This exercise is to illustrate that the basic external market analytical models can be applied not only to s& p500 companies but also to a variety of social and economic activities. for example, this chapter discusses the drug-dealing business. you can apply the two analytical models (pest and porter's 5 forces) to analyzing this industry. similar analyses can be run on the story featured in the tv series breaking bad, the wire, or on terrorist activities if you have enough information on them. read the chapter 3 of freakonomics carefully, and answer the following questions. 1. based on your reading of the case, what is the biggest threat to jt's business model? 2. what you would do if you were jt to mitigate that threat?

Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is: