What percentage of the U.S. population are overweight?

Verde Company reported operating costs of $40,000,000 as of December 31, 20x5, with the following environmental costs:

Required:

1. Prepare an environmental cost report, classifying costs by quality category and expressing each as a percentage of total operating costs. Round percentages to two decimal places, if rounding is required. For example, 5.79% would be entered as "5.79".

2. What if Verde deliberately did not include the cost of damaging the ecosystem because of solid waste disposal in its environmental cost report? What is the most likely reason?

Operation
 This application calculates the charges for a stay at a hotel based on the arrival and departure dates.
 The application begins by prompting the user for the month, day, and year of the arrival and the departure.
 Next, the application displays the arrival date, the departure date, the room rate, the total price, and the number of nights.

Specifications
 Create a class named Reservation that defines a reservation. This class should contain instancevariables for the arrival date and departure date. It should also contain a constant initialized to thenightly rate of $115.00.
 The Reservation class should contain a constructor that accepts the arrival and departure dates asparameters of type Date, as well as methods that return the number of nights for the stay (calculatedby subtracting the arrival date from the departure date) and the total price (calculated by multiplyingthe number of nights for the stay by the nightly room rate). This class should also override thetoString method to return a string like this:

Arrival Date: Monday, May 16, 2005Departure Date: Wednesday, May 18, 2005Price: $115.00 per nightTotal price: $230.00 for 2 nights
 The main method for the application class should contain a loop that asks the user for the arrival anddeparture date information, creates a Reservation object, and displays the string returned by thetoString method.
 Assume valid data is entered.

Enhancements
 Add validation so the user must enter values that will result in a correct date. Allow the user to enter the date in the form mm/dd/yyyy. Allow the user to enter the room rate or select the rate from one of several available rates. Use the BigDecimal class rather than the double type for the price calculation.

Note
This application requires the use of the GregorianCalendar class to create dates from the int valuesentered by the user. Then, it requires the use of the getTime method to convert the GregorianCalendarobject to a Date object.

There are many reasons for an owner to place a brand on their hotel, but some feel that three factors are beginning to challenge the brand value proposition:

• Distribution sites, such as Expedia.com and Booking.com
• Review sites, like TripAdvisor and Yelp
• The lack of brand loyalty often shown by Millennials

Do you think these factors represent a real challenge to brands, or are they just hype? Will brands need to adjust their value proposition?

The time needed for checking in at a hotel is to be investigated. Historically, the process has had a standard deviation equal to .146. The means of 39 samples of n = 17 are

a-1. Construct an x⎯⎯x¯ -chart for this process with three-sigma limits. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
  

a-2. Is the process in control?

• Yes

• No

b. Analyze the data using a median run test and an up/down run test. What can you conclude?

rev: 04_08_2019_QC_CS-165352

Internal Control : Performance Measures

Essex Engineering

Topic: Performance measures,

Essex is an industrial company with three divisions. Both the Midland Division and the North Division are long established. Senior managers are concerned that these divisions have a high percentage of products that are near the end of their product life-cycle. Forecast sales increases over the next 5 years is expected to be in the region of 4-5% per annum.

The East Division was acquired in 1999 and senior managers are optimistic that this division has very good growth potential. Most of the senior managers at this division have experience of working at the other divisions.

Since 1999 the head office has ranked all divisions according to return on investment (ROI) and residual income (RI). All managers believe that the rankings are important for future promotions and career development.

A small number of other performance measures are also used by managers. These include

These performance measures were agreed by all managers in 1999. At the time it was thought that managers should focus on only a small number of measures.

2002

The managers at the divisions provided the following information for the head office.

Selected data from the budgeted Management Accounts to 31 December 2002

Other measures

The head office has estimated that the group cost of capital is 10%

Ranking divisions in 2000

In 2000 the data on controllable and non-controllable costs and investments will be used to rank divisions.

Questions

Question 1

Based on the data provided comment on the relative financial performance of the two divisions and discuss how the ranking of the divisions changes if controllable and non-controllable costs and capital employed are analysed. (provide the calculation to prove your standpoint)

Question 2

Evaluate the choice of performance measures for the 3 divisions

Question 3

Identify and evaluate the difficulties faced by managers when measuring capital employed for a division.

Question 4

Discuss how using ROI can result in managers making poor investment decisions.

ROI has some built in biases that can lead managers to make poor decisions. First, ROI requires that all costs and benefits be stated in dollars. Because it is usually easier to quantify costs than benefits, ROI measurements can be biased in a way that gives undue weight to costs. Second, ROI focuses on benefits that can be predicted. It also tends to emphasize short run benefits over long run benefits. This biases ROI calculations to weigh short term costs and benefits more heavily than long term costs and benefits.

Question 5

Discuss the particular problems multinational companies have when evaluating the performance of divisions.   

Please answer using Excel.

Prem Narayan, a graduate student in engineering, to market a radical new speaker he had designed for automobile sound systems, founded Acoustic Concepts, Inc. Prem established the company’s headquarters into rented quarters in a nearby industrial park. He hired a receptionist, an accountant, a sales manager, and a small sales staff to sell the speakers to retail stores. Prem asked his accountant, Bob Luchinni, to prepare several cost-volume-profit analyses, using the information shown below.

Sales price for one speaker set................................................... $250 Variable manufacturing cost for each speaker set (direct
materials) ................................................................................... $150 Fixed expenses per month (rent, salaries of receptionist, sales

people, accountant, and Prem)................................................... $35,000 Number of speaker sets sold per month..................................... 400

Based on the above information, how many stereo speaker sets will need to be sold for Acoustic Concepts, Inc., to break even for one month?

Based on the above information, how many stereo speaker sets will need to be sold for Acoustic Concepts, Inc., to earn a $1,000 profit for one month?

What will be the net income or net loss for one month if 400 speaker sets are sold? How about if 425 speakers are sold?

The sales manager feels that a $10,000 increase in monthly advertising will increase monthly sales by $30,000. Would you recommend increasing the advertising budget?

Prem and other management personnel are considering the use of higher-quality components, which would increase variable costs by $10 per speaker. However, the sales manager predicts that the higher overall quality would increase sales to 480 speaker sets per month. Should the higher quality components be used?

The sales manager believes that by reducing the selling price of speakers by $20, and also by increasing the advertising budget by $15,000 per month, that sales will increase to 600 speaker sets per month. Should the changes be made?

The sales manager would like to place the sales staff on a commission basis of $15 per speaker sold, rather than on flat salaries that now total $6,000 per month. The sales manager is confident that the change will increase monthly sales to 460 speaker sets per month. Should the change be made?

Suppose Acoustic Concepts has an opportunity to make a bulk sale of 150 speakers to a wholesaler, if an acceptable price can be worked out. The sale would not disturb the company’s regular sales, nor would if affect fixed operating costs per month. What price should be quoted to the wholesaler if Acoustic Concepts wants to increase its monthly profits by $3,000?

 C.M.=contribution margin, S.P.=sales price, V.C.=variable cost, F.C.=fixed cost

 C.M. per unit = S.P. per unit – V.C. per unit

 The break even point is the point at which the total contribution margin equals fixed costs.

 Break even units sold = F.C. / C.M. Per unit

 Break even sales dollars = F.C. / C.M. Percentage

 C.M. Percentage = C.M. per unit / S.P. per unit, or C.M. (total) / Sales (total)