Deeds Company sells custom-made machine parts to industrial equipment manufacturers by bidding cost plus 40 percent, where cost is defined as manufacturing cost plus order processing cost. There are two types of customers: those who place small, frequent orders and those who place larger, less frequent orders. Cost and sales information by customer category is provided below.

Order-filling capacity is purchased in steps (order-processing clerks) of 1,000, each step costing $50,000; variable order-filling activity costs are $35 per order. The activity capacity is 55,000 orders; thus, the total order-filling cost is $4,251,500 [(55 steps × $50,000) + ($35 × 42,900)]. Current practice allocates ordering cost in proportion to the units purchased.

Deeds recently lost a bid for 100 units. (The per-unit bid price was $2 per unit more than the winning bid.) The manager of Deeds was worried that this was a recurring trend for the larger orders. (Other large orders had been lost with similar margins of loss.) No such problem was taking place for the smaller orders; the company rarely lost bids on smaller orders.

Required:

1. Calculate the unit bid price offered to Deeds’s customers assuming that order-filling cost is allocated to each customer category in proportion to units sold. Note: Do not round interim calculations. Round your final answer to the nearest cent.
$

2. Assume that a newly implemented ABC system concludes that the number of orders placed is the best cost driver for the order-filling activity. Assign order-filling costs using this driver to each customer type and then calculate the new unit bid price for each customer type. Note: Do not round interim calculations. Round the final order cost allocation to the nearest whole dollar. Round final bid prices to the nearest cent.

Using this new price, would Deeds have won the bid for the units recently lost?
Yes

3. What if Deeds offers a discount for orders of 35 units or more to the frequently ordering customers? Assume that all the frequently ordering customers can and do take advantage of this offer at the minimum level possible. Compute the new order cost allocation and bid price.

Note: Round the number of steps UP to the nearest whole number, using that result in future calculations. For the Order Cost Allocation and Bid Price, do not round interim calculations. Then round the final order cost allocation to the nearest whole dollar and final Bid Price the nearest cent.

Can Deeds offer the original price from Requirement 1 to the frequently ordering customers and not decrease its profitability?
Yes

7. How many σ and π bonds are present in the molecule HCN? A. H  C  N has one σ (H–C) and three π B. H  C  N has two σ (H–C and C–N) and two π C. H  C  N has two σ (H–C and C–N) and one π

8. Draw the Lewis structure for CO2, and predict the number of σ and π bonds for it. A. Lewis structure of CO2 is , it has two σ and two π B. Lewis structure of CO2 is , it has one σ and two π C. Lewis structure of CO2 is , it has one σ and three π

9. Draw the Lewis structure for CO, and predict the number of σ and π bonds it has. A. Lewis structure of CO is , it has two σ and two π B. Lewis structure of CO is C. Lewis structure of CO is

10. Give the shape that describes the hybrid orbital set sp2: A. trigonal planar B. trigonal bipyramidal C. linear D. octahedral

11. Give the shape that describes the hybrid orbital set sp3d: A. trigonal planar B. trigonal bipyramidal C. linear , it has one σ and two π , it has two σ and one π D. octahedral

12. Give the shape that describes the hybrid orbital set sp: A. trigonal planar B. trigonal bipyramidal C. linear D. octahedral

Losing a coin. You begin the day carrying 2 nickels and 1 dime in your pocket. Sadly, your pocket has a hole. Very sadly, at the end of the day, one of the 3 coins has fallen out. Each of the three coins has an equal probability of falling out. In the evening, you reach into your pocket and pull out one of the two remaining coins, each of which has an equal probability of being chosen. The coin you happen to pick from your pocket is a nickel.

Let D be the event you lost the dime; N be the event you lost a nickel; d be the event you pick a dime from your pocket, and n be the event you pick a nickel from your pocket.

Given that you have picked a nickel from your pocket, what is the (conditional) probability that you LOST the DIME through the hold in your pocket. Show the equation (algebraic or numeric) that you use to calculate that result.   

The table below lists the earnings (in thousands of dollars) of a random sample of 12 male and 12 female salespersons. At alpha = 0.10 can you conclude that there is a difference between males’ and females’ earnings?

The claim is “there is a difference between males’ and females’ earnings”

Please write 4 paragraphs with each paragraph containing 50-60 words.

7. What are the advantages and disadvantages of the two methods used to convert accounts receivable to cash?

Body builders consume large volumes of dietary supplements, especially products that combine creatine with whey proteins, a waste product of cheese making. In a study to assess the impact of creatine and whey on strength and muscle fiber characteristics, 28 highly trained body builders in their mid-20s were recruited for a 13-week dietary study.

The researchers divided the volunteers into four groups, giving each man the same caloric bonus per day: a flavored drink containing a gram of supplement per kilogram of body weight. One supplement contained just carbohydrates, another just whey powder, and the last two a mix of creatine with either carbohydrates or whey. The experiment was conducted as a double blind with neither the athletes nor the scientists knowing who received each supplement until the study was completed.

Throughout, the men performed supervised resistance training three times a week and all experienced strength gains. Below are the data for increases in beach press totals in kilograms for the 28 body builders.

(i): Test the hypothesis.

(ii): Analyze with one-way ANOVA to test the hypothesis that there is any significant differences in the heights among the three fertilizer treatments at both:

(a): 95% and 90% level of significance.

Given the information below, complete the following requirements:

A. Rank the customers by their gross margin as a percent of sales revenue.

B. Perform customer profitability analysis by generating an operating income for each customer segment through the use of activity-based costing.

C. Rank segments by their respective operating income as a percent of sales.

D. If the relative rankings of the segments using operating income as a percent of sales is different from the relative rankings using gross margin as a percent of sales, then provide two reasons why this change might have occurred.

Space is provided on the following two pages for your answer. Be sure to show your work for partial credit should you make an error.

Pharmacy

Hospital

HMO

Clinics

Revenue

$1,000,000

$1,200,000

$800,000

$600,000

CGS

$670,000

$720,000

$560,000

$390,000

Activity

Rate

Cost Driver

Order taking

$200.00

per purchase order

Information requests

$350.00

per request

Sales calls

$400.00

per sales call

Distribution

$150.00

per delivery

Expedited orders

$500.00

per expedited order

Activity Cost Driver Quantities

Activity Cost Driver

Pharmacy

Hospital

HMO

Clinics

Number of purchase orders

100

200

20

80

Number of requests

50

100

20

20

Number of sales calls

50

200

10

40

Number of deliveries

80

100

10

40

Number of expedited orders

40

150

8

60

A project with an up-front cost at t = 0 of $1500 is being considered by Nationwide Pharmaceutical Corporation (NPC). (All dollars in this problem are in thousands.) The project's subsequent cash flows are critically dependent on whether a competitor's product is approved by the Food and Drug Administration. If the FDA rejects the competitive product, NPC's product will have high sales and cash flows, but if the competitive product is approved, that will negatively impact NPC. There is a 75% chance that the competitive product will be rejected, in which case NPC's expected cash flows will be $500 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitor's product will be approved, in which case the expected cash flows will be only $25 at the end of each of the next seven years (t = 1 to 7). NPC will know for sure one year from today whether the competitor's product has been approved.

NPC will proceed with the investment today to take advantage of the untapped market potential and at the end of the projects life, after finding out about the FDA,s decision about the demand for competitors product, they will decide wether or not to renew the patent and return the project. The project return's up-front cost (at t=7) will remain at $1,500, and the subsequent cash flows will remain unchanged and will be recieved for seven additional years (t=8...14). They will only return the project if the return of the project adds value.  

Assuming that all cash flows are discounted at 10%, what is the NPV of the project with and without growth option?

A project with an up-front cost at t = 0 of $1500 is being considered by Nationwide Pharmaceutical Corporation (NPC). (All dollars in this problem are in thousands.) The project's subsequent cash flows are critically dependent on whether a competitor's product is approved by the Food and Drug Administration. If the FDA rejects the competitive product, NPC's product will have high sales and cash flows, but if the competitive product is approved, that will negatively impact NPC. There is a 75% chance that the competitive product will be rejected, in which case NPC's expected cash flows will be $500 at the end of each of the next seven years (t = 1 to 7). There is a 25% chance that the competitor's product will be approved, in which case the expected cash flows will be only $25 at the end of each of the next seven years (t = 1 to 7). NPC will know for sure one year from today whether the competitor's product has been approved.

NPC will proceed with the investment today to take advantage of the untapped market potential and at the end of the project's life, after finding out about the FDA's decision about the demand for competitor's product, they will decide whether or not to renew the patent and rerun the project. The project rerun's up-front cost (at t=7) will remain at $1500, and the subsequent cash flows will remain unchanged and will be received for seven additional years (t=8...14).

They will only rerun the project if the rerun of the project adds value. Assuming that all Cash Flows are discounted at 10%, what is the NPV of the project with and without the growth option?

1. What is your firm's Inventory Turnover if you have $200,000 cost of goods sold, raw material inventory of $10,000, finished goods inventory of $15,000 and annual sales of $400,000?

a 8

b 16

c 13.3

d 20

2.

Which of the following statements describes "level" operating strategy?

Group of answer choices

A planning strategy sets production equal to forecast demand

Maintaining constant production regardless of demand

Used two or more startegies to match production to demand

None of the above