If the revenue of a segment does not cover its variable costs and its traceable fixed costs, that segment should usually be dropped. True or False?

A complete and detailed income statement does need not be prepared as part of a differential cost analysis. True or False?

When a balanced scorecard is correctly developed and implemented, the four performance measures should be separate and independent of each other so that the bad performance of one measure will not result in the bad performance of another performance measure. True or False?

If Blister Corp. has a number of investment centers of different sizes, residual income should not be used to rank the financial performance of those divisions. Instead, return on investment (ROI) should be used. True or False?

Find the maximum profit given by the revenue and cost functions​ below, where x is in thousands of units and​ R(x) and​ C(x) are in thousands of dollars.

R(x)= 115x-x^2

c(x)=1/3x^3-6x^2+91x+38

A. 682 thousand dollars

B. 470 Thousand dollars

C. 394 thousand dollars

D. 250 Thousand dollars

As we know that generally economic exposure can be managed by balancing sensitivity of revenue and expenses to exchange rate fluctuations. To accomplish this, however, the firm must first recognize how its revenue and expenses are affected by exchange rate fluctuations which in turn will affect the firm’s future cash flow. For some firms, revenue is more susceptible. These firms are most concerned that their home currency will appreciate against foreign currencies since the unfavourable effects on revenue will more than offset the favourable effects on expenses. Conversely, firms whose expenses are more sensitive to exchange rates than their revenue are most concerned that their home currency will depreciate against foreign currencies. When firms reduce their economic exposure, they reduce not only these unfavourable effects but also the favourable effects if the home currency value moves in the opposite direction. After comprehending the economic exposure assessment from the various perspectives, you are required to answer all the questions.

Smith Co. operates business in the United States and New Zealand. In attempting to assess its economic exposure, it compiled the following information.

i.    Smith’s U.S. sales are slightly influenced by the New Zealand dollar (NZ$) value, due to confronts rivalry from New Zealand exporters. It estimates the U.S. sales based on the following three exchange rate scenarios:

                                                                               Revenue from U.S. Business

                        Exchange Rate of NZ$                             (in millions)

                                   NZ$ = $.48                                              $100

                                   NZ$ =   .50                                                105

                                   NZ$ =   .54                                                110

      ii.    Revenues for Smith Co. in New Zealand dollars are projected to be NZ$600 million.

      iii.   Cost of goods sold is projected at $60 million from the U.S. materials purchase and NZ$100 million from the New Zealand materials purchase.

      iv. Fixed operating expenses are valued at $30 million.

v.   Variable operating expenses are projected at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount).

vi. Interest expense is projected at $20 million on prevailing U.S. loans, and the company has no existing New Zealand loans.

Questions:

1. Generate a forecasted income statement for Smith Co. under each of the three exchange rate scenarios.                                                              

Also answer the following questions based on the rubric.                    

2. Discuss how Smith’s projected earnings before taxes are influenced by the vital of exchange rate forecasting. Justify your viewpoints.                                                   
3. Describe how Smith Co. can restruc­ture its operations to minimize the earnings sensitivity to the degree of exchange rate movements without reducing its business volume in New Zealand.                                                                                                   

Disney's Hannah Montana: The Movie opened in April 2009. The ticket sales revenue ($) for a sample of theaters is below. Use it to answer/do the following. 20,200 8,350 10,750 13,900 13,185 10,150 7,300 6,240 4,200 21,400

(a) Estimate the average ticket sales revenue.

(b) Develop a 90% confidence interval for the mean in (a).

(c) Develop a 95% confidence interval for the mean in (a).

(d) Develop a 99% confidence interval for the mean in (a).

(e) If ticket prices were $7.16 on average, estimate the mean number of customers per theater.

(f) The movie was shown in 3,118 theaters. Estimate the number of people who saw the movie

question 1:

The total revenue received from the sale of x units of a product is given by

TRx= -3x^5 + 3/2 x^4+ x/4+ 12square x+ 6y

Find the

1. 1. Average revenue AR.
2. 2. Marginal revenue MR.
3. 3. MR at x = 4.      
4. 4. The actual revenue from selling10^th item.
5. 5. Write down different rule of derivative.

question 2 :

1. Calculate the principle amount borrowed from the bank for 20 months at a rate of 7 3/4 % per annum with interest of 2250 RO. Also find the total amount to be paid back to the bank .

2. Find the rate of interest required for an investment of 2000 RO to earn 320 RO interest over a period of 18 months.

3. A family spends 30 % of their income on mortgage installments of 500 RO per month. Calculate the monthly income of the family.

4. Find the sale price of a car if its cost price is 5500 RO and % loss is 15%.

5. The price of a PC decreases from 60 RO to 55 RO. Express this decrease as a % decrease.

The records of Kingbird’s Boutique report the following data for the month of April.

Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

Please provide explanation

The records of Teal’s Boutique report the following data for the month of April.

Compute the ending inventory by the conventional retail inventory method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)

The records of Ellen's Boutique report the following data for the month of April.

Sales Revenue 95600

Sales Returns 1800

Markups 9500

Markup Cancellations 1400

Markdowns 8600

Markdown Cancellations 2700

Freight on purchases 2100

Purchases (@ Cost) 47200

Purchases (@ sales price) 85800

Purchase Returns (@ cost) 1800

Purchase Returns (@ sales) 2800

Beg Inventory @ cost 36103

Beg. Inventory @ sales 50600

Compute the ending inventory by the conventional retail inventory method

A firm in a perfectly competitive industry knows the following about its costs and revenue. The firm would like to maximize profit and has hired a consultant for advice.

Price           Q of Output              Total Revenue              Total Cost               Total Fixed Cost

P?                  Q?                             7,400                           TC?                           3,300

Total Variable Cost          Average Total Cost          Average Variable Cost         MC                  

       TVC?                                 9                                   3                                5

Part 1. Average Fixed Cost ____

Part 2. Price _____

Part 3: Quantity _____

Part 4. Total Cost _____

Part 5. What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) ____

Part 6. Consultant's Advice:   As a consultant, what advice would you give to this firm:(Choose ONE answer from the following) **worth 5 marks _______

  
1. Firm should do nothing; it is already profit maximizing/loss minimizing

2. Firm should reduce quantity of output

3. Firm should increase quantity of output

4. Firm should shutdown operations

5. The given number set is inconsistent