Part A

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each)

Part B

Vinny’s Pizza is famous for making Margherita pizzas and delivers pizzas to the suburb on the Lower North Shore of Sydney in New South Wales. The sales price of a pizza is $10. It is estimated that the company will incur a variable cost of $150000 to make and deliver 25000 pizzas. The company’s estimated fixed costs are $54000.

Required: (Show all calculations)

a)     What is Vinny’s Pizza’s contribution margin ratio?

b)    Calculate Vinny’s Pizza’s break-even point in units (pizzas).

c)     Calculate Vinny’s Pizza’s break-even point in sales dollars.

d)    (i) What is Vinny’s Pizza’s margin of safety ratio?

(ii) How can managers of Vinny’s Pizza use this margin of safety ratio information to manage the profitability of the business?

e)     How many pizzas must the company sell to earn a target profit of $60000? (Total 20 Marks)

Q1: How long did real cowboys live? One answer may be found in the book The Last Cowboys by Connie Brooks (University of New Mexico Press). This delightful book presents a thoughtful sociological study of cowboys in West Texas and Southeastern New Mexico around the year 1890. A sample of 32 cowboys gave the following years of longevity:

(a) Make a stem-and-leaf display for these data. (Use the tens digit as the stem and the ones digit as the leaf.)

stem leaf

4 = ?

5 = ?

6 = ?

7 = ?

8 = ?

9 = ?

Q2: A data set with whole numbers has a low value of 20 and a high value of 96.

Find the class width for a frequency table with seven classes.
Answer: 11  

Find the class limits for a frequency table with seven classes.

Part A

Indicate whether each of the following costs would be classified as direct materials, direct labour, manufacturing overhead, or period cost. (1 Mark each)

Part B

Vinny’s Pizza is famous for making Margherita pizzas and delivers pizzas to the suburb on the Lower North Shore of Sydney in New South Wales. The sales price of a pizza is $10. It is estimated that the company will incur a variable cost of $150000 to make and deliver 25000 pizzas. The company’s estimated fixed costs are $54000.

Required: (Show all calculations)

a)     What is Vinny’s Pizza’s contribution margin ratio?

b)    Calculate Vinny’s Pizza’s break-even point in units (pizzas).

c)     Calculate Vinny’s Pizza’s break-even point in sales dollars.

d)    (i) What is Vinny’s Pizza’s margin of safety ratio?

(ii) How can managers of Vinny’s Pizza use this margin of safety ratio information to manage the profitability of the business?

e)     How many pizzas must the company sell to earn a target profit of $60000? (Total 20 Marks)

According to a book published in 2011, 45% of the undergraduate students in the United States show almost no gain in learning in their first two years of college (Richard Arum et al., Academically Adrift, University of Chicago Press, Chicago, 2011). A recent sample of 1460 undergraduate students showed that this percentage is 31%. Can you reject the null hypothesis at a 10% significance level in favor of the alternative that the percentage of undergraduate students in the United States who show almost no gain in learning in their first two years of college is currently lower than 45%. Use both the p-value and the critical-value approaches. Round your answers for the observed value of z and the critical value of z to two decimal places, and the p-value to four decimal places. zobserved =Enter you answer; z_observed Entry field with incorrect answer p-value =Enter you answer; p-valueEntry field with incorrect answer Critical value =Enter you answer; Critical valueEntry field with incorrect answer now contains modified data Hence we can conclude that the percentage of undergraduate students in the U.S. who show almost no gain in learning in their first two years of college is currently Choose the answer from the menu in accordance to the question statementEntry field with incorrect answer 45%.

Sigma Company, a large manufacturer, is planning to sell an existing subsidiary and use the funds to buy land and build new factory. The proceeds of the sale are likely to be delayed, so the Directors have estimated that 10 million € will be needed in 3 months’ time for a period of 6 months. Given this, the directors have decided that a bank loan would be appropriate as a form of finance rather than equity sources.

After checking that interest rate yield curves in the financial press are normal than inverted, the treasurer is now looking to hedge the interest rate exposure. Traditionally Sigma Company has used forward rate agreements (FRAs) for hedging interest rate risk exposure but the treasurer is now considering using interest rate futures, although he is concerned that futures will not be as good a hedge as the FRAs.

Sigma Company’s bank have offered an FRA on the following terms:

3v9 FRA 7.2 – 7.8%.

Which TWO of the following are possible reasons why the Directors decided that a bank loan was preferable to equity in this case?

Select one or more:

a. The factory will act as security on the loan

b. They believe Modigliani and Miller’s theory of gearing with taxation

c. All equity sources have higher issue costs than the loan

d. The servicing cost of the debt will be lower

Provide complete answers to the following:

The City of Sambaville received a gift of $1,800,000 from a local resident on April 1, 2017, and signed an agreement that the funds would be invested permanently, and that the income would be used to maintain the city cemetery (through the Cemetery Perpetual Care Fund). The following transactions took place during the year ended December 31, 2017.

1. The gift was recorded on April 1.
2. On April 1, 2017, XYZ Company bonds were purchased in the amount of $1,750,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1.
3. On October 1, the semiannual interest was received.
4. From October 1 through December 1, payments were made totaling $17,200 to a lawn service.
5. On December 31, an accrual was made for interest.
6. Also, on December 31, a reading of the financial press indicated that XYZ bonds had a fair value of $1,745,500, exclusive of accrued interest.
7. The books were closed.

Required:

1. Record the transactions on the books of the Cemetery Perpetual Care Fund.
2. Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the Cemetery Perpetual Care Fund for the Year Ended December 31, 2017.
3. Prepare the Balance Sheet for the Cemetery Perpetual Care Fund for the year ended December 31, 2017.

t is a beautiful Indian Summer fall Saturday evening in September. The barbeque pit is lit and the coals are warming and ready for those tasty burgers you are cooking for supper. The phone rings just as you are about to put the burgers on the fire. It’s work! You are requested to report immediately to El Centro Medical Center. There has been a horrific airplane crash at DFW. Two planes were involved. One plane was taking off and the other landing. The impossible happened. They collided into each other just as each was a few yards off of the runway. There are approximately 500 passengers plus the crews. Smoke covers the scene, not a good sign. Emergency workers are on the scene trying to get survivors transported and triaged. You are working at one of the receiving hospitals

. Assume the role of the emergency department director what should you do should this manager do to prepare their hospital staff to receive the injured? Be specific as to the role of the employees

The survivors continue to arrive for 4 hours and need to be received and triaged for an additional 12 hours. How will you attend everyone ?

How would you as a manager handle the press, the government groups, and the families?

What type of help will you solicit from other hospital departments/divisions?

PLEASEEEEEE DON´T COPY AND PASTE FROM OTHER ANOTHER ANSWERS

A football coach claims that players can increase their strength by taking a certain supplement. To test the
theory, the coach randomly selects 9 athletes and gives them a strength test using a bench press. The results are
listed below. Thirty days later, after regular training using the supplement, they are tested again. The new
results are listed below. Test the claim that the supplement is effective in increasing the athletesʹ strength.
Use α= 0.05. Assume that the distribution is normally distributed.

Use any method, however, follow the PHANTOMS acronym.

P - Parameter Statement

H - Hypotheses

A - Assumptions & Conditions

N - Name the Test and state the curve you're using

T - Test Statistic - Round your value to TWO decimals and state the command you used to find this value

O - Obtain the P-Value or Critical Value . State the command you are using to find these values

M - Make a Decision about the Null Hypothesis and explain why

S - State Your Conclusion About the Claim

A college football coach was interested in whether the college’s strength development class increased his

players’ maximum lift (in pounds) on the bench press exercise.  He asked four of his players to participate

in the study.  The amount of weight they could each lift was recorded before they took the strength

development class.  After completing the class, the amount of weight they could each lift was again

measured.  The data are as follows.  

The coach wants to know if the strength development class makes his players stronger, on average.  Use

an  significance level to test the claim that the mean amount of weight lifted increases after taking

the strength development class.  (Assume that the paired sample data are simple random samples and that

the differences have a distribution that is approximately normal.)

a)  Find the values of  and .

b)  State the hypotheses.   

c)  Calculate the test statistic and specify the critical value.

d)  Find the P-value.

e)  State the initial conclusion regarding the null hypothesis .

f)  State the final conclusion in your own words that addresses the original claim.