Globalization and the Issue of Poverty Making the World a Better Place

Globalization and the Issue of Poverty Making the World a Better Place Introduction Living in the XXI century is not easy. Since of the process of globalization, which has been going on for several decades running, is finally starting to have an effect on the world economics, politics and social life, it is necessary to adjust to the new rules and a practically new environment. Moreover, people of the XXI century have to face new challenges in the fields specified above.Advertising We will write a custom research paper sample on Globalization and the Issue of Poverty: Making the World a Better Place specifically for you for only $16.05 $11/page Learn More One of the greatest challenges is designing the methods of avoiding the increase in poverty rates.  There is no use denying that poverty has been an issue for quite long. As a matter of fact, poverty has been in existence since the humankind discovered the fact that goods have an intrinsic value (Edkins, Zehfuss, 2008). However, in the XXI century, when the globalization pr ocess has come into full swing, poverty rates may reach a tremendous scale, which means that the means to control the problem must be found. In addition, it is worth keeping in mind that with the new opportunities that globalization opens in front of the humankind, one can possibly discover the new ways to bring the poverty rates down. Globalization and Its Effects on Poverty Before going any further, it is necessary to offer a definition of the key concepts that are going to be discussed in the given essay. To start with, the phenomenon of poverty needs a thorough consideration. While the problem of being poor is rather understandable and sadly common in the modern world, the exact definition of poverty is not that easy to coin. Since the prosperity and poverty rates are defined by the minimum wage acceptable in the given state, it must be assumed that the poverty line is unique in each state. In addition, the factors enhancing poverty in specific state differ considerably. Finally , in different states, different layers of society are stricken by poverty. As a result, the phenomenon of poverty is quite hard to nail down in one concise definition. However, Heywood has managed to single out the common features of poverty in most states of the XXI century and, therefore, come up with an updated definition of the problem in question. According to the author of Global politics, poverty is the state of being deprived of life essentials (Heywood, 2011, 353). While the given definition might seem too broad, it actually offers the most accurate definition of what poverty is. It is necessary to mention that, though the financial context seems absent in the given definition, it is actually implied, meaning that poverty is the state of having so little money that they are not enough to buy the life essentials, i.e., food, water, shelter, medicine, etc. The objectivity and correctness of the given definition can be proven by the fact that it actually refers the audience t o the hierarchy of needs structured by Maslow.Advertising Looking for research paper on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Indeed, when considering Maslow’s hierarchy, one must note that the life essentials, i.e., food, clothing, and shelter, are considered the bulk of the system and, therefore, the crucial elements without which a human being cannot exist (Lusted, 2012). Another concept that requires definition is globalization. Despite the fact that it was launched by people and, therefore, should be less difficult to define compared to poverty, it actually touches on so many aspects of people’s lives that it is practically impossible to embrace its every facet in a single definition. At present, several definitions of the globalization as a phenomenon exist. According to Tuo Cai, globalization means â€Å"the historical process of the extension of deepening of mankind’s cross -border exchange and communication around the world† (Cai, 2012, 313). Therefore, some researchers tend to view globalization as not necessarily an economical, but mostly as a cultural phenomenon, i.e., the fusion of the world’s major cultures and the surge in opportunities for international communication. Another viable definition of the phenomenon was offered by Pramanick and Ganguly. As the researchers explain, globalization can be defined as the process of â€Å"expanding worldwide flow of goods, persons, symbols, ideas, ideologies, and capital, entailing a ‘time-space compression’† (Pramanick Ganguly, 2011, 47). Therefore, although globalization is considered the process of cultural exchange, its properties as a powerful enhancer of worldwide economy are stressed firsthand. As a result, globalization should be considered as an economic process first, and only then as the process of cultural exchange. The aforementioned definitions of globalizat ion and poverty can help define the potential changes that the globalization will have on the rates of the former in the nearest future. Positive outcomes transcending the boundaries It would be wrong to assume that globalization is going to have only the most deplorable effects on the poverty rates all over the world. When speaking of the ways in which globalization is going to shape the present-day society, one must admit that in some layers of society, poverty rates will doubtlessly be reduced.Advertising We will write a custom research paper sample on Globalization and the Issue of Poverty: Making the World a Better Place specifically for you for only $16.05 $11/page Learn More It is necessary to stress that globalization is going to turn on the green light for countless numbers of migrant workers to earn more money. Since in the globalized economic space, it will be easier to get position in a foreign country, it can be assumed that migrant workers an d immigrants will be able to find jobs much easier and, therefore, finally manage to earn decent salaries. It would be rather naà ¯ve to expect that globalization and economic changes will magically boost income rates all over the world; however, it will definitely provide more opportunities for a positive change.  In addition, globalization presupposes that it will be easier to join political forces to solve specific issues. By deploying the politics of aid (Heywood, 2011, 369), one can expect that the poverty rates in certain countries are going to decrease. Since transcending economical and physical boundaries between the states all over the world will trigger massive changes, such as a flow of labor force in certain fields, etc., it is likely that financial and economical difficulties in certain fields will ensue together with economic growth in other spheres. As a result, the issue of poverty is likely to be put in the limelight of the XXI-century globalized world agenda. Th e given problem can and must be handled with by controlling the factors that contribute to poverty rates increase. Among the most obvious means of control, the establishment of strict rules in the sphere of private and public sector should be mentioned. However, the side effects of the globalization process, among which increase in poverty rates in specific layers of society must be named first, will doubtlessly follow the triumph of globalization and, therefore, needs to be addressed before the problem has got out of hand. Negative outcomes labor force and other issues However, globalization will also trigger an inevitable drop in employment rates among the natives. Despite the fact that migrant workers and immigrants need to be encouraged in their business beginnings in a completely new environment, one must agree that the types of labor force specified above are often less demanding than the native labor force. As a result, the native labor force, whose standards for wages, numb er of holidays and other benefits that they have been legally granted with by the state, become considerably less valuable employees than the migrant and immigrant labor force, whose demands are often less stringent. With that being said, migrant and immigrant labor force are often preferred to the native one due to the features specified above, which leads to a sharp increase of unemployment among the natives. While at present, the given phenomenon cannot be considered as recurrent, in the realm of a globalized world, it is likely to become massive, which will clearly lead to a steep rise of unemployment and, therefore, poverty rates among the native labor force.Advertising Looking for research paper on political sciences? Let's see if we can help you! Get your first paper with 15% OFF Learn More Unemployment is not the only reason for people to fear poverty as a logical consequence of the globalization process. No matter how weird it might sound, globalization is likely to lead to an even greater split between the nations of the world. Known as the North-South divide (Heywood, 2011, 360), the given phenomenon presupposes that the world should be split into two parts, i.e., the industrialized North and the South, which tends to be more agriculturally oriented. As a result, the relationships between the two can possibly be rather tense, with the North taking the position of the one beholding technological power, and the South becoming the supplier of the goods for the almighty North. The consequences of the given change are rather obvious; it is more than likely that the people inhabiting the Southern hemisphere are going to balance on the brink of poverty (Heywood, 2011, 360). While the given concerns might seem rather far-fetched nowadays, they can possibly become an issue later.  The next problem of globalization, which will probably trigger an increase in poverty rates stems from the above-mentioned supposed divide between the South and the North. With the North being in the leadership position, it will be impossible to maintain relationships based on equality between the two parts of the world. As a result, the problem of inequality will ensue. While the given issue is not linked to poverty directly, it provides the environment for poverty to brew in. Therefore, the rates of inequality will take an even greater scale than they have nowadays. As a result, it can be expected that women, the representatives of national minorities, and other â€Å"risk groups† will face the threat of poverty in the globalized environment. Coming on the heels of the â€Å"globalized economic space,† the split between the technologically developed North and the agrarian South is a truly threatening perspective. Much to the credit of the world’s lea ding states, the threats of poverty that globalization poses to the humankind have been analyzed well enough. Moreover, the means of fighting with the expected surge in poverty rates have been provided. Although the given methods do not block every threat that globalization process triggers, they are still worth a thorough consideration. One of the most graphic examples of such initiatives is the solution provided in Wade’s research. Excluding countries with high but not rising levels of trade to GDP from the category of more globalized eliminates many poor countries dependent on a few natural resource commodity exports, which have had poor economic performance. [†¦]. If they were included as globalized their poor economic performance would question the proposition that the more globalized countries do better. (Wade, 2004, 580) The idea of excluding certain states with a relatively low GDP might seem a good idea. However, it is worth mentioning that this idea contradicts the principles of globalization, which presuppose the inclusion of ever single state into the economic processes. Therefore, other avenues should be sought to find a way out. Conclusion There is no secret that in the age of globalization, the world is facing rapid and quite impressive changes. With the traditional models of business interaction being replaced by newly adopted ones, and the new media like social network reinventing people’s perception of life in its every aspect, starting from economical to the social one, globalization is both feared and expected. Since the scale of globalization is beyond huge, it can be assumed that the globalized world is going to look nothing like the reality of the beginning of the XXI century. Some of the effects of globalization have become obvious now; the rest of them are likely to be discovered in the nearest future. Therefore, it is the concern of the present-day world to make sure that the negative aftermaths of globalization, in cluding the possible rise in poverty rates, should be prevented as soon and as efficiently as possible. Even though one can hardly come up with an exact concept of what the future economic state of the world in general and certain states, which are considered under the threat at present, will be like, it is still possible to make sure that no drastic negative outcomes are going to follow at the end of globalization. With that being said, poverty must be recognized as a tangible threat for a number of states and their residents. However, to address this problem adequately, a number of measures will have to be taken. The top priority must be given to the establishment of the labor law that the relationships between an employer and an employee within the global economic space are going to be regulated with. In addition, the laws regarding the migration problem, as well as the use of migrant labor, must be provided. The education issue must also be regulated so that people from all over the world could have the opportunity to acquire the skills that will later on help them in their career. In a nutshell, the key question is not whether the poverty issue can be regulated within a globalized environment; the question is whether people are ready to study, work and evolve in the given environment, and whether people are capable of controlling the economical and financial processes that are going to take place on the global scale. At present, the answer seems to be rather yes than no; however, it goes without saying that even more stringent methods of controlling the globalization process should be provided, which presupposes that the political and economical cooperation between the states all over the world should be enhanced. Reference List Edkins, J. Zehfuss, M. (2008).Global politics: A new introduction. New York. NY:  Routledge, 2008. Heywood, A. (2011).Global politics. New York, NY: Palgrave MacMillan. Lusted, M. A. (2012). Poverty. North Mankato, MN: ABDO. Pr amanick, S. K. Ganguly, R. (2011). Globalization in India: New frontiers and emerging challenges. New Delhi, India: PHI Learning Private, Ltd. Cai, T. (2012). Chinese perspectives on globalization and autonomy. Dancers, CA: BRILL. Wade, R. H. (2004). Is globalization reducing poverty and inequality? World Development, 32(4), 567–589.

Mean-Variance Analysis Essay Example | Topics and Well Written Essays - 1500 words

Mean-Variance Analysis - Essay Example The practical applications of portfolio theory abound in different segments of business and finance. This report seeks to explain the principles of diversification, and discuss some practical applications of portfolio theory in business and finance. Table of Contents Executive Summary 2 Table of Contents 3 Introduction 4 Principles of Diversification 4 Application of Portfolio Theory Mutual Funds 5 Application of Portfolio Theory Capital Allocation 7 Application of Portfolio Theory to Product Portfolio Decisions 8 Recommendations 10 Conclusion 10 References 11 Introduction Diversification is the premise that underlies portfolio theory (Markus, 2008). A portfolio is a combination of assets with a unified risk and return value expectation. Diversified portfolios ensure that loses are minimized if they occur (Hill, 2010). Mean-variance analysis helps determine the viability of an investment portfolio through the analysis of the portfolio risk. The theory relies on the use of portfolioâ €™s variance by comparing how assets in the portfolio vary with regard to each other (Diether, 2010). Mean-variance analysis for a diversified portfolio measures the portfolio’s efficiency. The most efficient portfolio has the highest expected return for a certain standard deviation. Mean-variance analysis application in business and finance helps in making the optimum decisions about the riskiness of a portfolio. This report seeks to demonstrate the practical applications of mean-variance analysis in portfolio theory. Principles of Diversification One of the principles of diversification is the belief that the portfolio, as a whole, is more important than the individual assets (Sumnicht, 2008). Secondly, investors are risk averse, and therefore will only invest in those portfolios which they belief will be adequately commensurate to their returns. Investment should be for the long term, probably up to ten years into the future (Sumnicht, 2008). Diversification presumes t hat markets are efficient, and will not have any unforeseen disruptions. Finally, each risk level bears its own unique optimal allocation with regard to asset class at which the portfolio bears maximum returns. Application of Portfolio Theory Mutual Funds Mutual funds are actively managed investment options in which investors pay investment companies to invest their money in stocks and pay a return on the same. The financial analysts at the mutual fund companies make use of portfolio theory in calculating risks on their clients’ portfolios. The portfolio theory offers a robust and comprehensive model on which to calculate risk and make sound investment decisions from the results (Sumnicht, 2008). However, mutual funds offer a unique challenge to the effectiveness of the portfolio theory in that the final return faces significant distortions due to high fees, hidden costs, unpredictable taxes, and uncertain stock investments (Rutner, 2004). A major part of the modern portfolio theory is the frontier curve. The frontier curve plots risk and return (FundsMover, 2012). According to the portfolio theory, the funds that lie on the curve form the maximum yield potential for a given level of risk, measured as standard deviation. The curve flattens as the return rises. The rate of return per risk decreases, and at some point the amount of risk an investor exposes himself/herself to increases considerably for a slight increase in the return. The standard deviation indicates the volatility of the mutual fund.

Greek Culture pertaining to the the foods they eat Essay

Greek Culture pertaining to the the foods they eat - Essay Example Food is the essence of life for a Greek, and for generations the ritual of cooking the main family meal has been that of the woman of the household. She will begin preparing an elaborate, complicated meal often from the morning, so that it is ready when the man and the children return home from work and school. Breakfast usually consists of a strong Greek coffee (ΕÎ »ÃŽ »ÃŽ ·ÃŽ ½ÃŽ ¹ÃŽ ºÃÅ') and a bread ring (ÃŽÅ¡ÃŽ ¿Ãâ€¦ÃŽ »ÃŽ ¿Ã Ã ÃŽ ¹) and is of no particular importance. The main meal of the day is an important family event; it is where the family members (and often friends) converse around the table and communicate – most socialising is based upon eating and drinking. The main meal is often eaten late afternoon, although this depends on the season (during the summer, it will be earlier) and is traditionally followed by a one to two hour nap, after which the man will often return to work for some hours. This concerns the working hours of Greece in general, althou gh there are exceptions as always, depending again on the season or the type of work as well as whether the family lives in a major city or small village. Of course, this is just a very basic introduction as to what the food culture in Greece consists of, albeit necessary in order to progress into the more specific areas. It is safe to say, however, that the Greek food culture is one engrained through centuries of tradition, which have kept a steadfast hold of families despite our entry into the ‘modern age’. I will now explain the most popular types of foods for the Greeks and the recipes in which they can be found. Generally, the basic ingredients of Greek cuisine are not many, but each is used in a variety of ways to make very different dishes. As has already been stated, the main meal of the day is the most important. It is elaborate and usually consists of a main meat dish, along with other smaller side dishes and often some form of dip. Lamb is very popular in villages and other such rural areas,

Should Social Media, Including Facebook, Assist in Law Enforcement Essay Example for Free

Should Social Media, Including Facebook, Assist in Law Enforcement Essay We all know what happened to Jill Meagher. What some of you may not know is that social media played an integral role in solving her murder. Without the use of social media, Jill Meagher’s case may have remained unsolved. Unfortunately, we usually associate social media with negative connotations; however what we haven’t thought of is the positive contributions it could make to our society. One change that we should make that would benefit us incredibly is to use social media, including Facebook, to assist in law enforcement. I don’t have to define to you what social media is, we all use it on a daily basis. If I was speaking to an older audience I may have to explain, but to be honest most of you are going to go home and log onto Facebook. It has always been a part of our world and it probably always will be. Sadly, one part of social media that we are very aware of is that it is often used to harm, to hurt – this is clearly evident in the numerous accounts of cyber bullying. I do not intend to pretend that there aren’t negative aspects of social media; I am simply trying to emphasise the enormous power and influence that it holds. If we could harness this power and rather use it to protect and assist in law enforcement the advantages would be tremendous. So, how can social media help us? One enormously beneficial aspect of social media is in the locating of missing persons. In Australia, one person goes missing every 15 minutes. The police simply do not have the resources to locate all of these people. However, hundreds of media sites have already been set up with the sole intent of finding missing persons. Crimestoppers have a mobile application to help connect the community to the police in reporting crime. Assistant Commissioner Peter Barrie of the New South Wales Police said It is a great way for people to send us a message and support it with a picture, anywhere, anytime,† The new tools offer the community an opportunity to assist in a way that is beneficial to us all. It makes sense to harness social media’s power for good – to solve real life problems such as finding missing persons. More importantly however, social media cuts down those crucial minutes when finding a missing person the minutes that determine whether a person has hope of being found. A powerful real life example of the effectiveness of this method occurred in November 2011 when 13 year old Allie Loftis ran away from her home near Boston. Thanks to social media, her father Tony found her 12 days later, with a 42-year-old sexual predator. After coverage of his Facebook, YouTube and Twitter campaign, local papers and TV stations followed the story and eventually found her. Mr Loftis said that â€Å"†¦the more people there are looking; the more likely you are to find them, that is really just basic common sense. Without the aid of social media, who knows what could have happened to his daughter. Secondly, social media not only provides a way of locating people, but also assists in gathering evidence on suspects. At its core, social media is an online database of personal information, and once it is online, can never be taken down. This method was used in Canada after the 2011 Vancouver Stanley Cup riot. The police admitted to being overwhelmed by the sheer volume of evidence provided by social media, enabling them to convict a number of rioters. The frequency of cases being solved through evidence found on social media is large and growing as it is becoming gradually more prevalent and helpful to law enforcement. A survey conducted by the International Association of Chiefs of Police in 2012 found that 86% of agencies use social media to review profiles and the activities of suspects. This statistic shows how increasingly reliant law enforcement is becoming on social media. Of course, this is not the only way that the police can gather evidence on suspects. Many people today have online identities. This makes it that much easier for investigators to create fake online profiles to track or befriend suspects in order to gain new information and insight into their crimes. They will also be able to gain an understanding of the suspect’s mentality through monitoring their posts, giving them the ability to secure an accurate conviction. The knowledge that the law enforcement agencies are policing the social media pages for potential criminals should provide those who use them for innocent pleasure and chat, a sense of reassurance. Lastly, social media is one of the most effective means of communication when it comes to sending out messages on a large scale. This is why it is such a great platform to inform the public. I guarantee you that every single person in this room will have access to social media right now. Virtually all phones come with internet access; we can get onto Facebook at the touch of a button. How much easier could it get? While users are checking their messages and accepting friend requests, they surely have enough time to look at that missing person picture their friends shared. Within seconds of the Police posting that picture, a user can share it with their entire network of friends, family and co-workers who then can share it within their own networks. A further advantage of using social media to inform the public is the relationship it will create between the police and community. Through the more personal style of communication, social media is likely to help create a climate of trust and foster better interaction with the general public. The police officers seem more â€Å"human† and therefore the public would have more trust in them. People want to be able to talk to the police in whatever way they can, wherever they can. This can be done through social media. Through this it can be seen quite clearly that social media is highly capable of informing the public for the interests of law enforcement. I can understand that some people may have reservations due to the current unregulated nature of social media. However, the answer is not to say that we shouldn’t use it but rather to implement appropriate safeguards in order to refine and regulate these sites. Like all new and revolutionary developments, it may take a while for it to be perfected, but soon using social media to solve crime will be no more unusual than the old fashioned pen and paper. Change is hard to accept, however resisting the use of social media to assist in law enforcement is as useless as it would have been to resist the demise of the horse and cart when cars were invented. Society naturally evolves; we need to focus on the positive and strengthening change this will have on our nation. Our generation have embraced this technology, unlike our parents. It is natural that we should see it as part of the future of law enforcement. As many people say, the youth is the hope for our future. Younger generations do not respond, like our parents, to the traditional media such as newspapers or radio, we respond to a unique function of communication social media. Our most important priority should be our safety, Social media is not the answer to all our problems, but it will bring us one step closer.

Cyrano de Bergerac - Cyrano as Noble Idealist :: Bergerac

Cyrano de Bergerac - Cyrano as Noble Idealist In The play Cyrano de Bergerac, the main character, Cyrano, is a noble idealist who fights against the harsh reality of ordinary life, and creates his own world. On the outside he is a strong man with a hard shell, but inside he is a melancholy poet yearning for love. He feels that the world bases love too much on appearance. He believes that no one will ever love him because of his grotesquely long nose. For this reason Cyrano cuts himself off of true reality and creates a world where love exists without appearance. In Cyranos everyday life he is a great swordsman who leads troops in to the battlefields, and fights a hundred men at once. He stands up for what he believes in and never compromises. He is full of chivalry, bravery and wit. In his life of love he is a brilliant poet, comprised of words of emotion. This life of love exists only in his mind and on the paper by which he expresses himself. In the beginning these two worlds are kept apart until Cyrano devises a way to bridge the two together. He discovers that the woman he loves, Roxanne is in love with a man named Christian. When he tells Christian that Roxanne has feelings for him, he reveals to Cyrano that he may have good looks, but a terrible way with words. Cyrano replies with "strange.... Now it seems I, if I gave my mind to it, I might perhaps make love well."..... "Borrow it then! - Your young manhood - lend me that, and we two make one hero of romance." (p. 84-85) Cyrano bridges his two worlds together through Christian. At first Cyrano assumes that this will be a good plan. At first it fills him with joy to be able to express his love for Roxanne but as time went on he realized that he was doing all the work and letting someone else take all the credit. Cyrano says in the end of the play "Yes - that has been my life... Do you remember that night Christian spoke under your window? Cyrano de Bergerac - Cyrano as Noble Idealist :: Bergerac Cyrano de Bergerac - Cyrano as Noble Idealist In The play Cyrano de Bergerac, the main character, Cyrano, is a noble idealist who fights against the harsh reality of ordinary life, and creates his own world. On the outside he is a strong man with a hard shell, but inside he is a melancholy poet yearning for love. He feels that the world bases love too much on appearance. He believes that no one will ever love him because of his grotesquely long nose. For this reason Cyrano cuts himself off of true reality and creates a world where love exists without appearance. In Cyranos everyday life he is a great swordsman who leads troops in to the battlefields, and fights a hundred men at once. He stands up for what he believes in and never compromises. He is full of chivalry, bravery and wit. In his life of love he is a brilliant poet, comprised of words of emotion. This life of love exists only in his mind and on the paper by which he expresses himself. In the beginning these two worlds are kept apart until Cyrano devises a way to bridge the two together. He discovers that the woman he loves, Roxanne is in love with a man named Christian. When he tells Christian that Roxanne has feelings for him, he reveals to Cyrano that he may have good looks, but a terrible way with words. Cyrano replies with "strange.... Now it seems I, if I gave my mind to it, I might perhaps make love well."..... "Borrow it then! - Your young manhood - lend me that, and we two make one hero of romance." (p. 84-85) Cyrano bridges his two worlds together through Christian. At first Cyrano assumes that this will be a good plan. At first it fills him with joy to be able to express his love for Roxanne but as time went on he realized that he was doing all the work and letting someone else take all the credit. Cyrano says in the end of the play "Yes - that has been my life... Do you remember that night Christian spoke under your window?

Luxor Cosmetics Executive Summary Essay

Question 1 2008Variable manufacturing cost as a percentage of selling price Product(Variable manufacturing cost/WSP Production)Mark up Lipstick16.8/2180%(21/16.8)-125% Nail polish10.5/1570%(15/10.5)-143% Creams2.8/5.650%(5.6/2.8)-1100% 2010 Product Lipstick15.3/1885%(18/15.3)-118% Nail polish9.3/11.680%(11.6/9.3)-125% Creams3.3/6.650%(6.6/3.3)+1100% *Note that these calculations are done for goods produced in the year in question Question 2 (cost of goods manufactured in 2008/ sales value for units produced in 2008) * ending inventory 2008 (16.8/21) * 11.5 9.748million Question 3 Luxor uses a FIFO inventory system, so the inventory that is sold first actually may come from prior years. Because of this, goods that are sold in each year need to be separated into goods produced in that year and goods produced in prior years. This is necessary to do because the percentage of the COGS that is variable is slightly different from year to year. 2009 Cost of Goods Sold: 6.3M from inventory on hand at beginning of year (produced in 2008 under FIFO) 2.3M from inventory produced in 2009  2010 Cost of Goods Sold:  8.2M from inventory on hand at beginning of year (produced in 2009 under FIFO) 0.3M from inventory produced in 2010  We now must determine the percentage of COGS that is variable for goods produced in 2008, 2009 and 2010: 2008 10.5M/(10.5M+0.7M) =93.75% 2009 9.8M/(9.8M+0.7M) = 93.333333% 2010 9.3M/(9.3M+0.6M) =93.939393% We now apply these percentages to the COGS for 2009 and 2010 to determine the total variable cost for each year. 2009 Variable COGS = (6.3M * .9375) + (2.3M * .93333333) = $8.0529M 2010 Variable COGS = (8.2M * .93333333) + (0.3M * .9393939393) = $7.9352M Assuming the variable manufacturing cost per unit was the same in 2009 and 2010, a higher variable cost of goods sold means that more units were sold. Since the variable COGS in 2009 is higher in 2009 than it is in 2010, we can conclude that the sales volume of nail polish decreased in 2010. Question 4 Let x = Break Even SalesF = Marketing & Promotion + General Administration + Interest + Fixed Manufacturing Costs Let F = Total Fixed CostsF = 3.4 + 1.3 + 1.8 + 1 Let V = Variable Costs Per Dollar of Sales7.5 V is easily estimated by (COGS-Fixed Costs) /Sales There is a small amount of fixed costs in COGS which means that it is not strictly variable, but for our purposes that makes a very small, immaterial difference and the question only requires an approximation. V = (27.7-1)/33.5 0.7970 x = F + Vx x = 7.5 + 0.7970x 0.2030x = 7.5 x = 36.95 Break even sales are approximately $36.95 Million Question 5 Let x = Break Even SalesF = Marketing & Promotion + General Administration + Interest Let F = Total Fixed CostsF = 3.3 + 1.3 + 1.1 + 1 Let V = COGS Per Dollar of Sales6.7 Again, V is easily estimated by COGS/Sales There is a small amount of fixed costs in COGS which means that it is not strictly variable, but for our purposes that makes a very small, immaterial difference and the question only requires an approximation. V = (27.7-1)/33.5 0.7970 x = 33.00 x = F + Vx x = 6.7 + 0.7970x 0.2030x = 6.7 The new breakeven sales for 2012 would be approximately 33.00, given that 2012 is approximately similar to 2011. The firm is more likely to breakeven than the previous year if they can keep their sales constant and do not produce more than they can sell. Although with current trends of sales over the past few years, it could be estimated that breakeven is not likely. With the current trends sales could be estimated somewhere around 32 million, in which case the firm would not breakeven in 2012. Question 6 Inventory Schedule – 2011 Budget InventoryLipstickNail PolishCreams Inventory (12/31 2010 Actual)15.011.41.2 Planned Production * 19.013.08.0 Goods Available for Sale34.024.49.2 Budgeted Sales19.013.08.0 Ending Inventory (12/31/2011 Budget)15.011.41.2 * Planned production is to produce the same amount as the planned sales, as per sales manager Budgeted Cost of Goods Manufactured and Sold – 2011 Budget Variable Manufacturing Cost (Budget)0.90.90.6 17.911.74.4 Fixed Manufacturing Cost (Budget)0.80.60.6 Cost of Goods Manufactured18.712.35.0 Inventory (12/31/2010 Actual) 13.69.60.7 Goods Available for Sale32.321.95.7 Inventory (12/31/2011 Budget)0.90.90.6 14.110.40.7 Budgeted Cost of Goods Sold 18.211.45.1 MARGINS1.01.11.6 0.00.10.6 Variable Manufacturing Cost – First, find the factor of Variable Manufacturing cost to planned production, less fixed manufacturing cost i.e. – 6.8/(8.0-.0.8) = 0.9 (From Exhibit 2) Inventory – Find the factor of budgeted ending inventory cost to budget inventory value i.e. – 6.6/7.0 = 0.9 (from Exhibit 2) Margins – (Budgeted Sales/Budgeted Cost of Goods Sold) – 1 i.e. – (19.0/18.2) – 1 = 1.0 (rounded) Income Statement – 2011 BudgetCash Flow – 2011 Budget Sales40.0Cash Receipts From Customers40.0 Cost of Goods Sold34.7 Gross Margin5.3Cash disbursements Marketing & Promotion3.6Variable Manufacturing34.1 General Administration1.3Fixed Manufacturing1.0 Interest1.8Marketing and Promotion3.6 Pretax Income-1.4General Administration1.3 Interest1.8 Pro-Forma Year-End Balance Sheet – 2011 BudgetTotal Disbursements41.8 Assets Cash0.0Beginning Cash5.5 Miscellaneous Current Assets3.0+ Receipts40.0 Inventory0.0- Disbursements41.8 Property & Equipment11.2- Loan Repayment10.0 Goodwill9.3Ending Cash (Budgeted)-6.3 Total Assets23.5 Equities Bank Loan16.3 Miscellaneous Current Liabilities4.0 Common Stock12.5 Retained Earnings *9.7 Total Equities42.5 * The Retained Earnings are 9.7 in this budget, which is adjusted from the previous budget to account for an additional $0.7 M loss i.e. – 10.4 – 0.7 = 9.7 Question 7 Through the implementation of the suggested changes in allocation, more of the fixed costs will be allocated to the cream products because this product line has the highest margin (as shown in the budgeted Cost of Goods Manufactured above), even though creams have the lowest total sales value. This will lead to more of the fixed costs being incorporated into the Cost of Goods sold, and not into the ending inventory numbers, therefore decreasing pre-tax income even further. Allocating the fixed costs in this manner would not affect the Cash Flow Statement in any way, as the fixed costs would still lead to a cash disbursement of an equal value regardless of which product line they are allocated to. Question 8 Luxor Cosmetics is a company that is stuck in a dying market because most of their customers that buy the lipstick and nail polish are women aged 45 to 75 who are in the lower income group. As that group gets older and older they have less need for cosmetics so they buy less and less. The sales will continue to drop and we will get less and less profitable. A way to combat this is to reposition ourselves in the market. We need to find a way to get ourselves into a better market that is more eager to buy cosmetics. One way of doing this would be to start targeting a new demographic of women who will buy our products. We could also avoid the non-wholesale market because that way we would get bigger orders and be able to budget better. However if we do this we will have to consider the possibility that we will have to lower our prices and we will have less profits in the end but we will have more sales. We should reinvest in the company that we purchased in the 1990s. We had a product t hat we were going to aim at teenagers but we abandoned the company due to the dotcom crash; we should look at getting that company running. We should reinvest in the company that we abandoned because the market has recovered now. We would get a brand new customer base and we could have increased sales. Plus we already own the company and it does no benefit to us just sitting on the books not generating any profits. It is an environmentally friendly product and environmentally friendly products are becoming more and more popular today. We could make the company seem very socially responsible and that would build us a better reputation and may make our sales in our existing company increase substantially. The goodwill that is on the books today was acquired when we bought the environmentally friendly company in the 1990’s and yet we have not revalued it since then. The asset impairment test should be done on goodwill to see how much of the goodwill exists anymore. It is possible that the asset of goodwill should not exist on the books for Luxor at all anymore. And it is just making our financial statements misleading for investors. If we adjust this properly we will have a more realistic picture of our company as it stands now. This way we will not have misleading financial statements anymore. There are a few ethical issues in the case. The first is that there is pressure for the numbers to be fudged, but as a  professional accountant that cannot be done. We do not want to make the statements misleading so that the bank is coaxed into giving us a loan that we cannot afford. We cannot fudge the statements to meet our needs because someone would figure it out and we would not get away with it and overall it is highly unethical. The other is following the policy that is set in place for how to account for certain things. If our inventory is not usable anymore we should not be keeping it on the books hoping it will make us look better. This is not appropriate and should be written off and adjusted for the fact that it is now obsolete.

The Athletic Advantage in a College Education - 984 Words

Attending college is not only a chance for students to further their education, but it also allows them to experience the lessons life has to offer. One of the hardest lessons to learn is how unfair life can be. Students who work diligently to achieve academic success in the classroom may quickly realize their academic efforts do not â€Å"pay off† as much as the student-athlete who possesses the ability to kick a football fifty yards. There is an evident failure in the educational system when the student-athlete’s performance and how they contribute to a winning season, is more valuable to the university, than the academic student who strives to graduate with honors. Students who focus their efforts on an academic based education are not†¦show more content†¦In contrast, they suggest the burden lies on the faculty. In order to fulfill the student-athlete’s special needs, they must extend deadlines, create make-up work, and conform to the infamous â₠¬Å"special privilege† stigma surrounding athletes today (Jensen et al.). Many researchers believe million dollar coaching salaries and the commercialization of college athletics are destroying undergraduate education (Finn). The Knight Commission is a research group who unveiled that many universities spend over $100,000 annually, per athlete, to provide support services and special arrangements for them (Finn). This does not include what is already being spent on housing, food, and tuition (Finn). Those who oppose this frivolous spending, see it far more important to invest in the education of our students, rather than investing in a win for the athletic department. Some people will continue to profess that our society needs to be geared towards entertainment. However, the primary purpose of attending college should be to obtain an education, and that is being lost along the way. We need to take a moment to reflect on the decisions we make as a society. When the locker roo m is nicer than the entire medical department, or the head football coach is paid more than the governor of the state, it should be evident and clear that a major problem exists in the university’s policies and priorities. Having said this, it is illogical to think that athletics should beShow MoreRelatedThe Athletic Advantage in a College Education981 Words   |  4 PagesAttending college is not only a chance to further one’s education; but an opportunity to experience lessons in life. One of the hardest lessons to learn is how life is not always fair. Students who work diligently to achieve academic success can realize all too soon how countless hours of studying to achieve the grade, may not pay off as much as the ability to kick a football fifty yards. 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Dave Meggyesy, former Syracuse all-American linebacker, said â€Å"These (college athletics) are mo re than full time jobs. When I played at Syracuse, it wasn’t like that. We had a regular season and twenty days of spring practice. Now it’s year round. It’s a more cynical system now than when I played.† Social Along with the clear academicRead MoreThe National Collegiate Athletic Association1227 Words   |  5 Pagesâ€Å"The Chronicle of Higher Education recently estimated that college athletics is a $10-billion marketplace† (Suggs). With huge sums of revenue generated from college sports teams, players for the successful teams appear to be very marketable. â€Å"The National Collegiate Athletic Association, the largest collegiate sports organization in the United States, oversees much of the business of American college sports. 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