Questions
You manage a cable company that offers 2 channels - NBC and Fox. You face 2...

You manage a cable company that offers 2 channels - NBC and Fox. You face 2 types of customers (type A and type B) and there are 100 customers of each type. Their respective values for each channel are:

Type A Type B
NBC $10 $15
Fox $3 $7

Suppose that you sell each channel separately. You should set a price of $_____ for NBC and a price of $______ for Fox.

In: Economics

A very successful car washing shop has roughly 2.4 million dollar revenue every year. Since this...

A very successful car washing shop has roughly 2.4 million dollar revenue every year. Since this is quite a large amount of money for a car washing shop, the IRS (tax people) wants to check whether this establishment is laundering money (sounds familiar?); however, due to the limited resources, they want to be 95% confident in their decision; thus, they send an investigator to record the daily number of customers and record down how much that each customers have to pay on average for the service. The investigator came back and reported that there are roughly 2,000 customers for the month and each one of them paying roughly 80 dollars on average for the services with a standard deviation of 30 dollars. Given this information, what is the approximate probability that the car washing shop can achieve it current claimed revenue and what would be your conclusion here about the legitimacy of this car washing shop (i.e whether they are laundering money or not)?

In: Statistics and Probability

Details of Notes Receivable and Related Entries Gen-X Ads Co. produces advertising videos. During the current...

Details of Notes Receivable and Related Entries

Gen-X Ads Co. produces advertising videos. During the current year ending December 31, Gen-X Ads received the following notes:

Date Face Amount Term Interest Rate
1. Apr. 10 $84,000 60 days 4 %
2. June 24 18,000 30 days 6
3. July 1 81,000 120 days 6
4. Oct. 31 81,000 60 days 5
5. Nov. 15 90,000 60 days 6
6. Dec. 27 144,000 30 days 4

Required:

Assume 360 days in a year.

1. Determine for each note (a) the due date and (b) the amount of interest due at maturity, identifying each note by number.

Note (a) Due Date (b) Interest Due at Maturity
(1) June 9 $
(2) July 24
(3) Oct. 29
(4) Dec. 30
(5) Jan. 14
(6) Jan. 26

Feedback

Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.

Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.

Cash received will include the maturity value of the note.

Learning Objective 6.

2. Journalize the entry to record the dishonor of Note (3) on its due date. If an amount box does not require an entry, leave it blank or enter "0".

Accounts Receivable
Notes Receivable
Interest Revenue

Feedback

Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.

Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.

Cash received will include the maturity value of the note.

Learning Objective 6.

3. Journalize the adjusting entry to record the accrued interest on Notes (5) and (6) on December 31.

Dec. 31 Interest Receivable
Interest Revenue

4. Journalize the entries to record the receipt of the amounts due on Notes (5) and (6) in January. If an amount box does not require an entry, leave it blank or enter "0".

Note 5 Cash
Notes Receivable
Interest Receivable
Interest Revenue
Note 6 Cash
Notes Receivable
Interest Receivable
Interest Revenue

Feedback

Count the number of days in each month until the total number of days is reached for the term of the note and this will be the due date. Interest is not charged on the first day of the note.

Typically, the maker of a dishonored note fails to pay the note on the due date. A company that holds a dishonored note transfers the face amount of the note plus any interest due back to an accounts receivable account. Interest revenue is not dependent on receiving the interest at this point.

Cash received will include the maturity value of the note.

Learning Objective 6.

In: Accounting

Fundamentals of cost and management accounting Classwork on breakeven analysis Question 1 GPZ sells cupcakes for...


Fundamentals of cost and management accounting

Classwork on breakeven analysis

Question 1

GPZ sells cupcakes for $2. Material per unit costs $0.10. Variable labour cost is $0.25. Variable other manufacturing costs is $0.35. Monthly fixed costs are $12,000.

Required

  1. Calculate the breakeven point.
  2. Calculate the volume required to earn $30,000.
  3. How does your analysis change if you learn that the cupcakes are sold through agents who charge a commission of $1 per each 100 cupcakes sold?

Question 2

A road construction company generates on average $500,000 of revenue for each kilometre of road built. The variable costs per kilometre built are made up of fuel ($10,000), direct labour ($40,000), vehicle maintenance ($20,000), other variable vehicle costs ($55,000), and materials ($225,000). The monthly fixed costs of the company are $1.5 million.

Required

1) Calculate the breakeven point in kilometres of road built per month.

2) Calculate the breakeven point in dollar revenue per month.

3) Calculate the contribution margin percentage.

Question 3

APP operates a beauty salon. Average revenue per customer is $200. Monthly fixed costs are $45,000. Variable costs in last month were in total $78,000. During that month APP had 1,000 customers.

Required

  1. Calculate the breakeven point.
  2. Calculate the contribution margin ratio.
  3. What was the profit last month?

Question 4

Aisha operates a children’s nursery. Her monthly fixed costs are AED60,000. Her revenue per month per child is AED1,600. Variable costs per month are AED200 per child.

Required

  1. Calculate the breakeven point in units
  2. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000?
  3. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000 and she is liable to 50% income tax?
  4. How many children need to attend the nursery if she wants to make a monthly profit of AED20,000 and she is liable to 30% income tax?



In: Accounting

In recent times, with mortgage rates at low levels, financial institutions have had to provide more...

In recent times, with mortgage rates at low levels, financial institutions have had to provide more customer convenience. One of the innovations offered by Coastal National Bank and Trust is online entry of mortgage applications. Listed below are the times, in minutes, for eight customers to complete the application process for a 15-year fixed-rate mortgage and the times for nine customers to complete an application for a 30-year fixed-rate mortgage.

15 years, fixed rate 41 36 42 39 36 48 49 38
30 years, fixed rate 21 27 36 20 19 21 39 24 22

State the decision rule. Use the 0.05 significance level. (Negative amounts should be indicated by a minus sign. Round your answer to 3 decimal places.)

H0: The distributions are the same.
H1: The 30-year distribution is smaller or to the left.

Complete the following table. (Round your answer to 1 decimal places.)

What is the Wilcoxon rank-sum test value, at the 0.05 significance level? (Round your answer to 2 decimal places.)

At the 0.05 significance level, is it reasonable to conclude that it takes less time for those customers applying for the 30-year fixed-rate mortgage?

In: Statistics and Probability

US Bank has recorded the number of customers who used a downtown ATM during the noon...

US Bank has recorded the number of customers who used a downtown ATM during the noon hour (variable of interest) on 21 randomly selected workdays. The data is given below,
16, 17, 12, 27, 22, 28, 15, 16, 29, 22, 11, 19, 27, 23, 18, 24, 21, 11, 40, 42, 43.
Please show your complete manual work, use statistical notations wherever possible, and do not classify the data in answering the following questions.
​a. Compute the Sample Average of customers using ATM during the noon hour.
b. Compute the 85th percentile of the above raw data (according to the procedure discussed, and explain what your answer means in the context of this problem and plain English. No generic definition please.
c. Compute the values of Sample Variance and Standard Deviation of number of customers using ATM during the noon hour on the randomly selected 21 weekdays.
d. Compute the values of 25th and 75th percentiles. Find the value of Interquartile Deviation (range) of the above raw data.
e. What is (are) the value of mode?
f. Compute the Coefficient of Skewness for the above raw data. Explain what it means in the context of this problem.
g. Find the value of Coefficient of Variation for the above raw data.
What could be the main objective US Bank for computing the above sample summaries?

In: Economics

2. As an investment manager, you frequently make decisions about investing in stocks versus other types...

2. As an investment manager, you frequently make decisions about investing in stocks versus other types of investments, and about types of stocks to purchase.

  1. You have noticed that investors tend to invest more heavily in stocks after interest rates have declined. You are considering this strategy as well. Is it rational to invest more heavily in stocks once interest rates have declined? 3 marks       
  1. Assume that you are about to select a specific stock that will perform well in response to an expected runup in the stock market. You are very confident that the stock market will perform well in the near future. Recently, a friend recommended that you consider purchasing stock of a specific firm because it had decent earnings over the last few years, it has a low beta (reflecting a low degree of systematic risk), and its beta is expected to remain low. You normally rely on beta as a measurement of a firm’s systematic risk. Should you seriously consider buying that stock? Explain. 3 marks
  1. You are considering an investment in an initial public offering (IPO) by Arunaxmi Co., which has performed very well recently, according to its financial statements. The firm will use some of the proceeds from selling stock to pay off some of its bank loans. How can you apply stock valuation models to estimate this firm’s value, when its stock was not publicly traded? Once you estimate the value of the firm, how can you use this information to determine whether to invest in it? What are some limitations involved in estimating the value of this firm?4 marks

In: Finance

Test the hypotheses that 1) systolic pressure [and 2) diastolic pressure, for practice] differs between men and women, with an α of 0.05 for both. What test would be most appropriate and why?

male

1st Systolic

1st Diastolic

2nd Systolic

2nd Diastolic

1

132

74

132

82

2

108

70

108

74

3

124

78

134

78

4

116

42

116

48

5

118

76

116

70

6

128

80

128

80

7

132

90

130

92

8

106

64

110

64

female

1

168

46

156

52

2

198

82

192

84

3

110

74

110

76

4

170

94

168

100

5

142

58

140

52

6

168

52

172

54

7

90

32

82

0

Test the hypotheses that 1) systolic pressure [and 2) diastolic pressure, for practice] differs between men and women, with an α of 0.05 for both. What test would be most appropriate and why? Are the results significant? State your conclusions.

In: Statistics and Probability

Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April1. The company provides stables, care...

Spicewood Stables, Inc. was established in Dripping Springs, Texas, on April1. The company provides stables, care for animals, and grounds for riding and showing horses. You have been hired as the new assistant controller. The following transactions for April are provided for your review.
1. Received contributions from investors and issued $200,000 of common stock on April 1.
2. Built a barn and other buildings for $142,000. On April 2, the company paid half the amount in cash on April 1 and signed a three-year note payable for the balance.
3. Provided $16,000 in animal care services for customers on April 3, all on credit.
4. Rented stables to customers who cared for their own animals; received cash of $13,000 on April 4.
5. On April 5, received $1,500 cash from a customer to board her horse in May, June, and July (record as Unearned Revenue).
6. Purchased hay and feed supplies on account on April 6 for $3,000.
7. Paid $1,700 on accounts payable on April 7 for previous purchases.
8. Received $1,000 from customers on April 8 on accounts receivable.
9. On April 9, prepaid a two-year insurance policy for $3,600 for coverage starting in May.
10. On April 28, paid $800 in cash for water utilities incurred in the month.
11. Paid $14,000 in wages on April 29 for work done this month.
12. Received an electric utility bill on April 30 for $1,200 for usage in April; the bill will be paid next month.
2.

If you are completing this requirement manually, set up appropriate T-accounts. All accounts begin with zero balances. Summarize the journal entries from requirement 1 referencing each transaction in the accounts with the transaction number. Show the unadjusted ending balances in the T-accounts.

3. Prepare an unadjusted trial balance as of April 30.

4. Refer to the revenues and expenses shown on the unadjusted trial balance. Based on this information, calculate preliminary net income. (Round your Net Profit Margin answer to 1 decimal place.)

  

In: Accounting

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment;...

Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.

Transactions
Oct. 1 Paid rent for the month, $2,100.
3 Paid advertising expense, $650.
5 Paid cash for supplies, $1,350.
6 Purchased office equipment on account, $9,300.
10 Received cash from customers on account, $15,600.
15 Paid creditors on account, $3,360.
27 Paid cash for miscellaneous expenses, $500.
30 Paid telephone bill (utility expense) for the month, $300.
31 Fees earned and billed to customers for the month, $51,230.
31 Paid electricity bill (utility expense) for the month, $840.
31 Withdrew cash for personal use, $1,650.

Journalize the above selected transactions for October 2019 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.

In: Accounting