Define the term ‘trademark’.

The following information is available for Trinkle Company for the month of June:

1. The unadjusted balance per the bank statement on June 30 was $81,500.

2. Deposits in transit on June 30 were$3,150.

3. A debit memo was included with the bank statement for a service charge of $40.

4. A$5,611 check written in June had not been paid by the bank.

5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was$900, and the interest collected amounted to $50.

Required

Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

Toyota is one of the best examples of a multi-site business with $52$ manufacturing facilities in $26$ different countries. In a typical recent $12$-month period, it opened its first factory in Mexico and opened its 13th manufacturing facility in the USA $-$ in Mississippi. Recently concern has been expressed by the company that its production capacity in the USA was starting to outstrip demand for vehicles, so this could be the last new factory the company builds there for some time.

Evaluate Toyota's decision to locate operating factories in so many different countries.

Define the term ‘offshoring’.

Why do many small firms use job production?

Calculate the estimated annual profit from these two possible locations for a mobile-phone shop:

$$\begin{array}{|l|c|c|} \hline & \textbf{ Site A - city centre location } & \textbf{ Site B - shopping arcade out of the city } \\ \hline \text{ Estimated annual costs (including rent and labour costs) } & \$ 975000 & \$ 498000 \\ \hline \text{ Expected annual sales (units) } & 25000 & 17000 \\ \hline \text{ Forecast selling price per unit } & \$ 50 & \$ 45 \\ \hline \end{array}$$

Define the term ‘innovation’.

Define the term ‘capacity utilisation’.

Choosing the lowest-cost location for the Rolls-Royce factory was not a priority. When BMW moved production from the industrial northern town of Crewe, it chose one of the most crowded and expensive parts of the country - the south-east of England. The Goodwood factory has many advantages but low cost is not one of them. One of its main benefits is its proximity to a small airport where the helicopters and executive jets of intending purchasers of Rolls-Royce cars can arrive in style. Potential buyers are identified by the company and invited to visit the factory and attend events held at the nearby exclusive marina and horse-race and motor-race courses. The area has been termed a 'playground for the wealthy' and future customers often spend a day or two at the races or a morning at the marina before browsing the cars - and more often than not, signing an order form.

Analyse the importance of one qualitative factor affecting Rolls-Royce’s decision to locate in Goodwood.

Define the term ‘research and development’.

Define the term ‘batch production’.

Define the term ‘joint venture’.

On the basis of the information for TLC Cosmetics in the table below, recommend which site it should choose for its new branch.

$$\begin{array}{|l|l|l|} \hline & \textbf { Site } \mathbf{X} \textbf { - capital } & \textbf { Site } \mathbf{Y} \textbf { - capital } \\ & \textbf { cost \pounds2} \textbf { million } &\textbf { cost \pounds3 } \textbf { million } \\ \hline\text { Length of time to repay initial capital cost } \\ \text { (payback period) } \\ & 2.5 \text { years } & 3.8 \text { years } \\ \hline \text { Annual profit (ARR) made as \% of initial cost } & 12 \% & 14 \% \\ \hline \end{array}$$

The problems at NTM began several years ago when the previous chief executive took the decision to double production capacity. He could not have foreseen the worldwide recession and how this would reduce the demand for the textiles made in the factory. The following figures tell their own story and the cost impact on the business is now serious:

$$\begin{array}{|l|c|c|c|} \hline & \textbf{ 2012 } & \textbf{ 2013 } & \textbf{ 2014 } \\ \hline \text { Maximum capacity (million metres) } & 5 & 5 & 5 \\ \hline \text { Actual annual output (million metres) } & 4.0 & 3.7 & 3.0 \\ \hline \text { Selling price per metre } & \$ 3 & \$ 3 & \$ 2.7 \\ \hline \text { Annual fixed costs } & \text{ \$3m } & \text{ \$3m } & \text{ \$3m } \\ \hline \text { Variable costs per metre } & \$ 2 & \$ 2 & \$ 2.2 \\ \hline \end{array}$$

Calculate the capacity utilisation rates for Nassau in each of the three years.