Determine whether me €300 fee is a facilitating payment
Essay
Online Learning Inc. lOLI) is a privately-held company based in the IUC that specializes in providing online courses in English as a Second Language (ESL). OLI is trying to set up a new sales office in a foreign country.
It needs a business license to operate in that country. The license normally lakes six months to obtain. An official of that country said that he could expedite the process for a fee of €300.
OLI estimates the new sales office can bring €300,000 incremental profit annually OLI has just launched a new online 40-houi course to help adult ESL learners master basic business English. The price of the new course is €500 per student, the variable cost is €300 per student, and the total fixed cost of the new course is
€300.000 per year OLI spent €200.000 to develop the new course before launching it. There are many online course providers in the marketplace, and each has its own feature However, OLI's highly qualified staff and good reputation have enabled it to charge a premium price compared to its major competitors. Recent market research indicates that if OLI raises the price of its new business English course by 10V the student enrollment would decrease by 5V A regional airlines company in Asia has approached OLI and offered to enroll 1.000 of its employees in the new course if OLI would agree to a special price of €350 per employee If OLI accepts this offer, an additional €10,000 onetime cost would be required to temporally expand its capacity to accommodate the new students.

Marsalls Products Inc. manufactures and sells two products CD-ROMs and DVD's. The latest forecast on me products and their costs tor the coming year is shown in the following table.
Note 1: Fixed manufacturing cost of Si.500 000 per year is allocated to products based on the number of machine hours required to produce the product at a rate of S3 per machine hour The Manufacturing Team leader just informed the CEO that a fire occurred at one of the manufacturing lines and that line would be unavailable for the next 12 months. The result is that mere will only be 400 000 machine Hours available The CEO requested the management team to revise the plan for the coming year based on the new constraint. The Marketing Team leader stated that in order to minimize customer complaints about the shortage, a minimum of 100,000 units of each product should be produced With the new information from the Manufacturing and Marketing teams what is the optimal product mix for the coming 12 months'' Assume Marsalls can sell allot its production.

• A. 100,000 CD-ROM's and 150,000 DVD'[s
• B. 150.000 CD-ROMS and 125.000 DVD
• C. 200,000 CD-ROm's a dn 100,000 DVD
• D. 120.000 CD-ROM's 140,000 DVD.

A company with idle capacity has been contacted by a new customer to supply 10,000 units of its products for a special batch order its costs are as follows.

The company's normal soling price is SI00 per unit but the customer is wiling to pay only S70 pet unit Should the company accept the special order''

• A. Yes, because the special order will increase operating profit by S100 000
• B. Yes, because the special order will increase operating profit by S250 000
• C. No, because the special order will reduce operating profit by $250 000
• D. No, because the special order will reduce operating profit by S50 000

Custom Ceramics produces two hand-painted items a large bowl and a large platter. Relevant information for each of these items is shown below

• A. The company should produce only bowls because the sales price per Bowl is higher
• B. The company should produce only bowls because the contribution margin per bowl is higher.
• C. The company should produce only platters because the variable cost per platter is lower
• D. The company should produce only platters because the contribution margin per painting hour is higher