A not-for-profit childcare center wants to expand its services by offering an after-school program. The after-school program would operate 40 weeks per year, 4 hours a day, 5 days a week. The program would have a capacity of 20 students per week, and would charge $80 per student per week. The program will be staffed by two teachers who will each be paid $25 per hour. The program will pay $15,000 a year in rent and utilities, spread evenly throughout the year, and will also pay $200 per week it is open for childcare insurance.
The program will purchase furniture and media equipment at a cost of $10,000. The furniture and equipment are expected to last 5 years and to have no salvage value. In order to purchase the furniture and equipment, the program will take out a bank loan of $8,000 on the first day of operations. The bank loan has an annual interest rate of 4%; no principal repayment will be due during the first year. Supplies will cost $5 per student per week and snacks will cost $3 per student per week.
(a) How many children per week must the center serve in order to break even? Show your calculations. What would you advise the board to decide based on financial criteria?
In: Finance
Hypothesis Testing – Indicate five steps in your answers (Null/alternate hypotheses, test-statistic, rejection area, decision for rejection, conclusion)
Randy is a famous pitcher in Long Island High School. His average throwing distance is 35 yards. However, his coach was analyzing Randy’s throwing angle and figuring how he had a bad habit to unconsciously lift his arm earlier than he was supposed to do. Coach trained Randy for his new strategy and measured his throwing distance that turned out to be 38 yards after 11 throws with a sample standard deviation of 5.2 yards. Coach is now believing that his new strategy is effective making Randy throw farther than 35 yards. Are these data providing sufficient evidence, at the 5% of level of significance, to conclude that coach’s strategy is effective? (throwing distances follows normal distribution)
In: Statistics and Probability
Paraphrase below please!
-----------------------------------------------
Many of the changes in the welfare system have already reduced and may continue to reduce the number of people receiving welfare. For example, under the current reforms, states receive block grants from the federal government to help finance their welfare programs. This system allows states to save money if they spend less in benefits: reducing benefits does not reduce the amount of federal money they receive. Time limits will also, by definition, reduce the number of people in the program. Allowing beneficiaries to keep their Medicaid coverage if they find a job can also encourage people accepting employment with companies that do not provide health care coverage. Leaving new immigrants without welfare benefits can reduce new welfare rolls as well. Some of the provisions of the reform are directly aimed at discouraging unwed motherhood, including family caps and requirements that teenage mothers live with their parents and stay in school
In: Economics
Kailee’s Cookery Pty Ltd sells ovens and access to online cooking classes. On 1 May 2020, Kailee’s Cookery Pty Ltd signs an agreement with Chef School to provide 15 weekly online cooking classes and five ovens. The contract price amounted to $66,000 (GST inclusive), on credit terms n/30 for the ovens and n/60 for the cooking classes. This amount also includes one free service of the oven to be performed six months after the delivery of the ovens to Chef School.
The stand-alone price for the 15 weekly online cooking classes is $33,000 (GST inclusive). The cooking classes will start on 18 May 2020.
The stand-alone price of the ovens is $55,000 (GST inclusive). The six-month service fee for the ovens is usually $1,100 (GST inclusive).
The ovens were delivered on 18 May 2020.
Chef School paid the full amount on 20 May 2020 for the ovens.
By 30 June 2020, 7 online cooking classes were delivered. Chef School has yet to make any payment for the online cooking classes.
Required:
With reference to AASB 15 Revenue from Contracts with Customers, apply the five-step process for revenue recognition in regards to the contract with Chef School. List each of the five steps and show any calculations
In: Accounting
Some policy-makers have raised concerns that having early starting times for schools hurts child learning outcomes and long-term development due to sleep deprivation. For the 2012-2013 school year, Los Angeles Unified School Districts decides to change the high school start time from 7:15am to 8:30am in 21 of its high schools, but leaves the 7:15am start time in the other 44 high schools. a) You want to construct a differences-in-differences estimate of the effect of this policy on child test scores at the end of the 2012-13 school year. What data do you need to collect to do this? b) You estimate the regression equation T estscore = 70 + 7 ∗ treatment + 2 ∗ post + 7 ∗ post ∗ treatment Where the p-value for βˆtreatment is .03, for βˆpost is .23, and for βˆpost∗treatment is .007. (i) Are the test scores initially higher or lower in areas that changed their start times? Why? (ii) Based on this regression output, what do you conclude about the effect of the change in school start times? (iii) What assumption are you making for the differences-in-differences estimate to give a valid estimate of the effect of the law? How could you test that in this context?
In: Statistics and Probability
Which legal school of thought is illustrated in this dialogue?
DONUT DAY AT THE OFFICE
Part 7 Alison: (She stands during David's speech as if inspired but sits down once Bob starts talking.) Bob: Right. Power to the people David. Anyone else hungry? (He tries to slowly move to the donuts and Joyce continues to defend them like a point guard.) Lee: I have an idea that might address all of these issues. What if none of us have any of these donuts but instead we break up into teams and sell them to our coworkers for a profit? Instead of getting one or two donuts, we can stop on our way home and pick up a dozen of them each with our profits. In this case, we ignore the company stick-in-the-mud book regulations because, as you can see, we are obviously presented with some opportunities for a little economic development. Corporate rules here must bow to economic opportunity. If we let our rules block our prosperity, what kind of company will we become?
End Part 7
A) Law and economics school of thought.
B) Legal realism school of thought.
C) Sociological school of thought.
D) Command school of thought.
In: Operations Management
You are the director of admission office. Your job every year is to decide the number of offer letters to issue to undergraduate degree applicants. For the academic year 2016/2017, the school has a capacity to enroll 7,200 undergraduate students, but the school is so popular that you received more than 20,000 applications. However, you know from past year records many students not only got offer from UBC but also from other good schools in Canada and the US. The yield rate for the school is far less than 100% (the ‘yield rate’ refers to the proportion of students accept the school offers among all the students to whom UBC issue the offer letters). Assume the school has spent large amount of sunk cost in its undergraduate program for a designed capacity to enroll 7,200 students, such as upgrading classrooms, expanding residential houses, hiring additional teaching instructors and administration staff. (a) Will you issue more than 7,200 offer letters for 2016/2017 academic year? (b) What is the trade-off between issuing more than 7,200 offer letters and issuing exactly 7,200 offer letters?(c) How to determine the optimal number of offer letters to issue? What information do you need, and how to get such information?
In: Operations Management
James North and Leanne South have operated a small gardening centre and landscaping business for the past 10 years. Their business is incorporated as a private corporation. Since there is no market price for their shares, their shareholder agreement states that in the event a shareholder decides to buy or sell their shares the amount will be based on four times shareholders’ equity. The company has a December 31 year-end.
For the past year, Leanne has been managing all operations and making all accounting policy decisions, as James decided he wanted a career change and went back to school. Last week they met for coffee, and James mentioned he wanted to invoke the shareholders’ agreement. He felt it unfair that Leanne was doing all the work but not getting all the profits. He has no intention of returning to the business; he loves school and is in fact contemplating setting up his own advertising agency. Besides, he said, on a personal note he needs the money to pay back his school loans and set himself up in his new career.
Leanne has been happy with being able to make all the decisions and wants to buy James out rather than get a new partner. She has negotiated with their bank to obtain a loan with a personal guarantee to make the buyout. She is a little nervous, however, about the risk of having a lot of debt.
You have been the accountant for the business since they started. You know both the owners well. This morning you had your usual year-end meeting with the bookkeeper to go over anything new so you can start to prepare their financial statements. The following are notes from your meeting:
1. During the year, a significant amount of inventory of garden gnomes and animal statues were written off. They had been sitting in the gardening centre for the past two years with only a few being sold each year. The bookkeeper said that Leanne thought it was time to write off their bad decision in investing in that inventory.
2. The business has never offered a warranty to go along with their trees and shrubs. All their competitors offer a one-year money-back guarantee. If a shrub or tree dies within a year of purchase, the money is refunded. Leanne decided in the fall it was time to implement a similar policy. The bookkeeper was told by Leanne to recognize warranty expense and set up an estimated liability based on their past history that approximately 5% from the sales of all trees and shrubs this year would need to be replaced based on her best guess.
3. Another decision made this year by Leanne was to finally invest in some new computer equipment in the gardening centre. A new computer system was installed that keeps track of all sales in the stores, on-line ordering, inventory values, and all sorts of information Leanne feels will be very useful for future decisions on the direction the business should take. The other assets in the business all use straight-line depreciation. Leanne feels that since computer equipment can get obsolete very quickly it would be more appropriate to use declining balance, and proposes a 40% rate with full depreciation in year 1.
You have a meeting with Leanne at the end of the week to discuss the new accounting policies she has proposed.
James was invited to the meeting but he has a class on that date that he cannot miss.
Required:
Prepare briefing notes for your discussion with Leanne. Consider if the proposed policy is appropriate, consider valid alternatives, and provide a recommendation for each policy.
In: Accounting
Scores of female tests had a mean of 63% (assume normal distribution with a standard deviation of 10%).
A. A girl is randomly selected from all females whose scores are higher than 75%. What is the probability that the girls score is higher than 96%.
B. One thousand people are randomly selected. What is the probability that fewer than 100 of them have a score higher than 75%? Use normal approximation of binomial distribution.
The weight of adult males are normally distributed with a mean of 75kg and a standard deviation of 9kg. What is the probability that 16 randomly selected adult males will have a mean weight of more than 85kg?
In: Statistics and Probability
In: Statistics and Probability