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WAVERS Inc. is a California based firm that specializes in the manufacturing of high- end surfboards. Consumers in the coastal African region  as well as Japan and the UK have recently discovered the joys of surfing. WAVERS has hired you as a consultant to provide advice regarding global expansion. They are debating whether to continue exporting to the UK or possibly licensing the technology to a London firm that has expressed some interest in manufacturing the product in the UK. Currently, Wavers return on investment from their domestic market is 35% with a net profit of $5 million from $20 million in sales.  Labor is roughly 50% of total expenses and 20% cheaper in the UK than the US. Costs other than labor in the UK are roughly on par with the US.  Discuss whether they should license or continue to export and the contingencies that need to be considered. If they license, what should the royalty rate be?  Provide any assumptions that you have made

Individual ActivityMarbles Inc. is a start- up Company manufacturing marbles andelastic bands. The Company imports its raw materials from France,but based on its business model expects that within the next 6 monthsit will be able to manufacture its own products. These will be soldlocally in Grenada, with further plans for export to the wider Caribbeanand Latin America. As such, a lot of Marketing and promotion will berequired to get the product off the ground to meet this business target.Also, due to this projected expansion, machinery will have to bepurchased to create the products.The Financial Controller decides that the first step in creating heraccounting system is to create a Chart of Accounts.Before creating the Chart, she is contemplating the accounts whichshe will need for her Chart of Accounts. She knows that Cash, Sales,Purchases and Staff Costs are some of the accounts that will beneeded. You are assisting her to build this tool and she requires yourhelp. Advise her on the…

citrus juice drinks with groves in Indian River County, Florida. Until now, the company has confined itsoperations and sales to the United States, but its CEO, George Gaynor, wants to expand into the PacificRim. The first step is to set up sales subsidiaries in Japan and Australia, then to set up a production plant in Japan, and finally to distribute the product throughout the Pacific Rim. The firm’s financial manager, Ruth Schmidt, is enthusiastic about the plan, but she worries about the implications of the foreign expansion on the firm’s financial management process. She has asked you, the firm’s most recently hired financial analyst, to develop a 1-hour tutorial package that explains the basics of multinational financial management. The tutorial will be presented at the next board of directors meeting. To get you started, Schmidt has given you the following list of questions:a. What is a multinational corporation? Why do firms expand into other countries?b. What are the five major…

Hi can you please help me verify my answers for this problem. For each blank please help. Thank you.

Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Duncan ships the supplies upon demand.The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. marketare relatively high.a) Duncan Company plans to penetrate either the Canadian market or two other Caribbean Countries (Jamaica and Haiti). What factors deserve to be considered in deciding which market is more feasible?                                    I NEED PROPER REFERENCES IN THE ANSWER AND A VERY DETAILED AND RESEARCH ANSWER.

Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Duncan ships the supplies upon demand.The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. marketare relatively high.b) Given that one-third of the company sales are exports to the United Kingdom and invoices for exports are in US dollars, the demand for its exports is highly sensitive to the value of the British pound. In order to maintain its inventory at a proper level, it must forecast the total demand for its products which is somewhat dependent on the…

H-Robotic Incorporated (HRI), a world leader in the robotics industry, produces a line of industrial robots and peripheral equipment that performs many routine assembly-line tasks. However, increased competition, particularly from Japanese firms, has caused HRI's management to be concerned about the company's growth potential in the future. HRI's research and development department have been applying the industrial robot technology to develop a line of household robots. The household robot is designed to function as a maid, mainlyperforming such tasks as vacuuming floors and carpets. This effort has nowreached the stage where a decision on whether to go forward with production must be made. The engineering department has estimated that the firm would need a new manufacturing plant with the following construction schedule: The plant would require a 35-acre site, and HRI currently has an option to purchase a suitable tract of land for $2.5 million. The building construction would begin…

Finisterra, S.A. Finisterra, S.A., located in the state of Baja California, Mexico, manufactures frozen Mexican food which enjoys a large following in the U.S. states of California and Arizona to the north. In order to be closer to its U.S. market, Finisterra is considering moving some of its manufacturing operations to southern California. Operations in California would begin in year 1 for three years and have the following attributes: E The operations in California will pay 81% of its accounting profit to Finisterra as an annual cash dividend. Mexican taxes are calculated on grossed up dividends from foreign countries, with a credit for host-country taxes already paid. The corporate income tax rate in U.S. is 28% (the tax rate in Mexico is lower than the rate in the U.S.), the current spot exchange rate is Ps10.00/$, and the exchange rates for the next three years will be Ps11.00/S, Ps12.00/S, and Ps13.00/S, respectively. Assume the after-tax dividends received by the parent in years…

Contemporary Interiors (CI) manufactureshigh-quality furniture in factories in North Carolina for sale to top American retailers. In 1995, CIpurchased a lumber operation in Indonesia, and shifted from using American hardwoods to Indonesian raminin its products. The ramin proved to be a cheaper alternative, and it was widely accepted by Americanconsumers. CI management credits the early adoption of Indonesian wood for its ability to keep its NorthCarolina factories open when so many competitors closed their doors. Recently, however, consumers havebecome increasingly concerned about the sustainability of tropical woods, including ramin. CI has seensales begin to fall, and the company was even singled out by an environmental group for boycott. It appearsthat a shift to more sustainable woods before year-end will be necessary, and more costly.In response to the looming increase in material costs, CEO Geoff Armstrong calls a meeting of upper management.The group generates the following…

Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products - they manage relationships with the bicycle shops to enable them to better meet consumers' needs. The company's sales reps visit the shops several times per year, often for hours at a time. The owner of Wheels is considering expanding to the rest of the country and would like to have distribution through 450 bicycle shops. To do so, however, the company would have to hire more salespeople. Each salesperson earns $30,000 plus 3 percent commission on all sales annually. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 6 percent of sales. Each sales call lasts approximately 3 hours, and each sales rep has approximately 675 hours per year to devote to customers. Wheels needs 6 salespeople if it has 450 bicycle shop accounts that need to be called…

Large, diversified companies often will sell products/components from one division to another division rather than purchase from an outside supplier. Transfer price is the term used to describe the amount one division pays to another division within the same company to purchase a component part.    Therefore, if are the Boat Hull Manufacturing Company and we produce boat parts at the manufacturing facility in Virginia. The managerial accountant reported that Boat Hull Manufacturing manufactures parts to repair the container ships that import products from China. The main part that Boat Hull Manufacturing produces is the T24 part. The Port Department produces the T24 part at the Boat Hull Manufacturing facility in Virginia. The managerial accountant reported that the Deport Department could also produce the T24 part because there is excess capacity at the facility. The managerial accountant reported the current market price of the T24 part is $420 and reported the following…

Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products—they manage relationships with the bicycle shops to enable them to better meet consumers’ needs. The company’s sales reps visit the shops several times per year, often for hours at a time. The owner of Wheels is considering expanding to the rest of the country and would like to have distribution through 1,000 bicycle shops. To do so, however, the company would have to hire more salespeople. Each salesperson earns $40,000 plus 2 percent commission on all sales annually. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 5 percent of sales. At what level of sales would it be more cost efficient for Wheels to use to sales agents compared with its own sales force? To determine this, consider the fixed and variable costs for each alternative. What are…

Wheels, Inc. manufactures bicycles sold through retail bicycle shops in the southeastern United States. The company has two salespeople that do more than just sell the products—they manage relationships with the bicycle shops to enable them to better meet consumers’ needs. The company’s sales reps visit the shops several times per year, often for hours at a time. The owner of Wheels is considering expanding to the rest of the country and would like to have distribution through 1,000 bicycle shops. To do so, however, the company would have to hire more salespeople. Each salesperson earns $40,000 plus 2 percent commission on all sales annually. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 5 percent of sales. Determine the number of salespeople Wheels needs if it has 1,000 bicycle shop accounts that need to be called on four times per year. Each sales call lasts approximately 2.5 hours, and each sales rep has…

Your employer, Getting Bigger All The Time, Inc. (GBATT), a multinational corporation headquartered in the United States of America, is looking to expand operations into Brazil.  GBATT manufacturers a variety of materials used in the residential and commercial building industries.  The Brazilian economy has been expanding and sales of GBATT materials to Brazilian companies have greatly increased.  GBATT is exploring the possibility of building a new manufacturing facility in Brazil, not only to meet the increasing Brazilian demand, but also in anticipation of increased demand in other South American and Latin American countries once the global recession is completely over. The following is a basic balance sheet, income statement and cash flow statements as of the last two year ends and for the last two years of operations. (file attached) QUESTION Analyze GBATT’s operational performance by describing its year over year performance.

What are some of the qualitative factors that Riverside Clippers Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan?

Stark and Company is a manufacturer that sells robots predominantly in the Asian market. Times have been tough for the auto industry and Stark and Company is no different. The company is under tremendous pressure to turn a profit. Several years ago, as analysts were predicting a large downturn in the robot industry, Stark decided to purchase a smaller niche robot maker in the hopes of capturing a different segment of the consumer market and to better learn the manufacturing processes of other robot makers. Starks still operates as two separate divisions, Classic and New Age, with each division manager employing a different manufacturing philosophy. The Classic manager is concerned with low input costs and quantity in production in addition to brand recognition and robot power. The New Age manager is concerned with quality and innovation in manufacturing, fuel-efficient and environmentally friendly robots. SAC continued to suffer losses even with the addition of the New Age division.…

The manager of a microchip (chip for short) manufacturing firm can choose from various production technologies and must determine whether or not to (a) move part of their production to a foreign plant, and (b) use the same technology in their foreign plant that they use in their domestic plant.   Chip manufacturers can produce using either sophisticated equipment and relatively few workers (prevalent choice in the US) or many workers and less complex equipment (prevalent choice abroad).   U.S. chip firms have been moving much of their production abroad for many years. Worldwide sales of chips made in the U.S. dropped from 66% in 1976 to 34% in 1998, and to 17% in 2011, then rose slightly to 21% in early 2015.   U.S. chip firms moved their production abroad because of lower taxes, lower labor costs, and capital grants provided by foreign governments. These grants reduce the cost of operating a foreign facility by as much as 25%, compared to the costs of running a U.S. plant.…

Wheels Inc. is a manufacturer of bicycles sold through retail bicycle shops in the southeastern United States. The company has two sales people that do more than just sell the product-they manage relationships with the bicycle shops to enable them to better meet the consumers' needs. The company's sales reps visits the shop several times per year, often for hours at a time. The owner of wheels is considering expanding to the rest of the country and would like to have distribution through 1000 bicycle shops. To do so, Howe the company would have to hire more salespeople. Each sales person earn $40,000 plus 2 percent commission on all sales. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 5 percent of sales. a) determine the number of sales people Wheels need if it has 1000 bicycle shop accounts that need to be called on four time per year. Each sales call lasts approximately 2.5 hours, and each sales rep has…

Dick Smith Foods. is a U.S. company that is considering expanding its operations into Japan. The company supplies processed foods to storefront delicatessens in large cities. This requires Dick Smith Foods to have a centralized production and warehousing facility in each of these cities. Dick Smith Foods has located a possible site for a Japanese subsidiary in Tokyo. The cost to purchase and equip the facility is ¥885,000,000. Perform an NPV analysis to determine whether this is a good investment, under the following assumptions: a. The average per-unit sales price will initially be ¥510.  b. First-year sales will be 17 million units, and physical sales will then grow at 10% per annum for the next 3 years.  c. First-year variable costs of production will be ¥325 per unit of labor and $1.85 per unit of imported semi-finished goods. Administrative costs will be ¥200 million.  d. Retail prices, labor costs, and administrative expenses are expected to rise at the Japanese…

AGG is a US multinational that manufactures specialist high tech parts in the airline engine industry. AGG is an established company with steady growth in turnover and dividends over the last 10 years. The company is undertaking a projected titled Project Big as a strategic response to the changing market scene. AGG will develop a new state of the art highly automated plant located in Cambodia which is expected to result in cost advantages if it is implemented. The details about the project are below • • . Initital investment has been estimated at $500m The annual pre tax savings in operating costs at current exchange rates has been calculated at $150m for the first four years (starting in the first year) The residual value of the project at the end of the four years is estimated to be $250m The initial investment, net of residual value, qualifies for capital allowance and can be claimed back on a straight line basis over the four years of the project. • Current AGG's cost of capital…

i-Qua group is a drinking water factory in US. As the business progresses, demand is increasing in Texas, Chicago and New York. And the company owner plans to build a factory so that customer needs in the area can be met without having to send from the main factory. Some of the considerations for decision making can be seen based on the data below: a. How much is the annual sales volume (box)  for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.

A company manufactures clothes in a number of towns and cities in the United Kingdom. These are then distributed to a network of retail outlets throughout the country. The company is owned by two other companies that take an active interest in the profitability of the clothing manufacturing and retailing sides of the business. Other UK clothing businesses now source their products from overseas as manufacturing costs in the UK are extremely high and reduce margins on the sale of the final product. The board of the business is currently considering closing the manufacturing side of the business and sourcing their garments from countries like China and India where manufacturing costs are half of those in the UK. However, there is some concern over the conditions for workers in these countries and the age of labor used. 4)    Based on the case, evaluate what could the creditors, as a stakeholder, expect from manufacturing companies when manufacturing costs are increasing and reducing…

Aubree Multinational Corporation is a large manufacturer and distributor of pharmaceuticalsupplies. It is based in the United States (New York-Headquarters), Trinidad, Jamaica and theUnited Kingdom. It sends supplies to various companies throughout the four countries. It marketsits supplies through periodic mass mailings of catalogues to those companies. Its clients can alsomake orders over the phone and they ship the supplies upon demand.The main competition for Aubree Multinational Corporation in the United States comes from oneU.S. firm and one Canadian firm. A British firm has a small share of the U.S. market but is at adisadvantage because of its distance. The British firm’s marketing and transportation costs in theU.S. market are relatively high. In Jamaica and Trinidad, they have approximately 80% of themarket share.a) Aubree Multinational Corporation plans to penetrate either the Canadian market or two otherCaribbean Countries (Haiti and Guyana). What factors deserve to be…

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