Definition of quality for Extrude-rite Corporation, a manufacturer of industrial machinery and components for the plastics industry, has recently had several instances of quality problems with their products. These have occurred both before and after product shipment. In a meeting that the President of Extrude-rite has called on the topic with her direct reports, she tells them that she isn’t sure whether they as an organization really have a clear, agreed-upon definition of what quality is at Extrude-rite. She tells them that she believes they must have this agreed-upon definition before they can move any further forward toward quality improvement. She asserts that they must develop this definition because customers are getting upset and rework costs are way too high. She also thinks that if they can come up with the right definition, it could be a competitive advantage for Extrude-rite. She assigns them to come back next week with some ideas and they will hammer out a common definition of quality for Extrude-rite.

Upscale hotels in the united states recently cut their prices by 20 percent in an effort to bolster dwindling occupancy rates among business travelers. a survey performed by a major research organization indicated that businesses are wary of current economic conditions and are now resorting to electronic media, such as the internet and the telephone, to transact business. assume a company's budget permits it to spend $5,000 per month on either business travel or electronic media to transact business. graphically illustrate how a 20 percent decline in the price of business travel would impact this company's budget set if the price of business travel was initially $1,000 per trip and the price of electronic media was $500 per hour. suppose that, after the price of business travel drops, the company issues a report indicating that its marginal rate of substitution between electronic media and business travel is 1. is the company allocating resources efficiently? explain.

Kandon enterprises, inc., has two operating divisions; one manufactures machinery and the other breeds and sells horses. both divisions are considered separate components as defined by generally accepted accounting principles. the horse division has been unprofitable, and on november 15, 2018, kandon adopted a formal plan to sell the division. the sale was completed on april 30, 2019. at december 31, 2018, the component was considered held for sale. on december 31, 2018, the company’s fiscal year-end, the book value of the assets of the horse division was $415,000. on that date, the fair value of the assets, less costs to sell, was $350,000. the before-tax loss from operations of the division for the year was $290,000. the company’s effective tax rate is 40%. the after-tax income from continuing operations for 2018 was $550,000. required: 1. prepare a partial income statement for 2018 beginning with income from continuing operations. ignore eps disclosures. 2. prepare a partial income statement for 2018 beginning with income from continuing operations. assuming that the estimated net fair value of the horse division’s assets was $700,000, instead of $350,000. ignore eps disclosures.

It is most important to account for factors like warranties and durability when purchasing durable goods or very expensive items