A Company Is Trying to Decide Which of Two New

question 96

Essay

A company is trying to decide which of two new product lines to introduce in the coming year.The predicted revenue and cost data for each product line follows:
$\begin{array}{lrr}& \underline { \text { Product A } } & \underline { \text { Product B } } \\\text { Sales } & \$ 80,000 & \$ 96,000 \\\text { Direct materials } & 3,000 & 6,000 \\\text { Direct labor } & 30,000 & 45,000 \\\text { Other cash operating expenses } & 7,500 & 9,000\\\\\text { New equipment costs } & 75,000 & 100,000 \\\text { Estimated useful life (no salvage) } & 5 \text { years } & 5 \text { years }\end{array}$ The company has a 30% tax rate, uses the straight-line depreciation method, and predicts that cash flows will be spread evenly throughout each year.Calculate each product's payback period.If the company requires a payback period of three years or less, which, if either, product should be chosen?

Examine how lifestyle enclaves and third places contribute to community building and public life.

Discuss the influence of audience activities on cultural products and societal norms.

Understand the significance of leisure and recreation industries and their impact on employment.

Recognize Robert Bellah's views on communal responsibility and shared leisure interests.

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Definitions:

Social Norms

Shared standards of behavior that are considered acceptable within a group or society.

Social Interaction

The process by which individuals act and react in relation to others, influencing and being influenced by the behaviors, feelings, and thoughts of each other.

Culture

The shared beliefs, practices, norms, values, and artifacts that characterize a group of people or society.

Traditions

Customs or beliefs passed down within a group or society with symbolic meaning or special significance.