2. What business risks does Blue Nile face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? Are some of the risks faced by Blue Nile difficult to reduce through control activities? Explain.
There are so many risk factors for Blue Nile, but main risk factors a
overhead cost, selling price
These data were specified in detailed product report so we didn’t make any assumptions.
⑤Cost of component parts
Formula: Total labor cost + Material cost + Total overhead
⑥Unit Margin
Formula : Selling price- Cost of component parts
⑦Fixed Cost
The fixed cost is already on the financial statement, so we only had
Difference with Solow model
In the case of Germany, before the World War it was being reached steady state.
According to the solow model,
the more it reached steady state, the slower the capital growth is,
so it shows low economic growth rate after the World war.
However after the war, as the accumulated capital was destroyed, capital stock was out of steady state and it grew fas
Type of
fixed cost Definition Example from the case of Blue Nile
Committed fixed cost A cost that can’t be significantly reduced for short periods of time without making fundamental changes Costs associated with being a publicly traded company
Discretionary fixed cost A cost whose total dollar amount varies in direct proportion to changes in the activity level Marketing costs
그림 4.16. 좌표변환 C
▣ 변수 설명
- mox , moy : 지도상의 임의의 기준점. 대개 중심점이나 최소점을 기준점 을 삼는다.
- mxMin, myMin : 지도상의 최소점
- mxMax, myMax : 지도상의 최대점
- mx , my : 지도상의 임의의 좌표
- (myMax – myMin) : 지도상의 높이 (MapHeight)