Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 3,750 direct labor hours. The total indirect labor is budgeted to be $375,000.

Time records from indirect labor employees revealed that they spent 40% of their time setting up production runs and 60% of their time supporting actual production.

The following information about cell phones and tablet PCs was determined from the corporate records:

What is the total cost (e.g. the sum of set-up costs and holding costs) of producing the gold seals using a Silver-Meal algorithm? Period - Forecast below :

Period 1 - 130

Period 2 - 30

Period 3 - 60

Period 4 - 50

Period 5 - 200

Period 6 - 550

Period 7 - 180

Period 8 - 140

Period 9 - 60

Period 10 - 50

Period 11 - 100

Period 12 - 250

Set Up cost 1660.5

Holding Cost/seal 2.46/period

Please solve using Silver-meal heuristic.

McCormick & Company is considering a project that requires an initial investment of $24 million to build a new plant and purchase equipment. The investment will be depreciated as a modified accelerated cost recovery system (MACRS) seven-year class asset. The new plant will be built on some of the company's land, which has a current, after-tax market value of $4.3 million. The company will produce bulk units at a cost of $130 each and will sell them for $420 each. There are annual fixed costs of $500,000. Unit sales are expected to be $150,000 each year for the next six years, at which time the project will be abandoned. At that time, the plant and equipment is expected to be worth $8 million (before tax) and the land is expected to be worth $5.4 million (after tax).To supplement the production process, the company will need to purchase $1 million worth of inventory. That inventory will be depleted during the final year of the project. The company has $100 million of debt outstanding with a yield to maturity of 8 percent, and has $150 million of equity outstanding with a beta of 0.9. The expected market return is 13 percent, and the risk-free rate is 5 percent. The company's marginal tax rate is 40 percent.

QUESTION 1- Should the project be accepted? What will be the tax depreciation each year?

One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for items A, B, and F; lots of size 50, 50, and 200 are used for Items C, D, and E, respectively. Items C, E, and F have on-hand (beginning) inventories of 10, 50, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in week 2, 50 units of E in week 1, and also 50 units of F in week 1. There are no other scheduled receipts. a. Draw a Product Structure Tree for Product A. b. If 30 units of A are required in week 8, find the necessary planned-order releases for all components.

One unit of A is made of three units of B, one unit of C, and two units of D. B is composed of two units of E and one unit of D. C is made of one unit of B and two units of E. E is made of one unit of F. Items B, C, E, and F have one-week lead times; A and D have lead times of two weeks. Assume that lot-for-lot (L4L) lot sizing is used for Items A, B, and F; lots of size 50, 50, and 200 are used for Items C, D, and E, respectively. Items C, E, and F have on- hand (beginning) inventories of 10, 50, and 150, respectively; all other items have zero beginning inventory. We are scheduled to receive 10 units of A in Week 2, 50 units of E in Week 1, and also 50 units of F in Week 1. There are no other scheduled receipts. If 30 units of A are required in Week 8. Find the necessary planned order releases for all components. You can use the attached Excel file for this question.

The £40 par value bond with maturity in two years and £5 semi-annual coupon is trading for £50. If the Yield to maturity is 7%, the bond is:

A) Over-valued

B) Fairly-valued

C) Under-valued

D) Over-valued or undervalued applies only to stocks priced through CAPM.

E) Insufficient Information

The table below shows the number of cars sold last month by seven employees at Concord Motors and their number of years of sales experience.

Management would like to use simple regression analysis to estimate monthly car sales using the number of years of sales experience. The 95% confidence interval for the regression slope is ________.

A. (-1.842, 3.158)

B. (-0.481, 1.797)

C. (0.058, 1.258)

D. (0.408, 0.908)

Delta Air Lines wants to determine if the number of no-shows for flights originating from Detroit is higher than from Minneapolis. A sample of 20 flights is taken from each city, and the number of no-shows is determined for each flight. Which nonparametric test would you use to determine whether the number of no-shows is greater in Detroit?

Multiple Choice

• Wilcoxon signed-rank test

• Kruskal-Wallis test

• Wilcoxon rank sum (Mann-Whitney) test

• Wald-Wolfowitz one-sample runs test

Twenty customers are randomly chosen, and each is given a sample of Nut Butter ice cream to taste. The customers rank the taste of the ice cream on a 10-point scale. Each is then given a sample of Chewy Gooey ice cream to taste and rank on a 10-point scale. Based on the 20 customers’ ratings of each flavor, the research analyst conducting the survey wishes to determine if one flavor is preferred over the other. Which nonparametric test would you use to determine if there is a difference in the ratings?

Multiple Choice

• Wald-Wolfowitz one-sample runs test

• Kruskal-Wallis test

• Wilcoxon rank sum (Mann-Whitney) test

• Wilcoxon signed-rank test

Two formulations of a certain coating, designed to inhibit corrosion, are being tested. For each of eight peoples, half the pipe is coated with formulation A and the other half is coated with formulation B. Each pipe is exposed to a salt environment for 500 hours. Afterward, the corrosion loss is measured for each formulation on each pipe and the results are shown below. Can you conclude that the mean amount of corrosion differs between the two formulation? Setup the test and show your p-value.

A researcher is interested to learn if there is a linear relationship between the hours in a week spent exercising and a person’s life satisfaction. The researchers collected the following data from a random sample, which included the number of hours spent exercising in a week and a ranking of life satisfaction from 1 to 10 ( 1 being the lowest and 10 the highest).

Find the mean hours of exercise per week by the participants.

Find the variance of the hours of exercise per week by the participants.

Determine if there is a linear relationship between the hours of exercise per week and the life satisfaction by using the correlation coefficient.

Describe the amount of variation in the life satisfaction ranking that is due to the relationship between the hours of exercise per week and the life satisfaction.

Develop a model of the linear relationship using the regression line formula.

Insomnia has become an epidemic in the United States. Much research has been done in the development of new pharmaceuticals to aide those who suffer from insomnia. Alternatives to the pharmaceuticals are being sought by sufferers. A new relaxation technique has been tested to see if it is effective in treating the disorder. Sixty insomnia sufferers between the ages of 18 to 40 with no underlying health conditions volunteered to participate in a clinical trial. They were randomly assigned to either receive the relaxation treatment or a proven pharmaceutical treatment. Thirty were assigned to each group. The amount of time it took each of them to fall asleep was measured and recorded. The data is shown below. Use the appropriate t-test to determine if the relaxation treatment is more effective than the pharmaceutical treatment at a level of significance of 0.05.

A researcher is interested to learn if there is a relationship between the level of interaction a women in her 20s has with her mother and her life satisfaction ranking. Below is a list of women who fit into each of four level of interaction. Conduct a One-Way ANOVA on the data to determine if a relationship exists.

Is there a relationship between handedness and gender? A researcher collected the following data in hopes of discovering if handedness and gender are independent (Ambidextrous individuals were excluded from the study). Use the Chi-Square test for independence to explore this at a level of significance of 0.05.

A researcher is interested in studying the effect that the amount of fat in the diet and amount of exercise has on the mental acuity of middle-aged women. The researcher used three different treatment levels for the diet and two levels for the exercise. The results of the acuity test for the subjects in the different treatment levels are shown below.

Perform a two-way analysis of variance and explain the results. (Show all work to receive full credit)

Find the effect size for each factor and the interaction and explain the results. (Show all work to receive full credit)