In: Statistics and Probability
In: Statistics and Probability
The Twisty Tie Dye Co. produces a single product; a plush poncho made of Italian cashmere. The company has provided the following data for its most recent year of operations.
| Number of Units Produced | 10,000 |
| Direct labor | $55 per unit |
| Direct materials | $60 per unit |
| Variable manufacturing overhead | $5 per unit |
| Variable selling and administrative expense | $10 per unit |
| Fixed manufacturing overhead (total cost) | $120,000 |
| Fixed selling and administrative expense (total cost) | $60,000 |
The unit cost, under both
absorption costing and variable costing, would be
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The Petty Co. is considering the following three investment projects.
Use the following information to answer the question:
| American Girl | Free Falling | Breakdown | |
| Present value of cash inflows | $23,200 | $58,200 | $78,000 |
| Investment Required | $20,000 | $48,000 | $76,000 |
Regarding the Net Present Value, which statement is true?
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Use the following information to answer the question:
| American Girl | Free Falling | Breakdown | |
| Present value of cash inflows | $23,200 | $58,200 | $78,000 |
| Investment Required | $20,000 | $48,000 | $76,000 |
Regarding the Profitability Index (PI), which statement is true?
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The Pearl Jam Corporation has two divisions: the Eddie Division and the Vedder Division. The Eddie Division has sales of $230,000, variable expenses of $131,100, and traceable fixed expenses of $63,300. The Vedder Division has sales of $540,000, variable expenses of $307,800, and traceable fixed expenses of $120,700. The total amount of common fixed expenses not traceable to the individual divisions is $119,200.
The company’s net operating income is:
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In: Accounting
1. A closer look - Food insecurity in the United States
According to the United Nations Food and Agriculture Organization, approximately 795 million people are chronically undernourished worldwide. Undernutrition means that a person consumes insufficient energy to meet his or her metabolic needs. Many food security organizations set this minimum at 2,000 kcal/day for a person to be well nourished.
Examine the figure depicting the food security status of U.S. households and then answer the question that follows.
1. According to the definitions used by the USDA Economic Resource Service, what percentage of U.S. households had access, at all times, to enough food for an active, healthy life for all members?
86%
5.6%
8.4%
14%
2. According to the U.S. Department of Agriculture, a rib eye steak has an energy density of approximately 2,650 kcal/kg. A person could conceivably consume 730,000 kcal/year simply by eating 275.5 kg of steak over the course of a year, or 26.5 oz every day. Would a person who did this be likely to be properly nourished, and why or why not?
No; 730,000 kcal/year is not enough food to avoid undernutrition.
No; beef is too fattening. The person would probably suffer from overnutrition.
Yes; 730,000 kcal/year is a reasonable minimum level of consumption to avoid undernutrition.
No; beef lacks some essential nutrients. The person would probably suffer from malnutrition.
3. There are many federal and local programs in the United States that aim to prevent or relieve malnutrition or undernutrition, thereby reducing the prevalence of food insecurity. Match the programs below with their major role in promoting adequate nutrition and increasing the prevalence of food security in the United States.
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Organizations |
Descriptions |
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| feeding america, food pantry, or national school lunch program | Meal centers which provide food at no charge to reduce food insecurity. | ||
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Nationwide network of food banks servicing food pantries. | ||
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Federally assisted meal program operating in public and nonprofit private schools and residential childcare institutions. |
4. The following two images show maps of the United States: The map on the left depicts prevalence of food insecurity relative to the U.S. average from 2012–2014; the map on the right depicts poverty rates throughout the United States from 2014.
5. Which region of the United States has the highest prevalence of food insecurity?
South
Southwest
Northwest
Northeast
6. Which region of the United States has the highest level of poverty?
Northwest
Southwest
South
Northeast
7. After analyzing the maps, one can conclude that higher poverty levels are linked with:
Higher levels of food security
Have no effect on food security
Lower levels of food security
In: Nursing
SA Adventures Unlimited was formed four years ago, by Michael
and Jill Rodriguez. Michael was a trained geologist, while Jill had
a master’s degree in Spanish. They were both avid outdoor
enthusiasts and fell in love while trekking across the Andes in
Chile. Upon graduation, they seized upon the idea of starting their
own specialized tour business that would focus on organizing and
leading “high-end” adventure trips in South America. Their first
trip was a three-week excursion across Ecuador and Peru. The trip
was a resounding success, and they became convinced that they could
make a livelihood doing something they both enjoyed.
After the first year, Adventures Unlimited began to slowly expand
the size and scope of the business. The Rodriguezes’ strategy was a
simple one. They recruited experienced, reliable people who shared
their passion for South America and the outdoors. They helped these
people organize specific trips and advertised the excursion over
the Internet and in travel magazines.
Adventures Unlimited has grown from offering 4 trips a year to
having 16 different excursions scheduled, including trips to
Central America. They now have an administrative support staff of
three people and a relatively stable group of five trip
planners/guides whom they hired on a trip-by-trip contract basis.
The company enjoyed a high level of repeat business and often used
their customers’ suggestions to organize future trips.
Although the Rodriguezes were pleased with the success of their
venture, they were beginning to encounter problems that worried
them about the future. A couple of the tours went over budget
because of unanticipated costs, which eroded that year’s profit. In
one case, they had to refund 30 percent of the tour fee because a
group was stranded five days in Blanco Puente after missing a train
connection. They were also having a hard time maintaining the high
level of customer satisfaction to which they were accustomed.
Customers were beginning to complain about the quality of the
accommodations and the price of the tours. One group,
unfortunately, was struck by a bad case of food poisoning. Finally,
the Rodriguezes were having a hard time tracking costs across
projects and typically did not know how well they did until after
their taxes were prepared. This made it difficult to plan future
excursions.
The Rodriguezes shared these concerns around the family dinner
table. Among the members in attendance was Michael’s younger
brother, Mario, a student at a nearby university. After dinner,
Mario approached Michael and Jill and suggested that they look into
what business people called “project management.” He had been
briefly exposed to project management in his Business Operations
class and felt that it might apply to their tour business.
Case Question
1. To what extent does project management apply to Adventures
Unlimited?
2. What kind of training in project management should the
Rodriguezes, the administrative staff,
and tour guides receive to improve the operation of Adventures
Unlimited?
3. Identify major topics or skill sets that should be
addressed.
In: Operations Management
Using a timeline, explain how the criteria for who is being tested for COVID-19 has changed with the main infection source (e.g. overseas infection, cruise ship infection, direct contact with known COVID-19 case to community cases). in Australia
In: Nursing
What are the big players in the cruise industry? Give a brief introduction to each company, Discuss their situation today under the impact of COVID-19. What kind of changes do you see in this industry after the outbreak? brief explanation (2 paragraphs)
In: Operations Management
Problem 3: Derivatives Valuation
A stock price is currently $36. During each three-month period for the next six months it is expected to increase by 9% or decrease by 8%. The risk-free interest rate is 5%. Use a two-step tree to calculate the value of a derivative that pays off (max[(40-ST),0])2 where ST is the stock price in six months.
Use risk-neutral valuation.
Verify whether both approaches lead to the same result.
If the derivative is of American style (ST in the payoff function refers to the stock price when the option is exercised), should it be exercised early?
In: Finance
| Flight 1 | -2 | -1 | -2 | 2 | -2 | 0 | -2 | -3 |
| Flight 19 | 19 | -4 | -5 | -1 | -4 | 73 | 0 | 1 |
| Flight 21 | 18 | 60 | 142 | -1 | -11 | -1 | 47 | 13 |
Listed below are departure delay times (minutes) for american Airline flights from New York to Los Angeles. Negative values correspond to flights that departed early.
Use a 0.05 significance level to test the claim that the different flights have the same mean departure delay time.What is the critical value (F-value)? [Round to 4 decimal places]
In: Statistics and Probability
Investment Reporting
Teasdale Inc. manufactures and sells commercial and residential security equipment.
The following selected investment transactions occurred during 2017:
| Mar.18. | Purchased 800 shares of Richter Inc. at $40 including brokerage commission. Richter is classified as an available-for-sale security. | |||||||||||
| July.12. | Dividends of $12,000 are received on the Wright Co. investment. | |||||||||||
| Oct. 1. | Purchased $24,000 of Toon Co. 4%, 10-year bonds at 100. The bonds are classified as available for sale. The bonds pay interest on October 1 and April 1. | |||||||||||
| Dec.31. | Wright Co. reported a total net income of $80,000 for 2017. Teasdale recorded equity earnings for its share of Wright Co. net income. | |||||||||||
| 31. | Accrued interest for three months on the Toon Co. bonds purchased on October 1. | |||||||||||
| 31. | Adjusted the available-for-sale investment portfolio to fair value, using the following fair value per-share amounts: | |||||||||||
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| 31. | Closed the Teasdale Inc. net income of $51,240. Teasdale Inc. paid no dividends during the year. |
Note 1. Investments are classified as available for sale. The investments at cost and fair value on December 31, 2016, are as follows:
| No. of Shares | Cost per Share | Total Cost | Total Fair Value | |||||
| Alvarez Inc. stock | 960 | $38.00 | $36,480 | $39,936 | ||||
| Hirsch Inc. stock | 1,900 | 28.80 | 54,720 | 60,040 | ||||
| $91,200 | $99,976 | |||||||
Note 2. The Investment in Wright Co. stock is an equity method investment representing 30% of the outstanding shares of Wright Co.
Required:
The comparative unclassified balance sheets for December 31, 2017 and 2016 are provided below. Selected balances are missing. Determine the missing values. Enter all amounts as positive numbers. Do not round interim calculations. Round final answers to nearest dollar.
| Teasdale Inc. | ||
| Balance Sheet | ||
| December 31, 2017 and 2016 | ||
| Dec. 31, 2017 | Dec. 31, 2016 | |
| Cash | $160,000 | $156,000 |
| Accounts Receivable (Net) | 115,000 | 108,000 |
| Available-for-Sale Investments (at Cost)-Note 1 | 91,200 | |
| Plus Valuation Allowance for Available-for-Sale Investments | 8,776 | |
| Available-for-Sale Investments (Fair Value) | $ | $ 99,976 |
| Interest Receivable | $ | |
| Investment in Wright Co. stock-Note 2 | $69,200 | |
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Office Equipment (Net) |
96,000 | 105,000 |
| Total Assets | $ | $538,176 |
| Accounts Payable | $ 91,000 | $ 72,000 |
| Common Stock | 80,000 | 80,000 |
| Excess of Issue Price Over Par | 250,000 | 250,000 |
| Retained Earnings | 127,400 | |
| Unrealized Gain (Loss) on Available-for-Sale Investments | 8,776 | |
| Total Liabilities and Stockholders' Equity | $ | $538,176 |
In: Accounting