Here are some real statistics for various countries in 2003: per capita income vs. per capita recorded music sales:

Country                      Per Cap. Income Per Cap. Music

                                   ($ thousands)             Sales ($)

Norway                      42.4                     55.9

United Kingdom          30.9                     53.35

United States              42.0                     40.43

Australia                     32.9                     33.84

Switzerland                 35.3                     34.40

Finland                       30.6                     26.98

Canada                      32.9                     20.79

United Arab Emirates        29.1                     11.33

Greece                            22.8                     8.10

Israel                               22.3                     6.68

Czech Republic                 18.1                     3.96

South Africa                     12.1                     3.75

South Korea                      20.4                     3.34

Mexico 10.1                     3.30

Egypt                                4.4                   0.15

Indonesia                          3.7                   0.33

4a) Which variable should be considered the dependent (y) variable, and which the independent (x) variable?

4b) According to this model, if a country’s income improves by ^$3,000, how much to you expect music sales to increase by?

4c) What is the correlation coefficient? Is it statistically significant? How strong is this model?

4d) Why do you think the correlation is as high as it is?

4e) If a region of country has a per-capita income of ^$25,000, predict its per-capita music sales.

4f) Looking at the U.S, Canada. & Europe only, delete the United Arab Emirates, South Africa, South Korea Mexico, Egypt, and Indonesia from the model. Answer 3b, 3c, and 3e again.

4g) Why might it have been OK to throw away the countries we did in part f?

The South Oil Company buys crude vegetable oil. Refining this oil results in four products at the splitoff point.? A, B,? C, and D. Product C is fully processed by the splitoff point. Products? A, B, and D can individually be further refined into Super? A, Super? B, and Super D. In the most recent month? (December), the output at the splitoff point was as? follows:

Requirements:

Compute the? gross-margin percentage for each product sold in? December, using the following methods for allocating the $100,000 joint? costs:

2. Could South have increased its December operating income by making different decisions about the further processing of products? A, B, or? D? Show the effect on operating income of any changes you recommend.

The joint costs of purchasing and processing the crude vegetable oil were $100,000. South had no beginning or ending inventories. Sales of product C in December were $50,000.

Products? A, B, and D were further refined and then sold. Data related to December are as? follows:

South had the option of selling products? A, B, and D at the splitoff point. This alternative would have yielded the following revenues for the December? production:

SOUTH CAROLINA CORPORATION owns a single restaurant which has a bar primarily used to seat patrons while they wait for their tables. The company is considering eliminating the bar and adding more dining tables as the bar is showing a loss of $12,500. Segmented contribution income statements are as follows and fixed costs applicable to both segments are allocated on the basis of sales.

Required:

What does the term “direct fixed costs” mean, as used above? Give an example of something that would be a direct fixed cost for the Restaurant and the Bar.

How do the “direct fixed costs” above differ from the “allocated fixed costs”? Why is that important and how does it affect the handling of these items?

In plain English, what’s “Segment Margin”?

What is the contribution margin ratio of the restaurant?

Regarding the decision to eliminate the Bar, which information is relevant and why?

Should SOUTH CAROLINA eliminate the bar? Why or why not? By how much would SOUTH CAROLINA be better (or worse) off if they eliminate the bar?

NOW ASSUME that if the bar is eliminated, $15,000 of allocated fixed costs could be avoided AND restaurant sales would increase by $17,000. Should SOUTH CAROLINA eliminate the bar? Why or why not?

Problem 15-4 Finance/sales-type lease; lessee and lessor [LO15-1, 15-2, 15-3] Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $1,750,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Lease Description: Quarterly lease payments $ 114,201—beginning of each period Lease term 5 years (20 quarters) No residual value; no purchase option Economic life of lithotripter 5 years Implicit interest rate and lessee's incremental borrowing rate 12% Fair value of asset $ 1,750,000 Required: 1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing? 2. Prepare appropriate entries for both Mid-South Urologists Group and Physicians' Leasing from the beginning of the lease through the second rental payment on April 1, 2018. Adjusting entries are recorded at the end of each fiscal year (December 31). 3. Assume Mid-South Urologists Group leased the lithotripter directly from the manufacturer, Rand Medical, which produced the machine at a cost of $1.5 million. Prepare appropriate entries for Rand Medical from the beginning of the lease through the second lease payment on April 1, 2018.

Walter and Jesse own a business together. The business delivers food based on special recipes developed by Walter. Gus owns a business in the same city, Loot Lake, which sells pizza. One day, Gus approaches Walter and Jesse with a business opportunity. He proposes to sell all the pizza in the south side of the city while Walter and Jesse can sell in the north side of the city. He also agrees that Walter and Jesse can still sell food on the south side of the city as long as the food is not pizza or anything substantially similar. Walter thinks this is a great idea, but Jesse is not so sure. However, despite his reservations, Jesse doesn’t say anything. The two businesses agree to go with the plan proposed by Gus for a period of two years, but they do not put this agreement in writing. They also agree in a short written note, that they will consult with each other anytime either business wants to change its prices. The plan goes well for six months, but soon Walter decides that his pizza recipe is far superior to the one Gus uses, and Walter thinks that if he sells on the south side, he can put Gus out of business and become the main provider of pizza in the city. He talks to Jesse and they decide to go ahead and start immediately selling pizzas on the south side of the city despite their agreement with Gus. Please discuss and analyze all relevant legal issues raised by this hypothetical scenario.

Troy Corporation has the following budgeted sales for the selected four-month period:

There were 14,000 units of finished goods in inventory at the beginning of October. Plans are to have an inventory of finished product equal to 25 percent of the unit sales for the next month.

Five pounds of a single raw material are required for each unit produced. Each pound of material costs $10. Plans are to have inventory levels for materials equal to 30 percent of the amount of materials needed to satisfy next month's production and 84,000 units of raw material on hand at the end of December. Materials inventory on October 1 was 60,000 pounds

A. Prepare a production budget in units for October, November, and December.

b. Prepare a purchase budget in pounds and dollars for October, November, and December.

Nicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents inform accounting processes. She also needs some help reconciling NGS’s bank account.

Required:
1. For each source information shown below, prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Purchase order dated October 13 for massage chairs costing $805 and oil supplies costing $280
2. Remittance advice from customer for $109, received October 17
3. Receiving report indicating October 22 receipt of October 13 order. Also received supplier invoice totalling $1,085
4. NGS cheque for payment in full of October 13 order

Cost of Units Transferred Out and Ending Work in Process

The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $1.90 and $1.40, respectively. The equivalent units to be assigned costs are as follows:

The beginning work in process inventory on October 1 had a cost of $1,200. Determine the cost of completed and transferred-out production, the ending work in process inventory, and the total costs assigned by the Rolling Department.

Part 2 -McCubbin Company uses the periodic inventory system to account for inventories. Information related to McCubbin Company's inventory at October 31 is given below:

October       1      Beginning inventory                               300    units @ $10.00 =           $ 3,000

                      8      Purchase                                                   900    units @ $10.40 =               9,360

                    16      Purchase                                                   500    units @ $10.80 =               5,400

                    24      Purchase                                                   300    units @ $11.60 =            3,480

                                        Total units and cost                   2,000    units                                $21,240

Instructions

1.    Show calculations to value the ending inventory using the FIFO cost assumption if 600 units remain on hand at October 31.

2.    Show calculations to value the ending inventory using the weighted average cost method if 600 units remain on hand at October 31.

3.    Show calculations to value the ending inventory using the LIFO cost assumption if 600 units remain on hand at October 31.

What exactly should the purpose of a college education be in America today? In response to this question, write an essay in which you assert your position on this issue. Be sure to write a clear thesis statement that directly answers the question.