Required
a. List the primary components of an RFP.
b. Identify possible components or deficiencies in Norcom’s RFP that could have led the new CIO to claim that it was naïve or insufficient.
c. Identify possible approaches Norcom could have used to evaluate RFP responses.
“Managed Care Contracting and Ratio Analysis”
- * From the scenario, interpret the operating indicators used to analyze the financial performance of the organization. Indicate specific ways in which this information will help management improve the performance of the organization. Provide support for your rationale.
- Assume that you are a hospital administrator, and one of your responsibilities is selecting financial ratios to be included on your management dashboard. Determine the two (2) most critical financial ratios for you to monitor at your facility, and indicate how each of these ratios would help you assess the current performance of your facility. Provide support for your rationale.
Kay has claimed $15,000 of straight-line MACRS depreciation on the building. The land and building are subject to a $54,000 mortgage, of which $18,000 is allocable to the land and $36,000 is allocable to the building. The partnership assumes the mortgage. Susan is an attorney, and the services she contributes are the drawing-up of all partnership agreements.
a. What amount and character of gain, loss, or income must each partner recognize on the formation of the partnership?
b. What is each partner basis in her partnership interest?
c. What is the partnership basis in each of its assets?
d. What is the partnership initial book value of each asset?
e. To raise some immediate cash after the formation, the partnership decides to sell the land and building to a third party and lease it back. The buyer pays $40,000 cash for the land and $80,000 cash for the building in addition to assuming the $54,000 mortgage. Assume the partnership claim no additional depreciation on the building before the sale. What is each partner distributive share of the gains, and what is the character of the gains?
plagerism free please minimum 700-1500 words
Problems
3. (a) Starting with the estimated demand function for Chevrolets given in problem 2, assume that the average value of the independent variables changes to N=225 million, I=$12,000, PF=$10,000, PG=100cents, A=$250,000, and PI=0 (i.e., the incentives are phased out). Find the equation of the new demand curve for Chevrolets. * Revised 3(b): If Pc is $10,000, find the value of Qc.
Function from Problem 2 is:
Qc= 100,000-100Pc+ 2,000N + 50I + 30Pf – 1,000Pg +3A + 40,000Pi
7. The total operating revenue of a public transportation authority are $100 million while its total operating cost are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -.04. By law, the public transportation authority must take steps to eliminate its operating deficit. (a) is asking should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand. (b) Use equation (3-7.) Suggestion: increase the price of a ride to be $1.50.
your situation, I’ll explain it briefly here.
14. Suppose that a firm maximizes its total profits and has a marginal cost (M/C) of production of $8 and the price elasticity of demand for the product sells is (-)3. Find the price at which the firm sells the product. *** Use equation (3-12) and to maximize the profits, MR has to equal MC.
Chapter 5
Discussion
15. Integrating Problem. Starting with the data for Problem 6 and the data on the price of a related commodity for year 1986 to 2005 given below, we estimated the regression for the quantity demanded for a commodity (which we now relabel ÔX), on the price of the commodity (which we now relabel PX), consumer income (which we now lable Y), and the price of the related commodity (PZ), and we obtain the following results. (If you can, run this regression yourself; you should get results identical or very similar to those given below.
|
Year
|
1986
|
1987
|
1988
|
1989
|
1990
|
|
Pz ($)
|
14
|
15
|
15
|
16
|
17
|
|
Year
|
1991
|
1992
|
1993
|
1994
|
1995
|
|
Pz ($)
|
18
|
17
|
18
|
19
|
20
|
|
Year
|
1996
|
1997
|
1998
|
1999
|
2000
|
|
Pz ($)
|
20
|
19
|
21
|
21
|
22
|
|
Year
|
2001
|
2002
|
2003
|
2004
|
2005
|
|
Pz ($)
|
23
|
23
|
24
|
25
|
25
|
ÔX = 121.86-9.5PX+0.04Y-2.21PZ
(-5.12) (2.18) (-0.68)
R2=0.9633 F= 167.33 D-W = 2.38
15(b) is to evaluate the above regression results in terms of the signs of the coefficients, the statistical significance of the coefficients and the explanatory power of the regression (R2) The number in parentheses below the estimated slope coefficients refer to the estimated t values. The rule of thumb for testing the significance of the coefficients is if the absolute t value is greater than 2, the coefficient is significant, which means the coefficient is significantly different from zero. For example, the absolute t value for Px is 5.12 which is greater than 2, therefore, the coefficient of Px, (-9.50) is significant. In order words, Px does affect Qx. If the price of the commodity X increases by $1, the quantity demanded (Qx) will decrease by 9.50 units.
15(c) X and Z are complementary or substitutes?
Maroon 5 (M5), Inc., based in Santa Monica, CA, is a leading producer and marketer of household cleaning products. About a year ago, M5 rolled out its new “Super Cleaner†in 90 regional markets following some success in few test markets. M5 claims that this isn’t just a “me too†product in a market that is saturated with cleaning products. At the time of the introduction, M5 management wondered whether the company could successfully crack this market dominated by Johnson & Johnson and other big players. The following is the demand /regression estimation results for M5’s new cleaning product, Super Cleaner, in these 90 regional markets where the quantity demanded, QD, is measured in number of cases sold, Px is Super Cleaner price per case in dollars, Py is main competitor’s price per case in dollars, Ad is dollars spent on advertising, and I is household income: Regression Statistics R Square 90.4% Standard Error 34.97 Observations 60 Coefficients Standard Error t Stat P-value Intercept 807.938 137.846 5.86 4.09301E-06 Price, PX -5.034 0.457 -11.02 4.34134E-11 Competitor Price, PY 4.860 1.006 4.83 5.73825E-05 Advertising, Ad 0.328 0.104 3.14 0.004293208 Household Income, I 0.009 0.001 7.99 2.38432E-08 A. Briefly describe the statistical significance of each individual independent variable and characterize the overall explanatory power of this multiple regression model. B. Assume that PX (own price) = $127, PY (competitor’s price) =$87, Advertising, Ad. = $870, and Household Income, I=$46,788. Estimate all point elasticities (i.e., own price, eP, cross-price elasticity, eXY, advertising elasticity, eAd, and income elasticity, eI ). Interpret your results.
