Economics and Comparitive Advantage in Switzerland

RUNNING HEAD: SWITZERLAND AND COMPARITIVE Switzerland and Comparative Advantage; Factors, Specialization and Protectionism in a Global Economy ECO GM/ 561 International Economics Douglas Gurney July 3, 2010 Switzerland and the Concept of Comparative Advantage While most in today’s hyper-competitive global economy look towards countries including; China, India, Taiwan, Vietnam, and others in search of lower production costs seeking the ever illusive comparative advantage, others have different ideas. Switzerland, a tiny land locked nation in central Europe surrounded by Alps with a relatively small population of 7,630,605 is one such country. It operates with its own comparative advantage in the industries of†¦show more content†¦As Switzerland is unable to compete globally in the area of inexpensive goods and services including; toys, manufactured goods, and other products used in mass by today’s consumer it is advised that the nation continue to produce products it currently specializes in along with expanding its current services to attract foreign investment into the Swiss economy. Industries of Specialization and Opportunity As most already know, the Swiss are renowned for their production of high quality chocolates including those of the Toblerone and Lindt brands. â€Å"Switzerland has a comparative advantage in the production of chocolate. By spending one hour producing two pounds of chocolate, it gives up producing one pound of cheese, whereas, if it spends that hour producing cheese, it gives up two pounds of chocolate. Thus, the good in which comparative advantage is held is the good that the country produces most efficiently (chocolate). Therefore, if given a choice between producing two goods (or services), a country will make the most efficient use of its resources by producing the good with the lowest opportunity cost, the good in which it holds the comparative advantage, and by trading for the other good.† (Globalization101.org, 2010) While chocolates are one of this country’s specialties it’s not the only one. Other areas of specialty already realized and being readily ut ilized by the Swiss are the

Limiting Reactant Theoretical Yield (Worked Problem)

The limiting reactant of a reaction is the reactant that would run out first if all the reactants were to be reacted together. Once the limiting reactant is completely consumed, the reaction would cease to progress. The theoretic yield of a reaction is the amount of products produced when the limiting reactant runs out. This worked example chemistry problem shows how to determine the limiting reactant and calculate the theoretical yield of a chemical reaction. Limiting Reactant and Theoretical Yield Problem You are given the following reaction: 2 H2(g) O2(g) → 2 H2O(l) Calculate: a. the stoichiometric ratio of moles H2 to moles O2b. the actual moles H2 to moles O2 when 1.50 mol H2 is mixed with 1.00 mol O2c. the limiting reactant (H2 or O2) for the mixture in part (b)d. the theoretical yield, in moles, of H2O for the mixture in part (b) Solution a. The stoichiometric ratio is given by using the coefficients of the balanced equation. The coefficients are the numbers listed before each formula. This equation is already balanced, so refer to the tutorial on balancing equations if you need further help: 2 mol H2 / mol O2 b. The actual ratio refers to the number of moles actually provided for the reaction. This may or may not be the same as the stoichiometric ratio. In this case, it is different: 1.50 mol H2 / 1.00 mol O2 1.50 mol H2 / mol O2 c. Note that the actual ratio of smaller than the required or stoichiometric ratio, which means there is insufficient H2 to react with all of the O2 that has been provided. The insufficient component (H2) is the limiting reactant. Another way to put it is to say that O2 is in excess. When the reaction has proceeded to completion, all of the H2 will have been consumed, leaving some O2 and the product, H2O. d. Theoretical yield is based on the calculation using the amount of limiting reactant, 1.50 mol H2. Given that 2 mol H2 forms 2 mol H2O, we get: theoretical yield H2O 1.50 mol H2 x 2 mol H2O / 2 mol H2 theoretical yield H2O 1.50 mol H2O Note that the only requirement for performing this calculation is knowing the amount of the limiting reactant and the ratio of the amount of limiting reactant to the amount of product. Answers a. 2 mol H2 / mol O2b. 1.50 mol H2 / mol O2c. H2d. 1.50 mol H2O Tips for Working This Type of Problem The most important point to remember is that you are dealing with the molar ratio between the reactants and products. If you are given a value in grams, you need to convert it to moles. If youre asked to supply a number in grams, you convert back from the moles used in the calculation.The limiting reactant isnt automatically the one with the smallest number of moles. For example, say you have 1.0 moles of hydrogen and 0.9 moles of oxygen in the reaction to make water. If you didnt look at the stoichiometric ratio between the reactants, you might choose oxygen as the limiting reactant, yet hydrogen and oxygen react in a 2:1 ratio, so youd actually expend the hydrogen much sooner than youd use up the oxygen.When youre asked to give quantities, watch the number of significant figures. They always matter in chemistry!

Environmental Sustainability And Ethics Into The Business...

As a manager of a fine dining restaurant in an inner city suburb, I notice that there is an increase in the number of people enquiring about food items featured on the menu. Some are vegetarian; some ask where and how the food is produced, whilst others are celiac or show a high level of concern over the ingredients used in each dish, due to allergies. As a result, there will be a growing trend towards consuming foods based on informed choice. On the other hand, there are also some concerns about the ethics of eating and the provenance of food used on the menu. Hence, I decide that incorporating principles of informed choice and ethics into the business could be a good way to respond to these emerging trends and promote the business as being sustainable, environmentally concerned and ethically responsible. There are some imperative issues that the business ought to consider about: †¢ environmental sustainability †¢ energy conservation †¢ ethical eating †¢ healthy eating and allergies †¢ locavorism and food miles †¢ vegan and vegetarianism †¢ recycling and waste management †¢ free-trade 2.0 Research issues. 2.1 Environmental Sustainability. According to Asner et al (2004), agricultural activities and their complex effects on nature conservation, and the services that ecosystems deliver to humans are controversial. We present an overview of land abandonment, its driving forces and its consequences for landscape, biodiversity and humans. A descriptive met analysis of independentlyShow MoreRelatedInternal And External Factors Affecting Mcdonalds1468 Words   |  6 Pagesis created for McDonald’s. There are various internal and external environmental factors affecting the functions of McDonald’s corporation and demands for new innovations. The factors are as follows: Internal Factors: Internal factors are the factors within the company, which affects the success and operation of business. The company can control these factors. Effective internal management is the key to the successful business. 1. Employees: McDonalds totally relies on its employees in all perspectivesRead MoreThe Ethical Standards Of Corporate Social Responsibility1126 Words   |  5 PagesMultiple corporations grapple with how to meet the ethical standards of corporate social responsibility in today’s global economy. Becoming a triple bottom line company would help a business meet its ethical obligations and demonstrate its sustainability progress to stakeholders. Employing utilitarian theory of ethics to exam triple bottom line use by corporations will illustrate its relevance for meeting a company’s ethical responsibilities. Corporate Social Responsibility Corporate social responsibilityRead MoreMicrosoft Internal And External Factors1652 Words   |  7 Pages Trends Business Environment: Successful companies practice a disciplined management strategy which encompasses the four functions of management: planning, organizing, leading, and controlling. The application of these management practices is evident in further analyzing the management construct of Microsoft Corporation. A global corporation who specializes in providing technology solutions for five different business segments ranging from personal computers to gaming devices, Microsoft has demonstratedRead MoreHow Can Contemporary Society Address Essay961 Words   |  4 PagesHow can contemporary society address â€Å"the complex interaction of environmental, social, and economic force that factors and currently limiting the sustainability of business enterprises around the world, a clear gap created among the â€Å"words† and â€Å"action†, according to the latest global information? How can federal and state agencies break down silos and work together to pursue sustainability? What is the prefe rred model for business-government collaboration and engagement with civil society and nongovernmentalRead MoreCompanys Csr Sustainability Program1485 Words   |  6 PagesIV. Company’s CSR-Sustainability Program A. History The rising need for protection of intellectual property rights and improvement of public health lead the pharmaceutical industry to establish an agreement in 2001 with the World Trade Organization. In Sanofi’s earliest archived sustainability effort, Environmental Progress Report 2001, it states that Sanofi has taken initiatives to promote sustainable development as a reaction to the rise of wider and on going responsibilities. They have pursuedRead MoreEthics and Sustainability1129 Words   |  5 PagesI. Introduction â€Å"Sustainability,† â€Å"environmental,† â€Å"social,† these are few of the buzz words that are deemed important in discussions of corporate obligations that go beyond the traditional means of doing business. Being in public procurement allows empowerment to influence such obligations not just between a customer and a vendor, but also on how the vendor treats its employees and how things like packaging and dumping of waste can hinder a potential business transaction. Sustainable purchasingRead MoreEthics and Values in Business Sustainability789 Words   |  3 PagesDraft Ethics and values can be described as very important to business sustainability. There are ethics which are individual moral principles that govern or influence a person’s behaviour and there are business ethics which are written or unwritten codes of principles or values that govern decisions and actions within an organisation. Values are the context within which an organisation or a society’s norms are established and justified. All these aspects are important to the sustainability of anRead MoreMonsanto Is A Multinational Agricultural Biotechnology Corporation Based From The Usa1123 Words   |  5 PagesMonsanto is a multinational agricultural biotechnology corporation based in the USA. They are world’s leading producers of GMO seeds and rBGH. The company operates two business segments seeds and Genomics and Agriculture productivity. Monsanto is a company that has been around since 1901. They have renovated their company several times throughout the last cent ury to fulfill a need in society. They have been suppliers for items such as artificial sweeter, saccharine, which was sold to Coca-Cola, vanillaRead MoreSustainability : A Long And Mixed History Essay1545 Words   |  7 Pages Due to the environmental pollution caused by transportation, there are endless increasing problems of waste disposal and many other problems that the world faces. It has been suggested that businesses require re-thinking and thus each business should apply the concept of sustainability which is a common term used in business ethics. Sustainability has a long and mixed history due to its importance (Crane and Matten, 2007). Sustainable development recognizes the importance of economic wealth, environmentalRead MoreWhat is Business Ethics?741 Words   |  3 Pages In today’s business world businesses face the challenge of doing the right thing over doing the profitable thing more than ever before. For many years the sole purpose of business was to be make profits for the shareholders. This view has now been changed. The propriety of business actions is being challenged by the modern day consumer. One of the major issues or opportunities (depending on which way one may see it) is the issue of ‘going-green’. Consumers in today’s society have access to a large

Global Capitalism And Its Impact On The United States

It is not just the arbitrary concepts of capitalism which have a tendency to expand, under the Marxist understanding of the state, capitalist states will make foreign policy decisions for the benefit of global capitalism. The increased intervention by western states in the Marxist view is about the sole purpose of the expansion of capitalism in the search of profit for the companies, using the state as a mobiliser for action towards such an end. Mark Rupert brought forward a case study of such â€Å"imperialism† in action, in the case of the US. Global capitalist activities require huge amounts of energy, and the cheapest or most efficient form is petroleum. Despite not being a democracy and not practising equality, or respecting human rights, all core values to the US, Saudi Arabia remains one of the US’s closest allies. If the actions of the US abroad primarily concerned democracy promotion, human rights and core liberal values, this alliance does not make sense, but when you use a Marxist lens, and consider that alliances are about capitalism, you quickly understand why Saudi Arabia, a large producer of oil is a huge geopolitical ally of the US. This also applies to explaining enemies, for example Cuba and Qaddafi’s Libya. Cuba on the one hand is one of the few countries which still ideologically rejects capitalism as a form of organising society, which has resulted in a ban on all trade with Cuba. Alternatively, Qaddafi, who was the leader of an oil rich Libya for many yearsShow MoreRelatedEssay on Political Science1406 Words   |  6 Pagesconstitutes an element of the United States’ national political culture? The rights and liberties citizens have 2) No political belief has been more widely held across social groups and generations in the United States than ________. individual liberty 3) The Declaration of Independence asserts the primacy of the principle of ________, that â€Å"all men are created equal.† equality 4) The fastest growing ethnic group in the United States is ________. Hispanics Read MoreThe Corporate American Model Of Capitalism1316 Words   |  6 PagesCapitalism is good. In reading the articles, it seems scholars are either pro or anti-capitalism. The corporate American model of capitalism is built upon free enterprise and encourages competition. It’s also called the Liberal/Social Democratic model. Our economy, supposedly, encourages and rewards competition and equality. Yet the lack of competition and equality in our economy are issues scholars take aim at the most. George (2013) wrote in his editorial, â€Å"In the United States, income inequalityRead MoreThe Reasons For Anti Globalization Protests1263 Words   |  6 PagesMarx’s critique of the problems of capitalism in 19th century Europe. In the following essay, the reasons for anti-globalization protests will be examined and the comparison between capitalism in 19th century and now. Problems depicted by the Anti-globalization protestors Although there are many benefits brought by globalization, drawbacks are involved. Anti-globalization protesters such as Greenpeace and Anti-WTO focus on the problems created by global capitalism like uneven wealth distribution andRead MoreAmerican South And German Imperialism Essay1257 Words   |  6 PagesBooker T. Washington’s Tuskegee Institute. The Tuskegee Institute is a continual concept played throughout the book, having a large impact on the German colony of Togo. There is a great deal of similarities between the American South and German imperialism, known as the global South. To Zimmerman, the idea of the global South is a novel concept. The concept of the global South began to grow its roots after the American Civil War. Following the Civil War, the South began to redevelop once they facedRead MoreThe Impact of the Cold War on Developing Nations Essay1175 Words   |  5 PagesIntroduction Third world countries became the perfect battleground for cold war proxy battles during the early 1940’s to late 1990’s. United States wanted to flex its political muscle and try to curtail the spread of Soviet Communism in the developing nations. Most of the nations in developed world had already made their political and socio-economic stand regarding the form of governance and leadership pursued. Underdeveloped nations in Asia, Latin America and Africa were still vulnerable and easilyRead MoreThe Influence of the Communist Manifesto on the Development of Industrial Capitalism1249 Words   |  5 PagesCommunist Manifesto left a tremendous impact on a society that was rapidly becoming industrialized, and its effects can even be seen on the dominating economic system of the twenty-first century. In the later nineteenth century, however, industrial capitalism was on the brink of ruin. â€Å"On many occasions during the past century, Marxists have thought that capital ism was down for the count . . . Yet it has always come back with renewed strength.† Industrial capitalism succeeded in the face of communismRead More ¬an Inevitable Consequence of Economic Growth Is Increasing Inequality1241 Words   |  5 Pagesdiscuss how inequality affects states and the individuals living in the state. There are increased demands for educated workers; dependence of technology; privatization of markets; and the rise of capitalism which have led people to have drastic socioeconomic differences in wealth and lifestyle. Inequality in the economic sense is the difference in distribution of wealth and income between the people of a population, or even the difference in wealth between states. Though it is an outcome ofRead MoreJapans Changing Culture and the Global Economy661 Words   |  3 PagesJapans Changing Culture and the Global Economy: Japan is an Eastern nation that is equivalent to the United States with regards to her economic status. The countrys capitalistic philosophy started during the Meiji restoration in the late 1860s and was further developed and embedded through the work of Deming. Throughout its history, Japan is regarded as a religiously and ethnically standardized society with a feudal past of strong nationalistic and internal allegiances. While the country fallsRead MoreDemocracy : The Causes Of Capitalism And Democracy1167 Words   |  5 PagesThe question of whether democracies create capitalism, or the other way around, I think is too simple and ignores the circumstances in which both are initially created. Historically, it was changes in the economic system and in structures of society, without appropriate simultaneous shifts in the government structure, that created enough tension within societies to warrant a complete reconstruction of governmental institutions. I tend to think that democrac y does not have the potential to reallyRead MoreWalter Lafeber s Michael Jordan And The New Global Capitalism1511 Words   |  7 PagesLaFeber’s Michael Jordan and the New Global Capitalism, capitalism is seen through the eyes of basketball, and LaFeber argues that capitalism will always dominate culture. From the Cold War to present-day the United States has become a capitalist society, but in its wake left many Americans struggling for the American dream and even brought war to parts of the world. American capitalism took hold in the United States after the Second World War and this capitalism shaped the views and dreams of the

Lesson Plan †Pop Art Free Essays

LESSON PLAN for 8F: Pop Art – Roy Lichtenstein P45| CLASS: 8F| DATE: 07/06/12| LEARNING OBJECTIVE/S: * To create a piece of pop art in the style of Roy Lichtenstein. * To be able to understand what pop art is and recall information about Roy Lichtenstein. * To be able to make positive comments on your own and others work to boost confidence and self-esteem. We will write a custom essay sample on Lesson Plan – Pop Art or any similar topic only for you Order Now EXTENSION TASK: Begin to create your own piece of Pop Art representing something you enjoy or a person you idolise. Success Criteria: * Students will be able to show a basic attempt at producing a piece of work with some similarity to the original (Level 4) * Students will be able to show a satisfactory attempt at the task with good similarity to the original and appropriate choice of colour and technique (Level 5) * Students will show a strong attempt at the task with strong similarity and technique. A personal touch may be applied to the end product to improve it’s appearance. Level 6)| RESOURCES REQUIRED * PowerPoint on Roy Lichtenstein and his Pop Art (True or false quiz for starter) * White boards, pens, board rubbers * Working SmartBoard and remote * 3 sets of colour images of Roy Lichtenstein’s work for reference * Pre-outlined images on cartridge paper plus photocopies for other students. * Plain cartridge paper * Pencils, felt tips, rubbers, scissors (+2 left handed pairs for AB and JC) * Coloured paper| LESSON OUTLINE:| Structure| Groupings| Activities| Starter(10 – 15 mins)Introduction(5 mins)Main(first part)2nd partBreak(2 period lesson)1st part(5 mins)MainPlenary (20 mins at end of lesson)| Whole ClassWhole ClassIndividual workWhole ClassWhole classIndividual workingWhole class| True or false fact quiz on Roy Lichtenstein and Pop Art. Ask students to write their answer on their whiteboard and hold up in the air when prompted to compare with each other. Ask students to recall a fact for a merit. When starter completed ask LSA to collect equipment to avoid distraction during explanation of main task. Put pictures of Roy Lichtenstein’s work up on the board and ask students to tell me what is different about these pieces (composed of dots and lines). What do they like about them? What don’t they like? Discuss as a group. Show students example piece (created by me) to show what their end product may look like. Explain equipment used and techniques, varying ways to approach and variants in colour. Refer back to work on Andy Warhol and how the use of colour is reflective in the overall product. Offer outlines to students but discuss how to approach completing task from scratch also. Remind students to refer to colour copies for inspiration Answer any questions, begin task. Circulate the room, ask LSA to do this also so that any questions can be answered. Focus on SB and AB to ensure they are feeling confident and are aware of what they need to do. Monitor approaches and understanding by allowing students to discuss ideas. Line all students up and allow time for quick toilet break Ask students if they have any questions regarding the task and remind them to ask if they need anything. Continue to circulate, spending extra time with SB and AB to ensure focus. Check on BE, CA and SS to make sure they are remaining focussed on the task. If any students are near completion, explain extension task. Bring focus back to front of the class by asking students to come up in twos and place their art work on the board in an exhibition for reviewing. Once all pieces up, ask the class to walk around and decide one thing they like about someone else’s work on the board. Once seated, ask each student to share their compliment with the rest of the class. Ask students if they can recall a fact from our earlier PowerPoint and finish by asking for a thumbs up/middle/down approach to the task they completed today. | ASSESSMENT/DIFFERENTIATION:Where does diff. occur? What learning, and whom, will be assessed? Differentiation will take place in a number of ways throughout the lesson: * Teacher and TA interaction with pupils – helping those who are finding the work difficult, asking extension questions to more able pupils. * Teacher to take in to account some short term memory issues within the group and allow time to recall facts with hints where needed. Pre-drawn outlines for all students to access if they feel unable to complete a piece from scratch which several members will. Assessment will take place informally with the teacher noting how well the students can complete the task, and more formally through peer and self assessment. | Strategies to ensure effective learning takes place: * Ensure all students are aware of and under stand the task in hand by asking the class on a whole and then walking around the room (LSA also) once the task is set to answer any questions one on one. Make sure students have correct equipment available for the task. * Refer back to the facts learned at the beginning of the lesson by offering merits as reward for recollection of facts. * Allow time at the end of the lesson to see how students felt overall about the task. * Tackle any behavioural issues if they occur without disruption to the rest of the class. * Discuss the new technique with students and how they are finding it. | How to cite Lesson Plan – Pop Art, Papers

Accounting for Managers IAS 36–Impairment

Question: Describe about the Accounting for Managers for IAS 36Impairment. Answer: 1: Existing sales Particulars Note Details Current Sales Existing Sales (A) Units Per annum 20,000 Estimated Sales (B) Units Beginning 3 months 6,000 Estimated Sales (C) Units Remaining Period 14,000 Sales per/unit (D) $ Beginning 3 months 130 Sales per/unit (E) $ Remaining Period 130 Variable manufacturing cost per/unit (F) $ Provided 50 Variable selling and administrative cost per/unit (G) $ Provided 30 Total sales (G) $ [(B) x (D) + (C) x (E)] 2600000 Total variable manufacturing cost (H) $ [(A) x (F)] 1000000 Total selling and administrative cost (I) $ [(A) x (G)] 600000 Contribution (J) $ [(G) - (H) - (I)] 1000000 Fixed manufacturing cost (K) $ Provided 4,00,000 Fixed selling and administrative cost/unit (L) $ Provided 3,00,000 Advertising and promotion cost (M) $ Provided 0 Profit $ [(J) - (K)- (L) - (M)] 3,00,000 As per Rossi Proposal Particulars Note Details Rossi Proposal Existing Sales (A) Units Per annum 20,000 Estimated Sales (B) Units Beginning 3 months 6,000 Estimated Sales (C) Units Remaining Period 14,000 Sales per/unit (D) ($) Beginning 3 months 140 Sales per/unit (E) Remaining Period 140 Variable manufacturing cost per/unit (F) Provided 50 Variable selling and administrative cost per/unit (G) Provided 30 Total sales (G) [(B) x (D) + (C) x (E)] 2800000 Total variable manufacturing cost (H) [(A) x (F)] 1000000 Total selling and administrative cost (I) [(A) x (G)] 600000 Contribution (J) [(G) - (H) - (I)] 1200000 Fixed manufacturing cost (K) Provided 4,00,000 Fixed selling and administrative cost/unit (L) Provided 3,00,000 Advertising and promotion cost (M) Provided 1,25,000 Profit [(J) - (K)- (L) - (M)] 3,75,000 In consideration to the above calculation it should be noted that if 20,000 units are produced and the variable cost standing derived from the manufacturing and selling overhead is $12,00,000. According to the Rossis proposal of increasing the price by $10 would ultimately, lead to higher sales is entirely dependent upon the administrative expenses. However, the advertising and sales promotion cost of 125,000 would ultimately lead to fall in the profitability. Advertising and promotion is considered as the additional marketing cost, which either can attract new customers or might affect the estimated net profitability. As per Tom Tune Proposal Particulars Note Details Tom Proposal Existing Sales (A) Units Per annum 25000 Estimated Sales (B) Units Beginning 3 months 6,000 Estimated Sales (C) Units Remaining Period 19,000 Sales per/unit (D) $ Beginning 3 months 130 Sales per/unit (E) $ Remaining Period 130 Variable manufacturing cost per/unit (F) $ Provided 55 Variable selling and administrative cost per/unit (G) $ Provided 30 Total sales (G) $ [(B) x (D) + (C) x (E)] 3250000 Total variable manufacturing cost (H) $ [(A) x (F)] 1375000 Total selling and administrative cost (I) $ [(A) x (G)] 750000 Contribution (J) $ [(G) - (H) - (I)] 1125000 Fixed manufacturing cost (K) $ Provided 4,00,000 Fixed selling and administrative cost/unit (L) $ Provided 3,00,000 Advertising and promotion cost (M) $ Provided 50,000 Profit $ [(J) - (K)- (L) - (M)] 3,75,000 According to the proposal proposed by Tom, he predicts an estimated sales of 25,000 units with overall variable manufacturing cost of $11,25,000. Tom proposal includes an advertising and promotional cost of $50,000 however, there does not exists any considerable amount of change in profit. The contribution margin is lower than the Rossis proposal however, lower advertising and sales promotion cost is beneficial for the proposed strategy as there is lower risk of failure out of loss. As per Mary Watson Proposal Particulars Note Details Mary Proposal Existing Sales (A) Units Per annum 24000 Estimated Sales (B) Units Beginning 3 months 10,000 Estimated Sales (C) Units Remaining Period 14,000 Sales per/unit (D) $ Beginning 3 months 120 Sales per/unit (E) $ Remaining Period 130 Variable manufacturing cost per/unit (F) $ Provided 50 Variable selling and administrative cost per/unit (G) $ Provided 30 Total sales (G) $ [(B) x (D) + (C) x (E)] 3020000 Total variable manufacturing cost (H) $ [(A) x (F)] 1200000 Total selling and administrative cost (I) $ [(A) x (G)] 720000 Contribution (J) $ [(G) - (H) - (I)] 1100000 Fixed manufacturing cost (K) $ Provided 4,00,000 Fixed selling and administrative cost/unit (L) $ Provided 3,00,000 Advertising and promotion cost (M) $ Provided 40,000 Profit $ [(J) - (K)- (L) - (M)] 3,60,000 Mary on the other hand would propose to undertake the promotion campaign where a rebate of $10 will be offered on all kinds of drills sold during. She further proposes a lower advertising and promotion cost of $40,000. She proposes estimated sales of 24,000 units per annum but undertaking the proposal it has been found that the net profit has fallen to $360,000 and such proposal does not seem to be profitable. To comment further on the three proposals offered it should be understood that the best-suited proposal is of Tom, which as the advertising cost is lower with net profit of 375,000. According to the proposal made by Tom, increasing the sales volume by 25% would be ideal for the business. 2: Activity Level Price Per Unit ($) 1,50,000 2,00,000 1,80,000 Direct Material 2.50 375000 500000 450000 Direct Labour 3.00 450000 600000 540000 Direct variable expenses 5.50 825000 1100000 990000 Variable Overhead: Variable Factory Overhead 1.50 225000 300000 270000 Variable selling and administrative cost 2.00 300000 400000 360000 Total cost or production 3.50 525000 700000 630000 Fixed Overhead: Fixed factory overhead 2.00 300000 400000 360000 Fixed selling and administrative cost 1.50 225000 300000 270000 Fixed Cost 3.50 525000 700000 630000 20% Mark Up 2.50 375000 500000 450000 Selling price 15.00 2250000 3000000 2700000 Additional bid by Tassie Company Particulars Details Price (in $) Total price for 40,000 units (A) (30,000 x 8.4) + (10,000 x 10.9) 361000 Average price for 40,000 units (A)/40,000 9.03 Cost such as salaries and depreciation can be included in the assets side of the balance sheet. It is worth mentioning that if a business firm operates on the accrual basis pay off its expenses prior to which it is incurred originally it can be shown in the form of assets under the asset side of the balance sheet for Prepaid Salaries or Prepaid Depreciation (Andersson and Wenzel 2014). As the expenditure are incurred once it is shifted to the profit and loss account in the form of expenditure. It is noticed in the majority of the business that the rate of depreciation creates an impact on the level of profitability and the amount of tax, which a business is willing to pay in one financial year. Depreciation is tax deducted expenditure with higher incidence of depreciation a business can reduce the tax bill in any financial year. Particulars Note Details Amount ($) Indirect/Overhead cost (A) $ Provided 98,400 Direct labour hours (B) Hours Provided 25,795 Overhead allocation rate $ (A)/(B) 3.81 Particulars Note Details Amount ($) Direct cost of material (A) $ (2,100 x 16.1) 33810 Direct cost of labour (B) $ (327,600/25,795) x 1400 17780.19 Indirect/overhead cost (C) S (1,400 x 3.81) 5334 Total cost of the special order S (A) + (B) + (C) 56924.19 Particulars Note Details Amount ($) Overhead cost (A) $ Provided 98,400 Machine hours (B) Hours Provided 9,840 Overhead allocation rate $ (A)/(B) 10 Particulars Note Details Amount ($) Direct cost of material (A) $ (2,100 x 16.1) 33810 Direct cost of labour (B) $ (327,600/25,795) x 1400 17780.19 Indirect/overhead cost (C) S (525 x 10) 5250 Total cost $ (A) + (B) + (C) 56840.19 Particulars Details Minimum price/trailer (in $) Labour hour rate 56,924.19/350 162.64 Machine hour rate 56,840.19/350 162.40 Activity based costing is referred as a costing methodology which helps in recognising the activities of an organisation by allocating the cost of each activity with the resources of the all the products and goods produced in accordance with the actual cost of production. On the other hand, the choice of an allocation method is entirely depended upon the group of overhead cost for a desired accuracy of the product cost information (Kaplan and Atkinson 2015). Such method when employed by a business entity can easily evaluate the cost of elements of entire product activities and services. Implementing the segmented cost of overhead pools and activity based costing can assist a business firm to identify the accurate cost of pricing a product and eliminate the product and service which are not profitable. Such pricing methods help a business organisation to reduce the production of goods and services, which are ineffective, and this will help in yielding a better production (Horngren et al. 2013). Such methods help a business to organise resources through which an activity pricing of each activity can be determined in terms of the resources employed. Thus such tool enables a business unit to understand the product and cost profitability on the basis of the production and performance. Reference list: Andersson, S. and Wenzel, F., 2014. Application of IAS 36Impairment of fixed assets-A qualitative study about the main challenges for companies regarding impairments. Balakrishnan, R., Labro, E. and Soderstrom, N.S., 2014. Cost structure and sticky costs.Journal of Management Accounting Research,26(2), pp.91-116. Carlsson, B., Meir, M., Rekstad, J., Prei, D. and Ramschak, T., 2016. Replacing traditional materials with polymeric materials in solar thermosiphon systemsCase study on pros and cons based on a total cost accounting approach.Solar Energy,125, pp.294-306. Deegan, C., 2013.Financial accounting theory. McGraw-Hill Education Australia. Domeika, P., 2015. Creation of the Information System of Enterprise Fixed Asset Accounting.Engineering Economics,60(5). DRURY, C.M., 2013.Management and cost accounting. Springer. Horngren, C.T., Sundem, G.L., Schatzberg, J.O. and Burgstahler, D., 2013.Introduction to management accounting. Pearson Higher Ed. Kamala, P., Struwig, J., Bornman, M., Boersman, R., Vermaak, M., McGill, M., Jordaan-Marais, J., Matthew, J., Hurter, C. and Taylor, P., 2015.Principles of Cost Accounting. Oxford University Press. Kaplan, R.S. and Atkinson, A.A., 2015.Advanced management accounting. PHI Learning. Kumbhakar, S., Lozano-Vivas, A. and Sun, K., 2013. A flexible cost function model with risk. Rieckhof, R., Bergmann, A. and Guenther, E., 2014. Interrelating material flow cost accounting with management control systems to introduce resource efficiency into strategy.Journal of Cleaner Production,30, p.1e17. Schmidt, A., Gtze, U. and Sygulla, R., 2015. Extending the scope of Material Flow Cost Accountingmethodical refinements and use case.Journal of Cleaner Production,108, pp.1320-1332.