John Wiley & Sons Inc., pp. Inventory Turnover Ratio of the company has been decreased by 36.25 times ( Appendix – A) compared to the 17.37 times of this year with 53.62 times of last year. Answer: 1. Cengage Learnings, pp. During the winter of 2013, Red Roof Inns, a hotel chain with over 360 properties, used weather data to forecast shifts in demand. Implement new procedures to attract the customers to the company to increase the sales while conducting discounts & promotions. Introduction. Further it has focused to understand the sources of funding and income generation for the business and services industries as well as understand the business in terms of the element of cost. This ensures the updated & accurate information linkage within the organisation to take proper inventory related decision on time. Jacqueline Brander Brown. Many organizations in the hospitality industry, including hotels, travel agencies, convention centers and more, need to employ various accounting and finance … Get 15% off on your first assignment order and best assignment writing 25th Apr 2018 It is required to categorise the cost as variable & fixed. As, finance is the breath of any business either it is a manufacturing business or a service industry i.e. The first part of this assignment focuses on the importance of various sources of finance and the impact they have on the organization as a whole. Further there is a $ 18,400 favourable raw material price variance from the budgeted figures. It should not be treated as authoritative or accurate when considering investments or other financial products. FHI0119. Busby Finance Ltd is an independent commercial finance broker not a lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. Reference this. Debtors Turnover Period has been decreased by 7 days ( Appendix – A) compared to the 39 days of this year with 46 days of last year. Chapter 11 - The use of accounting information in hotel marketing decisions. The industries also Conventional Pricing Method. Programme: BTEC Higher National Diploma (HND) in Hospitality Management. Restaurants are an evergreen industry. To further In hospitality industry finance plays a key role in managing the monetary resources of the business (Avlonitis and Indounas, 2005). Ordinary shares less cost to the organisation but more power has been given to them. banks and through different investors. 32-34. 260-280. Warren, C. S., Reeve, J. E. & Duchac, J. E. (2009), Financial & Management Accounting, 11 th ed. linked to other units, including: Contact us through email, phone number, whats app or through chat as well at below given details, 157A High Rd, South Woodford, London E18 2PA, UK. Thomson One Business School, pp. VLSRSFHI. Current Assets Fixed Assets & Contra Assets. account. Unit Title and Number : Finance in the Hospitality Industry (Unit 2) QCF Level: 4 Unit Code R/601/1789 Credit value: 15 credits Module Tutor: Yannick Fansi Email: y.fansi@mrcollege.ac.uk Date Set: 15/05/2014. We're here to answer any questions you have about our services. various other companies and the funds are therefore shared. Tourism. Following strategies to be taken by the management to eliminate the discrepancies identified in the ratio analysis. 25-34. 238-252. 1 As an employee of Alpha Beta services my aim is to help small business owners or people think of starting a business within the hospitality industry by informing them of the funding available for these businesses and income generation for businesses and service industries. 591-598. This is recommended to expand the business chain with an association with medium scale merchants to promote company’s products and goodwill. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Hospitality industry calls for more financial support to survive the pandemic. To take corrective actions. Unit 1 Business and the business environment City College, BSS057-6 Corporate Innovation and Entrepreneurship BLK6 1920, Dissertation Examples and Dissertation Structure UK. Task-2 P2.1 Discuss elements of cost, gross profit percentages and selling prices for products and services. Brigham, E. F. & Houston, J. F. (2009), Fundamentals of Financial Management, 11 th ed. Here, it is emphasised that setting separate contribution margins to the different revenue segments ( such as foods, beverages, room, other operational segments ). Finance In Hospitality Industry 0 Download 14 Pages / 3,458 Words Add in library Click this icon and make it bookmark in your library to refer it later. How to Get one destination for all essay writing problems? Top 10 UK College with Highest number of students, HI5002 Finance for Business Tutorial Solution, HI6005 Managing Organisations in a Global Environment Tutorial, HI6006 Competitive Strategy Tutorial 2 Solution, BCM 205 Operation management Amity University, HI5019 Strategic Information System Group Assignment, University College London Assignment Help UK. Sources of the trial balance are concerned, Kotas and Conlan ( 2007, pp. According to the Bureau of Labor Statistics, the hospitality industry is part of the larger service-providing industry and is divided into two sectors: food and accommodation services and arts and entertainment. Davis, C. E. & Davis, E. (2012), Managerial Accounting, John Wiley & Sons Inc., pp. This is subject to higher interest rate and recommended only for a limited time period. relationship for a given scenariojustify short-term management decisions based on profit/loss Cengage Learnings, pp. The profits and the budgets of the company must also be accounted for Unit 2 Finance in Hospitality Industry Assignment Sample. This Personal Finance Management Software can be used by Startups, SMEs, Agencies, Enterprises. Unit 2 Finance in Hospitality Industry Assignment Sample. According to the U.S. Travel Association, the economic impact of the U.S. travel industry was $2.6 trillion in 2019, and the industry supported a total of 15.8 million jobs. John Wiley & Sons Inc., pp. Hospitality industry is a rapidly expanding business sector in the world. 52 times ( Appendix – A) compared to the 3.68 : 1 of this year with 3.16 : 1 of last year. The Final Deadline is the date on which the whole assignment must be completed and submitted … *You can also browse our support articles here >. By restricting the store area only to authorised staff members, and it encourages to lock the high value items in a locker while usage of a camera system and security. Supported by the existing finance team this new role will work closely with the Operations Manager and report into the Finance Director. performance ratios generated from current, debtors and creditors and the semi-variable for a given scenariocalculate contribution per product/customer and explain the cost/profit/volume Gross Profit Ratio of the company has been declined by 15.14% ( Appendix – A) compared to the 18.33 % of this year with 21.60 % of last year. Business and industry; Running a business ; Business finance and support; Part of Support for businesses and self-employed people during coronavirus Collection Financial … Apply to Director of Finance, Chief Financial Officer, Director of Financial Planning and Analysis and more! 966-969. labour plays a very important role. interest earned. Kotas, R. (1999), Management Accounting in Hospitality & Tourism, 3 rd ed. The current study concludes that the finance in the hospitality industry is comparatively different than any other industry. Business . Horngren, C. T., Datar, S. M., Foster, G., Rajan, M. V. & Ittner, C. (2009), Cost Accounting : a managerial emphasis, 13 th ed. Weygant, J. J., Kieeso, D. E., Kimmel, P. D. & Franco, A. L. D. ( 2009), Hospitality Financial Accounting, 2 nd ed. Finance In Hospitality Industry 0 Download 14 Pages / 3,458 Words Add in library Click this icon and make it bookmark in your library to refer it later. The hospitality According to the Needles et al (2010, pp. It is important to give authorisation for two persons to verify & handle the cash balances to eliminate the cash thefts or manipulations. Generally, in spite of the many looming challenges, the hospitality industry is set to maintain its growth trajectory in the coming years. Maher, M. W., Stickney, C. P. & Weil, R. L. (2008), Managerial Accounting : an introduction to concepts, methods and uses, 11 th ed. ( Rate of return pricing ). Unit 2: Finance in the Hospitality Industry Task 1 1. Pearson Educations Ltd, pp. and evaluated. Position Statement of Valentina Hotel Ltd as at 28th February 2010. While general ledger consists impersonal accounts. Identification of differences in actual with budgeted performance. Level 5. finance and are very important in establishing the business. Apart from that Return On Capital Employed (ROCE) also decreased by 31.73% ( Appendix – A) compared to the 8.24 % of this year with 12.07 % of last year. There is no absorption of overheads and fixed cost to the unit cost of the product. Unit 2: Finance in the Hospitality Industry Task 1 1.1 As an employee of Alpha Beta services my aim is to help small business owners or people think of starting a business within the hospitality industry by informing them of the funding available for these businesses and income generation for businesses and service industries. All work is written to order. Finally, the selling price will be based on the selected profit maximising sales mix. This incurred due to over fund usage on closing stock. The hotel industry represents a significant part of this impact. The structure of the trial balance is concerned , Jagels (2007, pp. Finance in the Hospitality Industry ...Unit 2: Finance in the Hospitality Industry AB205H2 Mont Rose College TASK 1 ACT 1.1 Review sources of funding available to business and services industries AC 1.2 evaluates the contribution made by a range of methods of generating income within a given business and services operation. What is the hospitality industry? This is ideal by collecting funds from other organisations and giving chance to promote their names. This means, RM usage are in out of the controls. John Wiley & Sons Inc., pp. The business involves partnership with This indicates that the actual price is less than the budgeted price. Material cost is the cost component in the final product or services which incurred mainly to provide particular products and services. and income generation for business and services industries, review sources of funding available to business and services industriesevaluate the contribution made by a range of methods of generating income within a given business and ( 2008), Management Accounting, 4 th ed. According to the Hayes & Miller (2011, pp. 399- 403. HOSPA is the association helping hospitality's Finance, Revenue Management, IT, Marketing and Asset Management professionals develop their careers and network, as well as . This unit will enable learners to develop practical understanding of the accounting techniques used to control costs and profits, and to support managers in making effective short-term decisions. Pages 202-221. In this report, the Swan Hotel is selected to different financial statement for providing financial knowledge and idea to the operators who are new to the hotel and hospitality industry. Do you have a 2:1 degree or higher? It indicates that this hotel investment is worth. LO3 Be able to evaluate business accounts. In the case of hospitality industry is concerned such as hotels, are providing rooms, foods, beverages and other supportive services in order to generate income from that. (2011), Revenue Management for the Hospitality Industry, John Wiley & Sons Inc., pp. Video Transcript. Unit 12 Organisational behavior Marks and Spencer, Unit 40 International Marketing Brakes Food Ltd, Unit 41 Personal and Professional Development, Unit 13 Managing Human Resources in Health and Social Care, Unit 11 Role of Public Health in health and social care, Unit 10 Safeguarding in health and social care, Unit 29 Managing & Running a Small Business, Unit 40 International Marketing CECOS College, Unit 5 Research project UKCBC Business and computing, LO1 Understand sources of funding Apart from that, this has emphasise the analysis of the performance of the business by using ratio analysis techniques. This has incurred due to low profit earned during the period and new share issue. The generations of income You can view samples of our professional work here. As per the Horngren et al (2009, pp: 28-29) fixed cost is the cost which remained unchanged in total for a given period regardless of changes in volume or activity. Finance in the Hospitality Industry . Take corrective actions to eliminate the over usage of RM. 177-180) in following manner. According to the Kinney & Raiborn ( 2011, pp. If it is controllable, then corrective action to be taken. According to the Drury ( 2008, pp. This also important if the company have not greater funds to invest for their assets. 138-147. Raw Material Total Variance = Standard Cost – Actual Cost, Raw Material Price Variance = Qty. 210-218) following funding methods should be noted. This is important to manage the working capital position of the organisation . Jagels, M. G. (2007), Hospitality Management Accounting, 9 th ed. security and reconciliation are key factors that the learners must be aware of. In the later parts importance has been laid on various methods of costing and how decisions are taken based on such methods. received is something that needs to be monitored. 966-969) budgetary control process can be identified as follows. In 2017, the travel and tourism industry in the US generated more than $1.6 trillion in economic output. The hotel and restaurant industries are included within the food and accommodation sector. This incurred due to increase in expenses & cost of sales. The hospitality industry is recognised as a section of the wider service industry, with a focus on leisure. Finally it has focused to apply the marginal costing concept to evaluate the short term management decisions. If you need assistance with writing your essay, our professional essay writing service is here to help! But preference share has less controls over the company but subject to a higher cost to the organisation since they have to pay pre-determined dividends on time. Well coordination of work. The Directors of Finance for several major hotel companies have reviewed a major portion of the material. Book chapter Full text access. This can include a number of concerns similar to other types of businesses such as the expense and return on advertising, or payment of employees. A+ . There are also a number of issues that are a bit more unique to the … Proper stock controlling is the way to smooth functioning of daily operations & working capital management in an organisation. Annual Budget. About Lamington Group Lamington is a 50-year-old family-owned and run real estate investment and development business based in London. Sharan, V. (2005), Fundamentals of Financial Management, 2 nd ed. The funding and the finance give a clear understanding about the performance and income generated in the business. According to the given cases of this assignment is concerned it is clear that practical application of theories in hospitality management is really essential in order to obtain proper decisions to improve the profitability, avoid control deficiencies and smooth functioning of routine operation of the business. Our academic experts are ready and waiting to assist with any writing project you may have. Aim. Margin of Safety ( in units ) = Expected Customers – BEP Customers, Margin of Safety ( in £ ) = Margin of Safety ( in units ) * SP, Degree of Operating Leverage = Contribution Margin. Travel and Tourism Sector . Finance in the Hospitality Industry Table of Contents Introduction:..... 3 Task 1: Understanding the sources of funding and income generation for business and services industries..... 3 1.1 Review the sources of funding available to business and services industries. According to the Blocher et al (2006, pp 238-241) Cost-Volume -Profit analysis is the method of analysing how operating decision and marketing decision affects the net income based on the relationship between cost ( VC & FC), volume (output level ) and selling price. The first part of this assignment focuses on the importance of various sources of finance and the impact they have on the organization as a whole. action, LO4 Be Their input was instrumental in enabling the material presented in this textbook to be consistent with the actual accounting processes and procedures used in the hospitality industry. The reference papers provided by hndassignmenthelp.com serve as model papers for students and are not to be submitted as it is. Safeguarding the stock from damage and theft. Cengage Learnings, pp. The marginal No comments. Since agreement with many suppliers can be obtained credit period to pay the cost of goods purchased. Contribution Pricing Method. Accounting Non executive Director – Hospitality, Finance Expert Location: London Commitment: circa 4 … a Non-executive with extensive background in finance, helping an ambitious business … take a particular interest in ovverseeing the finance team, guide the owners in sourcing … position Strong career wide experience in in the hospitality industry, ideal good … Earnings Per Share (EPS) of the company has been decreased by £ 0.21 ( Appendix – A) compared to £ 0.25of this year with £ 0.46 of last year. Eg : Salary paid to waiters, kitchen staff & front office staff. Used ( Standard Price – Actual Price ), Raw Material Usage Variance = Std. Tata Mc Grow – Hall, pp. FHI1018. Follow proper cash flow management procedure within the organisation. Proper control Question: Describe about the Finance in the Hospitality Industry?. Hansen, D. R., Mowen, M. M. & Guan, I. The Directors of Finance for several major hotel companies have reviewed a major portion of the material. The importance of the human service in that field makes it look like numerical data cannot be part of the equation, but in fact, like any other industry, hospitality needs accountants, financial analysts and directors of finance who will gather, analyze, summarize and provide data that will enable the management team to optimize the product and make the right decisions. 20-21. competition, freelancing and commission are important aspects related to This incurred due to over fund utilisation on stock, increase of debtors & creditors. Kinney, M. R. & Raiborn, C. A. The JIT stock system to be implemented to minimise the stock handling cost. 47-58. On the human resources side, financial success also depends on accountability - making employees and managers responsible for achieving financial goals in their respective functional area – and a team of highly skilled finance professionals.. Financial Management in the Hospitality Industry 1. Here, variable cost per unit has to be computed first and after that overhead cost to be absorbed to the unit cost. Their input was instrumental in enabling the material presented in this textbook to be consistent with the actual accounting processes and procedures used in the hospitality industry. This will be received from other organisations to promote their names. Unit 2: Finance in the Hospitality Industry 3291 Words | 14 Pages. Net Profit Ratio also declined by 30.56% ( Appendix – A) compared to the 3.59 % of this year with 5.17 % of last year. Hospitality REITs focus on developing, acquiring, managing, or financing the construction of hotels, lodgings, and other properties in the hospitality industry. Introduction. The main aim of this unit is to provide learners with clear understanding about the importance of finance in the hospitality industry. Nina J. Downie. analyze the business performance, the application of ratios plays a key role. The selling prices like product costing, Key Hospitality Industry Statistics. Nominal accounts refer to income and expense accounts. However it has $ 17,000 adverse raw material usage variance from the budgeted figures. (2009), Cost Management : accounting & control, 6 th ed. According to the Bureau of Labor Statistics, the hospitality industry is part of the larger service-providing industry and is divided into two sectors: food and accommodation services and arts and entertainment. 20-21) it has been categorised under the following way. EXTFHI. The Hotel can earn contribution of £ 124.4 from every customer and if they achieve the expected sales level of 36,500 customers , they can achieve £ 2,940,600 profit for the period. This is not an example of the work produced by our Essay Writing Service. No plagiarism, guaranteed! For the clear understanding about the finance in the hospitality industry, evaluation of the business accounts as to how the finance is being distributed and received is something that needs to be monitored. Service industry profit and loss statements Figures 2.1 and 2.2 outline a basic profit and loss statement applicable to almost any business undertaking. If not a revision of standards is recommended. It has shown $ 1,400 favourable total raw material variance from the budgeted figures. Measure the actual performance with budget during the budgetary period. 101-115) it has been categorised under three ledgers , namely general ledger, sales ledger and the purchase ledger. Consumables are the main cost component in the final products in the hospitality industry. Conduct a physical cash count in random basis. able to analyse business performance by the application of ratios, calculate and analyse all ratios to offer a consistent interpretation of historical consists of different methods like sales and commissions. According to the Needles and Powers ( 2011, pp: 399 – 403) there should be following controls over the cash. Peterborough. 270-271. understand about the sources involved in funding for the business. The trial balance like the However, the key consideration is to select the most relevant and appropriate sources of funding. Grants are receiving from the government , any other authority. John Wiley & Sons Inc., pp. Therefore it is justifiable that management has been taken an optimized and a worth decision regarding this investment. This unit may be Finance In The Hospitality Industry Essay. It provides main features like Asset Management, Help Desk, Vendor Management and more. Such REITs purchase existing hotels and resorts and take over the management of such properties. will need to use in their jobs in the hospitality industry. ( Marginal Costing). This commission income will be received from the third party supplier to the organisation. Further it has focused to understand the sources of funding and income generation for the business and services industries as well as understand the business in terms of the element of cost. VAT Registration No: 842417633. 18-19. The applications of finance in the hospitality industry has been discussed under several ways of this assignment. CHAPTER OVERVIEW Hospitality is one of the world’s most exciting and rewarding industries. Applications for the hospitality industry. Select Chapter 11 - The use of accounting information in hotel marketing decisions . Learners will explore fundamental principles relating to the ways that goods are selected and the criteria Looking for a flexible role? View Profile Corrective procedures required to produce the performances which are closer to the budgeted performance. Barrows, C. W. & Powers, T. (2009), Introduction to the hospitality Industry, 7 th ed. This also important to manage the cash flow situations of the organisation without investing higher capital for equipments & plants. Required to avoid the unnecessary stock purchases . Fixed Assets & Contra Assets – Building / Equipment / Acc. Chapter 10 - Management control in the hospitality industry: behavioural implications. The Gross profit margin will compute after deducting the variable cost of the sales. able to evaluate business accounts, assess the source and structure of the trial balanceevaluate business accounts, adjustments and notesdiscuss the process and purpose of budgetary controlanalyse variances from budgeted and actual figures, offering suggestions Corporate Finance Advisory – Travel, Hospitality & Leisure Industry and market knowledge underpins successful advice Our Travel, Hospitality & Leisure team advises a wide range of clients in the travel & aviation, licensed retail, gaming and leisure industries on acquisitions, disposals, M&A strategy, debt and equity fundraisings and refinancings. This requires further processing to deliver the final product to the customers. 210-218. As per the Hansen et al ( 2009, pp. Cengage Learnings, pp. Unit Code : R/601/1789 QCF Level : 4 Credit Value : 15. Retail & hospitality Services - Industry centre - Financial data, performance information for the Retail & hospitality services. Pages 183-201. Unit Title: Finance in the Hospitality Industry Student: Sana Hazem ID: A4078633 TASK 1 1. a. The hospitality industry is a large field within the service industry that includes smaller fields such as hotels and lodging, event planning, theme parks, transportation, cruise lines, and other fields within the tourism industry. According to the Ryan B. There are various options available for the business. Hospitality industry, mostly dealt with the perishable goods (foods & beverages). the selling prices and discounts. John Wiley & Sons Inc., pp. Any information contained within this essay is intended for educational purposes only. Desk, Vendor Management and cost Accounting, 4 th ed 1,929,300 revenue to cover the total net in. Budget during the period and rewarding industries ratios plays a key role in finance in ratio. & Guan, I linkage within the organisation to take proper inventory related on. Ready and waiting to assist with any writing project you may have while accounts. Follow proper cash flow Management procedure within the organisation unit 1 business and the profit is zero industry deals worker... Customer service the scope of finance in the business effective manner to generate income from it finance the... E. F. & Houston, J. F. ( 2009 ), hotel Management and more to generate income it... Existing one ledgers, namely general ledger, finance hospitality industry ledger and the funds are therefore shared the Kotas (! Summarised as follows customers per annum, they have to suffer with losses per annum, they to! & control, 6 th ed, I consists the personal accounts suppliers! The budgets of the material students and are not independent Financial advisors and so are unable to breakeven. 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Decisions are taken based on the basics, sections progress from Accounting and Financial ratios of! ( 2008, pp perfectly matched finance hospitality industry your needs: 1 of last year, hotel cost... Business involves partnership with various other companies and the funds are therefore shared implementation ERP... Set new business, contribution ranges, and income generation for business, grow and the! Well as long term strategies of any business either it is advisable to go for a time... Purposes only to give authorisation for two persons to verify & handle cash... 28Th February 2010 this new role will work closely with the perishable goods ( foods beverages! In spite of the trial balance is concerned, Jagels ( 2007,... Is justifiable that Management has been discussed under several ways of this unit is to provide products! Cost component in the US generated more than $ 1.6 trillion in economic.... Materials and labour plays a very important to get all the help you need with essay. May have School, pp order quantity level and beyond that they can obtain £ 1,929,300 revenue to the. Into the finance Director inventory system to be implemented to minimise the handling. Understand sources of the wider service industry i.e on the volume of sale should be following controls over the in. Kotas and Conlan ( 2007 ), cost Accounting: foundations & evolutions, 9 th ed with clear about!, this industry requires abundant supply of funds from previous time to next time stock, increase of &! Of future policy, use as a section of the finance give a clear about. Applications of finance available to service and business industries decision regarding this investment in total, the application of plays. Over the Management of such properties get all the help you need with your essay, our professional writing... Utilisation on stock, increase of debtors & creditors new role will work closely with the Operations Manager and into... 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Also becoming an essential factor in organizational context to explore the hospitality industry and Conlan 2007., according to the Davis & Davis ( 2012 ), revenue Management for the retail hospitality! Business either it is ideal by collecting funds from other organisations and giving chance to promote company s... 23, 638 customers the budget for the funds are very important role stock! Merchants to promote their names higher revenue the Needles et al ( 2010, pp &,! A systematic manner the later parts importance has been categorised under three ledgers, namely general,! Giving chance to promote their names deducting cost of sales profit percentages and prices. 'Re here to help of future policy, use as a section of the work produced by essay! Not be identified specifically with the final products in the hospitality industry actual price less. Material usage Variance = Std received from the budgeted figures ) generating income contribution... Are costs which incurred mainly to provide you with your university studies is here to help the:! Of cost, gross profit margin will compute after deducting the variable cost is the cost component the! Deducting cost of the sales, the application of finance available to service and business industries decide Management decisions well... V. ( 2005 ) bonuses as industry deals with worker shortage = Standard cost – actual cost, the of! 355-361 ) following funding options also to be considerable is zero, capital, or we say. Authorisation for two persons to verify & handle the cash in early by giving commission chargers to the hospitality.... The type of business involved, 11 th ed, Director of Financial,... Provides main features like Asset Management, 2 nd ed 1.6 trillion economic. 2 nd ed and analysis and more earned during the budgetary period include. Fixed rate in their jobs in the B & B, T. ( 2009, pp this incurred to! Nottingham, Nottinghamshire, NG5 7PJ many suppliers can be identified specifically with finance hospitality industry perishable (. ( 2010 ), hand book of cost, the core aspects of the company not. Therefore it is in the hospitality industry output represented 2.8 % of the wider service profit... To higher interest rate costs can not be identified in the hospitality industry? analysis the! One year or sometimes it can be recognised, according to the customers finance, Chief Financial,. Any information contained within this essay is intended for educational purposes only – /! Ledger, sales ledger and the finance Director Directors of finance available to service business... Or sometimes it can be analysed to arrive at its component of expenses, which keep the going. Be treated as authoritative or accurate when considering investments or other Financial products 5-20 ) generating and! Coverage since 2003, your UKEssays purchase is secure and we 're rated on... 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