Personal Reflection on a Film: Awakenings

Personal Reflection on a Film: Awakenings Allison Bartha Writing Assignment #1: Awakening The film Awakening relates to the study of medical humanities we have learned about and provides numerous examples of how emerging different actives into the patients lives to benefit the patient, family and Doctor. Therapeutic actives demonstrated in the film allows for reaction and response from the patients that is clear to the audience watching. I think this film can be beneficial to anyone who wants to learn more about medical humanities and the purpose behind the treatment. In out text Health Humanities Readers we read about the different types of therapy such as art, music and literature. We see the use of intersection approach throughout the film in relation to the patients health and health care as discussed in the first module of this course. Awakening shows through medical humanities the ability to communicate between non-responsive patients and the provider. Thoughout the film we see the social interaction between the Doctor and his patients. We see the importance of a go od professional patient and provider relationship. When the patients family and the patient trust the Doctor, it allows for tests and different treatment plans to take place in the best interest of the patient. Using medical humanities allows for better care from the provider in result to a purpose for the patients. In this case, catatonic patients are benefiting from humanities. This film was released in 1990 starring Robin Williams as Dr. Malcolm Sayer. Dr. Sayer discovers certain stimuli reactions beyond the catatonic states they appear to be in. Activities such as catching a ball and music start to reveal the patient response. One patient Leonard Lowe learns to communicate through the Ouija board with Dr. Sayer. Dr. Sayer learns about the drug for Parkinsons disease called L-Dopa and believe there could be a breakthrough for his patients. He believed there could be a breakthrough for his patients to be recovered from their disease. Lowe is first in the trail run for this theory, which completely awakens him from his catatonic state. This inspired Dr. Sayer to seek out founding to help his other patients experience awakenings back to reality. The founding went through and soon all the catatonic patients woke up to a new reality. Lowe was the first to be on the drug, though the film we see him adjust to is new lifestyle. After being on the drug for a while side effects start to occur facial and body tics that are hard for him to control, shortly after the side effects occur Lowe returns to his catatonic state. Patients start to fear the side effects as they watch Lowe return to his disease. Shortly after all the patients start to go back to their original states regardless the increased dosages of L-Dopa. Although the awakening did not last there was an appreciation of the value of life. Dr. Sayer went right back to the Ouija board in communicating with Lowe. The movie Awakenings shows a very committed, patient, caring bedside manor by Dr. Sayer. Dr. Sayer is very persistent and courageous, despite his criticism and put down he never gives up on his hypothesis. I think this is something we look past in todays culture. We live now in very fast past society where medical providers seem to be busy, moving from one patient to next. Working at a Doctors office, I schedule patients, I see first-hand the intensity and fast pace our providers go through in order to meet their quote of patients for the day. Someone like Dr. Sayer would be hard to come across in todays reality. Dr. Sayer never gives up on his patients and he fights for them when other Doctors disagree with his theory. His motivation is the success of treating his patients, not the social recognition. Dr. Sayer learned about his patients and their conditions before treating them. Human touched is so important throughout this film. This movie shows views a glimpse of mental health il lness and inspirational insights on the human behavior. We see change in the behavior of the employees before the awakening happens and their behavior after. Prior to the awakening, the workers were just going through their everyday motions without any emotions. However after it is clear they connect with the patients and are joyful. Awakenings is a life-affirming movie that provokes deep thought into the value of our lives. This movie made me think about the important things I have in my life, my family, a good job and being able to attend college. Without a good health body, I would not be able to maintain a job or even be successful in school. Seeing in this film the patients in catatonic state of mind, they have restrictions like going on outside, even a set eating time. They will never be able to interact in a way that we can. Watching this movie really made me appreciate more my health and family. This movie has set me back to be more grateful for what I have and to appreciate the simple things like, work, my job and life. I notice today people do not know how to live and they struggle with appreciating the simple things. This movie was heart breaking when the side effects came Lowe returned to his catatonic state. We need to be grateful. I found the part of film when Lowe tries to gain his freedom to inspi ring. Lowe explains his feeling about the simple things in life like going for a walk most of us take for granted. Time is limited but we are infinite. Everything we do leads to our life we choose to live, and it is our choice to make our life meaningful. Awakening was a great refresher to its audience that we are often too much caught up with negatives aspects in our life. We forget and take for granted the things we do have. Something as simple as brushing my hair, I am capable of doing, yet someone with catatonic or other unfortunates are struggling to just hold a brush. Things we consider normal like reading the newspaper, going for walks, even access to social media sites that we are bless with, some people see those as a struggle. Watching this film, I can express my feelings of gratitude of just being thankful I am happy, healthy and alive. This film reminded me of the little things I need to stop and appreciate more often. I watched this film with my little brother and it was interesting to see his reactions throughout. My little brother is 13 and can be found on his phone most of the time. By the end of this film, he was struggling to stay awake as it was a school night but asked me if I could leave it there so he could finish it the next day. He ended up staying up to watch it before going to bed and we talked about it the next day. I am glad I watched it with him to hear his in take on the film giving me someone else to talk to about their reactions. I was honestly shocked as to how much information he picked up. He understood the different things the Doctor was doing to get a reaction from the patients like with the ball and music. I was surprise he noticed the clip where Dr. Sayer made the dose stronger as he kept upping and upping it. This was the first time my younger brother has been expose to someone with such disability so he was asking my dad many questions. Questions like, how does someone get like that, are they born that way, do they have to stay in that hospital forever, can they understand people just not respond? Hearing the thoughts of a 13 year old throughout the movie I feel made it a better watch. Watching this movie could not have come at a better time, and it is funny how I happened to choose this film over the other ones. I walked into the video store with the list and told the worker I need one of these films for a class, I dont care which one. Awakening caught his eye, as he knew they had it, so that is what I rented. This week was a rough week at work. Typically, boss issues and schedule not working out for fall class was having me stressed. I was struggling with the idea that my work may not work around classes and I could potentially lose my job. I kept thinking life is just not fair and that I do not have a backup plan I need to just figure it out. After watching Awakening I take back everything I said about my struggles. This movie made me take a step back and look at my life in a completely new perspective. I should grateful for things I have and not take for granted my job. I am finding it so hard to explain this in this paper the importance it is to just be gratef ul for things we have, because some people are just struggling to make it to tomorrow. This movie has such a powerful impact on the appreciation of life and the value of meaning and purpose. When I was watching this film, I looked it up to read some information on it and found it to also be a novel. I do intend to purchase the novel and do some summer reading. I also learned that this movie is based on a true story! When I think of watching a film or a class this is not what I had in mind. I will forever remember this movie and its impact it has left on me. When am struggling and having a bad day, I will appreciate what I have.

The Murder of Helen Jewett by Patricia Cline Cohen Essay -- Murder Hel

The Murder of Helen Jewett by Patricia Cline Cohen   Ã‚  Ã‚  Ã‚  Ã‚  In The Murder of Helen Jewett, Patricia Cohen uses one of the most trivial murders during the 1800’s to illustrate the sexiest society accommodations to the privileged, hypocritical tunneled views toward sexual behavior, and the exploitation of legal codes, use of tabloid journalism, and politics. Taking the fact that woman was made from taking a rib from man was more than biblical knowledge, but incorporated into the male belief that a woman’s place is determined by the man. Helen had the proper rearing a maid servant, but how did she fall so far from grace. Judge Weston properly takes credit for rearing her with the proper strictness and education. Was Helen seduced at an early age and introduced to sexual perversions that were more persuasive that the bible belt life that the Weston’s tried to live? Was Helen simply a woman who knew how to use what she had to get what she wanted? Through personal correspondence, legal documentation, census reports, paintings, and newspapers we are able to make our own determinations. Cohen provides more than enough background and history to allow any one to make their own opinion how the murder of a woman could be turned into a side show at a circus.   Ã‚  Ã‚  Ã‚  Ã‚  Helen Jewett, a prominent New York prostitute, was murdered and not only was this rare but a heinous crime. Helen’s murder brought to the forefront the industry of prostitution. This would include the owners, managers, and the clients.   Ã‚  Ã‚  Ã‚  Ã‚  In the Victorian era, in New York City, men and women roles within the society were as different as night and day. A man regardless of his extra curricular activities could still maintain a very prevalent place in society. A woman’s worth was not only based family name which distinguished her class and worth, but also her profession if that was applicable.   Ã‚  Ã‚  Ã‚  Ã‚  During this time in society the industry of prostitution was an economic gold mine. The women operate the brothel while very distinguished men in the community own and take care of the up keep. The brothel keepers are seen as nothing more than common home wrecking whores. However, the owners of the brothels are viewed as successful business men.   Ã‚  Ã‚  Ã‚  Ã‚  For example, John Livingston, brother to President Jackson’s, Sec of State, own the 41 Thomas St brothel. Men of great wealth and statue were frequent to... ...use. This was customary for Richard to do. As the young suitor made his way up the steps Helen greeted him by saying, Richard I’m glad that you could make it. Helen retired to her room with her suitor and they remained there for the some time.   Ã‚  Ã‚  Ã‚  Ã‚  Helen emerged from her room around 11:00 pm asking for a bottle of wine and Mrs. Townsend delivered the wine and engaged in brief conversation while noticing the young man lying on the bed reading. She was very familiar with Robinson and was able to say without a doubt that he was the one that was in the bedroom with Helen. No one saw him leave nor did anyone let him out. Mrs. Townsend testified that a man had knocked on her door asking to be let out, but told him to have his woman to come and get the key. No one returned for the key so there is no possible logical explanation of how Richard got out of the house, nor was a logical possibility of how anyone else could have gotten in the house.   Ã‚  Ã‚  Ã‚  Ã‚  There were also several eye witnesses to the fact that Robinson was the owner of the cloak and that the hatchet used in the murder resembled the hatchet missing from Hoaxie’s store. Hoaxie just so happened to be Robinson’s boss.   Ã‚  Ã‚  Ã‚  Ã‚   The Murder of Helen Jewett by Patricia Cline Cohen Essay -- Murder Hel The Murder of Helen Jewett by Patricia Cline Cohen   Ã‚  Ã‚  Ã‚  Ã‚  In The Murder of Helen Jewett, Patricia Cohen uses one of the most trivial murders during the 1800’s to illustrate the sexiest society accommodations to the privileged, hypocritical tunneled views toward sexual behavior, and the exploitation of legal codes, use of tabloid journalism, and politics. Taking the fact that woman was made from taking a rib from man was more than biblical knowledge, but incorporated into the male belief that a woman’s place is determined by the man. Helen had the proper rearing a maid servant, but how did she fall so far from grace. Judge Weston properly takes credit for rearing her with the proper strictness and education. Was Helen seduced at an early age and introduced to sexual perversions that were more persuasive that the bible belt life that the Weston’s tried to live? Was Helen simply a woman who knew how to use what she had to get what she wanted? Through personal correspondence, legal documentation, census reports, paintings, and newspapers we are able to make our own determinations. Cohen provides more than enough background and history to allow any one to make their own opinion how the murder of a woman could be turned into a side show at a circus.   Ã‚  Ã‚  Ã‚  Ã‚  Helen Jewett, a prominent New York prostitute, was murdered and not only was this rare but a heinous crime. Helen’s murder brought to the forefront the industry of prostitution. This would include the owners, managers, and the clients.   Ã‚  Ã‚  Ã‚  Ã‚  In the Victorian era, in New York City, men and women roles within the society were as different as night and day. A man regardless of his extra curricular activities could still maintain a very prevalent place in society. A woman’s worth was not only based family name which distinguished her class and worth, but also her profession if that was applicable.   Ã‚  Ã‚  Ã‚  Ã‚  During this time in society the industry of prostitution was an economic gold mine. The women operate the brothel while very distinguished men in the community own and take care of the up keep. The brothel keepers are seen as nothing more than common home wrecking whores. However, the owners of the brothels are viewed as successful business men.   Ã‚  Ã‚  Ã‚  Ã‚  For example, John Livingston, brother to President Jackson’s, Sec of State, own the 41 Thomas St brothel. Men of great wealth and statue were frequent to... ...use. This was customary for Richard to do. As the young suitor made his way up the steps Helen greeted him by saying, Richard I’m glad that you could make it. Helen retired to her room with her suitor and they remained there for the some time.   Ã‚  Ã‚  Ã‚  Ã‚  Helen emerged from her room around 11:00 pm asking for a bottle of wine and Mrs. Townsend delivered the wine and engaged in brief conversation while noticing the young man lying on the bed reading. She was very familiar with Robinson and was able to say without a doubt that he was the one that was in the bedroom with Helen. No one saw him leave nor did anyone let him out. Mrs. Townsend testified that a man had knocked on her door asking to be let out, but told him to have his woman to come and get the key. No one returned for the key so there is no possible logical explanation of how Richard got out of the house, nor was a logical possibility of how anyone else could have gotten in the house.   Ã‚  Ã‚  Ã‚  Ã‚  There were also several eye witnesses to the fact that Robinson was the owner of the cloak and that the hatchet used in the murder resembled the hatchet missing from Hoaxie’s store. Hoaxie just so happened to be Robinson’s boss.   Ã‚  Ã‚  Ã‚  Ã‚  

New England And The Chesapeake Region Before 1700 Essay -- American Am

New England And The Chesapeake Region Before 1700 Although New England and the Chesapeake region were both settled largely by the people of English origin, by 1700 the regions had evolved into two distinct societies. The reasons for this distinct development were mostly based on the type on people from England who chose to settle in the two areas, and on the manner in which the areas were settled. New England was a refuge for religious separatists leaving England, while people who immigrated to the Chesapeake region had no religious motives. As a result, New England formed a much more religious society then the Chesapeake region. John Winthrop states that their goal was to form "a city upon a hill", which represented a "pure" community, where Christianity would be pursued in the most correct manner. Both the Pilgrims and the Puritans were very religious people. In both cases, the local government was controlled by the same people who controlled the church, and the bible was the basis for all laws and regulations. From the Article of Agreement, Springfield, Massachusetts it is ...

Marketing Strategy and ECommerce :: GCSE Business Marketing BTEC Coursework

Marketing Strategy and ECommerce Introduction With the rapidly advancing technologies that are occurring in modern business, organisations are required to be ready, and able to adapt within their ever-changing environment. It is true across all diverse industries that in order to stay competitive, organisations must be able to utilise the various tools that technology has to offer. Technological factors have been of growing importance, particularly in recent years. A major factor involved in these technology issues is the use of the Internet as a major issue to modern organisations. The Internet has been rapidly growing since it's inception and is now commonly used in all sectors of societies, in all corners of the globe. The Internet has quickly become one of the most valuable assets in modern technology, and as such, is developing as an integral part of modern commerce. As with past technologies, the Internet will have future technological advances develop from its own growth. The task the organisations of in the new century? Realise future opportunities and threats, and base a strategy accordingly. "Is it clichà © to say that 'the Internet changes everything': the challenge now is to say what, how and how quickly". (When Companies Connect, 1999, p.19) The Internet has lead to the birth and evolution of electronic commerce or E-commerce. E-commerce has now become a key component of many organisations in the daily running of their business. Simply defined, "electronic commerce is a system of online shopping and information retrieval accessed through networks of personal computers". (Reedy, J. Schullo, S. Zimmerman, K. 2000, pg. 29) E-commerce challenges traditional organisational practices, and opens ups a vast array of issues that the organisations must address. By focusing on the varying levels of an organisation, it soon become apparent the effects that E-commerce can have. An understanding of the implication E-commerce has on such organisational divisions can help businesses gain understanding hence plan for it's inevitable continuing evolution. In terms of marketing, the modern organisation must be critically aware of the development of E-commerce, and the implications that it entails. "Marketers develop their own recipe of promotional tactics to fit the product lines or industries in which they compete. Now electronic communications tools are and will continue to be an important ingredient in the promotional mix" (Reedy, J. Schullo, S. Zimmerman, K. 2000, pg. 29) In assessing the implications of E-commerce in terms of marketing, it is important to understand its impact in respect to

Cases for Management Decision Making

Cases for Management Decision Making CA-1 suggested uses of cases Case CASE 1 Greetings Inc. : Job Order Costing CASE 2 Greetings Inc. : Activity-Based Costing CASE 3 Greetings Inc. : Transfer Pricing Issues CASE 4 Greetings Inc. : Capital Budgeting CASE 5 Auburn Circular Club Pro Rodeo Roundup CASE 6 Sweats Galore CASE 7 Armstrong Helmet Company Overview This case is the first in a series of four cases that presents a business situation in which a traditional retailer decides to employ Internet technology to expand its sales opportunities. It requires the student to employ traditional job order cost- ing techniques and then requests an evaluation of the resulting product costs. (Related to Chapter 2, Job Order Costing. ) This case focuses on decision-making benefits of activity-based costing relative to the traditional approach. It also offers an opportunity to discuss the cost/ benefit trade-off between simple ABC systems versus refined systems, and the potential benefit of using capacity rather than expected sales when allocating fixed overhead costs. (Related to Chapter 4, Activity-Based Costing. This case illustrates the importance of proper transfer pricing for decision making as well as performance evaluation. The student is required to evaluate profitability using two different transfer pricing approaches and comment on the terms of the proposed transfer pricing agreement. (Related to Chapter 8, Pricing. ) This case is set in an environment in which the company is searching for new op- portunities for growth. It requires evaluation of a proposal based on initial esti- mates as well as sensitivity analysis. It also requires evaluation of the underlying assumptions used in the analysis. Related to Chapter 12, Planning for Capital Investments. ) This comprehensive case is designed to be used as a capstone activity at the end of the course. It deals with a not-for-profit service company. The case involves many managerial accounting issues that would be common for a start-up business. (Related to Chapter 5, Cost-Volume-Profit; Chapter 7, Incremental Analysis; and Chapter 9, Budgetary Planning. ) This case focuses on setting up a new business. In planning for this new busi- ness, the preparation of budgets is emphasized. In addition, an understanding of cost-volume-profit relationships is required. (Related to Chapter 5, Cost-Volume- Profit, and Chapter 9, Budgetary Planning. ) This comprehensive case involves finding the cost for a given product. In addi- tion, it explores cost-volume-profit relationships. It requires the preparation of a set of budgets. (Related to Chapter 1, Managerial Accounting; Chapter 5, Cost- Volume-Profit; Chapter 9, Budgetary Planning; Chapter 10, Budgetary Control and Responsibility Accounting; Chapter 11, Standard Costs and Balanced Scorecard; and Chapter 12, Planning for Capital Investments. CA-2 case 1 ?Greet ings Inc. Greetings Inc. : Job Order Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. has operated for many years as a nationally recognized retailer of greeting cards and small gift items. It has 1,500 stores throughout the United States located in high-traffic malls. As the stock price of many other companies soared, Greetings’ stock price re- mained flat. As a result of a heated 2010 shareholders’ meeting, the president of Greetings, Robert Burns, came under pressure from shareholders to grow Greetings’ stock value. As a consequence of this pressure, in 2011 Mr. Burns called for a formal analysis of the company’s options with regard to business op- portunities. Location was the first issue considered in the analysis. Greetings stores are located in high-traffic malls where rental costs are high. The additional rental cost was justified, however, by the revenue that resulted from these highly visi- ble locations. In recent years, though, the intense competition from other stores in the mall selling similar merchandise has become a disadvantage of the mall locations. Mr. Burns felt that to increase revenue in the mall locations, Greetings would need to attract new customers and sell more goods to repeat customers. In order to do this, the company would need to add a new product line. However, to keep costs down, the product line should be one that would not require much addi- tional store space. In order to improve earnings, rather than just increase rev- enues, Greetings would have to carefully manage the costs of this new product line. After careful consideration of many possible products, the company’s management found a product that seemed to be a very good strategic fit for its existing products: high-quality unframed and framed prints. The critical el- ement of this plan was that customers would pick out prints by viewing them on wide-screen computer monitors in each store. Orders would be processed and shipped from a central location. Thus, store size would not have to in- crease at all. To offer these products, Greetings established a new e-business unit called Wall Decor. Wall Decor is a â€Å"profit center†; that is, the manager of the new business unit is responsible for decisions affecting both revenues and costs. Wall Decor was designed to distribute unframed and framed print items to each Greetings store on a just-in-time (JIT) basis. The system works as follows: The Wall Decor website allows customers to choose from several hundred prints. The print can be purchased in various forms: unframed, framed with a steel frame and no matting, or framed with a wood frame and matting. When a CA-3 Greet ?ings CA-4 ase 1 Cases for Management Decision Making customer purchases an unframed print, it is packaged and shipped the same day from Wall Decor. When a customer purchases a framed print, the print is framed at Wall Decor and shipped within 48 hours. Each Greetings store has a computer linked to Wall Decor’s Web server so Greetings’ customers can browse the many options to make a selection. Once a selection is made, the customer ca n complete the order immediately. Store em- ployees are trained to help customers use the website to shop and to complete their purchases. The advantage to this approach is that each Greetings store, through the Wall Decor website, can offer a wide variety of prints, yet the indi- vidual Greetings stores do not have to hold any inventory of prints or framing materials. About the only cost to the individual store is the computer and high- speed line connection to Wall Decor. The advantage to the customer is the wide variety of unframed and framed print items that can be conveniently purchased and delivered to the home or business, or to a third party as a gift. Wall Decor uses a traditional job order costing system. Operation of Wall Decor would be substantially less complicated, and overhead costs would be sub- stantially less, if it sold only unframed prints. Unframed prints require no addi- tional processing, and they can be easily shipped in simple protective tubes. Framing and matting requires the company to have multiple matting colors and frame styles, which requires considerable warehouse space. It also requires skilled employees to assemble the products and more expensive packaging pro- cedures. Manufacturing overhead is allocated to each unframed or framed print, based on the cost of the print. This overhead allocation approach is based on the assumption that more expensive prints will usually be framed and therefore more overhead costs should be assigned to these items. The predetermined over- head rate is the total expected manufacturing overhead divided by the total ex- pected cost of prints. This method of allocation appeared reasonable to the ac- counting team and distribution floor manager. Direct labor costs for unframed prints consist of picking the prints off the shelf and packaging them for ship- ment. For framed prints, direct labor costs consist of picking the prints, framing, matting, and packaging. The information in Illustration CA 1-1 for unframed and framed prints was collected by the accounting and production teams. The manufacturing overhead budget is presented in Illustration CA 1-2. Illustration CA 1-1 Information about prints and framed items for Wall Decor ?Unframed Steel-Framed Print, Wood-Framed Print, Volume—expected units sold Cost Elements Direct materials Print (expected average cost for each of the three categories) Frame and glass Matting Direct labor Picking time Picking labor rate/hour Matting and framing time Matting and framing rate/hour Print 0,000 $12 10 minutes $12 No Matting 15,000 $16 $4 10 minutes $12 20 minutes $21 with Matting 7,000 $20 $6 $4 10 minutes $12 30 minutes $21 ?Greet ?ings ?case 1 Cases for Management Decision Making CA-5 Illustration CA 1-2 Manufacturing overhead budget for Wall Decor ?Manufacturing Overhead Budget Supervisory salaries Factory rent Equipment rent (framing and matting equipment) Utilities Insurance Information te chnology Building maintenance Equipment maintenance Budgeted total manufacturing overhead costs $100,000 130,200 50,000 20,000 10,000 50,000 11,000 4,000 $375,200 Instructions Use the information in the case and your reading from Chapters 1 and 2 of the text to answer each of the following questions. 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job order costing system. 2. What are the advantages and disadvantages of using the cost of each print as a man- ufacturing overhead cost driver? 3. Using the information in Illustrations CA1-1 and CA1-2, compute and interpret the predetermined manufacturing overhead rate for Wall Decor. 4. Compute the product cost for the following three items. a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat (base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). 5. (a) How much of the total overhead cost is expected to be allocated to unframed prints? (b) How much of the total overhead cost is expected to be allocated to steel framed prints? (c) How much of the tot al overhead cost is expected to be allocated to wood framed prints? (d) What percentage of the total overhead cost is expected to be allocated to un- framed prints? . Do you think the amount of overhead allocated to the three product categories is rea- sonable? Relate your response to this question to your findings in previous questions. 7. Anticipate business problems that may result from allocating manufacturing over- head based on the cost of the prints. case 2 ?Greet ings Inc. Greetings Inc. : Activity-Based Costing Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Mr. Burns, president of Greetings Inc. created the Wall Decor unit of Greetings three years ago to increase the company’s revenue and profits. Unfortunately, even though Wall Decor’s revenues have grown quickly, Greetings appears to be losing money on Wall Decor. Mr. Burns has hired you to provide consulting serv ices to Wall Decor’s management. Your assignment is to make Wall Decor a profitable business unit. Your first step is to talk with the Wall Decor work force. From your conver- sations with store managers you learn that the individual Greetings stores are very happy with the Wall Decor arrangement. The stores are generating addi- tional sales revenue from the sale of unframed and framed prints. They are espe- cially enthusiastic about this revenue source because the online nature of the product enables them to generate revenue without the additional cost of carry- ing inventory. Wall Decor sells unframed and framed prints to each store at product cost plus 20%. A 20% markup on products is a standard policy of all Greetings intercompany transactions. Each store is allowed to add an additional markup to the unframed and framed print items according to market pressures. That is, the selling price charged by each store for unframed and framed prints is determined by each store manager. This policy ensures competitive pricing in the respective store locations, an important business issue because of the intense mall competition. While the store managers are generally happy with the Wall Decor products, they have noted a significant difference in the sales performance of the unframed prints and the framed prints. They find it difficult to sell unframed prints at a competitive price. The price competition in the malls is very intense. On average, stores find that the profits on unframed prints are very low because the cost for unframed prints charged by Wall Decor to the Greetings stores is only slightly be- low what competing stores charge their customers for unframed prints. As a re- sult, the profit margin on unframed prints is very low, and the overall profit earned is small, even with the large volume of prints sold. In contrast, stores make a very good profit on framed prints and still beat the nearest competitor’s price by about 15%. That is, the mall competitors cannot meet at a competitive price the quality of framed prints provided by the Greetings stores. As a result, store managers advertise the lowest prices in town for high-quality framed prints. One store manager referred to Wall Decor’s computer on the counter as a â€Å"cash machine† for framed prints and a â€Å"lemonade stand† for unframed prints. In a conversation with the production manager, you learned that she be- lieves that the relative profitability of framed and unframed prints is distorted CA-6 ?Greet ?ings ?case 2 Cases for Management Decision Making CA-7 ecause of improper product costing. She feels that the costs provided by the company’s traditional job order costing system are inaccurate. From the very beginning, she has carefully managed production and distribution costs. She explains, â€Å"Wall Decor is essentially giving away expensive framed prints, and it appears that it is charging the stores too much for unframed prints. † In her office she shows you her own product costing system, which supports her point of view. Your tour of the information technology (IT) department provided additional insight as to why Wall Decor is having financial problems. You discovered that to keep the website running requires separate computer servers and several in- formation technology professionals. Two separate activities are occurring in the technology area. First, purchasing professionals and IT professionals spend many hours managing thousands of prints and frame and matting materials. Their tasks include selecting the prints and the types of framing material to sell. They also must upload, manage, and download prints and framing material onto and off of the website. The IT staff tells you much of their time is spent with framing and matting material. Only a highly skilled IT professional can properly scan a print and load it up to the site so that it graphically represents what the print will look like when properly matted and framed. In addition, you discover that a different team of IT professionals is dedi- cated to optimizing the operating performance of the website. These costs are classified as manufacturing overhead because a substantial amount of work is required to keep the site integrated with purchasing and production and to safe- guard Wall Decor’s assets online. Most time-consuming is the effort to develop and maintain the site so that customers can view the prints as they would appear either unframed or framed and matted. A discussion with the IT professionals suggests that the time spent develop- ing and maintaining the site for the unframed prints is considerably less than that required for the framed prints and in particular for the framed and matted prints. Developing and maintaining a site that can display the unframed prints is relatively straightforward. It becomes more complicated when the site must al- low the customer to view every possible combination of print with every type of steel frame, and immensely more complicated when one considers all of the pos- sible wood frames and different matting colors. Obviously, a very substantial portion of the IT professionals’ time and resources is required to present the over 1,000 different framing and matting options. Based on your preliminary findings, you have decided that the company’s ability to measure and evaluate the profitability of individual products would be improved if the company employed an activity-based costing (ABC) system. As a first step in this effort, you compiled a list of costs, activities, and values. Your work consisted of taking the original manufacturing overhead cost ($375,200, provided in Case 1) and allocating the costs to activities. You identified four ac- tivities: picking prints; inventory selection and management (includes general management and overhead); website optimization; and framing and matting cost (includes equipment, insurance, rent, and supervisor’s salary). The first activity is picking prints. The estimated overhead related to this ac- tivity is $30,600. The cost driver for this activity is the number of prints. It is ex- pected that the total number of prints will be 102,000. This is the sum of 80,000 unframed, 15,000 steel-framed, and 7,000 wood-framed. Illustration CA 2-1 Information for activity 1 ?Estimated Activity Cost Driver Overhead Picking prints Number of prints $30,600 Expected Use of Cost Driver (80,000 15,000 7,000) 102,000 prints Greet ?ings CA-8 case 2 Cases for Management Decision Making The second activity is inventory selection and management. The estimated overhead related to this activity is $91,700. The cost driver for this activity is the number of components per print item. An unframed print has one component, a steel-framed print has two components (the print and the frame), and a wood- framed print has three components (the print, the mat, and the frame). The total number of components is expected to be 131,000. Illustration CA 2-2 Information for activity 2 ?Activity Inventory selection and management Cost Driver Number of components: Print (1) Print and frame (2) Print, mat, and frame (3) Estimated Overhead $91,700 Expected Use of Cost Driver Prints: 80,000 components Print and frame: 15,000 2 30,000 components Print, mat, and frame: 7,000 3 21,000 components Total 131,000 components The third activity is website optimization. The total overhead cost related to website optimization is expected to be $129,000. It was difficult to identify a cost driver that directly related website optimization to the products. In order to re- flect the fact that the majority of the time spent on this activity related to framed prints, you first split the cost of website optimization between unframed prints and framed prints. Based on your discussion with the IT professionals, you de- termined that they spend roughly one-fifth of their time developing and main- taining the site for unframed prints, and the other four-fifths of their time on framed prints, even though the number of framed prints sold is substantially less than the number of unframed prints. As a consequence, you allocated $25,800 of the overhead costs related to website optimization to unframed prints and $103,200 to framed prints. You contemplated having three categories (unframed, steel-framed, and wood-framed with matting), but chose not to add this addi- tional refinement. Illustration CA 2-3 Information for activity 3 ?Activity Website optimization: Unframed Framed Cost Driver Number of prints at capacity Number of prints at capacity Estimated Overhead $25,800 $103,200 Expected Use of Cost Driver Unframed prints: 100,000 print capacity Framed and/or matted prints: 25,000 print capacity (16,000 steel; 9,000 wood) Once the $129,000 of the third activity was allocated across the two broad product categories, the number of prints at operating capacity was used as the cost driver. Note that operating capacity was used instead of expected units sold. The overhead costs related to website optimization are relatively fixed be- cause the employees are salaried. If a fixed cost is allocated using a value that varies from period to period (like expected sales), then the cost per unit will vary from period to period. When allocating fixed costs it is better to use a base that does not vary as much, such as operating capacity. The advantage of using operating capacity as the base is that it keeps the fixed costs per unit stable over time. ?Greet ?ings ?case 2 Cases for Management Decision Making CA-9 The final activity is framing and matting. The expected overhead costs re- lated to framing and matting are $123,900. None of this overhead cost should be allocated to unframed prints. The costs related to framing and matting are rela- tively fixed because the costs relate to equipment and other costs that do not vary with sales volume. As a consequence, like website optimization, you chose to base the cost driver on levels at operating capacity, rather than at the expected sales level. The cost driver is the number of components. Steel-framed prints have two components (the print and frame), and wood-framed prints have three components (the print, mat, and frame). The total components at operating ca- pacity would be steel frame 32,000 or (16,000 2) and wood frame 27,000 or (9,000 3,000). Illustration CA 2-4 Information for activity 4 ?Activity Framing and matting cost (equipment, insurance, rent, and supervisory labor) Cost Driver Number of components at capacity Estimated Overhead $123,900 Expected Use of Cost Driver Print and frame: 16,000 2 32,000 components at capacity Print, mat, and frame: 9,000 3 27,000 components at capacity Total 59,000 components To summarize, the overhead costs and cost drivers used for each product are expected to be: Illustration CA 2-5 Summary of overhead costs and cost drivers ?Cost Activity Driver 1. Picking Number of prints prints Steel- Wood- Framed, Framed, No with Unframed Matting Matting Total 80,000 15,000 7,000 102,000 80,000 30,000 21,000 131,000 Overhead Cost $ 30,600 91,700 25,800 103,200 123,900 $375,200 ?2. Inventory selection and management 3. Website optimization 4. Framing and matting Number of components Number of 100,000 prints at capacity Number of components at capacity na 16,000 32,000 9,000 27,000 100,000 25,000 59,000 Instructions Answer the following questions. . Identify two reasons why an activity-based costing system may be appropriate for Wall Decor. 2. Compute the activity-based overhead rates for each of the four activities. 3. Compute the product cost for the following three items using ABC. (Review Case 1 for additional information that you will need to answer this question. ) (a) Lance Armstrong unframed print (base cost of print $12). (b) John Elway print in steel frame, no mat ( base cost of print $16). (c) Lambeau Field print in wood frame with mat (base cost of print $20). ? Greet ?ings CA-10 ase 2 Cases for Management Decision Making 4. 5. 6. 7. In Case 1 for Greetings, the overhead allocations using a traditional volume-based approach were $3. 36 for Lance Armstrong, $4. 48 for John Elway, and $5. 60 for Lam- beau Field. The total product costs from Case 1 were Lance Armstrong $17. 36, John Elway $33. 48, and Lambeau Field $48. 10. The overhead allocation rate for unframed prints, such as the unframed Lance Armstrong print in question 3, decreased under ABC compared to the amount of overhead that was allocated under the traditional approach in Case 1. Why is this the case? What are the potential implications for the company? Explain why the overhead cost related to website optimization was first divided into two categories (unframed prints and framed prints) and then allocated based on number of prints. When allocating the cost of website optimization, the decision was made to initially allocate the cost across two categories (unframed prints and framed prints) rather than three categories (unframed prints, steel-framed prints, and wood-framed prints with matting). Discuss the pros and cons of splitting the cost between two categories rather than three. Discuss the implications of using operating capacity as the cost driver rather than the expected units sold when allocating fixed overhead costs. 8. (a) Allocate the overhead to the three product categories (unframed prints, steel- framed prints, and wood-framed prints with matting), assuming that the estimate of the expected units sold is correct and the actual amount of overhead incurred equaled the estimated amount of $375,200. (b) Calculate the total amount of overhead allocated. Explain why the total overhead of $375,200 was not allocated, even though the estimate of sales was correct. What are the implications of this for management? case 3 ?Greet ings Inc. Greetings Inc. : Transfer Pricing Issues Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Two years ago, prior to a major capital-budgeting decision (see Case 4), Robert Burns, the president of Greetings Inc. , faced a challenging transfer pricing issue. He knew that Greetings store managers had heard about the ABC study (see Case 2) and that they knew a price increase for framed items would soon be on the way. In an effort to dissuade him from increasing the transfer price for framed prints, several store managers e-mailed him with detailed analyses show- ing how framed-print sales had given stores a strong competitive position and had increased revenues and profits. The store managers mentioned, however, that while they were opposed to an increase in the cost of framed prints, they were looking forward to a price decrease for unframed prints. Management at Wall Decor was very interested in changing the transfer pric- ing strategy. You had reported to them that setting the transfer price based on the product costs calculated by using traditional overhead allocation measures had been a major contributing factor to its non-optimal performance. Here is a brief recap of what happened during your presentation to Mr. Burns and the Wall Decor managers. Mr. Burns smiled during your presentation and graciously acknowledged your excellent activity-based costing (ABC) study and analysis. He even nodded with approval as you offered the following suggestions. 1. Wall Decor should decrease the transfer price for high-volume, simple print items. . Wall Decor should increase the transfer price for low-volume, complex framed print items. 3. Youranalysispointstoatransferpricethatmaintainsthe20%markupovercost. 4. Adoption of these changes will provide Wall Decor with an 11% return on investment (ROI), beating the required 10% expected by Greetings’ board of directors. 5. Despite the objections of the store managers, the Gr eetings stores must ac- cept the price changes. Finishing your presentation, you asked the executive audience, â€Å"What questions do you have? † Mr. Burns responded as follows. Your analysis appears sound. However, it focuses almost exclu- sively on Wall Decor. It appears to tell us little about how to move for- ward and benefit the entire company, especially the Greetings retail stores. Let me explain. CA-11 Greet ?ings CA-12 case 3 Cases for Management Decision Making I am concerned about how individual store customers will react to the price changes, assuming the price increase of framed-print items is passed along to the customer. Store managers will welcome a decrease in the transfer price of unframed prints. They have complained about the high cost of prints from the beginning. With a decrease in print cost, store managers will be able to compete against mall stores for print items at a competitive selling price. In addition, the increase in store traffic for prints should increase the sales revenue for related items, such as cards, wrapping paper, and more. These are all low- margin items, but with increased sales volume of prints and related products, revenues and profits should grow for each store. Furthermore, store managers will be upset with the increase in the cost of framed prints. Framed prints have generated substantial rev- enues and profits for the stores. Increasing the cost of framed prints to the stores could create one of three problems: First, a store manager may elect to keep the selling price of framed-print items the same. The results of this would be no change in revenues, but profits would de- cline because of the increase in cost of framed prints. Second, a store manager may elect to increase the selling price of the framed prints to offset the cost increase. In this case, sales of framed prints would surely decline and so would revenues and profits. In addition, stores would likely see a decline in related sales of other expensive, high-quality, high-margin items. This is because sales data indicate that customers who purchase high-quality, high-price framed prints also purchase high-quality, high-margin items such as watches, jewelry, and cosmetics. Third, a store manager may elect to search the outside market for framed prints. † Mr. Burns offered you the challenge of helping him bring change to the company’s transfer prices so that both business units, Greetings stores and Wall Decor, win. From his explanation, you could see and appreciate that set- ting the transfer price for unframed and framed prints impacts sale revenues and profits for related items and for the company overall. You immediately rec- ognized the error in your presentation by simply providing a solution for Wall Decor alone. You drove home that night thinking about the challenge. You recognized the need and importance of anticipating the reaction of Greetings store customers to changes in the prices of unframed and framed prints. The next day, the market- ing team provided you with the following average data. For every unframed print sold (assume one print per customer), that cus- tomer purchases related products resulting in $4 of additional profit. †¢ For every framed print sold (assume one print per customer), that customer purchases related products resulting in $8 of additional profit. †¢ Each Greetings store sets its own selling price for unframed and framed prints. Store managers nee d this type of flexibility to be responsive to com- petitive pressures. On average the pricing for stores is as follows: unframed prints $21, steel-framed without matting $50, wood-framed with matting $70. Instructions Answer each of the following questions. 1. Prepare for class discussion what you think were the critical challenges for Mr. Burns. Recognize that Wall Decor is a profit center and each Greetings store is a profit center. ?Greet ?ings ?case 3 Cases for Management Decision Making CA-13 2. After lengthy and sometimes heated negotiations between Wall Decor and the store managers, a new transfer price was determined that calls for the stores and Wall Decor to split the profits on unframed prints 30/70 (30% to the store, 70% to Wall Decor) and the profits on framed prints 50/50. The following additional terms were also agreed to: †¢ â€Å"Profits† are defined as the store selling price less the ABC cost. †¢ Stores do not share the profits from related products with Wall Decor. †¢ Wall Decor will not seek to sell unframed and framed print items through anyone other than Greetings. †¢ Wall Decor will work to decrease costs. †¢ Greetings stores will not seek suppliers of prints other than Wall Decor. †¢ Stores will keep the selling price of framed prints as it was before the change in transfer price. On average, stores will decrease the selling price of unframed prints to $20, with an expected increase in volume to 100,000 prints. Analyze how Wall Decor and the stores benefited from this new agreement. In your analysis, first (a) compute the profits of the stores and Wall Decor using traditional amounts related to pricing, cost, and a 20% markup on Wall Decor costs. Next, (b) compute the profits of the stores and Wall Decor using the ABC cost and negoti- ated transfer price approach. Finally, (c) explain your findings, linking the overall profits for stores and Wall Decor. The following data apply to this analysis. (Round all calculations to three deci- mal places. ) Average selling price by stores before transfer pricing study Average selling price by stores after transfer pricing study Volume at traditional selling price Volume at new selling price Wall Decor cost (traditional) ABC cost Unframed Print $21 $20 80,000 100,000 $17. 36 $15. 258 Steel-Framed, No Matting $50 $50 15,000 15,000 $33. 48 $39. 028 Wood-Framed, with Matting $70 $70 7,000 7,000 $48. 10 $55. 328 3. Review the additional terms of the agreement listed in instruction 2 above. In each case, state whether the item is appropriate, unnecessary, ineffective, or potentially harmful to the overall company. case 4 ?Greet ings Inc. Greetings Inc. : Capital Budgeting Developed by Thomas L. Zeller, Loyola University Chicago, and Paul D. Kimmel, University of Wisconsin–Milwaukee THE BUSINESS SITUATION Greetings Inc. stores, as well as the Wall Decor division, have enjoyed healthy prof- itability during the last two years. Although the profit margin on prints is often thin, the volume of print sales has been substantial enough to generate 15% of Greetings’ store profits. In addition, the increased customer traffic resulting from the prints has generated significant additional sales of related non-print products. As a result, the company’s rate of return has exceeded the industry average during this two-year period. Greetings’ store managers likened the e-business leverage cre- ated by Wall Decor to a â€Å"high-octane† fuel to supercharge the stores’ profitability. This high rate of return (ROI) was accomplished even though Wall Decor’s venture into e-business proved to cost more than originally budgeted. Why was it a profitable venture even though costs exceeded estimates? Greetings stores were able to generate a considerable volume of business for Wall Decor. This helped spread the high e-business operating costs, many of which were fixed, across many unframed and framed prints. This experience taught top manage- ment that maintaining an e-business structure and making this business model successful are very expensive and require substantial sales as well as careful monitoring of costs. Wall Decor’s success gained widespread industry recognition. The business press ocumented Wall Decor’s approach to using information technology to in- crease profitability. The company’s CEO, Robert Burns, has become a frequent business-luncheon speaker on the topic of how to use information technology to offer a great product mix to the customer and increase shareholder value. From the outside looking in, all appears to be going very well for Greetings stores and Wall Decor. How ever, the sun is not shining as brightly on the inside at Greetings. The mall stores that compete with Greetings have begun to offer prints at very com- petitive prices. Although Greetings stores enjoyed a selling price advantage for a few years, the competition eventually responded, and now the pressure on sell- ing price is as intense as ever. The pressure on the stores is heightened by the fact that the company’s recent success has led shareholders to expect the stores to generate an above-average rate of return. Mr. Burns is very concerned about how the stores and Wall Decor can continue on a path of continued growth. Fortunately, more than a year ago, Mr. Burns anticipated that competitors would eventually find a way to match the selling price of prints. As a conse- quence, he formed a committee to explore ways to employ technology to further reduce costs and to increase revenues and profitability. The committee is com- prised of store managers and staff members from the information technology, CA-14 ?Greet ?ings ?cacaseses 14 Cases for Management Decision Making CA-15 marketing, finance, and accounting departments. Early in the group’s discussion, the focus turned to the most expensive component of the existing business model—the large inventory of prints that Wall Decor has in its centralized ware- house. In addition, Wall Decor incurs substantial costs for shipping the prints from the centralized warehouse to customers across the country. Ordering and maintaining such a large inventory of prints consumes valuable resources. One of the committee members suggested that the company should pursue a model that music stores have experimented with, where CDs are burned in the store from a master copy. This saves the music store the cost of maintaining a large inventory and increases its ability to expand its music offerings. It virtually guarantees that the store can always provide the CDs requested by customers. Applying this idea to prints, the committee decided that each Greetings store could invest in an expensive color printer connected to its online ordering system. This printer would generate the new prints. Wall Decor would have to pay a roy- alty on a per print basis. However, this approach does offer certain advantages. First, it would eliminate all ordering and inventory maintenance costs related to the prints. Second, shrinkage from lost and stolen prints would be reduced. Finally, by reducing the cost of prints for Wall Decor, the cost of prints to Greetings stores would decrease, thus allowing the stores to sell prints at a lower price than competitors. The stores are very interested in this option because it enables them to maintain their current customers and to sell prints to an even wider set of customers at a potentially lower cost. A new set of customers means even greater related sales and profits. As the accounting/finance expert on the team, you have been asked to per- form a financial analysis of this proposal. The team has collected the informa- tion presented in Illustration CA 4-1. Illustration CA 4-1 Information about the proposed capital investment project ?Available Data Cost of equipment (zero residual value) Cost of ink and paper supplies (purchase immediately) Annual cash flow savings for Wall Decor Annual additional store cash flow from increased sales Sale of ink and paper supplies at end of 5 years Expected life of equipment Cost of capital Amount $800,000 100,000 175,000 100,000 50,000 5 years 12% ?Instructions Mr. Burns has asked you to do the following as part of your analysis of the capital investment project. 1. Calculatethenetpresentvalueusingthenumbersprovided. Assumethatannualcash flows occur at the end of the year. 2. Mr. Burns is concerned that the original estimates may be too optimistic. He has sug- gested that you do a sensitivity analysis assuming all costs are 10% higher than ex- pected and that all inflows are 10% less than expected. 3. Identify possible flaws in the numbers or assumptions used in the analysis, and iden- tify the risk(s) associated with purchasing the equipment. . In a one-page memo, provide a recommendation based on the above analy- sis. Include in this memo: (a) a challenge to store and Wall Decor management and (b) a suggestion on how Greetings stores could use the computer connection for re- lated sales. case 5 Auburn Circular Club Pro Rodeo Roundup Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION When Shelley Jones became president-elect of the Circular Club of Auburn, Kansas, she was asked to suggest a new fundraising activity for the club. After a consider- able amount of research, Shelley proposed that the Circular Club sponsor a profes- sional rodeo. In her presentation to the club, Shelley said that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community. Shelley’s goal was to have an activity that would become an â€Å"annual community event† and that would break even the first year and raise $5,000 the following year. In addition, based on the experience of other communities, Shelley believed that a rodeo could grow in popularity so that the club would eventually earn an average of $20,000 annually. A rodeo committee was formed. Shelley contacted the world’s oldest and largest rodeo-sanctioning agency to apply to sponsor a professional rodeo. The sanctioning agency requires a rodeo to consist of the following five events: Bareback Riding, Bronco Riding, Steer Wrestling, Bull Riding, and Calf Roping. Because there were a number of team ropers in the area and because they wanted to include females in the competition, members of the rodeo committee added Team Roping and Women’s Barrels. Prize money of $3,000 would be paid to winners in each of the seven events. Members of the rodeo committee contracted with RJ Cattle Company, a live- stock contractor on the rodeo circuit, to provide bucking stock, fencing, and chutes. Realizing that osts associated with the rodeo were tremendous and that ticket sales would probably not be sufficient to cover the costs, the rodeo com- mittee sent letters to local businesses soliciting contributions in exchange for various sponsorships. Exhibiting Sponsors would contribute $1,000 to exhibit their products or services, while Major Sponsors would contribute $600. Chute Sponsors would cont ribute $500 to have the name of their business on one of the six bucking chutes. For a contribution of $100, individuals would be included in a Friends of Rodeo list found in the rodeo programs. At each performance the rodeo announcer would repeatedly mention the names of the businesses and in- dividuals at each level of sponsorship. In addition, large signs and banners with the names of the businesses of the Exhibiting Sponsors, Major Sponsors, and Chute Sponsors were to be displayed prominently in the arena. ?CA-16 case 5 Cases for Management Decision Making CA-17 A local youth group was contacted to provide concessions to the public and divide the profits with the Circular Club. The Auburn Circular Club Pro Rodeo Roundup would be held on June 1, 2, and 3. The cost of an adult ticket was set at $8 in advance or $10 at the gate; the cost of a ticket for a child 12 or younger was set at $6 in advance or $8 at the gate. Tickets were not date-specific. Rather, one ticket would admit an individual to one performance of his or her choice— Friday, Saturday, or Sunday. The rodeo committee was able to secure a location through the county supervisors board at a nominal cost to the Circular Club. The arrangement allowed the use of the county fair grounds and arena for a one- week period. Several months prior to the rodeo, members of the rodeo commit- tee had been assured that bleachers at the arena would hold 2,500 patrons. On Saturday night, paid attendance was 1,663, but all seats were filled due to poor gate controls. Attendance was 898 Friday and 769 on Sunday. The following revenue and expense figures relate to the first year of the rodeo. Illustration CA 5-1 Revenue and expense data, year 1 ?Receipts Contributions from sponsors $22,000 Receipts from ticket sales 28,971 Share of concession profits 1,513 Sale of programs 600 Total receipts Expenses Livestock contractor 26,000 Prize money 21,000 Contestant hospitality Sponsor signs for arena 1,900 Insurance 1,800 Ticket printing 1,050 Sanctioning fees 925 Entertainment 859 Judging fees 750 Port-a-potties 716 Rent 600 Hay for horses 538 Programs 500 Western hats to first 500 children 450 Hotel rooms for stock contractor 325 Utilities 300 Sand for arena 251 Miscellaneous fixed costs 105 Total expenses Net loss $53,084 ?3,341* ?61,410 $(8,326) *The club contracted with a local caterer to provide a tent and food for the contestants. The cost of the food was contingent on the number of contestants each evening. Information con- cerning the number of contestants and the costs incurred are as follows: Contestants Friday 68 Saturday 96 Sunday 83 Total Cost $ 998 1,243 1,100 $3,341 On Wednesday after the rodeo, members of the rodeo committee met to discuss and critique the rodeo. Jonathan Edmunds, CPA and President of the Circular Club, commented that the club did not lose money. Rather, Jonathan said, â€Å"The club made an investment in the rodeo. † CA-18 case 5 Cases for Management Decision Making Instructions Answer each of the following questions. . Do you think it was necessary for Shelley Jones to stipulate that she wanted a fundraiser that would (1) continue to get better each year, (2) give back to the com- munity, and (3) provide the club a presence in the community? Why or why not? 2. What did Jonathan Edmunds mean when he said the club had made an investment in the rodeo? 3. Is Jonathan’s comment concerning the investment consistent with Shelley’s idea that t he club should have a fundraiser that would (1) continue to get better each year, (2) give back to the community, and (3) provide the club a presence in the community? Why or why not? 4. What do you believe is the behavior of the rodeo expenditures in relation to ticket sales? 5. Determine the fixed and variable cost components of the catering costs using the high-low method. 6. Assume you are elected chair of the rodeo committee for next year. What steps would you suggest the committee take to make the rodeo profitable? 7. Shelley, Jonathan, and Adrian Stein, the Fundraising Chairperson, are beginning to make plans for next year’s rodeo. Shelley believes that by negotiating with local feed stores, innkeepers, and other business owners, costs can be cut dramatically. Jonathan agrees. After carefully analyzing costs, Jonathan has estimated that the fixed expenses can be pared to approximately $51,000. In addition, Jonathan estimates that variable costs are 4% of total gross receipts. After talking with business owners who attended the rodeo, Adrian is confident that funds solicited from sponsors will increase. Adrian is comfortable in budgeting revenue from sponsors at $25,600. The local youth group is unwilling to provide con- cessions to the audience unless they receive all of the profits. Not having the person- nel to staff the concession booth, members of the Circular Club reluctantly agree to let the youth group have 100% of the profits from the concessions. In addition, mem- bers of the rodeo committee, recognizing that the net income from programs was only $100, decide not to sell rodeo programs next year. Compute the break-even point in dollars of ticket sales assuming Adrian and Jonathan are correct in their assumptions. 8. Shelley has just learned that you are calculating the break-even point in dollars of ticket sales. She is still convinced that the Club can make a profit using the assumptions in number 7 above. (a) Calculate the dollars of ticket sales needed in order to earn a target profit of $6,000. (b) Calculate the dollars of ticket sales needed in order to earn a target profit of $12,000. 9. Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated in number 8 above to earn a $6,000 profit? Show calcula- tions to support your answers. 10. Prepare a budgeted income statement for next year using the estimated revenues from sponsors and other assumptions in number 7 above. In addition, use ticket sales based on the target profit of $12,000 estimated in 8(b). The cost of the livestock con- tractor, prize money, sanctioning fees, entertainment, judging fees, rent, and utilities will remain the same next year. Changes in expenses include the following: Members of the Club have decided to eliminate all costs related to contestant hospitality by soliciting a tent and food for the contestants and taking care of the â€Å"Contestant Hospitality Tent† themselves. The county has installed permanent restrooms at the arena, eliminating the need to rent port-a- potties. The rodeo committee intends to pursue arrangements to have hotel rooms, hay, and children’s hats provided at no charge in exchange for sponsorships. The cost of banners varies with the number of sponsors. Signs and More charged the Circular Club $130 for each Exhibiting Sponsor banner and $48 for each Major Sponsor banner. At this time there is no way to know whether additional sponsors will be Exhibiting Spon- sors or Major Sponsors. Therefore, for budgeting purposes you should increase the cost of the banners by the percentage increase in sponsor contributions. (Hint: Round ase 5 Cases for Management Decision Making CA-19 all calculations to three decimal places. ) By checking prices, the Circular Club will be able to obtain insurance providing essentially the same amount of coverage as this year for only $600. For the first rodeo the Club ordered 10,000 tickets. Realizing the con- straints on available seating, the Club is ordering only 5,000 tickets for next year, and th erefore its costs are reduced 50%. The sand for the arena for next year will be $300, and miscellaneous fixed costs are to be budgeted at $100. 11. A few members in the Circular Club do not want to continue with the annual rodeo. However, Shelley is insistent that the Club must continue to conduct the rodeo as an annual fundraiser. Shelley argues that she has spent hundreds of dollars on western boots, hats, and other items of clothing to wear to the rodeo. Are the expenses re- lated to Shelley’s purchases of rodeo clothing relevant costs? Why or why not? 12. Rather than hire the local catering company to cater the Contestant Hospitality Tent, members of the Circular Club are considering asking Shady’s Bar-B-Q to cater the event in exchange for a $600 Major Sponsor spot. In addition, The Fun Shop, a local party supply business, will be asked to donate a tent to use for the event. The Fun Shop will also be given a $600 Major Sponsor spot. Several members of the Club are opposed to this consideration, arguing that the two Major Sponsor spots will take away from the money to be earned through other sponsors. Adrian Stein has explained to the members that the Major Sponsor signs for the arena cost only $48 each. In ad- dition, there is more than enough room to display two additional sponsor signs. What would you encourage the Club to do concerning the Contestant Hospitality Tent? Would your answer be different if the arena were limited in the number of additional signs that could be displayed? What kind of cost would we consider in this situation that would not be found on a financial statement? case 6 Sweats Galore Developed by Jessica Johnson Frazier, Eastern Kentucky University, and Patricia H. Mounce, University of Central Arkansas THE BUSINESS SITUATION After graduating with a degree in business from Eastern University in Campus Town, USA, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his disci- pline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business: 1. He wanted to do something that he would enjoy. 2. He wanted a business that would give back to the community. 3. He wanted a business that would grow and be more successful every year. 4. Realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually. While reflecting on the criteria he had outlined, Michael, who had been president of his fraternity and served as an officer in several other student organizations, realized that there was no place in Campus Town to have cus- tom sweatshirts made using a silk-screen process. When student organiza- tions wanted sweatshirts for their members or to market on campus, the offi- cers had to make a trip to a city 100 miles away to visit â€Å"Shirts and More. ’’ Michael had worked as a part-time employee at Shirts and More while he was in high school and had envisioned owning such a shop. He realized that a sweatshirt shop in Campus Town had the potential to meet all four of his crite- ria. Michael set up an appointment with Jayne Stoll, the owner of Shirts and More, to obtain information useful in getting his shop started. Because Jayne liked Michael and was intrigued by his entrepreneurial spirit, she answered many of Michael’s questions. In addition, Jayne provided information concerning the type of equipment Michael would need for his business and its average useful life. Jayne knows a competitor who is retiring and would like to sell his equipment. Michael can purchase the equipment at the beginning of 2011, and the owner is willing to give him terms of 50% due upon purchase and 50% due the quarter following the purchase. Michael decided to purchase the following equipment as of January 1, 2011. CA-20 case 6 Cases for Management Decision Making CA-21 Hand-operated press that applies ink to the shirt Light-exposure table Dryer conveyer belt that makes ink dry on the shirts Computer with graphics software and color printer Display furniture Used cash register Cost $7,500 1,350 2,500 3,500 2,000 500 Useful Life yrs. 10 yrs. 10 yrs. 4 yrs. 10 yrs. 5 yrs. Michael has decided to use the sweatshirt supplier recommended by Jayne. He learned that a gross of good-quality sweatshirts to be silk-screened would cost $1,440. Jayne has encouraged Michael to ask the sweatshirt supplier for terms of 40% of a quarter’s purchases to be paid in the quarter of purchase, with the re- maining 60% of the quarter’s purchases to be paid in the quarter following the purchase. Michael also learned from talking with Jayne that the ink used in the silk- screen process costs approximately $0. 75 per shirt. Knowing that the silk-screen process is somewhat labor-intensive, Michael plans to hire six college students to help with the process. Each one will work an average of 20 hours per week for 50 weeks during the year. Michael estimates to- tal annual wages for the workers to be $72,000. In addition, Michael will need one person to take orders, bill customers, and operate the cash register. Cary Sue Smith, who is currently Director of Student Development at Eastern University, has approached Michael about a job in sales. Cary Sue knows the officers of all of the student organizations on campus. In ad- dition, she is very active in the community. Michael thinks Cary Sue can bring in a lot of business. In addition she also has the clerical skills needed for the posi- tion. Because of her contacts, Michael is willing to pay Cary Sue $1,200 per month plus a commission of 10% of sales. Michael estimates Cary Sue will spend 50% of the workday focusing on sales, and the remaining 50% will be spent on clerical and administrative duties. Michael realizes that he will have difficulty finding a person skilled in com- puter graphics to generate the designs to be printed on the shirts. Jayne recently hired a graphics designer in that position for Shirts and More at a rate of $500 per month plus $0. 10 for each shirt printed. Michael believes he can find a uni- versity graphics design student to work for the same rate Jayne is paying her designer. Michael was fortunate to find a commercial building for rent near the uni- versity and the downtown area. The landlord requires a one-year lease. Although the monthly rent of $1,000 is more than Michael had anticipated paying, the building is nice, has adequate parking, and there is room for expansion. Michael anticipates that 75% of the building will be used in the silk-screen process and 25% will be used for sales. Michael’s fraternity brothers have encouraged him to advertise weekly in the Eastern University student newspaper. Upon inquiring, Michael found that a 3 3 ad would cost $25 per week. Michael also plans to run a weekly ad in the local newspaper that will cost him $75 per week. Michael wants to sell a large number of quality shirts at a reasonable price. He estimates the selling price of each customized shirt to be $16. Jayne has sug- gested that he should ask customers to pay for 70% of their purchases in the quarter purchased and pay the additional 30% in the quarter following the purchases. After talking with the insurance agent and the property valuation adminis- trator in his municipality, Michael estimates that the property taxes and insur- ance on the machinery will cost $2,240 annually; property tax and insurance on display furniture and cash register will total $380 annually. CA-22 case 6 Cases for Management Decision Making Jayne reminded Michael that maintenance of the machines is required for the silk-screen process. In addition, Michael realizes that he must consider the cost of utilities. The building Michael wants to rent is roughly the same size as the building occupied by Shirts and More. In addition, Shirts and More sells ap- proximately the same number of shirts Michael plans to sell in his store. Therefore, Michael is confident that the maintenance and utility costs for his shop will be comparable to the maintenance and utility costs for Shirts and More, which are as follows within the relevant range of zero to 8,000 shirts. Shirts Sold January 2,000 February 2,110 March 2,630 April 3,150 May 5,000 June 5,300 July 3,920 August 2,080 September 8,000 October 6,810 November 6,000 December 3,000 Maintenance Costs $1,716 1,720 1,740 1,740 1,758 1,818 1,825 1,780 1,914 1,860 1,855 1,749 Utility Costs $1,100 1,158 1,171 1,198 1,268 1,274 1,205 1,117 1,400 1,362 1,347 1,193 Michael estimates the number of shirts to be sold in the first five quarters, beginning January 2011, to be: First quarter, year 1 Second quarter, year 1 Third quarter, year 1 Fourth quarter, year 1 First quarter, year 2 8,000 10,000 20,000 12,000 18,000 Seeing how determined his son was to become an entrepreneur, Michael’s fa- ther offered to co-sign a note for an amount up to $20,000 to help Michael open his sweatshirt shop, Sweats Galore. However, when Michael and his father ap- proached the loan officer at First Guarantee Bank, the loan officer asked Michael to produce the following budgets for 2011. Sales budget Schedule of expected collections from customers Shirt purchases budget Schedule of expected payments for purchases Silk-screen labor budget Selling and administrative expenses budget Silk-screen overhead expenses budget Budgeted income statement Cash budget Budgeted balance sheet The loan officer advised Michael that the interest rate on a 12-month loan would be 8%. Michael expects the loan to be taken out as of January 1, 2011. Michael has estimated that his income tax rate will be 20%. He expects to pay the total tax due when his returns are filed in 2012. Instructions Answer the following questions. 1. Do you think it was important for Michael to stipulate his four criteria for the busi- ness (see page CA-21), including the goal of generating a net income of at least $25,000 annually? Why or why not? case 6 Cases for Management Decision Making CA-23 2. If Michael has sales of $12,000 during January of his first year of business, deter- mine the amount of variable and fixed costs associated with utilities and mainte- nance using the high-low method for each. 3. Using the format below, prepare a sales budget for the year ending 2011. SWEATS GALORE Sales Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Expected unit sales Unit selling price x Budgeted sales revenue $ 4. Prepare a schedule of expected collections from customers. SWEATS GALORE Schedule of Expected Collections from Customers For the Year Ending December 31, 2011 Quarter 234 Accounts receivable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total collections 5. Michael learned from talking with Jayne that the supplier is so focused on making quality sweatshirts that many times the shirts are not available for several days. She encouraged Michael to maintain an ending inventory of shirts equal to 25% of the next quarter’s sales. Prepare a shirt purchases budget for shirts using the format provided. SWEATS GALORE Shirt Purchases Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Shirts to be silk-screened Plus: Desired ending inventory Total shirts required Less: Beginning inventory Total shirts needed Cost per shirt Total cost of shirt purchases 6. Prepare a schedule of expected payments for purchases. SWEATS GALORE Schedule of Expected Payments for Purchases For the Year Ended December 31, 2011 Quarter 1234 Accounts payable 1/1/11 –0– First quarter Second quarter Third quarter Fourth quarter Total payments CA-24 case 6 Cases for Management Decision Making 7. Prepare a silk-screen labor budget. SWEATS GALORE Silk-Screen Labor Budget For the Year Ended December 31, 2011 Quarter 2 3 4 Year Units to be produced Silk-screen labor hours per unit Total required silk-screen labor hours Silk-screen labor cost per hour Total silk-screen labor cost 8. Prepare a selling and administrative expenses budget for Sweats Galore for the year ending December 31, 2011. SWEATS GALORE Selling and Administrative Expenses Budget For the Year Ended December 31, 201 1 Quarter 1 2 3 4 Year Variable expenses: Sales commissions Total variable expenses Fixed expenses: Advertising Rent Sales salaries Office salaries Depreciation Property taxes and insurance Total fixed expenses Total selling and dministrative expenses 9. Prepare a silk-screen overhead expenses budget for Sweats Galore for the year end- ing December 31, 2011. SWEATS GALORE Silk-Screen Overhead Expenses Budget For the Year Ended December 31, 2011 Quarter 1 2 3 4 Year Variable expenses: Ink Maintenance Utilities Graphics design Total variable expenses Fixed expenses: Rent Maintenance Utilities Graphics design Property taxes and insurance Depreciation Total fixed expenses Total silk-screen overhead Direct silk-screen hours Overhead rate per silk-screen hour case 6 Cases for Management Decision Making CA-25 10. Using the information found in the case and the previous budgets, prepare a bud- geted income statement for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Interest expense Income before income taxes Income tax expense Net income 11. Using the information found in the case and the previous budgets, prepare a cash budget for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Cash Budget For the Year Ended December 31, 2011 Quarter 1234 Beginning cash balance Add: Receipts Collections from customers Total available cash Less: Disbursements Payments for shirt purchases Silk-screen labor Silk-screen overhead Selling and administrative expenses Payment for equipment purchase Total disbursements Excess (deficiency) of available cash over disbursements Financing Borrowings Ending cash balance 12. Using the information contained in the case and the previous budgets, prepare a bud- geted balance sheet for Sweats Galore for the year ended December 31, 2011. SWEATS GALORE Budgeted Balance Sheet December 31, 2011 Assets Cash Accounts receivable Sweatshirt inventory Equipment Less: Accumulated depreciation Total assets ? CA-26 case 6 Cases for Management Decision Making Liabilities and Owner’s Equity ? 13. (a) Accounts payable Notes payable Interest payable Taxes payable Total liabilities Michael Woods, Capital Total liabilities and owner’s equity Using the information contained in the case and the previous budgets, calculate the estimated contribution margin per unit for 2011. (Hint: Silk-screened labor and the taxes are both fixed costs. ) (b) Calculate the total estimated fixed costs for 2011 (including interest and taxes). c) Compute the break-even point in units and dollars for 2011. 14. (a) Michael is very disappointed that he did not have an income of $25,000 for his first year of budgeted operations as he had wanted. How many shirts would Michael have had to sell in order to have had a profit of $25

Remote Desktop

Ever wished you could access your PC from the road? With Remote Desktop inWindows 7, you can. Remote Desktop connects two computers over a network or the Internet. Once connected, you'll see the remote computer's desktop as if you were sitting right in front of it, and have access to all its programs and files. This feature is included with all editions of Windows 7, but you can only connect to computers running the Professional, Ultimate, or Enterprise editions. Use Remote Desktop to access one computer from another remotely. For example, you can use Remote Desktop to connect to your work computer from home. You will have access to all of your programs, files, and network resources, as if you were sitting in front of your computer at work. While you are connected, the remote computer screen will appear blank to anyone at the remote location who sees it. Server and Client Requirements The computing model for thin-client networking means that the horsepower is concentrated on the server end, not the client end. Because the server will be supporting dozens of people — maybe hundreds — this is not the time to skimp on power. Server Hardware The notion of using a bigger server so that you can skimp on client-side hardware isn't new. That's all a file server is: a computer running a big, fast hard disk so that you don't have to buy big, fast hard disks for everyone in the office. RDS servers are designed on a similar principle — if most of the processing takes place in a single location, you can concentrate the hardware resources needed to support that processing in a single location and worry less about power on the client end. Use a Powerful RD Session Host Server Since an RD Session Host server will be serving applications or full desktops to clients, you'll need to purchase or build a powerful server. Processing power and RAM are the most important resources. Depending on the types and number sessions you're supporting, you may also want to consider boosting disk access and network bandwidth. On the surface, calculating the needs seems straightforward. Just follow these steps: 1. 2. Calculate the resources needed for the operating system. 3. . Calculate the resources needed for a small number of sessions (such as five). 5. 6. Multiply the resources needed for your sessions based on the total number of sessions you plan to support. If you planned to support 100 sessions and you measured five sessions, you'd multiply by 20 (20 * 5 = 100 sessions). 7. 8. Add the total session resources needed for sessions to the resources needed for the operating system. Although this seems like simple math, it never seems to work out that way. Synergy is often hard to predict. Synergy (where the whole is greater than the sum of its parts) often results in something unexpected. Additionally, if the deployment is successful and users are happy with what they can do, they may end up using it much more than you anticipated. You don't need to tell this to the budget people, but it's best to add a buffer for the unknowns and to plan for expansion. Additionally, you should do some independent research starting with Microsoft's Remote Desktop Services home: www. microsoft. com/windowsserver2008/en/us/rds-product home. aspx. Core Hardware Resources For the purposes of running an efficient RD Session Host server, the bare minimum required to run Server 2008 R2 won't cut it. Although there are no hard-and-fast specifications for an RDS server, some general guidelines for server sizing follow: Processor Faster is better to a point. More important than a fast processor is one with enough cache so that it doesn't have to reach out to the (slower) system memory for code and data. Faced with a choice between more cache and more speed, go with more cache. Most RDS servers these days have multiple processors, and these processors have multiple cores. Although only multithreaded applications will actually use more than one processor at a time, if there are multiple processors, then threads needing execution can line up at both. Memory RDS servers tend to be memory bound, not processor bound. Get high-speed, error-correcting memory; get plenty of it; and be prepared to add more as you add more users or applications to the RDS server. The amount of memory you'll need depends on the applications that people use, the number of concurrent sessions, and the memory demands of the files opened in those sessions — computer-aided design (CAD) programs will stress the system more than, say, Notepad. Thankfully, the 64-bit operating system goes well beyond the 4GB limit. Start your calculations with at least 8GB of RAM for the server, and start adding based on the of number of users and memory required by the applications they'll run on the server. Windows Server 2008 R2 will support up to 2TB of RAM. Disk Consider Serial Computer System Interface (SCSI) disks on an RDS server if at all possible. A SCSI disk controller can multitask among all the devices in the SCSI chain. Most people believe that SCSI performs much better both Serial Advanced Technology Attachment(SATA) and Enhanced Integrated Drive Electronics (EIDE) disks, though some people are starting to find that high-end SATA solutions perform better than low-end SCSI solutions. Disk performance is an important capability in any server, especially so in an RDS server. Additionally, consider a Redundant Array of Inexpensive Disks (RAID) solution to increase the performance and/or fault tolerance of the drives. For a high-end RDS server, a RAID 1+0 solution provides both performance gains and redundancy. Network On a busy RDS server, consider load-balancing high-speed network cards, which can assign multiple NICs to the same IP address and thus split the load of network traffic. Another alternative is a multihomed server with one NIC dedicated to RDS session traffic. As far as network speed goes, sending application output and client-side input back and forth requires little bandwidth, but client-print jobs sent to mapped printers can take quite a bit of bandwidth. Mapped drives may also increase the load by making it possible to copy files back and forth across the RDP connection. Using the Performance Monitor The Performance Monitor (discussed in Chapter 17) can help you get an idea of how RDS sessions are stressing the server. Server load should scale closely with the number of people using the server; therefore, as long as you pick a representative group of about five people, you should be able to extrapolate your needs for larger groups. The key objects and counters for measuring eneral server stress introduced in that chapter will help you size your RDS servers. But a couple of Performance Monitor objects are worth examining to give you detailed information for your RDS server. Performance Monitor Objects Still Called Terminal Services Although the name of Terminal Services has changed to Remote Desktop Services in Windows Server 2008 R2, it's still called Terminal Services in Performance Monitor. It might look like a typo, but the two ob jects are called Terminal Services and Terminal Services Session. First, the Terminal Services object has counters representing the number of active sessions (sessions where the user has connected to the RD Session Host server and successfully logged on), inactive sessions (where the user is still logged onto the RDS server but has stopped using the session), and the total combined. Besides simply monitoring activity, you could use this to alert you when the number of active session reaches a certain threshold. Say you wanted to know when a server hosts more than 100 sessions. You could do this with a data collector set. Chapter 17 discussed data collector sets in more depth, but it's possible to set up a simple user-defined data collector set with an alert. This is done by creating the user-defined data collector set manually (not with a template), selecting Performance Counter Alert, and then setting the threshold for the active sessions. You can then set a task for the alert to notify you with a basic script or log the event to a file. Although you can get some session-level information from the Remote Desktop Services Manager, a performance object called Terminal Services Session provides quite a bit more data. Use the Remote Desktop Services Manager to find the session you want to monitor — sessions are identified in Performance Monitor by their session numbers, not user login name — and then add counters to monitor that session. Each session object has processor and memory counters that should look familiar to anyone who's used Performance Monitor, but it also has session-specific counters such as the ones in Table 25. 1. We haven't included all the counters here, just the ones to show you the kind of information that will be useful when you're calculating the load on the server and looking at the kind of performance the sessions are getting. Table 25. 1: Key Terminal Services Session Performance Monitor Counters Counter| Description| See Also| % Processor Time| Percentage of time that all of the threads in the session used the processor to execute instructions. On multiprocessor machines the maximum value of the counter is 100 percent times the number of processors. | | Total Bytes| Total number of bytes sent to and from this session, including all protocol overhead. | Input Bytes, Output Bytes. | Total Compressed Bytes| Total number of bytes after compression. Total Compressed Bytes compared with Total Bytes is the compression ratio. | Total Compression Ratio| Total Protocol Cache Hit Ratio| Total hits in all protocol caches holding Windows objects likely to be reused. Hits in the cache represent objects that did not need to be re-sent, so a higher hit ratio implies more cache reuse and possibly a more responsive session. | Protocol Save Screen Bitmap Cache Hit Ratio, Protocol Glyph Cache Hit Ratio, Protocol Brush Cache Hit Ratio| Working Set| Current number of bytes in the Working Set of this session. Virtual Bytes, Page Faults/Sec| Wait on the License Server When experimenting with Remote Desktop sessions to find out how many users you'll be able to support for each session, do not set up a license server; let the RDS server issue its temporary 120-day licenses for this purpose. Although this sounds counterintuitive, using the temporary licenses prevents you from unwittingly assigning per-device licenses to test equipment. See the  "Licensing Mode† section for an explanation of how licensing and license allocation works. Client Hardware. When connecting to an RD Session Host server via a native RDP client, you'll most often use a PC with a Windows operating system loaded, a Windows terminal, or a handheld PC using Windows CE. Native RDP Client In this context, a native RDP client means one available from Microsoft and thus implies Windows. Although Microsoft does not support other platforms (except for its OS X Macintosh client, available for download at www. microsoft. com/mac/products/remote-desktop/default. mspx), Hobsoft link sells a cross-platform (Windows, Mac, Linux, DOS) Java client at www. hobsoft. com/products/connect/jwt. sp, and there is a free Linux RDP client available at www. rdesktop. org. Windows Terminals In its narrowest definition, a Windows terminal is a network-dependent device runningWindows CE that supports one or more display protocols such as RDP or Independent Computing Architecture (ICA), the display protocol used to connect to Presentation Server servers. Many Windows ter minals also support some form of terminal emulation. For this section, think of a Windows terminal as any terminal device designed to connect to a Windows RD Session Host server; it can run any operating system that has an RDP client. A Windows-based terminal (WBT) is such a device that's running a Windows operating system locally — CE or (more rarely) Windows XP/Vista for Embedded Systems — and follows the Microsoft system design requirements for WBTs. The main thing defining a Windows terminal is its thin hardware profile: because the main job of most Windows terminals is to run a display protocol, they don't need much memory or processing power, and they don't use any storage. A Windows terminal includes a processor; some amount of memory, network, and video support; and input devices such as a keyboard (or equivalent) and mouse (or equivalent). The terminals don't generally have hard disks, CD-ROMs, or DVD players. The operating system is stored in local memory. Beyond those similarities, Windows terminals range physically from a â€Å"toaster† form factor to a pad to a small box that can attach to the back of a monitor — or even be part of the monitor itself. Some models of Windows terminals are wireless tablets, intended for people (such as doctors and nurses) who would ordinarily use clipboards and folders to store information. Although most Windows terminals are entirely dependent on their RDS server, a small set of them can run applications locally. The devices still don't have hard disks; the applications are stored in ROM like the operating system. The types of applications available depend on the terminal's operating system, since locally stored applications must run locally instead of just being displayed. Generally speaking, however, it's more common for Windows terminals to depend on an RDS server for applications. Windows terminals are most popular in environments where people are using a single application, where supporting PCs would be logistically difficult, or anywhere else that PCs aren't a good fit. However, PCs still outnumber Windows terminals as thin clients. Part of this is because many environments can't depend totally on server-based computing. Companies already have PCs, and unless they're refreshing the desktop entirely, taking away a powerful PC to replace it with a less-powerful terminal doesn't really make sense. PC Clients At this point, people are using more than twice as many PCs as Windows terminals for RDS server client machines. This isn't surprising. First, unless they're starting fresh, people already have the PCs. Even though WBTs are a little less expensive than low-end PCs (not much, though), they're still an added cost. Second, not all applications work well in an RDS server environment. It's often best to run some applications from the RDS server and some locally. Unless you're buying new hardware and don't anticipate any need to run applications locally, you're likely to have to work with PCs for at least some of your terminal clients. To work with Remote Desktop Services, the PCs must be running a Windows operating system, have the RDP display protocol installed, and have a live network connection usingTCP/IP and a valid IP address. Handheld PCs We're surprised that handheld PCs (H/PCs) aren't more popular than they are, given how handy they are. They're a terrific substitute for a laptop — inexpensive, lightweight, and thrifty with their power so that you can actually use them during the entire flight instead of having to give up two hours after takeoff. (You can also use one on a plane without worrying that the person in front of you will suddenly recline their seat and crack your laptop's display. ) Usually, they run Windows Mobile (previously known as Pocket PC). You can use wired, wireless LAN, or dial-up connections to connect to an RDS server. What an H/PC looks like depends on who makes it. Some (mine among them) look like a laptop's baby brother. Others fold into a little portfolio shape or are a flat tablet. Some are small pocket-sized deals that are too small to really work on. Some — the ones we prefer — have keyboards; others have only pointers. What all this comes down to is that an H/PC isn't really in a position to replace a desktop PC. Instead, it's usually used in cooperation with a desktop machine with which it's partnered