Mr. Northman runs a moving business. He currently charges $5 per mile and $4 per square foot when quoting prices. Unfortunately, this results in wide variations in his gross profit margin. He wants an average gross profit margin of 25.67% without wide variations. Give Mr. Northman an excel tool that he can use for future quotes.

I figured that he should start using the amount of floors the movers have to travel up and down in his quote as well. I’m having a hard time but I assume it would be a good idea to do a correlation between the inputs and his actual labor cost and then to make a formula off of that. Any idea how to do this? Or any other ideas on how to reduce variations in his gross profit by quoting customers better?

Account Analysis Method

Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning beds. She hired a receptionist and kept the salon open for extended hours each week so that tanning clients would be able to use the benefits of their tanning packages. After three months, Penny wanted additional information on the costs of the tanning area. She accumulated the following data on four accounts:

Penny decided that wages and equipment depreciation were fixed. She thought supplies and maintenance would vary with the number of tanning visits and that electricity would vary with the number of tanning minutes.

Required:

1. Calculate the average account balance for each account. Calculate the average monthly amount for each of the two drivers. (Round all answers to the nearest dollar or the nearest whole unit.) Use your rounded answers in all subsequent computations.

2. Calculate fixed monthly cost and the variable rates for the account averages. Round your answers to the nearest cent and use your rounded answers in all subsequent computations.

Express the results in the form of an equation for total cost. (Round to the nearest cent.)

3. In April, Penny predicts there will be 342 visits for a total of 3,720 minutes. What is the total cost for April? If required, round your answer to the nearest dollar.
$

4. Suppose that Penny decides to buy a new tanning bed at the beginning of April for $9,552. The tanning bed is expected to last four years and will have no salvage value at the end of that time.

What will be the new equation for total cost? If required, round your answers to the nearest cent.

Cost = $ + $ (visit) + $ (minute)

What is the new expected cost in April based on the prediction provided in Requirement 3 (above)? When required, round your answer to the nearest dollar.
$

Training Opportunities for Prison Populations (TOPP) runs a job-training program where persons exiting
the prison system learn skills to transition to employment and self-sufficiency. Here, they learn carpentry
skills and the organization sells their work in a retail store. Those involved earn money from the sales, and
the organization supports its mission as well. Among the statements below, which ones are true?
I. Not-for-profit organizations are exempt from most forms of taxation at the various levels of a country.
II. Resource inflows of a not-for-profit organization may come from donations, grants, contracts for service,
and the sale of goods and services.
III. Most of the resource outflows fund operations and capital improvements.
IV. Not-for-profit organizations are NOT allowed to earn profits.
A. I.
B. I. II.
C. I. II. III.
D. III. IV
E. I. II. III. IV

Question:

Stephanie runs a small retail business in a poor rural community.  She has 4 employees, 2 of them part time, all of them older adults who have grown up in the area.  She has had only modest success so she has never been able to afford to provide health insurance for her employees. None of them have private insurance or Medicaid -- nor do they have primary care doctors. They rely on a small local urgent care center or the emergency room at the nearest hospital which is in the next county.  All of this may be changing. Stephanie has been invited into a small business consortium where many small businesses are coming together to negotiate collective terms of agreement to buy insurance at a reduced rate from Blue Cross Blue Shield.  It would most likely be a managed care plan - either a PPO or an HMO.  Stephanie is trying to consider all the pros and cons in order to make her decision.

By Day 3 of Week 7

Post your initial response to the case study :

• Identify "the role of the social determinants of health in the case study" and explain "the role of public health in addressing these".
• Explain "how the quality of the health service is an issue within this case study"?
• Describe the quality improvement mechanisms that could be leveraged.

Lori Henderson runs a specialty ski clothing shop outside of Boone, North Carolina. She must place her order for ski parkas well in advance of ski season because the manufacturer produces them in the summer months. Brenda needs to determine whether to place a large, medium, or small order for parkas. The number sold will depend largely on whether the area receives a heavy, normal, or light amount of snow during the ski season. The following table summarizes the payoffs Brenda expects to receive under each scenario.

Brenda estimates the probability of heavy, normal, and light snowfalls as 0.25, 0.6, and 0.15, respectively.

a. What decision should be made according to the maximax decision rule?
SelectSmall orderMedium orderLarge orderItem 1

b. What decision should be made according to the maximin decision rule?
SelectSmall orderMedium orderLarge orderItem 2

c. What decision should be made according to the minimax regret decision rule?
SelectSmall orderMedium orderLarge orderItem 3

d. What decision should be made according to the EMV decision rule?
SelectSmall orderMedium orderLarge orderItem 4

e. What decision should be made according to the EOL decision rule?
SelectSmall orderMedium orderLarge order

Account Analysis Method

Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning beds. She hired a receptionist and kept the salon open for extended hours each week so that tanning clients would be able to use the benefits of their tanning packages. After three months, Penny wanted additional information on the costs of the tanning area. She accumulated the following data on four accounts:

Penny decided that wages and equipment depreciation were fixed. She thought supplies and maintenance would vary with the number of tanning visits and that electricity would vary with the number of tanning minutes.

Required:

1. Calculate the average account balance for each account. Calculate the average monthly amount for each of the two drivers. (Round all answers to the nearest dollar or the nearest whole unit.) Use your rounded answers in all subsequent computations.

2. Calculate fixed monthly cost and the variable rates for the account averages. Round your answers to the nearest cent and use your rounded answers in all subsequent computations.

Express the results in the form of an equation for total cost. (Round to the nearest cent.)

3. In April, Penny predicts there will be 360 visits for a total of 3,630 minutes. What is the total cost for April? If required, round your answer to the nearest dollar.
$

4. Suppose that Penny decides to buy a new tanning bed at the beginning of April for $8,592. The tanning bed is expected to last four years and will have no salvage value at the end of that time.

What will be the new equation for total cost? If required, round your answers to the nearest cent.

Cost = $ + $ (visit) + $ (minute)

What is the new expected cost in April based on the prediction provided in Requirement 3 (above)? When required, round your answer to the nearest dollar.
$

Carey, Knowles & Towers-Clark: Accounting - A Smart Approach, 3rd edition

Prezzo plc

Prezzo plc runs a chain of restaurants in the UK that serve mainly Italian style food including pizza, pasta, and grilled dishes as well as a few Chimichanga Mexican restaurants. During 2012, the number of restaurants in the group increased from 184 to 210. Prezzo shares are listed on AIM, which is a stock market for smaller growing companies. Extracts from Prezzo’s annual report 2012, including financial statements for the year to 30 December 2012 and extracts from the director’s report, are given:

Table FA.1

Table FA.2

Table FA.3

Required:

a) Using extracts from the Annual Report, compute the following profitability ratios for Prezzo plc for 2012 and 2011 and interpret your findings, giving a possible reason for any observed changes in each ratios:

• return on capital employed

• operating profit margin

• use of assets

• gross profit margin

Identify one other profitability ratio that might enable you to gain a better understanding of the company's profitability. Compute that ratio for both years and discuss your findings.

b) Use ratios to assess the liquidity of the company at both year-ends and explain what has caused the movement in the ratios between the two year-ends.

c) Use the company’s statement of cash flows to discuss what has happened to the company’s cash position during 2012.

d) Complete the following table of share information and investment ratios:

Table FA.4

Interpret the investment ratios, explaining what they reveal to shareholders about the return their shares have generated.

e) Describe two other sources of information that might have enabled you to give a fuller interpretation of the company’s performance and financial position and explain how that information could have been used.

Mr. Brown runs a chain of BBQ joints called A1 BBQ House (A1B). Currently A1B uses only equity capital. Mr. Brown was approached by representatives from Bankers Corp. who have pointed out to him that A1B’s cost of unlevered equity capital is 12% and the cost of debt capital is only 4%. The reps said A1B (which produces after-tax operating cash flows of $3 million per year) would benefit from using some debt since debt is the cheaper source of financing. They recommend that A1B issues $10 million worth of bonds and uses the entire proceeds to repurchase $10 million worth of its own stocks. Assume that both the firm’s cash flows and the debt are perpetual, and A1B’s corporate tax rate is 30%.

a) What is the current value of the firm without debt?

Select one:

$3.0 million

$25.0 million

$75.0 million

$17.5 million

$28.0 million

$10.0 million

$37.5 million

$40.5 million

b) If Mr. Brown follows Bankers Corp.'s plan, what will be the cost of equity capital and the total value of the firm?

Select one:

12.0%; and same firm value as in a)

13.1%; and same firm value as in a)

9.4%; and $25.0 million

15.1%; and $28.0 million

9.4%; and $32.0 million

17.3%; and $28.0 million

17.3%; and same firm value as in a)

9.4%; and same firm value as in a)

c) What would be the value of the firm under the Bankers Corp.'s proposal if interest expenses were not tax deductible? What would be the cost of equity capital in that case (i.e., what would be the cost of equity if Mr. Brown followed Banker Corp.'s advice even though interest expenses were not tax deductible)?

Select one:

$25.0 million; 12.0%

$35.0 million; 12.0%

$25.0 million; 9.4%

$35.0 million; 9.4%

$32.0 million; 17.3%

$32.0 million; 12.0%

$25.0 million; 17.3%

$10.0 million; 4.0%

Falcon is self-employed and runs her own business. Falcon’s trading profits for the year 2014/15 were £5,100. Profits per Falcon’s financial statements were £5,700. Falcon also had earnings of £9,500 from part-time employment. Which of the following combinations of National Insurance contributions must Falcon pay in 2014/15?

a) Class 1 primary, Class 1 secondary

b) Class 1 secondary, Class 4

c) Class 1 primary, Class 2

d) Class 4, Class 2