5. Total sales of ABC Corp. are $ 100 M and net income is $ 11,5M. The manager thinks eliminating the group marginal customers that constitutes the 10% of the total sales, will increase. Distributing the incomes and expenses of the Company between the marginal customers and credible customers based on income statement, indicate whether the company should eliminate marginal customers or not.

Percentage of sales total fixed variable

Cost of sales (%) 70 - 70 Overhead cost (%) 15 8 7

Collection exp.(%) 1 - 1

Other exp. (%) 2.5 2 0.5

1A)

Exhibit 8-1 Quantity and total revenue data for a firm

Exhibit 8-1 indicates that this firm is operating in which type of market structure?

1B)

Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why?

Gibson Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $88,000 for both cash and common stock. In 2018, Gibson worked on three jobs. The relevant direct operating costs follow: Direct Labor Direct Materials Job 1 $ 4,300 $ 5,300 Job 2 2,100 2,200 Job 3 8,400 3,700 Total $ 14,800 $ 11,200 Gibson’s predetermined manufacturing overhead rate was $.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $5,672. Gibson paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $16,100 cash and Job 2 for $8,100 cash. Gibson also paid $3,300 cash for selling and administrative expenses for the year. Gibson uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required Record the preceding events in a horizontal statements model. The first row shows beginning balances. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. Determine the gross margin for the year.

During mid-January 2004, average gas concentrations measured in Cache Valley were:

ammonium (NH4) = 16 µg/m^3

nitrate (NO3) = 45 µg/m^3

NH4 + NO3 = NH4NO3 (s)

a) Is NH4 or NO3 the limiting factor for the formation of NH4NO3? Explain using appropriate calculations.

b) Calculate the average NH4NO3 concentration (µg/m^3) based on these concentrations.

c) If we could reduce ammonium emissions by 15% by changing the composition of cattle feed, but nitrate remained the same, calculate the average NH4NO3 concentration (µg/m^3).

d) If we could reduce nitrate emissions by 15% through a vehicle inspection program, but ammonia remained the same, calculate the average NH4NO3 concentration (µg/m^3).

e) Based on your answers to part c) and d), which pollutant (NH4 or NO3) should we target first?

PS. This is an environmental engineering.

On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $2... On January 1, 2012, Morgan Company acquires $300,000 of Nicklaus, Inc., 9% bonds at a price of $278,384. The interest is payable each December 31, and the bonds mature December 31, 2014. The investment will provide Morgan Company a 12% yield. The bonds are classified as held-to-maturity.

(a) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the straight-line method

(b) Prepare a 3-year schedule of interest revenue and bond discount amortization, applying the effective interest ethod

(c) Prepare the journal entry for the interest receipt of Dec 31,2013 and discount amrtization under staright line method

(d) Prepare the journal entry for the interest receipt of Dec 31,2013 and discount amrtization under effective interesmethod

Which is the most accurate method of the decomposition methods used for the following data set.
Additive with seasonal only, Additive with trend plus seasonal , Multiplicative with seasonal only ,Multiplicative with trend plus seasonal

Capwell Corporation uses a periodic inventory system. The company's ending inventory on December 31, 2018, its fiscal-year end, based on a physical count, was determined to be $338,000. Capwell's unadjusted trial balance also showed the following account balances: Purchases, $740,000; Accounts payable; $270,000; Accounts receivable, $285,000; Sales revenue, $920,000.

The internal audit department discovered the following items:

Goods valued at $44,000 held on consignment from Dix Company were included in the physical count but not recorded as a purchase.

Purchases from Xavier Corporation were incorrectly recorded at $64,000 instead of the correct amount of $46,000. The correct amount was included in the ending inventory.

Goods that cost $37,000 were shipped from a vendor on December 28, 2018, terms f.o.b. destination. The merchandise arrived on January 3, 2019. The purchase and related accounts payable were recorded in 2018.

One inventory item was incorrectly included in ending inventory as 220 units, instead of the correct amount of 1,600 units. This item cost $50 per unit.

The 2017 balance sheet reported inventory of $472,000. The internal auditors discovered that a mathematical error caused this inventory to be understated by $74,000. This amount is considered to be material. Comparative financial statements will be issued.

Goods shipped to a customer f.o.b. destination on December 25, 2018, were received by the customer on January 4, 2019. The sales price was $52,000 and the merchandise cost $28,000. The sale and corresponding accounts receivable were recorded in 2018.

Goods shipped from a vendor f.o.b. shipping point on December 27, 2018, were received on January 3, 2019. The merchandise cost $30,000. The purchase was not recorded until 2019.

Required:
1. Determine the correct amounts for 2018 ending inventory, purchases, accounts payable, accounts receivable, and sales revenue.
2. Calculate cost of goods sold for 2018.
3. What was the effect of the error in ending inventory on 2017 before-tax income

Determine the correct amounts for 2018 ending inventory, purchases, accounts payable, accounts receivable, sales revenue, and cost of goods sold.

What was the effect of the error in ending inventory on 2017 before-tax income?

Question One ZAMPORK LTD Zampork Ltd is one of the fastest growing companies in Zambia, and its stock price is increasing at a rate of 100 percent a year, to the delight of its shareholders. Achieving this high return has been a constant challenge for the company. The company was founded by David Changata in 2001 after he retired from the Bank of Zambia. Changata used the generous retirement package to start a pork meat business at his small holding in Lusaka West. He soon realized that there was a high demand for pork and pork products in Lusaka and the rest of Zambia. He teamed up with some investors and, with the new capital infusion, turned his family business into a public company. Initially and before going public, Changata personally undertook most of the functions with the help of a nephew who had failed to proceed to Grade 8. While his nephew was charged with the cleaning of the pig sty and feeding of the animals, Changata superintended the slaughter of the animals, the cutting and packing of the meat, the keeping of the books, and the sales and marketing. Increasing demand for his pork products meant that within a few weeks he needed to hire people to help him, and soon he found himself supervising three additional employees who worked together with his nephew in the pig sty and took orders over the phone. By 2005, Zampork Ltd. employed 500 workers and was hiring over 10 new workers each week just to keep pace with the demand for pork. When he found himself working eighteen-hour days managing the company, he realized he could not lead the company single-handedly. The company’s growth had to be managed, and he knew that he had to recruit and hire strategic managers who had experience in managing different functional areas, such as marketing, finance, and production. He recruited executives from Zambeef and with their help created a functional structure, one in which employees are grouped by the common skills they have or tasks they perform, to organize the value-chain activities necessary to deliver pork products to customers. As a part of this organizing process, Zampork’s structure also became taller, with more levels in the management hierarchy, to ensure that he and his managers had sufficient control over the different activities of his growing business. Changata delegated authority to control the company’s functional value-chain activities to his managers, which gave him the time he needed to perform his managerial task of finding new opportunities for the company. The company’s functional structure worked well, and under its new management team, the company’s growth continued to soar. By 2009, the company had sales of over K2 million, twice as much as in 2002. Moreover, Zampork’s new structure had given functional managers the control they needed to squeeze out costs, 3 and Zampork had become the lowest-cost pork producer. Analysts also reported that Zampork had developed a lean organizational culture, meaning that employees had developed norms and values that emphasized the importance of working hard to help each other find innovative new ways of making products to keep costs low and increase their reliability. Indeed, with the fewest customer complaints, Zampork rose to the top of the customer satisfaction rankings for meat producers; its employees became known for the excellent customer service they gave to pork buyers. However, Changata realized that new and different kinds of problems were arising. Zampork was now selling huge quantities of pork to different kinds of customers, for example, households, organizations, and different kinds of businesses. Because customers now demanded pork with very different features, the company’s product line broadened rapidly. It started to become more difficult for employees to meet the needs of these different kinds of customers efficiently because each employee needed information about all product features. In 2008, Zampork changed its market structure and created separate divisions, each geared to the needs of a different group of customers; a consumer division, a business division, and so on. In each division, teams of employees specialized in servicing the needs of one of these customer groups. This move to a more complex structure also allowed each division to develop a unique subculture that suited its tasks, and employees were able to obtain in-depth knowledge about the needs of their market that helped them to respond better to their customers’ needs. So successful was this change in structure and culture that by 2009 Zampork’s revenues were over K30 million and its profits were in excess of K2.5 million, a staggering increase from 2001. Changata has continued to alter his company’s structure to respond to changing customer needs and to the company’s increase in distinctive competencies. For example, Changata realized he could leverage his company’s strengths in materials management, production, and credit sales over a wider range of pork products. So he decided to begin producing and packaging pork of different types and to compete with other pork producers and Zambeef. The increasing importance of the credit led him to split the market divisions into thirty-five smaller subunits that focused on more specialized groups of customers, and they all now conduct the majority of their business by credit. Today, for example, Zampork can offer its customers a complete range of pork products, and storage devices that can be customized to their needs. Source: Charles W.L. Hill and Gareth R. Jones (2007), Strategic Management, New York: Houghton Mifflin Company REQUIRED: (a) Identify and describe the strategies that have characterized the company’s progress 4 (b) Analyse how the company implemented its strategies.

A chain of motels had adopted a policy of giving a 3% discount to customers who pay in cash rather than by credit cards. Its experience is that 30% of all customers take the discount. Let Y = the number of discount takers among the next 20 customers.

7) What kind of probability distribution is appropriate in this case?
a) Normal Distribution b) Binomial Distribution c) Poisson Distribution d) Unknown Discrete Probability Distribution

8) Find the probability that exactly 5 of the next 20 customers will take the discount.

a) 0.17 b) 0.20 c) 0.30 d) 0.41

9) Find the probability that 5 or more customers will take the discount.

a) 0.17 b) 0.58 c) 0.76 d) 0.50

10) Find the expected value of Y.

a) 0.6 b) 5 c) 4 d) 6

11) Find the standard deviation of Y.

a) 4.2 b) 6 c) 3 d) 2.04