Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:

For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.40 per car washed.

Required:

Prepare the company’s flexible budget for August.

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:

The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.

Required:

1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,900 per month plus $45 per course plus $6 per student. The company’s sales should average $880 per student.

The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 54 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

1. Let X be a random variable that represents the weights in kilograms (kg) of a healthy adult female deer (doe) from Mesa Verde National Park. X has a distribution that is approximately normal with µ = 63.0 kg and standard deviation σ = 7.1 kg. A doe is considered to be malnourished if it weighs less than 54 kg.

a. If the doe population is healthy, what is the probability that a single doe captured weighs less than 54 kg?

b. What is the probability that the mean weight of a random sample of 50 does is less than 54 kg?

c. Create a 95% confidence interval for the mean weight of a random sample of 36 does in Mesa Verde National Park.

2. A CPA firm is auditing the accounts of a large interstate banking system. Out of a random sample of 152 accounts, it was found that 19 had transaction errors. Let p be the number of accounts with transaction errors.

a. Find a point estimate for p ( pˆ ):

b. Find a 99% confidence interval for p: . An article in the local paper claims that the average amount spent in a visit to a fast food restaurant is $20. Is the fast food restaurant in problem #1 unusually inexpensive? (In other words, are people spending less at the local fast food restaurant than the population does at an average fast food restaurant?) Assuming that the amount people spend is normally distributed, conduct a hypothesis test using a 5% significance level. a. Ho: Ha: b. Is this a right-tailed, two-tailed or left-tailed test?

c. Compute the z or t test statistic. Show the correct computation.

d. Find the p-value for the test statistic. e. Based on your answers above, do you reject or fail to reject the null hypothesis? What do you conclude about the average cost of this fast food restaurant?

Simulation Individual Tax AICPA Released: U.S. Taxation

Based on the data provided, enter the approriate values in the form 1040 from Line 7 through Line 22..

Information

Trevor and Jordan Riley were married during the year 2017. Following is additional information pertaining to the Riley family for the year 2017:

1. Prior to her marriage to Trevor, Jordan received $5,000 in alimony and $12,600 in child support.
2. The Rileys earned $10,000 in ordinary interest and $8,500 in municipal bond interest.
3. Trevor’s wages were $85,000, and Jordan’s were $62,000.

4. The Rileys received a $2,000 security deposit on the rental property they actively manage. They are required to return the amount to the tenant. In addition, the Rileys received $20,000 in gross receipts from the rental property. The expenses for the residential rental property were:

Bank mortgage interest                                    $5,000
Real estate taxes                                     2,600
Insurance                                               1,700
Depreciation                                           3,200

5. In January, as part of a sweepstakes contest, Jordan won a week’s stay valued at $3,000 at a luxurious hotel in Hawaii. Trevor and Jordan spent their honeymoon at that hotel.
6. The Rileys had no capital loss carryovers from prior years. During the year, the Rileys had the following stock transactions:

       Date Acquired Date Sold    Sales Price    Cost Basis
Buster Co.   2/1/2016         3/17/2017   $15,000          $5,000
Copper lnc. 2/18/2017       4/1/2017        8,000            4,000

Requirement: complete the Rileys’ 2017 Form 1040, Schedule A, Schedule D and Schedule E.

Please complete the line 7 through the line 22 on Form 1040.

Please complete the line 1 through line 16 on Schedule D.

Please complete the line 3 through line 26 on Schedule E.

86

High-end stores like Nordstrom’s and Dillard’s charge higher prices versus stores like J.C. Penny, Sears and Macy’s. The more expensive stores often try to offer better customer service and they encourage their sales people to start conversations with customers to find out what they would like.

What kind of microeconomic strategy is this?

Multiple Choice

• An elastic demand curve counter-strategy

• . None of the above

• A non-price strategy

• A cost reduction strategy

87

At the equilibrium point of the demand and supply curves, most buyers and sellers will be satisfied with the prices and quantities being offered.       

True or False

88

A monopoly creates a situation whereby society must suffer and pay higher prices for less output versus the lower prices and higher output we would have if we had a free market. This situation of loss is known as what?

Multiple Choice

• Inefficiency Loss

• All of the statements are false

• Welfare Loss to Society

• Total Product Loss

89

Net Profit means the exact same thing as Economic Profit.    

True or False

90

A negative externality is something outside the free market system. Which item or items below represent a negative externality?

Multiple Choice

• When the state government gives grant money to a city to build a new bridge

• A 9.8 earthquake that destroys a city

• The K-12 school system inside a city

• When the government opens up a new and beautiful city park

2. Airbiz Food Products produces a wide variety of food and related products. The? company's tomato-canning operation relies partly on tomatoes grown on Airbiz?'s own farms and partly on tomatoes bought from other growers. Airbiz?'s tomato farm is on the edge of? Sharpestown, a? fast-growing, medium-sized city. It produces 14 million pounds of tomatoes a year and employs 58 persons. The annual costs of tomatoes grown on this farm are as? follows:

Variable production costs $605,000

Fixed production costs 1,250,000

Shipping costs (all variable) 230,000

Total costs $2,085,000

Fixed production costs include depreciation on machinery and? equipment, but not on land because land should not be depreciated. Airbiz owns the? land, which was purchased for $600,000 many years ago. A recent appraisal placed the value of the land at $30 million because it is a prime site for an industrial park and shopping center. Airbiz could purchase all the tomatoes it needs on the market for $0.30 per pound delivered to its factory. If it did? this, it would sell the farmland and shut down the operations in Sharpestown. If the farm were? sold, $325,000 of the annual fixed costs would be saved. Airbiz can invest excess cash and earn an annual rate of 12%.

1. How much does it cost Airbiz annually for the land used by the tomato? farm?

2. How much would Airbiz save annually if it closed the tomato? farm? Is this more or less than would be paid to purchase the tomatoes on the? market?

3. What ethical issues are involved with the decision to shut down the tomato? farm?

TEXplor has purchased a 2-year lease on land adjacent to the land leased by
Clampett. The land leased by TEXplor lies above the same crude oil deposit. Assume
Management of AG Travel and Tour has identified two groups of individuals that
would be interested in the vacation package consisting of room and board and/or
entertainment. The maximum amount that group 1 is willing to pay for room and
board is GHC 2500 and for entertainment is GHC 500. For group 2, the maximum
amount they are willing to pay for room and board is GHC 1800 and for
entertainment is GHC 750. Although AG Travel and Tour is not able to identify
members of either group, it does know that each group values the components of
the package differently. Assuming there are an equal number of members in each
group and that the total membership in each group is a single individual. If the
marginal cost of providing the service (room and board and/or entertainment) to
each group is GHC 1000.
i. How much will the hotel charge members of each group for the vacation
package if it could identify the members in each group?
ii. How much will the profit for AG Travel and Tour be?
iii. Since AG Travel and Tour is not able to identify members of each group,
what price should it charge for each product?
iv. What will be the profit for AG Travel and Tour in the case of (iii) above?

v. If AG Travel and Tour wants to charge a package price, what is the highest
price it can charge?
vi. What profit will AG Travel and Tour make if it charges the package price
found in (v) above? (3 mark

Compare and Contrast the size of the net assets (same as book value or same as equity) of the two companies.

Australian Taxation

Abby runs a printing business and leases a building for which she pays rent of $75,000 per annum. During the year ended 30 June 2020, Abby incurred the following expenses: Painting of the exterior of the building at a cost of $12,000. The original paintwork was peeling and mouldy and did not represent the kind of look Abby wanted for her business. Re-surfacing of the dirt car park with a new non-slip cement to fill in pot-holes and create a safer environment for her customers $8,000 Replace torn awning over the front door for $1,500. The replacement awning was made of the same material as the original awning. Payment of $22,000 for a commercial embroidery machine so that Abby could introduce clothing design and printing into her business. The machine was purchased on 10 February 2020 and installed on 26 February 2020. Advise Abby if the expenses would be deductible with reference to relevant statute or other supporting documents.

Show that electrons in states near the conduction band minimum behave as free electrons with an 'effective mass' m. (Hint: Expand the dispersion relation E(k) locally into a Taylor series)