Exercise 2: A First Excel Assignment 

 Suppose a firm has the following situation: 

 Product 1 2 Price/unit $125 $345 Unit volume/year 8,400 4,200 Cost of goods sold/unit $62 $188 

Furthermore, Sales commissions are 3% of sales. Other operating expenses are $245,000. General and administrative expenses are $387,000. Interest expenses are $112,000. Income taxes are 46% of taxable income. 

 Using these assumptions, a pro forma income statement in Excel in the following format: 

Gross sales xxxx xxxx less: Commissions xxxx xxxx Net sales xxxx xxxx less: Cost of goods sold xxxx xxxx Gross profit xxxx xxxx Total gross profit xxxx less: Other operating expenses xxxx General & administrative xxxx Interest expenses xxxx Income before taxes xxxx less: Income taxes xxxx Net income xxxx 

 Each of the following questions represents its own deviation from the base case,1 (i.e., the questions are not cumulative): 

 1. What happens to net income if for product 1 the price is increased to $150 and the volume is decreased to 6,500 units? 2. What happens to net income if General & administrative becomes 20% of gross sales? 3. What happens to net income if Cost of goods sold on both products increases by 10%? 4. If the unit volume for product 2 is always half of the unit volume for product 1, what product 1 volume yields a zero net income? 

Write a 5 page essay on South africa.

The companies’ efforts were however met with government’s counter strategies to maintain the practice of apartheid. Caltex, owned jointly by Texaco and SoCal is one example of foreign company operating in South Africa whose shareholders on many occasions tried hard to pass resolutions that were anti apartheid. This paper seeks to highlight Caltex, its conception in the South African market, its operations and how it affected the growth or downfall of the practice of apartheid.

First we consider whether the entry of Caltex in South Africa empowered apartheid. Whether or not the utilitarian benefits of Caltex’s operations stood above the moral rights and justice violations that its presence seemed to propagate. In 1975 Caltex sought to expand its investment in South Africa. The expansion could cost $135 million, increase south Africa’s refining capacity by 11% and it promised a return on interest of about 20% i.e. approximately $27 million annually. In essence, a Return on Interest of $27 million annually, had a strong utilitarian benefit. After all Caltex is a profit making company and profit making is the major focus. However, this expansion would consequently strengthen the economy of the very government that was steadfast at maintaining apartheid as its legal policy. A strong economy meant a strong government and thus widespread apartheid.

The commitment that Caltex later showed to the plight of their black employees is another utilitarian benefit that requires consideration. They moved 40% of their black workers to refinery jobs initially held by whites and they moved a total of 29 to the topmost four of the white collar and skilled job categories. Even though most blacks remained in the lower job categories, Caltex had at least shown their commitment to eradicating apartheid. The utilitarian benefits of Caltex presenting better working conditions