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Bridgeport is a seaport city in the state of Connecticut.

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Bridgeport City

Bridgeport is a seaport city in the state of Connecticut. It is located in Fair County and bordered by other towns which are Fairfield, Trumbull, and Stratford. It is the largest city in the state with a population of roughly 146000 people. The city has a rich history dating back to before colonization by the English. The earliest inhabitants of the town were a native tribe called the Paugusett. The tribe had several scared sites one of which was the Golden Hill which was the source of water for their planting fields. The natives were mainly fishermen and farmers, growing crops such as squash, com and beans. When the colonialists arrived, they set up camp in Stratfield district. They began to take part in activities such as farming and the town began to grow as a trading center. The shipbuilding and whaling industries were also established at the time (Forrant). The Housatonic Railway boosted the economy of the town especially after it was connected to the rails of New York and new haven. Manufacturing became the backbone of the city’s economy until the 1970s.

Before and during the First World War, the city continued to expand mainly due to industrial growth. Heavy industry restructuring in the 1970s saw the decline of the city’s economy. Many people lost their jobs and many more moved out of the city into the rapidly developing suburban neighborhoods. The city was further mismanaged and several officials were convicted of this. The city filed for bankruptcy but was declared solvent by a federal court in 1991. In recent years the city has revamped itself by coming up with mixed development projects and proposed shopping areas that will create jobs for its economy.

The city has a population of about 146000 people making it a small city with a relatively low population. It is mainly suburban as most people live outside the city itself. This is because of the collapse of heavy industries in the 1980s that led to the economic and social decline of the city. The city is divided into five geographic neighborhoods which are Downtown, East Side, North End, South End and the West Side. These neighborhoods are mostly middle class and upper middle-class. The city can this be termed as being middle class although there are a few poor neighborhoods in the geographic areas around. The median income per person in the city is about $43000 which is lower than other cities in the state.

The main economic activities of the town are centered on the service industry. The main employers are the fields of education, health and finance. The major employer is the health sector with the largest hospitals being St. Vincent’s medical centre, Bridgeport Hospital and Bridgeport Healthcare Centre. These hospitals combined employ about 6000 people. Other employers are the People’s United Bank, the University of Bridgeport and Housatonic Community College. The rate of unemployment is relatively low with some people being employed and others running small scale businesses within the city. The city has one of the most unequal income distributions in the city with fifty seven percent of going to the wealthiest people.

The governance structure of the city is the mayor-council system. Each district in the county elects two members into the city council. The mayor is elected by all the residents of the city at large. The public schools system takes up most of the budget of the city, about half of the total budget amounting to nearly $260 million. The Property taxes in the city are quite high, about 4.2%. The mill rate reached an all time high in 2017 at 54.37.

Some of the major problems that the city of Bridgeport faces include the high rate of taxes. One resident of the city even proposed that the city be given the Guinness world record for highest raise in property taxes in a year in 2017. Aside from this, the other major challenge is how the city spends its revenues. A lot of it goes into retirement benefits that have escalated in the recent past. The medical covers of the retired people also weigh heavily on the city’s budget. Other concerns include employment levels and poverty levels. During the economic crunch faced by the city, many people lost their jobs and this has affected the quality of services available. The city has also faced crimes common in others pats other country. To combat these crimes and other concerns of residents, the mayor launched a platform for them to report any issues (Barraza). A major challenge in the city is that there may not be enough resources to address them because of the fiscal inflexibility that is part of cities in Connecticut.

I would say that my city is a good place to live. There is a vibrant entertainment scene, waterfront park and beaches. For theater and music, there are several venues for events. These venues include Cabaret Downtown Theatre, Playhouse on the Green, Webster Bank Arena nod Playhouse on the Green (Hersh 103). These arenas can host both large and small events such as children’s plays and concerts, sports events and theaters. One of the most famous events that are hosted by the city is the Gathering of the Vibes. The event takes place every year and showcases music, arts and camping events through an entire weekend. The event attracts thousands of people from all over the country. The Greater Bridgeport Symphony is one of Bridgeport’ prestigious orchestras that has been existence since 1945.

For history and nature lovers, the city is home to museums, parks and zoos. The Discovery Museum and Planetarium shows science-focused exhibits. The Housatonic museum of Art has an impressive art collection of art considering it is only two years old. The Barnum museum concentrates more on the history of the city while the Beardsley Zoo is the only zoo in the wider Connecticut region. The city is also home to a number of parks, earning it the nickname ‘the Park City’. The first park was created in 1806 and as the population of the city grew, residents recognized the need for public spaces. This led to the creation of Seaside Park, Beardsley Park, Beechword Park, and Pleasure Beach (Olmsted).

In conclusion the city of Bridgeport has a rich history that spans through many decades. The city has grown through times of social and economic decline due to bad leadership but in recent times it has risen again. It is now home to tens of thousands of residents and the current leadership has come up with plans to earn the city even more revenue by creating employment and attracting tourists. The city is home to people of diverse backgrounds making it cosmopolitan and welcoming to visitors. Its public parks are also a major attraction and source of pleasure for its residents. The vibrant music and art scene provides entertainment for the residents by hosting sporting events, concerts, plays and camping activities. Living in the city gives a person many options to choose from in terms of entertainment and exploration. Challenges are an inevitable part of growth but Bridgeport City is a wonderful place to live in.

Works Cited

Forrant, Robert. “The Rise and Demise of the Connecticut River Valley’s Industrial Economy.” Historical Journal of Massachusetts 46.1 (2018).

Olmsted, Frederick Law. Frederick Law Olmsted: Plans and Views of Public Parks. Vol. 2. JHU Press, 2015.

Hersh, Barry. “Parks, open space, arts and culture.” Urban Redevelopment. Routledge, 2017. 101-108.

Barraza, Brisa, et al. “Design Thinking for Better Community in the City of Bridgeport.” (2018).

Management Accounting calculations

3264535885126545000032645351760220Management Accounting

450000Management Accounting

Question 1:

1 2 3 4 5

Selling Price per Unit 250 250 250 250 250

Variable Cost -86 -86 -86 -86 -86

Contribution 164 164 164 164 164

Units Sold 70000 80000 100000 85000 75000

Total Contribution 11480000 13120000 16400000 13940000 12300000

less Fixed Costs 2400000 2400000 2400000 2400000 2400000

less Depreciation 4200000 4200000 4200000 4200000 4200000

EBIT 4880000 6520000 9800000 7340000 5700000

less Tax @ 40% 0.4 1952000 2608000 3920000 2936000 2280000

EAT 2928000 3912000 5880000 4404000 3420000

Add Depreciation 4200000 4200000 4200000 4200000 4200000

Net Cashflow 7128000 8112000 10080000 8604000 7620000

Question 2

Calculation of Depreciation (total cost of machine – salvage value)/number of years

(21000000-0)/5=4200000 Question 3

The payback technique overlooks the time estimation of cash. The money inflows from a venture may be sporadic, with the vast majority of the return not happening until well into what’s to come. A venture could have a satisfactory rate of return yet at the same time not meet the organization’s obliged least payback period. The payback model does not consider money inflows from the extent that may happen after the starting venture has been recuperated. Most real capital consumptions have a long life compass and keep on providing pay long after the payback period. Since the payback technique concentrates on fleeting benefit, an alluring task could be ignored if the payback period is the main thought (Horngren, 2012).

Question 4: Accounting rate of Return

EBIT 4880000 6520000 9800000 7340000 5700000

less Tax @ 40% 0.4 1952000 2608000 3920000 2936000 2280000

EAT 2928000 3912000 5880000 4404000 3420000

Add Depreciation 4200000 4200000 4200000 4200000 4200000

Net Cashflow 7128000 8112000 10080000 8604000 7620000

Question 5:

Accounting Rate of Return

The accounting rate of return is ascertained by subtracting deterioration from the aggregate money stream, then isolating the consequence of that count by the beginning speculation. The result is the rate of the introductory venture you can hope to acquire for the period. The result is utilized to land at the normal bookkeeping return rate; the bookkeeping rate of return for every year is included then partitioned by the quantity of years included in the computation.

Pros

Calculating the average rate of return is easy. Managers can rapidly see whether a venture opportunity may be sufficiently lucrative to legitimize doing further assessment. Come back to the illustration of buying new hardware to expand gainfulness. On the off chance that the introductory computation demonstrates the buy will just earn a 2 percent expansion in benefits however putting resources into trucks to convey items to the clients will lessen the transportation costs by 10 percent, then administration ought to choose the diminished delivering expenses is a finer speculation.

Cons

The biggest drawback in using the average accounting return method doesn’t take into record the time estimation of cash. This is the idea that cash is worth a known sum today, however there is no assurance what the same measure of cash will be worth later on. As such, you recognize what you can purchase today with a given measure of cash. You don’t realize what you can purchase for the same measure of cash tomorrow, and the more drawn out it takes you to win back your speculation, the more noteworthy the danger included with supporting the obtaining influence of that future cash esteem.

Question 6:

NPV= Discounted Cashflows-Initial Outlay Discounted Cashflows yr Cashflows Discounting Rate @ 8% present value

1 7128000 0.9259 6599815.2

2 8112000 0.8573 6954417.6

3 10080000 0.7938 8001504

4 8604000 0.735 6323940

5 7620000 0.6806 5186172

Total Present value 33065848.8

less Initial Outlay 21000000

Net Present Value 12065848.8

Question 7

Based on the Net Present Value the company should continue pursuing its PDA projects as the NPV value indicates future prospect of the project. The means that the project will be profitable.

Reference

Garrison, R. H., Noreen, E. W., Brewer, P. C., & McGowan, A. (2010). Managerial accounting. Issues in Accounting Education, 25(4), 792-793.

Horngren, C. T. (2012). Cost Accounting: A Managerial Emphasis, 13/e. Pearson Education India.

Micro Environment Review A Case of Ryan Air

Micro Environment Review: A Case of Ryan Air

Introduction

Developing a long-term business model for Ryanair entails planning for the airline’s future. Ryanair’s tactics and continual expansion have effectively transformed the firm from just a single route airliner to Europe’s leading low-cost carrier over the previous decades. To prepare for the future, one must have a thorough understanding of the present. This is the beginning point for a micro environmental assessment, which discovers the internal characteristics of the specific environment in which an organization operates and converts this information into actionable plans and choices. All elements that have a direct impact on the organization are included in the micro-environment. Porter’s Five Forces approach will provide a comprehensive analysis of the aviation business and its appeal.

Porter’s Five Forces

Bargaining Power of Suppliers

Due to the industry’s razor-thin profit margins, good negotiation is vital. Determining supplier and buyer negotiating strength is critical. Aviation suppliers include fuel suppliers, aircraft and component manufacturers, maintenance providers, and airports. Boeing and Airbus are the two main aircraft manufacturers. Its market share is substantial. A strong supplier position results from the two firms focusing on a coordinated approach that can effect price. The all Boeing fleet of Ryanair has resulted in considerable cost reductions when it comes to new planes and replacement parts. They cannot afford to lose Ryanair as a customer. Even with strong negotiating power, the hefty expenses of pilot retraining make Ryanair’s supplier switching costs unacceptably high.

Bargaining Power of Customers

When customers band together to put pressure on producers to lower prices or improve quality, they have negotiating power. When a large number of customers are concentrated, switching costs are low, and buyers are generally price sensitive, customers are thought to have more negotiation leverage. Traveling for pleasure or business is governed by one’s price sensitivity. Due to the fact that their tickets are often paid by their companies, business passengers are less susceptible to swings in ticket prices. Due to their frequent travel, large corporations may be able to get higher prices for their staff, which compensates the lack of sensitivity of business class passengers. Overall, Ryanair consumers have relatively high bargaining power because they can easily, and at no extra cost, switch to new airlines.

Threat of Substitutes

As long as the consumer gets the same value out of the substitute, it’s a replacement. Substitute products for the airline industry and Ryanair in particular include rail networks, marine transports, coach transportation, and car rental companies. In contrast, Ryanair plane tickets are less expensive than taking the train, buses, and ferry tickets. Since Ryanair has opted to rely on low prices as its principal source of competitive advantage, this is what has transpired. Comparatively, Ryanair’s exposure to substitute products and services is minimal.

Threat of new Entrants

The ease with which new players might enter and compete with current market members is known as the “threat of entrants (Rodríguez-García, Orero-Blat, & Palacios-Marqués, 2020). It’s difficult for new entrants to enter the airline business because of the high entrance barriers that must be overcome. Ryanair is minimally exposed to the threat of new entrants. Economic size, financial needs, distribution routes, and other variables are some of the factors that contribute to these hurdles.

Rivalry amongst Existing Firms

The airline industry is known for its hefty entrance fees, but exiting the market is just as expensive, with many companies choosing to operate at a loss. As a result, the number of competitors remains constant. The undercapitalized are weeded out, and the survivors are pushed to be as cost-effective and profitable as possible. While the number of existing airlines looks to be steady, another factor to examine is the expansion of new routes. Low-cost airlines fight intensely to deliver the lowest fares possible in order to acquire market share.

Important Stakeholders

Stakeholders include other airlines, staff/employees, passengers/customers, governments, local communities, and the suppliers, as well as the media and unions.

References

Rodríguez-García, M., Orero-Blat, M., & Palacios-Marqués, D. (2020). Challenges in the Business Model of Low-Cost Airlines: Ryanair Case Study. International Journal of Enterprise Information Systems (IJEIS), 16(3), 64-77.