligations and encouraged to cross train and learn about many different aspects. Performance was not only criteria but also managed by the employees themselves. Employees monitoring their own performance and recognized for outstanding work. Staffing: To minimize failure in delivering services, key HRM practices like employee recruitment, selection and training focused and implemented. People having aptitude, talent and attitude to serve people, training schedule made sure to shape out staff for delivering exceptional services. The key of maintaining exceptional service standards was to keep high morale and motivation of each employee. Various tools were used to attract applicants for the various positions include visiting competitors restaurants, advertisement in news papers and visiting hospitality schools. Ritz Carlton job fair was organized for mass recruitment. Aspirants treated well including convenient reaching to destination of job fair, offering snacks and beverages, make them aware about organization. Service Oriented Approach of Ritz-Carlton The customer service oriented approach has three elements: For whom services and products created who will deliver and how will be delivered. Customer Value Customer relationships and customer loyalty Different communication and pricing strategies Assessment of customer satisfaction and complaints Making customer value more tangible People Role of employees in value creation Nature of competencies required to deliver services Empowerment of employees Reduction of stress Operations and Technology Designing processes to create value Design and location of facilities Role of technology Capacity management The Ritz Carlton having different value and philosophy in business which includes and they operate The Credo, The Motto, The Three Steps of Service, Service Values, the 6th Diamond the Employee Promise. The company is engage in the services oriented which have the unique characteristics for providing the services in order to meet the expectation of the customer. Some of the highlights have been captured depicted below:- Excellence in service not in Selling The Ritz-Carlton Philosophy states as they are not in the hotel business. The Ritz-Carlton is selling an experience, and experience that is based on excellence of service. As stated by Schulze, We are not in the hotel business. The hotel business is about selling rooms, selling food, selling the bar. We do those things incidentally, but our business is service. We charge for service. Our commitment to our customers is excellence in service. Their commitment to customers is excellence in service. Service is their profession. The total service oriented approach. The Credo The Ritz-Carlton Hotel is a place where the genuine care and comfort of guests is the highest mission. Pledge to provide the finest personal service and facilities for guests who will always enjoy a warm, relaxed, yet refined ambience. The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfils even the unexpressed wishes and needs of guests. Motto At The Ritz-Carlton Hotel Company, L.L.C., We are Ladies and Gentlemen serving Ladies and Gentlemen. This motto exemplifies the anticipatory service provided by all staff members. Motto of the company, Employee commitment, The credo, employee promises and twenty basics are gold standards and success mantras. Gold standards reinforced on daily basis in order to build the habits of employees to deliver the highest level of services The three steps of service,- A warm and sincere greeting. Use the guests name. Anticipation and fulfillment of each guests needs Fond farewell give a warm good-bye and use the guests name. Service Values: Employees feel proud To Be Ritz-Carlton as they have opportunity to do following which gives them job satisfaction. The Ritz Carlton is known for service excellence and follow following principals to provide excellent service to their customers.. 1. Employee satisfaction. 2. Leadership involvement. 3. Determination, commitment, and accountability. 4. Attend to voice of the customers. 5. Two-way communication. 6. Freedom to act. 7. Employees as ambassadors. 8. Adapt service recovery model (L.A.S.T.: Listen, Apologize, Solve, and Thank You.) 9. Anticipate needs. 10. Scripting to convey the right message  [ii]   The 6th Diamond is Mystique, Emotional Engagement Functional , these all cared by Ritz- Carlton and known 6th Diamond. Employee Promises At The Ritz-Carlton Ladies and Gentlemen are the most important resource in service commitment to guests. By applying the principles of trust, honesty, respect, integrity and commitment, they nurture and maximize talent to the benefit of each individual and the company. The Ritz-Carlton fosters a work environment where diversity is valued, quality of life is enhanced, individual aspirations are fulfilled, and The Ritz-Carlton Mystique is strengthened.  [iii]   Creating Service Oriented culture through orientation Servitisation approach means bundling goods services and makes a integrated package. This approach more focus on associated services than product Four steps in creating servitisation approach:- Knowing your customers Organizing service delivery systems Making sure employees have appropriate skills Employing technology A services discipline is defined by the following main features: The benefits it offers to customers The need to integrate, manage and deliver processes The importance of establishing and maintaining relationships The Ritz-Carlton As a premium hotel whose utmost mission is to provide genuine care and comfort to guests, The Ritz-Carlton pledges to provide the finest personal service and facilities to the guests who will always enjoy a warm, relaxed yet refined ambience.And this objective can only be fulfilled by satisfied and engaged employees. The three goals of Ritz are financial results, customer satisfaction and employee satisfaction. These goals are not exclusive from each other. They are very closely interrelated. Without satisfied and engaged employees, there is no way to achieve excellent financial results and guest satisfaction. To ensure such high service standards, Management team look for people who will fit the existing culture and see the following qualities in the people. People who share the same values and purpose. People who care for and respect others. People who smile naturally. People who seek a long term relationship. People who have talent for the job Process of Ritz to create Ladies and Gentlemen in only 7 days The seven days countdown was formulated for hotel opening process which was refined during in the process of last several years , this was the new employees first encounter with hotel, which started exactly seven days before the grand opening of the hotel. The first two (2) days were devoted to orienting employees to the company culture and values. The next five days were devoted to more skills training and trial runs of service delivery. To ensure that employees are get aligned with organization mission and core values. Trainers from 23 nationalities The orientation process is slow and thorough, and ensures that the employees are aligned with the organizations mission and a great deal of focus is kept on the conveying the values of the organization. The trainers for the orientation program are gathered from 23 different countries, all considered the best of the best in their role within the organization. These trainers are responsible for ensuring that each employee is at the required level or standard in their specific job function at the hotel. Schulze addresses the new team by stating, You are not servants. We are not servants. Our profession is service. We are ladies and gentleman. We are ladies and gentleman and should be respected as such. He conveys a message of unity, a message of equality and team work during his address, and he again insists that We are ladies and gentleman serving ladies and gentleman, as per the Ritz Carlton motto. The Ritz-Carlton employed the Gold Standards to ensure this message was communicated effectively to all employees; the Gold Standard included The Credo, The Three Steps of Service, The Motto, The Employee Promise and the Twenty Basics to ensure employees were focused on the organizations values. Through continuous communication and brain storming session and directives from top to down level and intensive training, skill development and an aligned HRM strategy, within 7 days the Ritz-Carlton managed to create ladies and gentleman out of their employees. The steps for making Ladies and Gentleman Training and daily line-up: During the first two days employees were aware, trained and dipped into the culture and values of the organization and remaining five days devoted to specific skill training and trial runs of service delivery ensuring everything perfect and meeting service standards. The orientation process ensures aligns the worker with the mission of company and ensured service philosophy ingrained in all its employees, they ingrained the message that all employees are in the service business and not the hotel business. The executive team and Human Resources explain The Ritz-Carlton Credo, Employee Promise, and 12 Service Values. After that, they will receive 30 days of training from a certified trainer from the department. On Day 21, new employees are asked to give the management feedback on how they can improve their training program for future training and recertification. In addition, every employee gets a minimum of 130 hours of training every year, which spans training for his or her department, company culture, and language and computer skills. Day 365 is recognition of one year of loyal service and is an opportunity to reinforce the hotels culture. Every employee will also go through annual recertification after they pass written tests, role-play and interviews on culture and skill. Daily line-up is a daily briefing to reiterate the companys standard and convey important business messages. It takes place every morning in each department. While each department may conduct briefings differently, the message they convey is the same worldwide: they will talk about one of the 12 Service Values. Listening and communication: Communication is important and creates abundant opportunities to interact with employees beginning with the interview and continuing through monthly breakfast meetings and his daily rounds of the hotel: Human Resources also holds a monthly feedback session with randomly selected employees for 1 to 1.5 hours to discuss their concerns. Overall, every employee has one opportunity every year to speak with the General Manager or HR Director in private. In addition, the hotel conducts annual employee satisfaction surveys, and on an ongoing basis, collects opinions on employee issues and posts them in public areas identifying those responsible for solving them. The executive team then notes the number of issues solved and measures the satisfaction of the employees. Empowerment and continuous improvement: Employees are also encouraged to be innovative and creative when it comes to improving their jobs. Money is not the key motivator; employees are rewarded for improving the goals measured by guest satisfaction, financial performance and employee satisfaction at year-end. Employees are rewarded and recognized for their outstanding customer service.  [iv]   Information support: Through their numerous interactions with guests throughout their stay like check in, room service, and housekeeping, employees continuously record guest preferences and needs in Guest Preference Forms. Every night, such preferences and needs are entered into The Ritz-Carltons worldwide database Project Mystique, so whenever guests make a reservation at a Ritz-Carlton hotel, their needs and preferences are known and taken care of. Reward and recognition: At The Portman Ritz-Carlton, employees are recognized and rewarded both financially and non-financially. Mark DeCocinis believes if you want your people to be the best, you must pay them top market salaries. While money is not the key motivator, employees are rewarded for improving the goals measured by guest satisfaction, financial performance and employee satisfaction at year end. Employees are rewarded and recognized for their outstanding customer service. Every quarter, a Five-Star Employee Award is granted; with the winner receiving a five-night stay for two at a Ritz-Carlton anywhere in the world, along with round-trip tickets for two and US$500 allowance. At Ritz -Carlton human resources are very well planned they treat with hospitality. As per their President who says you are not servant. We are not servant. Our profession is service. We are ladies and gentleman, just as the guests are whom we respect as ladies and gentleman. If you impart such culture be sure you will create ladies and gentle to serve. Give the respect take the respect, which costs nothing only wins, the heart of the customer who is taking the service will have regards for the service provider. Employee orientation schedule Employee orientation is key part of the training and development process which introduces employees to the jobs, colleagues and organization. Researchers have found that formal orientation can achieve significant cost savings by reducing anxiety of new employees, fostering positive attitudes, job satisfaction and sense of commitment at the start of the employment relationship. The 7 day countdown was a Hallmark of Ritz Carltons well defined hotel opening process which synchronized all steps leading to the opening of a new hotel.  It was Ritz Carltons orientation process aimed at aligning the employee with the vision and mission of the organization. The 7 day orientation process was standardized and ensured that Ritz Carlton has the right employees to support its vision which was Excellent Personalized Service. The seven day countdown was a worldwide best practice for the organization but in our opinion McBride should lengthen the 7 day countdown because of the following reasons: Current difficulty faced in training new hires to meet the high expectation of Ritz Carltons standards in only 7 days. An increase in the training period would help employees understand their role in achieving the key success factors and creating the The Ritz Carlton Mystique. By lengthening the 7 day countdown the service could become flawless which in turn could help translate the 5% dissatisfied customers to satisfied customers. This would result in occupancy going up from 80% to 88% due to increase in satisfaction level translating to $300 million. Extending the 7 day countdown means investing in long standing excellence in areas such as employee orientation and customer oriented training resulting in increased customer engagement and satisfaction. Research on guest-spending patterns indicates that a four percent increase in customer engagement company-wide would generate an extra $40 million in incremental revenue. Employees morale is boosted as they are protected from feeling overwhelmed. A longer employee engagement would also mean further decrease in the annual turnover which stood at 18%. Adults by virtue of having lived longer accumulate greater volume, knowledge and mind-sets. It would help to have more time for the employees to o un-learn and learn new things. Continuous improvement was absolutely critical to keep the commitment to customer for excellence in service and extending the 7 day countdown would help the process. Would help thwart competition from The Four Seasons by offering flawless service which can be achieved by increasing the orientation period. Would help meet the expectations of the Millennium Partners about this hotel offering great great service which means it expected Service par excellence. Thus we believe that Ritz Carlton should therefore increase the length of the orientation to further ingrain service excellence in its new employees which will ensure higher productivity and foster competitiveness. An assessment of 7 days vs 14 days training program 50% occupancy revenue = $5,000,000 Cost of the 7 day training program = $10,00,000 (estimated) 80% occupancy revenue = $8,000,000 Cost of the 14 day training program = $20,00,000 (estimated) Benefit of the program = 3,000,000 Additional Cost = 1000,000 Return On Investment = 300% Every investment including investment for employee training associated with cost and benefit. The cost and benefit mean cost involved in training of employees, direct revenue benefit, intangible benefits. The increase / decrease training schedule also adversely / favorably impact. Ritz Carlton is well known name to the industry and known for service centric approach. Initial Occupancy may not affected by training period but message of customer care approach need to be ingrained. Local culture also affects the training schedule as behavior of individual employees need to framed up in line of the global approach. Change in hotel opening process Change is part of life. World scenario is becoming dynamic and industry is coming up with innovative products to lure customers. In order to stay ahead in competition, Ritz Carlton also need to think differently. The entire training module, customer expectancy needs overhaul of the hotel opening process. The defects need to eliminate within shortest time frame.. Additional training and development will increase the cost but it will build up confidence and set new industry bench mark. Ongoing operation is very different from the opening a new hotel. The opening hotel require two core competencies One is dealing with the development of the site. Human resource processes necessary to get the hotel up running. Ritz-Carlton regarded employees as the cornerstone of its exceptional service culture. The company understood that, as a service organization, the quality of its end product was only as good as the people providing it. Therefore it took care to see that it not only recruited the right kind of employees, but also provided them with the necessary inputs to enable them to provide exceptional service. Although Ritz-Carltons salaries were not significantly higher than those of other comparable organizations in the hospitality industry, the company was a preferred employer because of its organizational culture and the way it treated its employees. Ritz-Carltons organizational culture not only helped the company provide exemplary customer service, but also created an atmosphere where employees felt valued. It is difficult to train new hires to meet the high expectation of the Ritz Carlton service standards in only seven days, but it worked in Ritz Carlton. Training should not be longer which will not be cost effective in the short span of the time. The employees already working should be given chance to in the second opening millennium to avoid taking risk at the opening itself. Recruitment should be done for the Ritz Carlton not for the millennium because the employee can be transferred as per the requirement. The employees of the Millennium partners can be taken for the opening, as the partners employees will feel proud to work jointly as a team. This will give opportunity to the partners employee who knows the brand fame of the Ritz Carlton by giving the Ritz Carlton basics. Ritz-Carlton management takes the following four steps to ensure that employees maintain the companys high standards for quality and service Excellence, as articulated in the Gold Standards: (i) rigorous employee selection process, (ii) employee orientation, (iii) employee training certification, and (iv) continuous coaching. Conclusion: The service industry is becoming more competitive. Global aspirations and technological innovations are challenges for the industry. Customers are loyal to the services rather than company. The services need to revisit and provide latest offers. Worlds best organizations believe in beating their own standards and developing innovating products to serve and win customer hearts. 100 % employee pride Joy, Zero customer difficulty and 100% customer loyalty are performance criteria of performance excellence set by Ritz Carlton Hotels. The road map created for performance excellence through strategic planning, leadership, Human resources, Processes Systems, customer focus, information analysis finally business results. Employees groomed and equipped to exceed (Not meet) customer requirements. Regular updating training needs, deliverance evaluation, PDCA (Plan, Do Check, Act) and Z- back approach; unlearning learning approach aided in meeting industry challenges.

I am Committed to Pursue Medicine as a Career :: Medicine College Admissions Essays

I am Committed to Pursue Medicine as a Career My palms began to sweat profusely as I sat in the admission's office chair looking down at the white space on the application form asking for my major. This was the moment of truth: I would finally have to reveal to the world that I had absolutely no idea what I wanted to be when I grew up. At seventeen and with only limited exposure to the medical field, I believed doctors were people in lab coats with test tubes who gave orders and cared only about science and money, not humanity. Becoming a doctor was one of the furthest things from my mind. I peered at the "undecided" box and checked it sheepishly. That action seemed to announce such failure. All that I was certain of was that one-day I wanted to have a family. At 19, fate stepped in and I was fortunate to meet the right person to marry. We immediately started our family. Then reality hit. Two weeks after our son was born, my husband was "downsized" out of his position. The bills mounted, as we fell deeper in debt. To support us, my husband took a position that required us to move frequently. Every semester I found myself on a new campus, trying to acclimate, transferring as many courses as I could, starting over, determined to get a degree so I could help support my struggling family. Finally, six universities later, I graduated and found a job as an accountant. Slowly, we got on track and out of debt. Our hard work and perseverance had its rewards. Because of the number of moves we had made and my broad academic exposure, I had become very flexible and learned to absorb new concepts very quickly. These strengths combined with my hard work helped me get promoted rapidly. Inside of four years I was a top manager, making good money. However, I had become very aware that I still had not answered the question on my college application of what I wanted to do with my life. While I was good at what I did, at the end of the day, even a good day, I rarely felt like I had accomplished something worthwhile. Before I could begin to explore any of my alternatives further, tragedy struck. I had a miscarriage.

Values Education Essay -- Education

Australia as a nation is underpinned by the belief of a democratic society that requires the acquisition of essential knowledge, skills and values in order to enable all citizens to proactively play a part in the shaping their preferred future of a more equitable and socially just world (Bliss, 2005). To that end, Values and Values-based Education are considered to be an integral aspect of the Educational landscape as there is a recognition that values are not only a crucial part of a critical understanding of society, but also the key to successful participation in our democracy (Allison & Von Wald, 2010). For this reason the incorporation of values in schools is becoming increasingly important, as the active construction and clarification of values associated with contemporary legal issues in schools provides for the inclusion of the Australian Government’s key policy document, National Framework for Values Education in Australian Schools (Australian Government Department of Education, Science and Training, 2005). Today’s students are fast becoming members of an increasingly independent pluralistic community that supports a strong commitment to Values education, incorporating values exploration and clarification into student’s learning experiences in the classroom (Lovat, Dally, Clement & Toomey, 2011). Moreover, values are not only considered to be the key to modern education policy but the current Queensland Senior Legal Studies Syllabus 2007, which is aimed at assisting individual students to develop the knowledge, attitudes, values and beliefs that will enhance their ability to participate actively as critical members of society; a key aim of Values Education in schools (Australian Government Department of Education, Sc... ... Early Childhood Development and Youth Affairs (MCEECDYA). (2008). Melbourne Declaration on Educational Goals for Young Australians. Retrieved from Ministerial Council for Education, Early Childhood Development and Youth Affairs website http://www.mceecdya.edu.au/verve/_resources/National_Declaration_on_the_Educational_Goals_for_Young_Australians.pdf Queensland Studies Authority. (2007). Legal Studies Senior Syllabus 2007. Retrieved from Queensland Government: Queensland Studies Authority website http://www.qsa.qld.edu.au/downloads/senior/snr_legal_studies_07_syll.pdf United Nations Educational, Scientific and Cultural Organisation (1998). Learning To Live Together In Peace and Harmony: Values Education for Peace, Human Rights, Democracy and Sustainable Development for the Asia-Pacific Region. Bangkok, TH: UNESCO Principal Regional Office for Asia and the Pacific. Values Education Essay -- Education Australia as a nation is underpinned by the belief of a democratic society that requires the acquisition of essential knowledge, skills and values in order to enable all citizens to proactively play a part in the shaping their preferred future of a more equitable and socially just world (Bliss, 2005). To that end, Values and Values-based Education are considered to be an integral aspect of the Educational landscape as there is a recognition that values are not only a crucial part of a critical understanding of society, but also the key to successful participation in our democracy (Allison & Von Wald, 2010). For this reason the incorporation of values in schools is becoming increasingly important, as the active construction and clarification of values associated with contemporary legal issues in schools provides for the inclusion of the Australian Government’s key policy document, National Framework for Values Education in Australian Schools (Australian Government Department of Education, Science and Training, 2005). Today’s students are fast becoming members of an increasingly independent pluralistic community that supports a strong commitment to Values education, incorporating values exploration and clarification into student’s learning experiences in the classroom (Lovat, Dally, Clement & Toomey, 2011). Moreover, values are not only considered to be the key to modern education policy but the current Queensland Senior Legal Studies Syllabus 2007, which is aimed at assisting individual students to develop the knowledge, attitudes, values and beliefs that will enhance their ability to participate actively as critical members of society; a key aim of Values Education in schools (Australian Government Department of Education, Sc... ... Early Childhood Development and Youth Affairs (MCEECDYA). (2008). Melbourne Declaration on Educational Goals for Young Australians. Retrieved from Ministerial Council for Education, Early Childhood Development and Youth Affairs website http://www.mceecdya.edu.au/verve/_resources/National_Declaration_on_the_Educational_Goals_for_Young_Australians.pdf Queensland Studies Authority. (2007). Legal Studies Senior Syllabus 2007. Retrieved from Queensland Government: Queensland Studies Authority website http://www.qsa.qld.edu.au/downloads/senior/snr_legal_studies_07_syll.pdf United Nations Educational, Scientific and Cultural Organisation (1998). Learning To Live Together In Peace and Harmony: Values Education for Peace, Human Rights, Democracy and Sustainable Development for the Asia-Pacific Region. Bangkok, TH: UNESCO Principal Regional Office for Asia and the Pacific.

The Charater of Atticus Finch in To Kill a Mockingbird :: Kill Mockingbird essays

The Charater of Atticus Finch in To Kill a Mockingbird During the first half of To Kill a Mockingbird, Harper Lee constructs a sweet and affectionate portrait of rowing up in the world of small town Alabama. Harper Lee, however, continues on to dig underneath the portrayal of small town courtesy in the second half of the book. None of the characters in the book are perfect. This begins to show through in the second half of the book when the facade is removed to reveal the ugliness of Maycomb and the people living there. Through these tough times though, one character manages to keep his cool. Atticus Finch, through all the struggles and pressure, stands strong as a very positive father figure, making sure to instill in his children three very specific values: education, bravery, and acceptance. At the beginning of the book it becomes clear why Atticus thinks education is so important, as he and Scout read before bed each night. During his closing arguments in Tom Robinson's case Atticus clearly acknowledges the ignorance blinding people's minds and hearts: "the witnesses for the state...have presented themselves to you gentlemen...in the cynical confidence that their testimony would not be doubted, confident that you gentlemen would go along with them on the...evil assumption...that all Negroes are basically immoral beings, that all Negro men are not to be trusted around our women, and assumption one associates with minds of their caliber" (217). Education is the key to unlocking the ignorance that causes such prejudice. Because of Atticus' example Jem begins to this lesson toward the end of the book, when he wonders if family education could be based more on education than on bloodiness. Jem also learns important lessons from his father regarding bravery. Early in the book we learn that Atticus does not approve of guns. He believes that guns do not make men brave and that children's fascination with guns is questionable. To prove his point, he sends Jem to read for Mrs. Dubose who struggles to beat her morphine addiction before she dies. He wants to show is son that one shows true bravery "when you know you're licked before you begin but you begin anyway and you see it through no matter what" (121).

Cases for Management Decision Making

Cases for Management Decision Making CA-1 suggested uses of cases Case CASE 1 Greetings Inc. : Job Order Costing CASE 2 Greetings Inc. : Activity-Based Costing CASE 3 Greetings Inc. : Transfer Pricing Issues CASE 4 Greetings Inc. : Capital Budgeting CASE 5 Auburn Circular Club Pro Rodeo Roundup CASE 6 Sweats Galore CASE 7 Armstrong Helmet Company Overview This case is the first in a series of four cases that presents a business situation in which a traditional retailer decides to employ Internet technology to expand its sales opportunities. It requires the student to employ traditional job order cost- ing techniques and then requests an evaluation of the resulting product costs. (Related to Chapter 2, Job Order Costing. ) This case focuses on decision-making benefits of activity-based costing relative to the traditional approach. It also offers an opportunity to discuss the cost/ benefit trade-off between simple ABC systems versus refined systems, and the potential benefit of using capacity rather than expected sales when allocating fixed overhead costs. (Related to Chapter 4, Activity-Based Costing. This case illustrates the importance of proper transfer pricing for decision making as well as performance evaluation. The student is required to evaluate profitability using two different transfer pricing approaches and comment on the terms of the proposed transfer pricing agreement. (Related to Chapter 8, Pricing. ) This case is set in an environment in which the company is searching for new op- portunities for growth. It requires evaluation of a proposal based on initial esti- mates as well as sensitivity analysis. It also requires evaluation of the underlying assumptions used in the analysis. Related to Chapter 12, Planning for Capital Investments. ) This comprehensive case is designed to be used as a capstone activity at the end of the course. It deals with a not-for-profit service company. The case involves many managerial accounting issues that would be common for a start-up business. (Related to Chapter 5, Cost-Volume-Profit; Chapter 7, Incremental Analysis; and Chapter 9, Budgetary Planning. ) This case focuses on setting up a new business. In planning for this new busi- ness, the preparation of budgets is emphasized. In addition, an understanding of cost-volume-profit relationships is required. (Related to Chapter 5, Cost-Volume- Profit, and Chapter 9, Budgetary Planning. ) This comprehensive case involves finding the cost for a given product. In addi- tion, it explores cost-volume-profit relationships. It requires the preparation of a set of budgets. (Related to Chapter 1, Managerial Accounting; Chapter 5, Cost- Volume-Profit; Chapter 9, Budgetary Planning; Chapter 10, Budgetary Control and Responsibility Accounting; Chapter 11, Standard Costs and Balanced Scorecard; and Chapter 12, Planning for Capital Investments. CA-2 case 1 ?Greet ings Inc. Greetings Inc. : Job Order Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. has operated for many years as a nationally recognized retailer of greeting cards and small gift items. It has 1,500 stores throughout the United States located in high-traffic malls. As the stock price of many other companies soared, Greetings’ stock price re- mained flat. As a result of a heated 2010 shareholders’ meeting, the president of Greetings, Robert Burns, came under pressure from shareholders to grow Greetings’ stock value. As a consequence of this pressure, in 2011 Mr. Burns called for a formal analysis of the company’s options with regard to business op- portunities. Location was the first issue considered in the analysis. Greetings stores are located in high-traffic malls where rental costs are high. The additional rental cost was justified, however, by the revenue that resulted from these highly visi- ble locations. In recent years, though, the intense competition from other stores in the mall selling similar merchandise has become a disadvantage of the mall locations. Mr. Burns felt that to increase revenue in the mall locations, Greetings would need to attract new customers and sell more goods to repeat customers. In order to do this, the company would need to add a new product line. However, to keep costs down, the product line should be one that would not require much addi- tional store space. In order to improve earnings, rather than just increase rev- enues, Greetings would have to carefully manage the costs of this new product line. After careful consideration of many possible products, the company’s management found a product that seemed to be a very good strategic fit for its existing products: high-quality unframed and framed prints. The critical el- ement of this plan was that customers would pick out prints by viewing them on wide-screen computer monitors in each store. Orders would be processed and shipped from a central location. Thus, store size would not have to in- crease at all. To offer these products, Greetings established a new e-business unit called Wall Decor. Wall Decor is a â€Å"profit center†; that is, the manager of the new business unit is responsible for decisions affecting both revenues and costs. Wall Decor was designed to distribute unframed and framed print items to each Greetings store on a just-in-time (JIT) basis. The system works as follows: The Wall Decor website allows customers to choose from several hundred prints. The print can be purchased in various forms: unframed, framed with a steel frame and no matting, or framed with a wood frame and matting. When a CA-3 Greet ?ings CA-4 ase 1 Cases for Management Decision Making customer purchases an unframed print, it is packaged and shipped the same day from Wall Decor. When a customer purchases a framed print, the print is framed at Wall Decor and shipped within 48 hours. Each Greetings store has a computer linked to Wall Decor’s Web server so Greetings’ customers can browse the many options to make a selection. Once a selection is made, the customer ca n complete the order immediately. Store em- ployees are trained to help customers use the website to shop and to complete their purchases. The advantage to this approach is that each Greetings store, through the Wall Decor website, can offer a wide variety of prints, yet the indi- vidual Greetings stores do not have to hold any inventory of prints or framing materials. About the only cost to the individual store is the computer and high- speed line connection to Wall Decor. The advantage to the customer is the wide variety of unframed and framed print items that can be conveniently purchased and delivered to the home or business, or to a third party as a gift. Wall Decor uses a traditional job order costing system. Operation of Wall Decor would be substantially less complicated, and overhead costs would be sub- stantially less, if it sold only unframed prints. Unframed prints require no addi- tional processing, and they can be easily shipped in simple protective tubes. Framing and matting requires the company to have multiple matting colors and frame styles, which requires considerable warehouse space. It also requires skilled employees to assemble the products and more expensive packaging pro- cedures. Manufacturing overhead is allocated to each unframed or framed print, based on the cost of the print. This overhead allocation approach is based on the assumption that more expensive prints will usually be framed and therefore more overhead costs should be assigned to these items. The predetermined over- head rate is the total expected manufacturing overhead divided by the total ex- pected cost of prints. This method of allocation appeared reasonable to the ac- counting team and distribution floor manager. Direct labor costs for unframed prints consist of picking the prints off the shelf and packaging them for ship- ment. For framed prints, direct labor costs consist of picking the prints, framing, matting, and packaging. The information in Illustration CA 1-1 for unframed and framed prints was collected by the accounting and production teams. The manufacturing overhead budget is presented in Illustration CA 1-2. Illustration CA 1-1 Information about prints and framed items for Wall Decor ?Unframed Steel-Framed Print, Wood-Framed Print, Volume—expected units sold Cost Elements Direct materials Print (expected average cost for each of the three categories) Frame and glass Matting Direct labor Picking time Picking labor rate/hour Matting and framing time Matting and framing rate/hour Print 0,000 $12 10 minutes $12 No Matting 15,000 $16 $4 10 minutes $12 20 minutes $21 with Matting 7,000 $20 $6 $4 10 minutes $12 30 minutes $21 ?Greet ?ings ?case 1 Cases for Management Decision Making CA-5 Illustration CA 1-2 Manufacturing overhead budget for Wall Decor ?Manufacturing Overhead Budget Supervisory salaries Factory rent Equipment rent (framing and matting equipment) Utilities Insurance Information te chnology Building maintenance Equipment maintenance Budgeted total manufacturing overhead costs $100,000 130,200 50,000 20,000 10,000 50,000 11,000 4,000 $375,200 Instructions Use the information in the case and your reading from Chapters 1 and 2 of the text to answer each of the following questions. 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job order costing system. 2. What are the advantages and disadvantages of using the cost of each print as a man- ufacturing overhead cost driver? 3. Using the information in Illustrations CA1-1 and CA1-2, compute and interpret the predetermined manufacturing overhead rate for Wall Decor. 4. Compute the product cost for the following three items. a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat (base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). 5. (a) How much of the total overhead cost is expected to be allocated to unframed prints? (b) How much of the total overhead cost is expected to be allocated to steel framed prints? (c) How much of the tot al overhead cost is expected to be allocated to wood framed prints? (d) What percentage of the total overhead cost is expected to be allocated to un- framed prints? . Do you think the amount of overhead allocated to the three product categories is rea- sonable? Relate your response to this question to your findings in previous questions. 7. Anticipate business problems that may result from allocating manufacturing over- head based on the cost of the prints. case 2 ?Greet ings Inc. Greetings Inc. : Activity-Based Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Mr. Burns, president of Greetings Inc. created the Wall Decor unit of Greetings three years ago to increase the company’s revenue and profits. Unfortunately, even though Wall Decor’s revenues have grown quickly, Greetings appears to be losing money on Wall Decor. Mr. Burns has hired you to provide consulting serv ices to Wall Decor’s management. Your assignment is to make Wall Decor a profitable business unit. Your first step is to talk with the Wall Decor work force. From your conver- sations with store managers you learn that the individual Greetings stores are very happy with the Wall Decor arrangement. The stores are generating addi- tional sales revenue from the sale of unframed and framed prints. They are espe- cially enthusiastic about this revenue source because the online nature of the product enables them to generate revenue without the additional cost of carry- ing inventory. Wall Decor sells unframed and framed prints to each store at product cost plus 20%. A 20% markup on products is a standard policy of all Greetings intercompany transactions. Each store is allowed to add an additional markup to the unframed and framed print items according to market pressures. That is, the selling price charged by each store for unframed and framed prints is determined by each store manager. This policy ensures competitive pricing in the respective store locations, an important business issue because of the intense mall competition. While the store managers are generally happy with the Wall Decor products, they have noted a significant difference in the sales performance of the unframed prints and the framed prints. They find it difficult to sell unframed prints at a competitive price. The price competition in the malls is very intense. On average, stores find that the profits on unframed prints are very low because the cost for unframed prints charged by Wall Decor to the Greetings stores is only slightly be- low what competing stores charge their customers for unframed prints. As a re- sult, the profit margin on unframed prints is very low, and the overall profit earned is small, even with the large volume of prints sold. In contrast, stores make a very good profit on framed prints and still beat the nearest competitor’s price by about 15%. That is, the mall competitors cannot meet at a competitive price the quality of framed prints provided by the Greetings stores. As a result, store managers advertise the lowest prices in town for high-quality framed prints. One store manager referred to Wall Decor’s computer on the counter as a â€Å"cash machine† for framed prints and a â€Å"lemonade stand† for unframed prints. In a conversation with the production manager, you learned that she be- lieves that the relative profitability of framed and unframed prints is distorted CA-6 ?Greet ?ings ?case 2 Cases for Management Decision Making CA-7 ecause of improper product costing. She feels that the costs provided by the company’s traditional job order costing system are inaccurate. From the very beginning, she has carefully managed production and distribution costs. She explains, â€Å"Wall Decor is essentially giving away expensive framed prints, and it appears that it is charging the stores too much for unframed prints. † In her office she shows you her own product costing system, which supports her point of view. Your tour of the information technology (IT) department provided additional insight as to why Wall Decor is having financial problems. You discovered that to keep the website running requires separate computer servers and several in- formation technology professionals. Two separate activities are occurring in the technology area. First, purchasing professionals and IT professionals spend many hours managing thousands of prints and frame and matting materials. Their tasks include selecting the prints and the types of framing material to sell. They also must upload, manage, and download prints and framing material onto and off of the website. The IT staff tells you much of their time is spent with framing and matting material. Only a highly skilled IT professional can properly scan a print and load it up to the site so that it graphically represents what the print will look like when properly matted and framed. In addition, you discover that a different team of IT professionals is dedi- cated to optimizing the operating performance of the website. These costs are classified as manufacturing overhead because a substantial amount of work is required to keep the site integrated with purchasing and production and to safe- guard Wall Decor’s assets online. Most time-consuming is the effort to develop and maintain the site so that customers can view the prints as they would appear either unframed or framed and matted. A discussion with the IT professionals suggests that the time spent develop- ing and maintaining the site for the unframed prints is considerably less than that required for the framed prints and in particular for the framed and matted prints. Developing and maintaining a site that can display the unframed prints is relatively straightforward. It becomes more complicated when the site must al- low the customer to view every possible combination of print with every type of steel frame, and immensely more complicated when one considers all of the pos- sible wood frames and different matting colors. Obviously, a very substantial portion of the IT professionals’ time and resources is required to present the over 1,000 different framing and matting options. Based on your preliminary findings, you have decided that the company’s ability to measure and evaluate the profitability of individual products would be improved if the company employed an activity-based costing (ABC) system. As a first step in this effort, you compiled a list of costs, activities, and values. Your work consisted of taking the original manufacturing overhead cost ($375,200, provided in Case 1) and allocating the costs to activities. You identified four ac- tivities: picking prints; inventory selection and management (includes general management and overhead); website optimization; and framing and matting cost (includes equipment, insurance, rent, and supervisor’s salary). The first activity is picking prints. The estimated overhead related to this ac- tivity is $30,600. The cost driver for this activity is the number of prints. It is ex- pected that the total number of prints will be 102,000. This is the sum of 80,000 unframed, 15,000 steel-framed, and 7,000 wood-framed. Illustration CA 2-1 Information for activity 1 ?Estimated Activity Cost Driver Overhead Picking prints Number of prints $30,600 Expected Use of Cost Driver (80,000 15,000 7,000) 102,000 prints Greet ?ings CA-8 case 2 Cases for Management Decision Making The second activity is inventory selection and management. The estimated overhead related to this activity is $91,700. The cost driver for this activity is the number of components per print item. An unframed print has one component, a steel-framed print has two components (the print and the frame), and a wood- framed print has three components (the print, the mat, and the frame). The total number of components is expected to be 131,000. Illustration CA 2-2 Information for activity 2 ?Activity Inventory selection and management Cost Driver Number of components: Print (1) Print and frame (2) Print, mat, and frame (3) Estimated Overhead $91,700 Expected Use of Cost Driver Prints: 80,000 components Print and frame: 15,000 2 30,000 components Print, mat, and frame: 7,000 3 21,000 components Total 131,000 components The third activity is website optimization. The total overhead cost related to website optimization is expected to be $129,000. It was difficult to identify a cost driver that directly related website optimization to the products. In order to re- flect the fact that the majority of the time spent on this activity related to framed prints, you first split the cost of website optimization between unframed prints and framed prints. Based on your discussion with the IT professionals, you de- termined that they spend roughly one-fifth of their time developing and main- taining the site for unframed prints, and the other four-fifths of their time on framed prints, even though the number of framed prints sold is substantially less than the number of unframed prints. As a consequence, you allocated $25,800 of the overhead costs related to website optimization to unframed prints and $103,200 to framed prints. You contemplated having three categories (unframed, steel-framed, and wood-framed with matting), but chose not to add this addi- tional refinement. Illustration CA 2-3 Information for activity 3 ?Activity Website optimization: Unframed Framed Cost Driver Number of prints at capacity Number of prints at capacity Estimated Overhead $25,800 $103,200 Expected Use of Cost Driver Unframed prints: 100,000 print capacity Framed and/or matted prints: 25,000 print capacity (16,000 steel; 9,000 wood) Once the $129,000 of the third activity was allocated across the two broad product categories, the number of prints at operating capacity was used as the cost driver. Note that operating capacity was used instead of expected units sold. The overhead costs related to website optimization are relatively fixed be- cause the employees are salaried. If a fixed cost is allocated using a value that varies from period to period (like expected sales), then the cost per unit will vary from period to period. When allocating fixed costs it is better to use a base that does not vary as much, such as operating capacity. The advantage of using operating capacity as the base is that it keeps the fixed costs per unit stable over time. ?Greet ?ings ?case 2 Cases for Management Decision Making CA-9 The final activity is framing and matting. The expected overhead costs re- lated to framing and matting are $123,900. None of this overhead cost should be allocated to unframed prints. The costs related to framing and matting are rela- tively fixed because the costs relate to equipment and other costs that do not vary with sales volume. As a consequence, like website optimization, you chose to base the cost driver on levels at operating capacity, rather than at the expected sales level. The cost driver is the number of components. Steel-framed prints have two components (the print and frame), and wood-framed prints have three components (the print, mat, and frame). The total components at operating ca- pacity would be steel frame 32,000 or (16,000 2) and wood frame 27,000 or (9,000 3,000). Illustration CA 2-4 Information for activity 4 ?Activity Framing and matting cost (equipment, insurance, rent, and supervisory labor) Cost Driver Number of components at capacity Estimated Overhead $123,900 Expected Use of Cost Driver Print and frame: 16,000 2 32,000 components at capacity Print, mat, and frame: 9,000 3 27,000 components at capacity Total 59,000 components To summarize, the overhead costs and cost drivers used for each product are expected to be: Illustration CA 2-5 Summary of overhead costs and cost drivers ?Cost Activity Driver 1. Picking Number of prints prints Steel- Wood- Framed, Framed, No with Unframed Matting Matting Total 80,000 15,000 7,000 102,000 80,000 30,000 21,000 131,000 Overhead Cost $ 30,600 91,700 25,800 103,200 123,900 $375,200 ?2. Inventory selection and management 3. Website optimization 4. Framing and matting Number of components Number of 100,000 prints at capacity Number of components at capacity na 16,000 32,000 9,000 27,000 100,000 25,000 59,000 Instructions Answer the following questions. . Identify two reasons why an activity-based costing system may be appropriate for Wall Decor. 2. Compute the activity-based overhead rates for each of the four activities. 3. Compute the product cost for the following three items using ABC. (Review Case 1 for additional information that you will need to answer this question. ) (a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat ( base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). ? Greet ?ings CA-10 ase 2 Cases for Management Decision Making 4. 5. 6. 7. In Case 1 for Greetings, the overhead allocations using a traditional volume-based approach were $3. 36 for Lance Armstrong, $4. 48 for John Elway, and $5. 60 for Lam- beau Field. The total product costs from Case 1 were Lance Armstrong $17. 36, John Elway $33. 48, and Lambeau Field $48. 10. The overhead allocation rate for unframed prints, such as the unframed Lance Armstrong print in question 3, decreased under ABC compared to the amount of overhead that was allocated under the traditional approach in Case 1. Why is this the case? What are the potential implications for the company? Explain why the overhead cost related to website optimization was first divided into two categories (unframed prints and framed prints) and then allocated based on number of prints. When allocating the cost of website optimization, the decision was made to initially allocate the cost across two categories (unframed prints and framed prints) rather than three categories (unframed prints, steel-framed prints, and wood-framed prints with matting). Discuss the pros and cons of splitting the cost between two categories rather than three. Discuss the implications of using operating capacity as the cost driver rather than the expected units sold when allocating fixed overhead costs. 8. (a) Allocate the overhead to the three product categories (unframed prints, steel- framed prints, and wood-framed prints with matting), assuming that the estimate of the expected units sold is correct and the actual amount of overhead incurred equaled the estimated amount of $375,200. (b) Calculate the total amount of overhead allocated. Explain why the total overhead of $375,200 was not allocated, even though the estimate of sales was correct. What are the implications of this for management? case 3 ?Greet ings Inc. Greetings Inc. : Transfer Pricing Issues Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Two years ago, prior to a major capital-budgeting decision (see Case 4), Robert Burns, the president of Greetings Inc. , faced a challenging transfer pricing issue. He knew that Greetings store managers had heard about the ABC study (see Case 2) and that they knew a price increase for framed items would soon be on the way. In an effort to dissuade him from increasing the transfer price for framed prints, several store managers e-mailed him with detailed analyses show- ing how framed-print sales had given stores a strong competitive position and had increased revenues and profits. The store managers mentioned, however, that while they were opposed to an increase in the cost of framed prints, they were looking forward to a price decrease for unframed prints. Management at Wall Decor was very interested in changing the transfer pric- ing strategy. You had reported to them that setting the transfer price based on the product costs calculated by using traditional overhead allocation measures had been a major contributing factor to its non-optimal performance. Here is a brief recap of what happened during your presentation to Mr. Burns and the Wall Decor managers. Mr. Burns smiled during your presentation and graciously acknowledged your excellent activity-based costing (ABC) study and analysis. He even nodded with approval as you offered the following suggestions. 1. Wall Decor should decrease the transfer price for high-volume, simple print items. . Wall Decor should increase the transfer price for low-volume, complex framed print items. 3. Youranalysispointstoatransferpricethatmaintainsthe20%markupovercost. 4. Adoption of these changes will provide Wall Decor with an 11% return on investment (ROI), beating the required 10% expected by Greetings’ board of directors. 5. Despite the objections of the store managers, the Gr eetings stores must ac- cept the price changes. Finishing your presentation, you asked the executive audience, â€Å"What questions do you have? † Mr. Burns responded as follows. Your analysis appears sound. However, it focuses almost exclu- sively on Wall Decor. It appears to tell us little about how to move for- ward and benefit the entire company, especially the Greetings retail stores. Let me explain. CA-11 Greet ?ings CA-12 case 3 Cases for Management Decision Making I am concerned about how individual store customers will react to the price changes, assuming the price increase of framed-print items is passed along to the customer. Store managers will welcome a decrease in the transfer price of unframed prints. They have complained about the high cost of prints from the beginning. With a decrease in print cost, store managers will be able to compete against mall stores for print items at a competitive selling price. In addition, the increase in store traffic for prints should increase the sales revenue for related items, such as cards, wrapping paper, and more. These are all low- margin items, but with increased sales volume of prints and related products, revenues and profits should grow for each store. Furthermore, store managers will be upset with the increase in the cost of framed prints. Framed prints have generated substantial rev- enues and profits for the stores. Increasing the cost of framed prints to the stores could create one of three problems: First, a store manager may elect to keep the selling price of framed-print items the same. The results of this would be no change in revenues, but profits would de- cline because of the increase in cost of framed prints. Second, a store manager may elect to increase the selling price of the framed prints to offset the cost increase. In this case, sales of framed prints would surely decline and so would revenues and profits. In addition, stores would likely see a decline in related sales of other expensive, high-quality, high-margin items. This is because sales data indicate that customers who purchase high-quality, high-price framed prints also purchase high-quality, high-margin items such as watches, jewelry, and cosmetics. Third, a store manager may elect to search the outside market for framed prints. † Mr. Burns offered you the challenge of helping him bring change to the company’s transfer prices so that both business units, Greetings stores and Wall Decor, win. From his explanation, you could see and appreciate that set- ting the transfer price for unframed and framed prints impacts sale revenues and profits for related items and for the company overall. You immediately rec- ognized the error in your presentation by simply providing a solution for Wall Decor alone. You drove home that night thinking about the challenge. You recognized the need and importance of anticipating the reaction of Greetings store customers to changes in the prices of unframed and framed prints. The next day, the market- ing team provided you with the following average data. For every unframed print sold (assume one print per customer), that cus- tomer purchases related products resulting in $4 of additional profit. †¢ For every framed print sold (assume one print per customer), that customer purchases related products resulting in $8 of additional profit. †¢ Each Greetings store sets its own selling price for unframed and framed prints. Store managers nee d this type of flexibility to be responsive to com- petitive pressures. On average the pricing for stores is as follows: unframed prints $21, steel-framed without matting $50, wood-framed with matting $70. Instructions Answer each of the following questions. 1. Prepare for class discussion what you think were the critical challenges for Mr. Burns. Recognize that Wall Decor is a profit center and each Greetings store is a profit center. ?Greet ?ings ?case 3 Cases for Management Decision Making CA-13 2. After lengthy and sometimes heated negotiations between Wall Decor and the store managers, a new transfer price was determined that calls for the stores and Wall Decor to split the profits on unframed prints 30/70 (30% to the store, 70% to Wall Decor) and the profits on framed prints 50/50. The following additional terms were also agreed to: †¢ â€Å"Profits† are defined as the store selling price less the ABC cost. †¢ Stores do not share the profits from related products with Wall Decor. †¢ Wall Decor will not seek to sell unframed and framed print items through anyone other than Greetings. †¢ Wall Decor will work to decrease costs. †¢ Greetings stores will not seek suppliers of prints other than Wall Decor. †¢ Stores will keep the selling price of framed prints as it was before the change in transfer price. On average, stores will decrease the selling price of unframed prints to $20, with an expected increase in volume to 100,000 prints. Analyze how Wall Decor and the stores benefited from this new agreement. In your analysis, first (a) compute the profits of the stores and Wall Decor using traditional amounts related to pricing, cost, and a 20% markup on Wall Decor costs. Next, (b) compute the profits of the stores and Wall Decor using the ABC cost and negoti- ated transfer price approach. Finally, (c) explain your findings, linking the overall profits for stores and Wall Decor. The following data apply to this analysis. (Round all calculations to three deci- mal places. ) Average selling price by stores before transfer pricing study Average selling price by stores after transfer pricing study Volume at traditional selling price Volume at new selling price Wall Decor cost (traditional) ABC cost Unframed Print $21 $20 80,000 100,000 $17. 36 $15. 258 Steel-Framed, No Matting $50 $50 15,000 15,000 $33. 48 $39. 028 Wood-Framed, with Matting $70 $70 7,000 7,000 $48. 10 $55. 328 3. Review the additional terms of the agreement listed in instruction 2 above. In each case, state whether the item is appropriate, unnecessary, ineffective, or potentially harmful to the overall company. case 4 ?Greet ings Inc. Greetings Inc. : Capital Budgeting Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. stores, as well as the Wall Decor division, have enjoyed healthy prof- itability during the last two years. Although the profit margin on prints is often thin, the volume of print sales has been substantial enough to generate 15% of Greetings’ store profits. In addition, the increased customer traffic resulting from the prints has generated significant additional sales of related non-print products. As a result, the company’s rate of return has exceeded the industry average during this two-year period. Greetings’ store managers likened the e-business leverage cre- ated by Wall Decor to a â€Å"high-octane† fuel to supercharge the stores’ profitability. This high rate of return (ROI) was accomplished even though Wall Decor’s venture into e-business proved to cost more than originally budgeted. Why was it a profitable venture even though costs exceeded estimates? Greetings stores were able to generate a considerable volume of business for Wall Decor. This helped spread the high e-business operating costs, many of which were fixed, across many unframed and framed prints. This experience taught top manage- ment that maintaining an e-business structure and making this business model successful are very expensive and require substantial sales as well as careful monitoring of costs. Wall Decor’s success gained widespread industry recognition. The business press ocumented Wall Decor’s approach to using information technology to in- crease profitability. The company’s CEO, Robert Burns, has become a frequent business-luncheon speaker on the topic of how to use information technology to offer a great product mix to the customer and increase shareholder value. From the outside looking in, all appears to be going very well for Greetings stores and Wall Decor. How ever, the sun is not shining as brightly on the inside at Greetings. The mall stores that compete with Greetings have begun to offer prints at very com- petitive prices. Although Greetings stores enjoyed a selling price advantage for a few years, the competition eventually responded, and now the pressure on sell- ing price is as intense as ever. The pressure on the stores is heightened by the fact that the company’s recent success has led shareholders to expect the stores to generate an above-average rate of return. Mr. Burns is very concerned about how the stores and Wall Decor can continue on a path of continued growth. Fortunately, more than a year ago, Mr. Burns anticipated that competitors would eventually find a way to match the selling price of prints. As a conse- quence, he formed a committee to explore ways to employ technology to further reduce costs and to increase revenues and profitability. The committee is com- prised of store managers and staff members from the information technology, CA-14 ?Greet ?ings ?cacaseses 14 Cases for Management Decision Making CA-15 marketing, finance, and accounting departments. Early in the group’s discussion, the focus turned to the most expensive component of the existing business model—the large inventory of prints that Wall Decor has in its centralized ware- house. In addition, Wall Decor incurs substantial costs for shipping the prints from the centralized warehouse to customers across the country. Ordering and maintaining such a large inventory of prints consumes valuable resources. One of the committee members suggested that the company should pursue a model that music stores have experimented with, where CDs are burned in the store from a master copy. This saves the music store the cost of maintaining a large inventory and increases its ability to expand its music offerings. It virtually guarantees that the store can always provide the CDs requested by customers. Applying this idea to prints, the committee decided that each Greetings store could invest in an expensive color printer connected to its online ordering system. This printer would generate the new prints. Wall Decor would have to pay a roy- alty on a per print basis. However, this approach does offer certain advantages. First, it would eliminate all ordering and inventory maintenance costs related to the prints. Second, shrinkage from lost and stolen prints would be reduced. Finally, by reducing the cost of prints for Wall Decor, the cost of prints to Greetings stores would decrease, thus allowing the stores to sell prints at a lower price than competitors. The stores are very interested in this option because it enables them to maintain their current customers and to sell prints to an even wider set of customers at a potentially lower cost. A new set of customers means even greater related sales and profits. As the accounting/finance expert on the team, you have been asked to per- form a financial analysis of this proposal. The team has collected the informa- tion presented in Illustration CA 4-1. Illustration CA 4-1 Information about the proposed capital investment project ?Available Data Cost of equipment (zero residual value) Cost of ink and paper supplies (purchase immediately) Annual cash flow savings for Wall Decor Annual additional store cash flow from increased sales Sale of ink and paper supplies at end of 5 years Expected life of equipment Cost of capital Amount $800,000 100,000 175,000 100,000 50,000 5 years 12% ?Instructions Mr. Burns has asked you to do the following as part of your analysis of the capital investment project. 1. Calculatethenetpresentvalueusingthenumbersprovided. Assumethatannualcash flows occur at the end of the year. 2. Mr. Burns is concerned that the original estimates may be too optimistic. He has sug- gested that you do a sensitivity analysis assuming all costs are 10% higher than ex- pected and that all inflows are 10% less than expected. 3. Identify possible flaws in the numbers or assumptions used in the analysis, and iden- tify the risk(s) associated with purchasing the equipment. . In a one-page memo, provide a recommendation based on the above analy- sis. Include in this memo: (a) a challenge to store and Wall Decor management and (b) a suggestion on how Greetings stores could use the computer connection for re- lated sales. case 5 Auburn Circular Club Pro Rodeo Roundup Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION When Shelley Jones became president-elect of the Circular Club of Auburn, Kansas, she was asked to suggest a new fundraising activity for the club. After a consider- able amount of research, Shelley proposed that the Circular Club sponsor a profes- sional rodeo. In her presentation to the club, Shelley said that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community. Shelley’s goal was to have an activity that would become an â€Å"annual community event† and that would break even the first year and raise $5,000 the following year. In addition, based on the experience of other communities, Shelley believed that a rodeo could grow in popularity so that the club would eventually earn an average of $20,000 annually. A rodeo committee was formed. Shelley contacted the world’s oldest and largest rodeo-sanctioning agency to apply to sponsor a professional rodeo. The sanctioning agency requires a rodeo to consist of the following five events: Bareback Riding, Bronco Riding, Steer Wrestling, Bull Riding, and Calf Roping. Because there were a number of team ropers in the area and because they wanted to include females in the competition, members of the rodeo committee added Team Roping and Women’s Barrels. Prize money of $3,000 would be paid to winners in each of the seven events. Members of the rodeo committee contracted with RJ Cattle Company, a live- stock contractor on the rodeo circuit, to provide bucking stock, fencing, and chutes. Realizing that osts associated with the rodeo were tremendous and that ticket sales would probably not be sufficient to cover the costs, the rodeo com- mittee sent letters to local businesses soliciting contributions in exchange for various sponsorships. Exhibiting Sponsors would contribute $1,000 to exhibit their products or services, while Major Sponsors would contribute $600. Chute Sponsors would cont ribute $500 to have the name of their business on one of the six bucking chutes. For a contribution of $100, individuals would be included in a Friends of Rodeo list found in the rodeo programs. At each performance the rodeo announcer would repeatedly mention the names of the businesses and in- dividuals at each level of sponsorship. In addition, large signs and banners with the names of the businesses of the Exhibiting Sponsors, Major Sponsors, and Chute Sponsors were to be displayed prominently in the arena. ?CA-16 case 5 Cases for Management Decision Making CA-17 A local youth group was contacted to provide concessions to the public and divide the profits with the Circular Club. The Auburn Circular Club Pro Rodeo Roundup would be held on June 1, 2, and 3. The cost of an adult ticket was set at $8 in advance or $10 at the gate; the cost of a ticket for a child 12 or younger was set at $6 in advance or $8 at the gate. Tickets were not date-specific. Rather, one ticket would admit an individual to one performance of his or her choice— Friday, Saturday, or Sunday. The rodeo committee was able to secure a location through the county supervisors board at a nominal cost to the Circular Club. The arrangement allowed the use of the county fair grounds and arena for a one- week period. Several months prior to the rodeo, members of the rodeo commit- tee had been assured that bleachers at the arena would hold 2,500 patrons. On Saturday night, paid attendance was 1,663, but all seats were filled due to poor gate controls. Attendance was 898 Friday and 769 on Sunday. The following revenue and expense figures relate to the first year of the rodeo. Illustration CA 5-1 Revenue and expense data, year 1 ?Receipts Contributions from sponsors $22,000 Receipts from ticket sales 28,971 Share of concession profits 1,513 Sale of programs 600 Total receipts Expenses Livestock contractor 26,000 Prize money 21,000 Contestant hospitality Sponsor signs for arena 1,900 Insurance 1,800 Ticket printing 1,050 Sanctioning fees 925 Entertainment 859 Judging fees 750 Port-a-potties 716 Rent 600 Hay for horses 538 Programs 500 Western hats to first 500 children 450 Hotel rooms for stock contractor 325 Utilities 300 Sand for arena 251 Miscellaneous fixed costs 105 Total expenses Net loss $53,084 ?3,341* ?61,410 $(8,326) *The club contracted with a local caterer to provide a tent and food for the contestants. The cost of the food was contingent on the number of contestants each evening. Information con- cerning the number of contestants and the costs incurred are as follows: Contestants Friday 68 Saturday 96 Sunday 83 Total Cost $ 998 1,243 1,100 $3,341 On Wednesday after the rodeo, members of the rodeo committee met to discuss and critique the rodeo. Jonathan Edmunds, CPA and President of the Circular Club, commented that the club did not lose money. Rather, Jonathan said, â€Å"The club made an investment in the rodeo. † CA-18 case 5 Cases for Management Decision Making Instructions Answer each of the following questions. . Do you think it was necessary for Shelley Jones to stipulate that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community? Why or why not? 2. What did Jonathan Edmunds mean when he said the club had made an investment in the rodeo? 3. Is Jonathan’s comment concerning the investment consistent with Shelley’s idea that t he club should have a fundraiser that would (1) continue to get better each year, (2) give back to the community, and (3) provide the club a presence in the community? Why or why not? 4. What do you believe is the behavior of the rodeo expenditures in relation to ticket sales? 5. Determine the fixed and variable cost components of the catering costs using the high-low method. 6. Assume you are elected chair of the rodeo committee for next year. What steps would you suggest the committee take to make the rodeo profitable? 7. Shelley, Jonathan, and Adrian Stein, the Fundraising Chairperson, are beginning to make plans for next year’s rodeo. Shelley believes that by negotiating with local feed stores, innkeepers, and other business owners, costs can be cut dramatically. Jonathan agrees. After carefully analyzing costs, Jonathan has estimated that the fixed expenses can be pared to approximately $51,000. In addition, Jonathan estimates that variable costs are 4% of total gross receipts. After talking with business owners who attended the rodeo, Adrian is confident that funds solicited from sponsors will increase. Adrian is comfortable in budgeting revenue from sponsors at $25,600. The local youth group is unwilling to provide con- cessions to the audience unless they receive all of the profits. Not having the person- nel to staff the concession booth, members of the Circular Club reluctantly agree to let the youth group have 100% of the profits from the concessions. In addition, mem- bers of the rodeo committee, recognizing that the net income from programs was only $100, decide not to sell rodeo programs next year. Compute the break-even point in dollars of ticket sales assuming Adrian and Jonathan are correct in their assumptions. 8. Shelley has just learned that you are calculating the break-even point in dollars of ticket sales. She is still convinced that the Club can make a profit using the assumptions in number 7 above. (a) Calculate the dollars of ticket sales needed in order to earn a target profit of $6,000. (b) Calculate the dollars of ticket sales needed in order to earn a target profit of $12,000. 9. Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated in number 8 above to earn a $6,000 profit? Show calcula- tions to support your answers. 10. Prepare a budgeted income statement for next year using the estimated revenues from sponsors and other assumptions in number 7 above. In addition, use ticket sales based on the target profit of $12,000 estimated in 8(b). The cost of the livestock con- tractor, prize money, sanctioning fees, entertainment, judging fees, rent, and utilities will remain the same next year. Changes in expenses include the following: Members of the Club have decided to eliminate all costs related to contestant hospitality by soliciting a tent and food for the contestants and taking care of the â€Å"Contestant Hospitality Tent† themselves. The county has installed permanent restrooms at the arena, eliminating the need to rent port-a- potties. The rodeo committee intends to pursue arrangements to have hotel rooms, hay, and children’s hats provided at no charge in exchange for sponsorships. The cost of banners varies with the number of sponsors. Signs and More charged the Circular Club $130 for each Exhibiting Sponsor banner and $48 for each Major Sponsor banner. At this time there is no way to know whether additional sponsors will be Exhibiting Spon- sors or Major Sponsors. Therefore, for budgeting purposes you should increase the cost of the banners by the percentage increase in sponsor contributions. (Hint: Round ase 5 Cases for Management Decision Making CA-19 all calculations to three decimal places. ) By checking prices, the Circular Club will be able to obtain insurance providing essentially the same amount of coverage as this year for only $600. For the first rodeo the Club ordered 10,000 tickets. Realizing the con- straints on available seating, the Club is ordering only 5,000 tickets for next year, and th erefore its costs are reduced 50%. The sand for the arena for next year will be $300, and miscellaneous fixed costs are to be budgeted at $100. 11. A few members in the Circular Club do not want to continue with the annual rodeo. However, Shelley is insistent that the Club must continue to conduct the rodeo as an annual fundraiser. Shelley argues that she has spent hundreds of dollars on western boots, hats, and other items of clothing to wear to the rodeo. Are the expenses re- lated to Shelley’s purchases of rodeo clothing relevant costs? Why or why not? 12. Rather than hire the local catering company to cater the Contestant Hospitality Tent, members of the Circular Club are considering asking Shady’s Bar-B-Q to cater the event in exchange for a $600 Major Sponsor spot. In addition, The Fun Shop, a local party supply business, will be asked to donate a tent to use for the event. The Fun Shop will also be given a $600 Major Sponsor spot. Several members of the Club are opposed to this consideration, arguing that the two Major Sponsor spots will take away from the money to be earned through other sponsors. Adrian Stein has explained to the members that the Major Sponsor signs for the arena cost only $48 each. In ad- dition, there is more than enough room to display two additional sponsor signs. What would you encourage the Club to do concerning the Contestant Hospitality Tent? Would your answer be different if the arena were limited in the number of additional signs that could be displayed? What kind of cost would we consider in this situation that would not be found on a financial statement? case 6 Sweats Galore Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his disci- pline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business: 1. He wanted to do something that he would enjoy. 2. He wanted a business that would give back to the community. 3. He wanted a business that would grow and be more successful every year. 4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have cus- tom sweatshirts made using a silk-screen process. When student organiza- tions wanted sweatshirts for their members or to market on campus, the offi- cers had to make a trip to a city 100 miles away to visit â€Å"Shirts and More. ’’ Michael had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his crite- ria. Michael set up an appointment with Jayne Stoll, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Jayne liked Michael and was intrigued by his entrepreneurial spirit, she answered many of Michael’s questions. In addition, Jayne provided information concerning the type of equipment Michael would need for his business and its average useful life. Jayne knows a competitor who is retiring and would like to sell his equipment. Michael can purchase the equipment at the beginning of 2011, and the owner is willing to give him terms of 50% due upon purchase and 50% due the quarter following the purchase. Michael decided to purchase the following equipment as of January 1, 2011. CA-20 case 6 Cases for Management Decision Making CA-21 Hand-operated press that applies ink to the shirt Light-exposure table Dryer conveyer belt that makes ink dry on the shirts Computer with graphics software and color printer Display furniture Used cash register Cost $7,500 1,350 2,500 3,500 2,000 500 Useful Life yrs. 10 yrs. 10 yrs. 4 yrs. 10 yrs. 5 yrs. Michael has decided to use the sweatshirt supplier recommended by Jayne. He learned that a gross of good-quality sweatshirts to be silk-screened would cost $1,440. Jayne has encouraged Michael to ask the sweatshirt supplier for terms of 40% of a quarter’s purchases to be paid in the quarter of purchase, with the re- maining 60% of the quarter’s purchases to be paid in the quarter following the purchase. Michael also learned from talking with Jayne that the ink used in the silk- screen process costs approximately $0. 75 per shirt. Knowing that the silk-screen process is somewhat labor-intensive, Michael plans to hire six college students to help with the process. Each one will work an average of 20 hours per week for 50 weeks during the year. Michael estimates to- tal annual wages for the workers to be $72,000. In addition, Michael will need one person to take orders, bill customers, and operate the cash register. Cary Sue Smith, who is currently Director of Student Development at Eastern University, has approached Michael about a job in sales. Cary Sue knows the officers of all of the student organizations on campus. In ad- dition, she is very active in the community. Michael thinks Cary Sue can bring in a lot of business. In addition she also has the clerical skills needed for the posi- tion. Because of her contacts, Michael is willing to pay Cary Sue $1,200 per month plus a commission of 10% of sales. Michael estimates Cary Sue will spend 50% of the workday focusing on sales, and the remaining 50% will be spent on clerical and administrative duties. Michael realizes that he will have difficulty finding a person skilled in com- puter graphics to generate the designs to be printed on the shirts. Jayne recently hired a graphics designer in that position for Shirts and More at a rate of $500 per month plus $0. 10 for each shirt printed. Michael believes he can find a uni- versity graphics design student to work for the same rate Jayne is paying her designer. Michael was fortunate to find a commercial building for rent near the uni- versity and the downtown area. The landlord requires a one-year lease. Although the monthly rent of $1,000 is more than Michael had anticipated paying, the building is nice, has adequate parking, and there is room for expansion. Michael anticipates that 75% of the building will be used in the silk-screen process and 25% will be used for sales. Michael’s fraternity brothers have encouraged him to advertise weekly in the Eastern University student newspaper. Upon inquiring, Michael found that a 3 3 ad would cost $25 per week. Michael also plans to run a weekly ad in the local newspaper that will cost him $75 per week. Michael wants to sell a large number of quality shirts at a reasonable price. He estimates the selling price of each customized shirt to be $16. Jayne has sug- gested that he should ask customers to pay for 70% of their purchases in the quarter purchased and pay the additional 30% in the quarter following the purchases. After talking with the insurance agent and the property valuation adminis- trator in his municipality, Michael estimates that the property taxes and insur- ance on the machinery will cost $2,240 annually; property tax and insurance on display furniture and cash register will total $380 annually. CA-22 case 6 Cases for Management Decision Making Jayne reminded Michael that maintenance of the machines is required for the silk-screen process. In addition, Michael realizes that he must consider the cost of utilities. The building Michael wants to rent is roughly the same size as the building occupied by Shirts and More. In addition, Shirts and More sells ap- proximately the same number of shirts Michael plans to sell in his store. Therefore, Michael is confident that the maintenance and utility costs for his shop will be comparable to the maintenance and utility costs for Shirts and More, which are as follows within the relevant range of zero to 8,000 shirts. Shirts Sold January 2,000 February 2,110 March 2,630 April 3,150 May 5,000 June 5,300 July 3,920 August 2,080 September 8,000 October 6,810 November 6,000 December 3,000 Maintenance Costs $1,716 1,720 1,740 1,740 1,758 1,818 1,825 1,780 1,914 1,860 1,855 1,749 Utility Costs $1,100 1,158 1,171 1,198 1,268 1,274 1,205 1,117 1,400 1,362 1,347 1,193 Michael estimates the number of shirts to be sold in the first five quarters, beginning January 2011, to be: First quarter, year 1 Second quarter, year 1 Third quarter, year 1 Fourth quarter, year 1 First quarter, year 2 8,000 10,000 20,000 12,000 18,000 Seeing how determined his son was to become an entrepreneur, Michael’s fa- ther offered to co-sign a note for an amount up to $20,000 to help Michael open his sweatshirt shop, Sweats Galore. However, when Michael and his father ap- proached the loan officer at First Guarantee Bank, the loan officer asked Michael to produce the following budgets for 2011. Sales budget Schedule of expected collections from customers Shirt purchases budget Schedule of expected payments for purchases Silk-screen labor budget Selling and administrative expenses budget Silk-screen overhead expenses budget Budgeted income statement Cash budget Budgeted balance sheet The loan officer advised Michael that the interest rate on a 12-month loan would be 8%. Michael expects the loan to be taken out as of January 1, 2011. Michael has estimated that his income tax rate will be 20%. He expects to pay the total tax due when his returns are filed in 2012. Instructions Answer the following questions. 1. Do you think it was important for Michael to stipulate his four criteria for the busi- ness (see page CA-21), including the goal of generating a net income of at least $25,000 annually? Why or why not? case 6 Cases for Management Decision Making CA-23 2. If Michael has sales of $12,000 during January of his first year of business, deter- mine the amount of variable and fixed costs associated with utilities and mainte- nance using the high-low method for each. 3. Using the format below, prepare a sales budget for the year ending 2011. SWEATS GALORE Sales Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Expected unit sales Unit selling price x Budgeted sales revenue $ 4. Prepare a schedule of expected collections from customers. SWEATS GALORE Schedule of Expected Collections from Customers For the Year Ending December 31, 2011 Quarter 234 Accounts receivable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total collections 5. Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25% of the next quarter’s sales. Prepare a shirt purchases budget for shirts using the format provided. SWEATS GALORE Shirt Purchases Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Shirts to be silk-screened Plus: Desired ending inventory Total shirts required Less: Beginning inventory Total shirts needed Cost per shirt Total cost of shirt purchases 6. Prepare a schedule of expected payments for purchases. SWEATS GALORE Schedule of Expected Payments for Purchases For the Year Ended December 31, 2011 Quarter 1234 Accounts payable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total payments CA-24 case 6 Cases for Management Decision Making 7. Prepare a silk-screen labor budget. SWEATS GALORE Silk-Screen Labor Budget For the Year Ended December 31, 2011 Quarter 2 3 4 Year Units to be produced Silk-screen labor hours per unit Total required silk-screen labor hours Silk-screen labor cost per hour Total silk-screen labor cost 8. Prepare a selling and administrative expenses budget for Sweats Galore for the year ending December 31, 2011. SWEATS GALORE Selling and Administrative Expenses Budget For the Year Ended December 31, 201 1 Quarter 1 2 3 4 Year Variable expenses: Sales commissions Total variable expenses Fixed expenses: Advertising Rent Sales salaries Office salaries Depreciation Property taxes and insurance Total fixed expenses Total selling and dministrative expenses 9. Prepare a silk-screen overhead expenses budget for Sweats Galore for the year end- ing December 31, 2011. SWEATS GALORE Silk-Screen Overhead Expenses Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Variable expenses: Ink Maintenance Utilities Graphics design Total variable expenses Fixed expenses: Rent Maintenance Utilities Graphics design Property taxes and insurance Depreciation Total fixed expenses Total silk-screen overhead Direct silk-screen hours Overhead rate per silk-screen hour case 6 Cases for Management Decision Making CA-25 10. Using the information found in the case and the previous budgets, prepare a bud- geted income statement for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 11. Using the information found in the case and the previous budgets, prepare a cash budget for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Cash Budget For the Year Ended December 31, 2011 Quarter 1234 Beginning cash balance Add: Receipts Collections from customers Total available cash Less: Disbursements Payments for shirt purchases Silk-screen labor Silk-screen overhead Selling and administrative expenses Payment for equipment purchase Total disbursements Excess (deficiency) of available cash over disbursements Financing Borrowings Ending cash balance 12. Using the information contained in the case and the previous budgets, prepare a bud- geted balance sheet for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Balance Sheet December 31, 2011 Assets Cash Accounts receivable Sweatshirt inventory Equipment Less: Accumulated depreciation Total assets ? CA-26 case 6 Cases for Management Decision Making Liabilities and Owner’s Equity ? 13. (a) Accounts payable Notes payable Interest payable Taxes payable Total liabilities Michael Woods, Capital Total liabilities and owner’s equity Using the information contained in the case and the previous budgets, calculate the estimated contribution margin per unit for 2011. (Hint: Silk-screened labor and the taxes are both fixed costs. ) (b) Calculate the total estimated fixed costs for 2011 (including interest and taxes). c) Compute the break-even point in units and dollars for 2011. 14. (a) Michael is very disappointed that he did not have an income of $25,000 for his first year of budgeted operations as he had wanted. How many shirts would Michael have had to sell in order to have had a profit of $25