chapter 20, question 2
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Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by offering supermarkets
1 month of free credit. The price per carton is $140, and the cost per carton is $85. The unit sales will increase from 1,090
cartons to 1,150 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period
offered.
a. If the interest rate is 1% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is
offered to all customers?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. If the interest rate is 1.5% per month, what will be the change in the firm's total monthly profits on a present value basis if credit
is offered to all customers?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be
indicated by a minus sign.
c. Assume the interest rate is 1.5% per month but the firm can offer the credit only as a special deal to new customers, while
existing customers will continue to pay cash on delivery. What will be the change in the firm's total monthly profits on a present
value basis under these conditions?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
a.
Change in total monthly profit
$
1,705.94
b.
Change in total monthly profit
$
920.69
c.
Change in total monthly profit
$
3,175.86
Microbiotics currently sells all of its frozen dinners cash-on-delivery but believes it can increase sales by offering supermarkets
1 month of free credit. The price per carton is $140, and the cost per carton is $85. The unit sales will increase from 1,090
cartons to 1,150 per month if credit is granted. Assume all customers pay their bills and take full advantage of any credit period
offered.
a. If the interest rate is 1% per month, what will be the change in the firm's total monthly profits on a present value basis if credit is
offered to all customers?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
b. If the interest rate is 1.5% per month, what will be the change in the firm's total monthly profits on a present value basis if credit
is offered to all customers?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Negative amount should be
indicated by a minus sign.
c. Assume the interest rate is 1.5% per month but the firm can offer the credit only as a special deal to new customers, while
existing customers will continue to pay cash on delivery. What will be the change in the firm's total monthly profits on a present
value basis under these conditions?
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
+/-0.01
$
+/-0.01
$
+/-0.01
$
a.
Change in total monthly profit
1,705.94
b.
Change in total monthly profit
920.69
c.
Change in total monthly profit
3,175.86
5/9/24, 8:38 PM
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O a. promotion
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QUESTION FOUR
4.2
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Ethical behaviour is necessary within a project organisation and is crucial in project business
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situations may arise that can provide an opportunity for unethical behaviour.
With regard to the above statements:
4.1 Provide five examples of unethical behaviour in a project context.
Accessibility: Unavailable
No Spacing
END OF QUESTION PAPER
Styles
Heading 1
Discuss the ways in which project managers can promote ethical behaviour.
R
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Page 190, Chapter 7:
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QUESTION TWO
Gido et al (2022:337) contend that the capable project manager understands what motivates
team member and creates a supportive environment in which individuals work as part of a
high-performing team and are energised to excel.
Heading 1
Considering the characteristics of high-performing project teams, discuss the ways in which
the project manager can motivate team members and create a supportive environment.
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