Exercise 6-1 Computing unit and inventory costs under absorption costing LO P1

Trio Company reports the following information for the current year, which is its first year of operations.

Exercise 6-4 Variable costing income statement LO P2

Kenzi Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,075 kayaks and sold 825. at a price of $1,075 each. At this first year-end, the company reported the following income statement information using absorption costing.
  

Additional Information

Product cost per kayak totals $425, which consists of $325 in variable production cost and $100 in fixed production cost—the latter amount is based on $107,500 of fixed production costs allocated to the 1,075 kayaks produced.

The $220,000 in selling and administrative expense consists of $75,000 that is variable and $145,000 that is fixed.

Required

1. Prepare an income statement for the current year under variable costing.

The price of all new editions of Huawei tablets is normally distributed with mean 1250 S.R.

and standard deviation 400 S.R. What is the probability that a sample of 100 tablets will have a sample mean that is more than 1300 S.R.?

A perfectly competitive market is characterized by every firm having the following cost structure: C = 100 + q². In long-run equilibrium, what is the market price?

What is the approximate modified duration of a 22-year bond, making semiannual coupon payments, with a coupon rate of 5% and a current price of 69.18 per 100 of par value, considering a 50 bps change in discount rate?

Upsetfowl inC++

knock­off version of the Angry Birds game. The starter program is a working first draft of the game.

1. Correct the first FIXME by moving the intro text to a function named PrintIntro. Development suggestion: Verify the program has the same behavior before continuing.

2. Correct the second FIXME. Notice that the function GetUsrInpt will need to return two values: fowlAngle and fowlVel.

3. Correct the third FIXME. Notice that the function LaunchFowl only needs to return the value fowlLandingX, but needs the parameters fowlAngle and fowlVel.

4. Correct the fourth FIXME. Notice that the function DtrmnIfHit only needs to return the value didHitSwine, but needs the parameters fowlLandingX and swineX. The main should now look like the following code and the program should behave the same as the first draft: intmain(){ doublefowlAngle=0.0;

//angleoflaunchoffowl(rad) doublefowlVel=0.0;//velocityoffowl(m/s) doubleswineX=0.0;//distancetoswine(m) doublefowlLandingX=0.0;

//fowl’shoriz.dist.fromstart(m) booldidHitSwine=false;

//didhittheswine? srand(time(0)); swineX=(rand()%201)+50; PrintIntro(); GetUsrInpt(swineX,fowlAngle,fowlVel); fowlLandingX=LaunchFowl(fowlAngle,fowlVel); didHitSwine=DtrmnIfHit(fowlLandingX,swineX); return0; }

5. Modify the program to continue playing the game until the swine is hit. Add a loop in main that contains the functions GetUsrInpt, LaunchFowl, and DtrmnIfHit.

6. Modify the program to give the user at most 4 tries to hit the swine. If the swine is hit, then stop the loop. Here is an example program execution (user input is highlighted here for clarity):

WelcometoUpsetFowl! TheobjectiveistohittheMeanSwine. TheMeanSwineis84metersaway. Enterlaunchangle(deg):45 Enterlaunchvelocity(m/s):30 Time 1 x= 0 y= 0 Time 2 x= 21 y= 16 Time 3 x= 42 y= 23 Time 4 x= 64 y= 20 Time 5 x= 85 y= 6 Time 6 x=106 y=-16 Missed'em...

TheMeanSwineis84metersaway. Enterlaunchangle(deg):45 Enterlaunchvelocity(m/s):25 Time 1 x= 0 y= 0 Time 2 x= 18 y= 13 Time 3 x= 35 y= 16 Time 4 x= 53 y= 9 Time 5 x= 71 y= -8 Hit'em!!!

Inventory Costing Methods-Periodic Method The following information is for the Bloom Company for 2012; the company sells just one product:

At December 31, 2012, there was an ending inventory of 360 units. Assume the use of the periodic inventory method. Calculate the value of ending inventory and the cost of goods sold for the year using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost method.

Do not round until your final answers. Round your answers to the nearest dollar.

Answer the following questions:

1. Why do some firms practice price discrimination? Why do other firms practice price non-discrimination?
   
2. Describe the differences between price non-discrimination and (i) first degree price discrimination, (ii) second degree price discrimination, (iii) third degree price discrimination, and (iv) peak load pricing. Provide a supporting example in each of these four cases. Note the market structure conditions in which each can apply, and explain the expected welfare outcomes in each case.

Problem 4. Consider ϕ : (Z100, +100) → (Z100, +100) defined by ϕ([x]100) = [41x + 19]100. a.) Show that ϕ is well-defined. b.) Use the fact that 61 · 41 = 2501 to argue that the function ϕ is one-to-one. c.) Is ϕ onto? Why or why not. Suppose that y is in the image of ϕ, find an element x so that ϕ(x) = y. [The answer will be dependent on the value of y.] Then prove that the found element works. d.) Is ϕ a homomorphism?

Shrieves Casting Company is considering adding a new line to its product mix, and the company hires you, a recently business school graduate, to conduct capital budgeting analysis. The production line would be set up in unused space in Shrieves' main plant. The machinery’s invoice price would be approximately $200,000; another $10,000 in shipping charges would be required; and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and would be a class 8 with a 20% CCA rate. The machinery is expected to have a salvage value of $25,000 after 4 years of use.                                                                                                                                                                                                              

The new line would generate incremental sales of 1,250 units per year for four years at an incremental cost of $100 per unit in the first year, excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are expected to increase by 3% per year due to inflation. Further, to handle the new line, the firm’s net operating working capital would have to increase by an amount equal to 12% of sales revenues. The firm’s tax rate is 28%, and its overall weighted average cost of capital is 10 percent. Suppose the firm had spent $100,000 last year to rehabilitate the production line site.Assume that the plant space could be leased out to another firm at $25,000 a year.     

What is the project's after-tax NPV? Should the project proceed? Prepare a report including capital budgeting, risk analysis and comments. ( I appreciate it if you give me the detail of calculating, I have a problem in calculating that. )

Mini Case Ch. 11

Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The production line would be set up in unused space in Shrieves’s main plant. The machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. The machinery has an economic life of 4 years, and Shrieves has obtained a special tax ruling that places the equipment in the MACRS 3-year class. The machinery is expected to have a salvage value of $25,000 after 4 years of use.

The new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. Each unit can be sold for $200 in the first year. The sales price and cost are both expected to increase by 3 percent per year due to inflation.

Further, to handle the new line, the firm’s net operating working capital would have to increase by an amount equal to 12 percent of sales revenues. The firm’s tax rate is 25 percent, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project r, is 10%.

G. calculate the project cash flows for each year. Based on these cash flows and the average project cost of capital, what the project’s NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?