Cruisers plc, a car leasing company enter into contracts in January with each Donald, Edwina and Fiona. Cruisers agree to hire a car to each of them for a period of three (3) years for £400 monthly. Donald, Edwina and Fiona each takes delivery of their respected cars that month.
Subsequent international incidents cause a sharp rise in the rate of inflation. By February, the Cruisers are aware that many of their customers will face difficulty in maintaining payment under their contracts. In order to avoid possible breaches of a large number of these contracts, Cruisers sends out a standard letter to each of their clients. The letter states that “In view of rapidly rising costs, Cruisers will only require their customers to pay three (3) quarters of the amount due under their agreement with Cruisers until the rate of increased costs subsides”.
Donald receives the letter but did not open it. In February, March and April he sends Cruisers cheques for £200 ‘in full and final satisfaction of this month’s account’. Cruisers bank each of these cheques. Edwina receives the letter in late February, after she had sent Cruisers £300 cheque with an accompanying letter stating that in view of her increased costs, that amount was all she could afford. When Fiona receives Cruisers standard letter she is pleased, as the nature of her business is such that her business is little effected by rising costs.
Cruisers, later realising the limited impact upon Fiona’s business, sends a letter stating that the reduction arrangement did not apply to Fiona. Fiona reads this letter and immediately sends Cruiser a cheque of £300 for February’s payment. She also did this for March and April.
By May, Cruises faces financial ruin if it continues to accept only there (3) quarters of the amounts due under its various contracts.
Advise Cruisers as to its possible courses of action with regard to Donald, Edwina and Fiona.
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Explain the difference between capitalizing and expensing assets in government contracting
Objective: Use the library to research an article that addresses a topic of interest in this weeks learning objective. Attempt to find an article about a current situation where there was a problem in this area of interest. Summarize the issue and any lessons learned.
This assignment is due by Sunday midnight. Your initial post should be at least 250 words. Please respond to more than two other students. Responses should be a minimum of 100 words and can include direct questions.
Research in the library or the Internet as well to find material that could support your position.
Select an organization with which you are familiar or an organization where you work.
Develop a 15- to 20-slide Microsoft® PowerPoint® presentation to be presented to the CEO’s executive committee that addresses how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
Explain the following in your presentation:
How your organization’s production function is related to its marginal product of labor.
How your organization’s marginal product of labor is related to the value of its marginal product.
How your organization’s marginal product is related to its demand for labor
Examples of events that could shift the demand or supply of labor and why they do so.
Reasons a worker’s wages might be above the level that balances supply and demand.
An analysis of the impact that government policies addressing income inequity and poverty could have on labor demand or supply.
Cite a minimum of three peer-reviewed sources not including your textbook.
Format your presentation consistent with APA guidelines.