Oxygenated hemoglobin absorbs weakly in the red (hence its red color) and strongly in the near infrared, whereas deoxygenated hemoglobin has the opposite absorption. This fact is used in a "pulse oximeter" to measure oxygen saturation in arterial blood. The device clips onto the end of a person's finger and has two light-emitting diodes—a red (632 nm) and an infrared (930 nm)—and a photocell that detects the amount of light transmitted through the finger at each wavelength.

(a) Determine the frequency of each of these light sources.

red Hz

infrared Hz

(b) If 66% of the energy of the red source is absorbed in the blood, by what factor does the amplitude of the electromagnetic wave change? Hint: The intensity of the wave is equal to the average power per unit area as given by I = Emax2 2μ0c = c 2μ0 Bmax2.

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	0.80
Electricity	$	2,150			0.20
Maintenance					0.40
Wages and salaries		5,400			0.50
Depreciation		9,000
Rent		2,800
Administrative expenses		2,520			0.05

For example, electricity costs are $2,150 per month plus $0.20 per car washed. The company expects to wash 8,700 cars in October and to collect an average of $6.60 per car washed.

Auto Lavage’s actual level of activity was 8,800 cars. The actual revenues and expenses for October are given below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,800
Sales	$	60,300
Variable expenses:
Cleaning supplies		7,640
Electricity		1,820
Maintenance		2,990
Wages and salaries		4,760
Administrative		520
Fixed expenses:
Electricity		2,220
Wages and salaries		5,400
Depreciation		9,000
Rent		2,800
Administrative		2,445
Total expense		39,595
Net operating income	$	20,705

Required:
1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,700 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

Consider a point charge +q. A) Sketch the electric field lines and equipotetial lines near the charge. B) Explain how to interpret these equipotential lines. In other words, what does electric potential mean in terms of work? C) Indicate the direction of increasing potential in your sketch. D) Consider one potential line in your sketch. How much work is required to move a charge anywhere along that line.

General speaking, department located near entrances, on major aisles, and on the main level of multilevel stores have the best profit-generating potential. What additional factors
help to determine the location of department? Give examples of each factor. Consider a situation in which you received poor customer service in a retail store or from a customer service provider. Did you make the store's management aware of your experience? Have you returned to this retailer? For each of these questions, explain why you did what you did.

Near the end of 2017, the management of Babalu Musical Instrument Co., a new merchandising company, prepared the following estimated balance sheet for December 31, 2017.

BABALU MUSICAL INSTRUMENT COMPANY Estimated Balance Sheet December 31, 2017
Assets			Liabilities and Equity
Cash		$36,000	Accounts payable	$365,000
Accounts receivable		520,000	Bank loan payable	15,000
Inventory		165,000	Taxes payable (due   3/15/2018)	91,000
Total current assets		721,000	Total liabilities		$471,000
Equipment	$538,000		Common stock	474,500
Less accumulated   depreciation	67,250	470,750	Retained earnings	246,250
			Total stockholders' equity		720,750
Total assets		$1,191,750	Total liabilities and equity		$1,191,750

To prepare a master budget for January, February, and March of 2018, management gathers the following information.

a.	Babalu Musical’s single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,500 units on December 31, 2017, is more than management’s desired level for 2018, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,250 units; February, 8,750 units; March, 11,500 units; and April, 10,000 units.
b.	Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 70% is collected in the first month after the month of sale and 30% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.
c.	Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $85,000 is paid in January and the remaining $280,000 is paid in February.
d.	Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year.
e.	General and administrative salaries are $144,000 per year. Maintenance expense equals $2,200 per month and is paid in cash.
f.	Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $34,000; February, $98,000; and March, $29,500. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.
g.	The company plans to acquire land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month.
h.	Babalu Musical has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $27,588 in each month.
i.	The income tax rate for the company is 30%. Income taxes on the first quarter’s income will not be paid until April 15.

Requirements:

Prepare a master budget for each of the first three months of 2018; include the following component budgets (show supporting calculations as needed directly behind that budget, and round amounts to the nearest dollar):

1.) Monthly sales budgets (showing both budgeted unit sales and dollar sales).

2.) Monthly merchandise purchases budgets.

3.) Monthly selling expense budgets.

4.) Monthly general and administrative expense budgets.

5.) Monthly capital expenditures budgets.

6.) Monthly cash budgets.

7.) Budgeted income statement for the entire first quarter (not for each month).

8.) Budgeted balance sheet as of March 31, 2018

Near the end of 2017, the management of Babalu Musical Instrument Co., a new merchandising company, prepared the following estimated balance sheet for December 31, 2017.

BABALU MUSICAL INSTRUMENT COMPANY Estimated Balance Sheet December 31, 2017
Assets			Liabilities and Equity
Cash		$36,000	Accounts payable	$365,000
Accounts receivable		520,000	Bank loan payable	15,000
Inventory		165,000	Taxes payable (due   3/15/2018)	91,000
Total current assets		721,000	Total liabilities		$471,000
Equipment	$538,000		Common stock	474,500
Less accumulated   depreciation	67,250	470,750	Retained earnings	246,250
			Total stockholders' equity		720,750
Total assets		$1,191,750	Total liabilities and equity		$1,191,750

To prepare a master budget for January, February, and March of 2018, management gathers the following information.

a.	Babalu Musical’s single product is purchased for $30 per unit and resold for $55 per unit. The expected inventory level of 5,500 units on December 31, 2017, is more than management’s desired level for 2018, which is 20% of the next month’s expected sales (in units). Expected sales are: January, 7,250 units; February, 8,750 units; March, 11,500 units; and April, 10,000 units.
b.	Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 70% is collected in the first month after the month of sale and 30% in the second month after the month of sale. For the December 31, 2017, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.
c.	Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2017, accounts payable balance, $85,000 is paid in January and the remaining $280,000 is paid in February.
d.	Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $60,000 per year.
e.	General and administrative salaries are $144,000 per year. Maintenance expense equals $2,200 per month and is paid in cash.
f.	Equipment reported in the December 31, 2017, balance sheet was purchased in January 2017. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $34,000; February, $98,000; and March, $29,500. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.
g.	The company plans to acquire land at the end of March at a cost of $145,000, which will be paid with cash on the last day of the month.
h.	Babalu Musical has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $27,588 in each month.
i.	The income tax rate for the company is 30%. Income taxes on the first quarter’s income will not be paid until April 15.

Requirements:

Prepare a master budget for each of the first three months of 2018; include the following component budgets (show supporting calculations as needed directly behind that budget, and round amounts to the nearest dollar):

PLEASE EXPLAIN ALL CALCULATIONS

1.) Monthly cash budgets.

2.) Budgeted income statement for the entire first quarter (not for each month).

3.) Budgeted balance sheet as of March 31, 2018

Careen owns a condominium near Newport Beach in California that she rents out part of the year. This year, she incurs the following expenses in connection with her rental condo:

Mortgage Interest	$9,490
Property Taxes	6,570
Insurance	3,220
Repairs and maintenance	1,610
Utilities	3,703
Depreciation	11,270

  
During the year, Careen rented the condo for 112 days, receiving $17,600 of gross income. She personally used the condo for 49 days. Assuming Careen uses the court method of allocating expenses to rental use of the property.

In addition to expenses listed above, she paid the following amounts:

home mortgage interest on her personal residence	$7,100
property taxes on her personal residence	5,200
state income taxes	8,700
charitable contributions	2,900

Determine how much depreciation she is allowed to deduct. Then determine her net rental income (loss), her total amount of “for AGI” deductions, and her total amount of itemized deductions (from AGI). Include and fill in the following table within your Excel worksheet:

Depreciation Deducted
Net Rental Income (Loss)
Total for AGI Deductions
Total Itemized (from AGI) Deductions

EXPLAIN!

McHuffter Condominiums, Inc., of Pensacola, Florida, recently purchased land near the Gulf of Mexico and is attempting to determine the size of the condominium development it should build. Three sizes of develop-ment are being considered; Small, d1; Medium, d2; and large, d3. At the same time, an uncertain economy makes it difficult to ascertain the demand for the new condominiums. McHuffter's management realizes that a large development followed by a low demand could be very costly to the company. However, if McHuffter makes a conservative small-development decision and then finds a high demand, the firm's profits will be lower than they might have been. With the three levels of demand-low, medium and high. McHuffter's management has prepared the following profit ($000). (20 pts.) payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400 Medium, d2 100 600 600 Large, d3 -300 300 900 -------------------------------------------- a) If nothing is known about the demand probabilities, what are the recommended decision using the Maximax(optimistic), Maximin (pessi- mistic), and Minimax regret approaches? b) If P(low) = 0.20, P(medium) = 0.35, and P(high) = 0.45, What is the recommended decision using the expected value approach? c) What is the expected value of perfect information (EVPI)? You have to use regret table to get EVPI. Suppose that before making a final decision, McHuffter is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report is anticipated to indicate one of two levels of demand: weak(W) or strong(S). The relevant probabilities are as follows: (25 pts) P(W)= 0.3 P(low/W) = 0.50 P(low/S) = 0.10 P(S)= 0.7 P(medium/W)= 0.40 P(medium/S)= 0.25 P(high/W) = 0.10 P(high/S) = 0.65 BDSC 340.001-3 d) Construct a decision tree for this problem and analyze it. e) What is McHuffter’s optimal decision? f) What is the expected value of the survey(sample) information? McHuffter Condominiums, Inc., of Pensacola, Florida, recently purchased land near the Gulf of Mexico and is attempting to determine the size of the condominium development it should build. Three sizes of develop-ment are being considered; Small, d1; Medium, d2; and large, d3. At the same time, an uncertain economy makes it difficult to ascertain the demand for the new condominiums. McHuffter's management realizes that a large development followed by a low demand could be very costly to the company. However, if McHuffter makes a conservative small-development decision and then finds a high demand, the firm's profits will be lower than they might have been. With the three levels of demand-low, medium and high. McHuffter's management has prepared the following profit ($000). (20 pts.) payoff table ------------------------------------------- Demand Decision ---------------------------- Alternatives Low Medium High ------------------------------------------- Small, d1 400 400 400 Medium, d2 100 600 600 Large, d3 -300 300 900 -------------------------------------------- a) If nothing is known about the demand probabilities, what are the recommended decision using the Maximax(optimistic), Maximin (pessi- mistic), and Minimax regret approaches? b) If P(low) = 0.20, P(medium) = 0.35, and P(high) = 0.45, What is the recommended decision using the expected value approach? c) What is the expected value of perfect information (EVPI)? You have to use regret table to get EVPI. Suppose that before making a final decision, McHuffter is considering conducting a survey to help evaluate the demand for the new condominium development. The survey report is anticipated to indicate one of two levels of demand: weak(W) or strong(S). The relevant probabilities are as follows: (25 pts) P(W)= 0.3 P(low/W) = 0.50 P(low/S) = 0.10 P(S)= 0.7 P(medium/W)= 0.40 P(medium/S)= 0.25 P(high/W) = 0.10 P(high/S) = 0.65 BDSC 340.001-3 d) Construct a decision tree for this problem and analyze it. e) What is McHuffter’s optimal decision? f) What is the expected value of the survey(sample) information?

Groups of dolphins were observed off the coast of Iceland near Keflavik in 1998. The data in the file dolphin_dat on the course website give the time of the day and the main activity of the group, whether travelling quickly, feeding, or socializing. The dolphin groups varied in size. Usually feeding or socializing groups were larger than travelling groups.

Source of data: Marianne Rasmussen, Department of Biology, University of Southern Denmark, Odense, Denmark.

Activity        Period  Groups
Travel  Morning  6
Feed    Morning 28
Social  Morning 38
Travel  Noon     6
Feed    Noon     4
Social  Noon     5
Travel  Afternoon       14
Feed    Afternoon        0
Social  Afternoon        9
Travel  Evening 13
Feed    Evening 56
Social  Evening 10

A) Find a 90% confidence interval for the difference between morning and evening for the proportion of dolphins feeding assuming that the data is a result of two simple random samples and that the samples for both time periods are independent of each other.

B) Does there appear to be a significant difference in the proportion of dolphins engaged in feeding between morning and evening? Conduct the appropriate test of significance and discuss your results.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,100 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.40 Depreciation $ 8,400 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies 7,140 Electricity 1,734 Maintenance 1,485 Wages and salaries 7,980 Depreciation 8,400 Rent 2,200 Administrative expenses 1,466 Total expense 30,405 Net operating income $ 27,305 Required: Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (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.)