In 2017, a website reported that only 10% of surplus food is being recovered in the food-service and restaurant sector, leaving approximately 1.5 billion meals per year uneaten. Assume this is the true population proportion and that you plan to take a sample survey of 575 companies in the food service and restaurant sector to further investigate their behavior.

(a)

Show the sampling distribution of

p,

the proportion of food recovered by your sample respondents.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -2.9 to about 3.1.
• The curve enters the viewing window near -2.9 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.1.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 3.1.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about 0.06 to about 0.14.
• The curve enters the viewing window near 0.06 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.10.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.14.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.04 to about 0.04.
• The curve enters the viewing window near -0.04 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.00.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.04.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.03 to about 0.05.
• The curve enters the viewing window near -0.03 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.01.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.05.

(b)

What is the probability that your survey will provide a sample proportion within ±0.03 of the population proportion? (Round your answer to four decimal places.)

(c)

What is the probability that your survey will provide a sample proportion within ±0.015 of the population proportion? (Round your answer to four decimal places.)

You may need to use the appropriate appendix table or technology to answer this question.

In 2017, a website reported that only 10% of surplus food is being recovered in the food-service and restaurant sector, leaving approximately 1.5 billion meals per year uneaten. Assume this is the true population proportion and that you plan to take a sample survey of 535 companies in the food service and restaurant sector to further investigate their behavior.

(a)

Show the sampling distribution of

p,

the proportion of food recovered by your sample respondents.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.03 to about 0.05.
• The curve enters the viewing window near -0.03 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.01.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.05.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about 0.06 to about 0.14.
• The curve enters the viewing window near 0.06 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.10.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.14.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -2.9 to about 3.1.
• The curve enters the viewing window near -2.9 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.1.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 3.1.

A bell-shaped curve is above a horizontal axis labeled p.

• The horizontal axis ranges from about -0.04 to about 0.04.
• The curve enters the viewing window near -0.04 just above the horizontal axis, curves up to the right, and reaches a maximum near 0.00.
• The curve then curves down and to the right until it leaves the viewing window at the same height it entered near 0.04.

(b)

What is the probability that your survey will provide a sample proportion within ±0.03 of the population proportion? (Round your answer to four decimal places.)

(c)

What is the probability that your survey will provide a sample proportion within ±0.015 of the population proportion? (Round your answer to four decimal places.)

Soap Makers International

Several years ago, Ingrid Krause wanted some international expertise and applied for a transfer to her company’s soap division, which is located south of Warsaw, Poland. The soap division manufactures hand soap for use in a large number of settings, from hospitals to luxury hotels. Ingrid was awarded the transfer to the soap division and was assigned to the accounting department. She is responsible for overseeing the costing and probability analysis of the various soaps and soap-making processes. During her tenure in the soap division, there were numerous changes in the number of soaps manufactured and the processes to make the different soaps. Consequently, Ingrid’s position required her to consider changes in the accounting processes to reflect the changes in the soap division’s business.

For several decades, the company’s soap-making process required a large labour force that manufactured and packaged the soap mainly by hand. Local economic changes meant that the labour force that the factory required was not as available as it had been in the past. As a result, the division was experiencing slower processing time, and more snap being rejected during inspections because of quality concerns. To address the issues related to the lack of labour availability, the division’s management decided three years ago that automation was the way to go. Consequently, over the last three years, the soap making processes have changed with the implementation of automation.

The automation of the soap making processes have allowed for a much larger variety of soap and packing, a reduced direct labour force and direct labour costs, and a higher level of traceability of costs to the various soaps because of technological improvements. Soaps made for industrial applications require different ingredients, less time in processing, less time in finishing, and less time in and cheaper packaging than do soaps for the hotel industry. The costs of materials and packaging are directly traceable to the various types of soaps through new software that uses bar codes and counters to trace material costs to the various soaps directly.

Ingrid feels that the current costing system should be revisited. The cost driver for allocation of the overhead costs (such as supervisory salaries and plant utilities) have always been direct labour hours cost. However, given the decline in the use of labour due to automation, Ingrid is questioning its suitability as a basis of allocation. Ingrid would like to explore activity based costing to allocate overhead costs.

Ingrid has gathered cost data for two representative soaps: one sold to hospitals and one sold to hotels. Further, Ingrid has gathered data from the automated system on the amount of time each type of soap spends in the three manufacturing processes: processing, finishing, and packaging. The soap is produced in large batches, consequently, the data are adjusted to reflect the average cost per 100g of soap. The data for type of soap for one month’s production are in Exhibit 1.

REQUIRED

1. Calculate the costs (of direct material, direct labour, and overhead) for each of the two representative types of soap using direct labour as the basis for the allocation of overhead.

EXHIBIT 1 – COSTS FOR ONE MONTH’S PRODUCTION OF SOAP

EXHIBIT 2 – TIME REQUIRED FOR ONE MONTH’S PRODUCTION OF SOAP

1. Given a strip commercial development near Columbia, SC, with the following characteristics: overland flow length = 180 ft on 2.1% grade over asphalt cover (n=0.011); shallow concentrated flow length of 1000 ft on 1.8% grade (paved gutter); drainage area = 5 acres; runoff coefficient = 0.60

1. Sheet flow travel time (minutes) =                           
2. Shallow concentrated flow travel time (minutes) =                              
3. Watershed time of concentration (minutes) =                         
4. 10-year design rainfall intensity (inches/hour) =                                 
5. Runoff peak (cfs) for 10-year design rainfall =                                   

2. Given a 28-acre watershed with the following land use mix: 8 acres of SFR (38% impervious) on HSG-B soils, 5 acres of SFR (30% impervious) on HSG-C soils, and 15 acres of open space (park and playground) in fair condition on HSG-C soils. Watershed time of concentration is 21 minutes. The design return period 24-hour rainfall depth is 5.25 inches.

1. The runoff-weighted average curve number (CN) =                             
2. The area-weighted unit hydrograph peak rate factor (PRF) =                                                                 

c)    The runoff volume from a rainfall of 3.25 inches (watershed inches) =                             

d)   The runoff volume from a rainfall of 0.47 inches (watershed inches) =                             

Your client, Barney Green, and his wife, Edith, attended a two-day conference in Maui related to Barry's work in architecture as a sole proprietor. The Greens went to Hawaii several days early so they could adjust to the jet lag and be ready for the conference. The $8,000 cost of the trip included the following expenses:

First-class airfare $2,500

Hotel (four days) $2,000

Conference fee $1,000 per person

Meals $1,500.

What expenses (if any) can Barney deduct for his business?

Question 1

Rick’s Motel has the following monthly costs in the first five months of 2019:

Month                    Rooms Rented                  Costs

January                            150                        $20,250

February                           160                          21,000

March                               130                          18,750

April                                 144                          19,800

May                                  170                          21,750

Instructions

a.    Identify the fixed and variable cost elements using the high-low method.

b.    The hotel management is doing a projection for June 2019. How many rooms should be rented out in order to break even, if the charge is $150 per room rented?

Identifyassumptions you need to make to prepare financial forecasts.

Discuss the risk of leasing hotel rooms to investors.

1. The Sleep Well Corporation operates many hotels throughout the world. Suppose one of its Chicago hotels is facing difficult times because of the opening of several competing hotels. To accomodate its flight personnel, Air One has offered Sleep Well a contract for the coming year that provides a rate of $75 per night per room for a minimum of 45 rooms for 365 flights. This contract would assume Sleep Well of selling 45 rooms of space nightly, even if some of the rooms are vacant on some nights. Assume zero variable costs. The Sleep Well manager has mixed feelings about the contract. On several peak nights during the? year, the hotel could sell the same space for $175 per room. Suppose the Sleep Well manager signs the contract. What is the opportunity cost of the 45 rooms on October? 20, the night of a big convention of retailers when every nearby hotel room is? occupied? What is the opportunity cost on December? 28, when only 9 of these rooms would be expected to be rented at an average rate of $105??

If the? year-round rate per room averaged $85?, what percentage of occupancy of the 45 rooms in question would have to be rented to make Sleep Well indifferent about accepting the? offer?

PLEASE EXPLAIN HOW YOU GOT THE ANSWER WITH STEPS.

(Solving with excel workbook)

A large corporation must reserve a hotel room block for its annual stockholders' meeting. Based on history, the number of attendees will be normally distributed with mean 4900 and standard deviation 1000. Rooms can be reserved now for a cost of $150/room. If the number of rooms reserved is less than attendance, additional rooms must be reserved at a cost of $250/room. If the number of rooms reserved is greater than attendance, the corporation must indemnify the hotel at the rate of $75 per unused room.

The boss tells you: "I am going to reserve 4300, 4400, 4500, 4600, 4700, 4800, 4900, 5000, 5100, or 5200 rooms, whichever you recommend. Please give me your recommendation." (first number requested)

Redo the problem: The number attending has a triangular distribution with minimum 2000, most likely value 4900, and maximum value 6900. Again, he boss tells you: "I am going to reserve 4300, 4400, 4500, 4600, 4700, 4800, 4900, 5000, 5100, or 5200 rooms, whichever you recommend. Please give me your recommendation." (second number requested)

For the first part of the problem, what is the chance that the random number sampled from the normal is negative, to 3 significant decimal digits? (third number requested)

Alternative Inventory Methods

Park Company's perpetual inventory records indicate the following transactions in the month of June:

Units Cost/Unit
Inventory, June 1 200 $3.20
Purchases:
      June 3 200 3.50
      June 17 250 3.60
      June 24 300 3.65
Sales:
      June 6 300
      June 21 200
      June 27 150

Required:

1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: If required, round your answers to the nearest dollar.

FIFO

Cost of Goods Sold $ _____________
Ending Inventory $ ______________

LIFO (Round your intermediate calculations and final answers to the nearest cent.)

Cost of Goods Sold $ ___________
Ending Inventory $ _____________

Average cost (In your computations, round new per unit costs to the nearest cent. Round your intermediate computations and final answers to the nearest dollar.)

Cost of Goods Sold $ ___________
Ending Inventory $ ____________