Use computer software packages, such as Minitab or Excel, to solve this problem.

The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). Values of y, x1, and x2 are expressed in thousands of dollars.

The estimated regression equation was

a. What is the estimated gross revenue for a week where $3.5 thousand is spent on television (x1 = 3.5) and $1.8 thousand is spent on newspaper advertising (x2 = 1.8)  (to 3 decimals)?

b. Provide a 95% prediction interval for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a) (to 2 decimals).

( ___ , ___ )

Break-Even Analysis

Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $52,900. Costs and expenses for the year were as follows:

Assume that 60% of the cost of revenue and 25% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts).

a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number.
_______ accounts

b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar.
_______$ per account

I HAVE TRIED 64 AND 65 AS THE ANSWER TO THE FIRST PART OF THE QUESTION. I HAVE ALSO ASKED OTHER EXPERTS BUT NOTHING IS COMING UP RIGHT. PLEASE HELP

Externalities & with some Implications of Elasticity

1. Suppose the demand for cigarettes is represented by the equation P = 20 - .04Q and the supply is represented by P = 5 + .01Q where P is in dollars and Q is in billions. Cigarettes are also a leading cause of cancer. So many people want to tax cigarettes to discourage smoking. Thanks to this argument and the need for tax revenues suppose you raise the tax to $5 per package.
   1. What will be the new quantity?
   2. How much tax revenue will you get?
   3. What will be the new price to the consumers?
   4. What will be the new price to the sellers?
   5. Compare the producer surplus and consumer surplus to when there were no taxes.
   6. To get more tax revenues suppose you raise the tax from $5 to $10 per package, how much tax revenue would you get? Did this strategy to get more tax revenue work?
   7. If you raise the tax to $15 how much tax revenue will you get?

Segment Analysis McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information: 20Y5 20Y4 Retail $219,600 $244,000 Wholesale 179,400 156,000 Total revenue $399,000 $400,000 Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers. McHale Company Horizontal Analysis For the Years 20Y4 and 20Y5 20Y5 20Y4 Difference - Amount Difference - Percent Retail $219,600 $244,000 $ % Wholesale 179,400 156,000 % Total revenue $399,000 $400,000 $ % Prepare a vertical analysis of the segments. If required, round percentages to one decimal place. McHale Company Vertical Analysis For the Years 20Y4 and 20Y5 20Y5 Amount 20Y5 Percent 20Y4 Amount 20Y4 Percent Retail $219,600 % $244,000 % Wholesale 179,400 % 156,000 % Total revenue $399,000 % $400,000 % Submit AnswerTry Another Version

Budget Variance Analysis

Hertzler Corporation uses customers served as its measure of activity. During November, the company budgeted for 23,000 customers, but actually served 25,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $7.25q
Wages and salaries: $30,500 + $2.30q
Supplies: $0.80q
Insurance: $6,200
Miscellaneous: $8,750 + $0.30q
The company reported the following actual results for November:

  

Required:

Prepare a net income report showing the company's revenue and spending variances for November. Label each variance as favorable (F) or unfavorable (U). Make sure it is formatted based on an income statement and show the actual and the budgeted side by side. (2 questions in 1 – Create Budget, then Compare Budget with Actual results, which will allow to figure the amount of variance and if it is Favorable or Unfavorable)

1.The price elasticity of demand for a liver transplant is perfectly inelastic. The price elasticity of demand is ___________.

A. zero

B. one

C. infinity

D. undefined

2. The price of car batteries increases by 10 percent and the quantity demanded decreases by 10 percent. What is the price elasticity of car batteries?

A. Elastic, and revenue will decrease

B. Elastic, and revenue will increase

C. Inelastic, and revenue will increase

D. Unit elastic, and revenue will not change

3.Assume that the demand for unskilled workers is inelastic. What will the imposition of an effective minimum wage do?

A. Increase total income of minimum wage earners and, as time passes, increase unemployment

B. Increase total income of minimum wage earners and, as time passes, decrease unemployment

C. Decrease total income of minimum wage earners and, as time passes, increase unemployment

D. Decrease total income of minimum wage earners and, as time passes, decrease unemployment

The difference between actual revenues and expenses and the flexible budget is known as​ the:

A. flexible budget variance

B. master budget variance

C. static budget variance

D. volume variance

Identify which responsibility center would best describe the​ following:

The production line of American​ Apparel, where clothing is manufactured.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

The subscription sales department of the New York Times.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

The corporate division of​ Disney, Inc. responsible for​ revenues, costs, and managing its​ division's assets.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

A Target​ store, which is part of the national store​ brand, and reports its own revenues and costs.

A. Revenue Center

B. Cost Center

C. Profit Center

D. Investment Center

1. A company purchased a building at the beginning of the year for $200,000 and is using straight-line depreciation to depreciate it over 20 years. The salvage value of the building is $50,000. Prepare the adjusting entry to record the depreciation expense for the current year.
   1. DEBIT: Accumulated Depreciation for $5,000; CREDIT: Depreciation Expense for $5,000
   2. DEBIT: Accumulated Depreciation for $7,500; CREDIT: Depreciation Expense for $7,500
   3. DEBIT: Depreciation Expense for $5,000; CREDIT: Accumulated Depreciation for $5,000
   4. DEBIT: Depreciation Expense for $7,500; CREDIT: Accumulated Depreciation for $7,500

2. A company paid cash for equipment in the amount of $17,000. Prepare the general journal entry.
   1. DEBIT: Cash for $17,000; CREDIT: Equipment for $17,000
   2. DEBIT: Equipment for $17,000; CREDIT: Depreciation expense for $17,000
   3. DEBIT: Equipment for $17,000; CREDIT: Note Payable for $17,000
   4. DEBIT: Equipment for $17,000; CREDIT: Cash for $17,000

3. To increase a revenue account, you need to ____________ the account.
   1. Debit
   2. Credit

4. A company collected a $500 receivable related to a previously recorded sale. Prepare the general journal entry.
   1. DEBIT: Cash for $500; CREDIT: Revenue for $500
   2. DEBIT: Revenue for $500; CREDIT: Cash for $500
   3. DEBIT: Cash for $500; CREDIT: Accounts Receivable for $500
   4. DEBIT: Accounts Receivable for $500; CREDIT: Cash for $500

5. A four-year insurance policy in the amount of $40,000 was purchased one year ago. What is the adjusting entry to record insurance expense for the current year?
   1. DEBIT: Prepaid Insurance for $40,000; CREDIT: Insurance Expense for $40,000
   2. DEBIT: Prepaid Insurance for $10,000; CREDIT: Insurance Expense for $10,000
   3. DEBIT: Insurance Expense for $40,000; CREDIT: Prepaid Insurance for $40,000
   4. DEBIT: Insurance Expense for $10,000; CREDIT: Prepaid Insurance for $10,000

6. A company received $18,000 from a customer on December 1, 20X1 for future work to be performed and recorded the receipt of cash and the liability to complete the work (credit to unearned revenue). As of the year ended December 31, 20X1, one-third of the work has been completed. Record the necessary adjusting journal entry.
   1. DEBIT: Unearned Revenue for $6,000; CREDIT: Revenue for $6,000
   2. DEBIT: Unearned Revenue for $12,000; CREDIT: Revenue for $12,000
   3. DEBIT: Revenue for $6,000; CREDIT: Unearned Revenue for $6,000
   4. DEBIT: Revenue for $12,000; CREDIT: Unearned Revenue for $12,000

7. To decrease an asset account, you need to ____________ the account.
   1. Debit
   2. Credit

8. A company declared dividends of $1.50/share when there were 8,000 shares of stock outstanding. The dividends will be paid one month from now. Prepare the general journal entry to record the declaration of the dividends.
   1. DEBIT: Cash for $12,000; CREDIT: Dividends for $12,000
   2. DEBIT: Dividends for $12,000; CREDIT: Cash for $12,000
   3. DEBIT: Dividends for $12,000; CREDIT: Dividends Payable for $12,000
   4. DEBIT: Dividends Payable for $12,000; CREDIT: Cash for $12,000

9. A company pays a $2,000 cash dividend that was declared and initially recorded last month. Prepare the general journal entry.
   1. DEBIT: Cash for $2,000; CREDIT: Dividends for $2,000
   2. DEBIT: Dividends for $2,000; CREDIT: Cash for $2,000
   3. DEBIT: Dividends for $2,000; CREDIT: Dividends Payable for $2,000
   4. DEBIT: Dividends Payable for $2,000; CREDIT: Cash for $2,000

10. At the end of the year, there is $6,800 worth of employee wages that have been earned by the employees, but not yet paid. Record the adjusting journal entry.
    1. DEBIT: Wages Payable for $6,800; CREDIT: Wage Expense for $6,800
    2. DEBIT: Cash for $6,800; CREDIT: Wage Expense for $6,800
    3. DEBIT: Wage Expense for $6,800; CREDIT: Cash for $6,800
    4. DEBIT: Wage Expense for $6,800; CREDIT: Wages Payable for $6,800

T/F   

______ 21.    A member may omit answering a question on a tax return if reasonable grounds exist for omitting the answer to a question applicable to the taxpayer.

SSTS: ___________________________________________

______ 22. A member should not omit an answer to a question because it might prove disadvantageous to the taxpayer.

SSTS: ___________________________________________

______ 23.   If reasonable grounds do not exist for omission of an answer to an applicable question, a taxpayer is not required to provide on the return an explanation of the reason for the omission.

SSTS: ___________________________________________

______ 24. A member shall make a reasonable effort to obtain from the taxpayer that the taxpayers has maintained books and records or substantiating documentation to support reported deduction or tax treatments of items on a tax return.   SSTS: ___________________________________________

______ 25. A member can use estimates if fire, computer failure, or natural disaster has destroyed the taxpayer’s records.

SSTS: ___________________________________________

______ 26. A practitioner may endorse or otherwise negotiate any check issued to a client if the client has authorized the practitioner to do so.

230: ___________________________________________

______ 27. Tax advisors should provide clients with the highest quality representation concerning Federal tax issues by adhering to best practices in providing advice and in preparing or assisting in preparation of a submission to the Internal Revenue Service.

230: ___________________________________________

_____ 28. An enrolled agent has the same ability to practice before the Internal Revenue Service as does an attorney or CPA.

       230: ___________________________________________

______ 29. Practice before the Internal Revenue Service include preparing documents, filing documents, corresponding and communicating with the Internal Revenue Service and representing a client at conferences, hearings, and meetings.

230: ___________________________________________

______ 30. Enrolled Agents, enrolled retirement plan agents, and registered tax return preparers must renew their status with the Internal Revenue Service to maintain eligibility to practice before the IRS.

230: ___________________________________________

31. A CPA may be denied to practice before the IRS if he or she has not filed their own individual income tax returns.

230: ___________________________________________

______ 32. An employee of the Mississippi Department of Revenue may not practice before the Internal Revenue Service if such employment may disclose facts or information applicable to Federal tax matters.

230: ___________________________________________

______ 33. In order to practice before the Internal Revenue Service, an individual must be twenty-one years old.

230: ___________________________________________

______ 34. An individual must pass a written examination administered by the Internal Revenue Service in order to receive status as an enrolled agent.

230: ___________________________________________

______ 35. An enrolled agent must complete a minimum of 72 hours of continuing education credit during an enrollment cycle with a minimum of 16 during each enrollment year.

230: ___________________________________________

______ 36. An enrolled agent must complete two hours of ethics or professional credit each enrollment year.

230: ___________________________________________

______ 37. A practitioner who, having been retained by a client with respect to a matter administered by the Internal Revenue Service, knows that the client has not complied with the revenue laws of the United States or has made an error in or omission from any return, document, affidavit, or other paper which the client submitted or executed under the revenue laws of the United States, must advise the client promptly of such noncompliance, error, or omission.

230: ___________________________________________

______ 38. A practitioner should always exercise due diligence in determining the correctness or oral or written representations made by the practitioner to the Department of the Treasury.

230: ___________________________________________

______ 39. A practitioner should not publish the availability of a written schedule of fees and disseminate since it may be considered to be advertising.

230: ___________________________________________

______ 40. A practitioner should refrain from any type of advertising.

230: ___________________________________________