PART A: Outsourcing Questions (40 points total) 1. Consider an outsourcing model in which Home’s skilled labor has a lower relative wage than Foreign’s skilled labor and in which the cost of capital and trade are uniform across production activities. a. (5 points) Will Home’s outsourced production activities be high or low on the value chain for a given product? That is, will Home outsource production activities that are skilled-labor intensive or unskilled labor intensive? Explain. b. (5 points) Suppose that home uniformly increases its tariff level, effectively increasing the cost of importing all goods and services from abroad. How does this affect the slicing of the value chain? c. (10 points) Draw the relative labor supply and demand diagrams for Home and F

As a finance manager at allsports communication, charlie worries about the firm's borrowing requirements for the upcoming year. he knows the benefit of estimating allsports' cash disbursements and short-term investment expectations. facing these concerns, a(n) would provide charlie with valuable information by providing a good estimation of whether the firm will need to do short-term borrowing. capital budget cash budget operating budget line item budget

Which of the following statements is incorrect? select one: a. personal creditors have first claim on partnership assets. b. partnerships are subject to dual taxation. c. no law requires partners to create a written partnership agreement, but it's smart to do so. d. partnership has limited life and unlimited liability.

Milden company has an exclusive franchise to purchase a product from the manufacturer and distribute it on the retail level. as an aid in planning, the company has decided to start using a contribution format income statement. to have data to prepare such a statement, the company has analyzed its expenses and has developed the following cost formulas: cost cost formula cost of good sold $35 per unit sold advertising expense $210,000 per quarter sales commissions 6% of sales shipping expense ? administrative salaries $145,000 per quarter insurance expense $9,000 per quarter depreciation expense $76,000 per quarter management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. units sold and the related shipping expense over the last eight quarters follow: quarter units sold shipping expense year 1: first 10,000 $ 119,000 second 16,000 $ 175,000 third 18,000 $ 190,000 fourth 15,000 $ 164,000 year 2: first 11,000 $ 130,000 second 17,000 $ 185,000 third 20,000 $ 210,000 fourth 13,000 $ 147,000 milden company’s president would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter. required: 1. using the high-low method, estimate a cost formula for shipping expe