Exercise 24-3 Sweet Company is involved in four separate industries. The following information is available for each of the four industries.

Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets

W $57,014 $15,710 $160,428

X 9,820 2,450 80,214   

Y 24,575 (3,090) 19,362

Z 6,891 1,130 16,596

$98,300 $16,200 $276,600

Determine which of the operating segments are reportable based on the:

Reportable Segments

(a) Revenue test. __________________

(b) Operating profit (loss) test. ________________

(c) Identifiable assets test. _________________

B. MONOPOLY

A corporation buys up all the individual one-person businesses and operates them as one corporation. The individuals work for the corporation as employees. There is now one corporation (Washington Physical Therapy Company) providing this service to everyone in the metropolitan area.   Technology and the actual services do not change.

For the Corporation:

Fixed cost per day: $4,000 (this is 100 times $40)

Variable cost per day for the Company (travel, supplies, etc.) based on existing operations of all 100 employees:

$40 for the first 500 sessions in a day

                        $45 for the 600^th   to 699^th session in a day

                        $50 for the 700^th to 799^th session in a day

                        $60 for the 800^th to 899^th session in a day.

                        $70 for the 900 to 999^th session in a day.

1. Complete the cost schedule for the Company

2. On the Monopoly Graph at the end of this assignment, Graph the Marginal Cost (which is like a supply curve) and the Average Total Cost for the Company.

3. Graph the Demand Curve (Demand has not changed).

4. Determine the Total Revenue and the Marginal Revenue based on the Demand Schedule:

4. Graph the Marginal Revenue (at the quantity midpoint). E.g. graph $70 at a quantity of 150

5. Determine the profit maximizing level of output

6. What price will the company charge?

7. What will be the profit per unit (one physical therapy session) and the total company profit per day?

8. How does the price and quantity compare with the price and quantity before the industry became a monopoly?

9. Can we expect these profits to persist over time? Why or why not?

10. What are the implications for society?

Some years, the Gallup Poll asks respondents how much confidence they have in various American institutions. You may assume the results are based on a simple random sample of 1000 persons each year; the samples are independent from year to year.

a) In 2005, only 41% of the respondents had “a great deal or quite a lot” of confidence in the Supreme Court, compared to 50% in 2000. Is the difference real?

b) In 2005, only 22% of the respondents had “a great deal or quite a lot” of confidence in Congress, whereas 24% of the respondents had “a great deal or quite a lot” of confidence in labor. Is the difference between 24% and 25% real?

A company produces electric motors for use in home appliances. One of the company’s managers is interested in examining the relationship between delivery costs in a month and the number of motors produced that month that were returned by dissatisfied customers (Y). He has collected the data in the file.Write the theoretical formula and calculate using excel the r-square of the regression equation and interpret the result.

Stavos Company’s Screen Division manufactures a standard screen for high-definition televisions (HDTVs). The cost per screen follows:

*Based on a capacity of 750,000 screens per year.

Part of the Screen Division’s output is sold to outside manufacturers of HDTVs and part is sold to Stavos Company’s Quark Division, which produces an HDTV under its own name. The Screen Division charges $182 per screen for all sales.

The costs, revenue, and net operating income associated with the Quark Division’s HDTV are given below:

*Based on a capacity of 180,000 units per year.

The Quark Division has an order from an overseas source for 5,000 HDTVs. The overseas source wants to pay only $403 per unit.

Required:

1. Assume the Quark Division has enough idle capacity to fill the 5,000-unit order. Is the division likely to accept the $403 price or to reject it?

2. Assume both the Screen Division and the Quark Division have idle capacity. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division rejects the $403 price?

3. Assume the Quark Division has idle capacity but that the Screen Division is operating at capacity and could sell all of its screens to outside manufacturers. Under these conditions, what is the financial advantage (disadvantage) for the company as a whole (on a per unit basis) if the Quark Division accepts the $403 unit price.

Trillium Ltd, a small and growing innovative start-up technology company traded on the Toronto Stock Exchange, leased machinery on January 1, 2020 for a term of 10 years. The Company considered purchasing the machinery but instead opted to lease. The machinery is widely known to have a general life span of about 20 years.

At the date of signing the lease contract, the leased machinery and associated lease obligation were correctly recorded at $42,000. The first lease payment of $6,000 was made on December 31, 2020 and the interest rate inherent in the lease contract is 7%.

At the start of the year, the Company had a cash and retained earnings balance of $100,000. Assume the above was the only transaction in the year.

The Company has a December 31 year-end.

Required:

1. For the year-ended December 1, 2020, prepare the relevant parts of the following financial statements:

1. Statement of Financial Position
2. Statement of Profit or Loss

2. Explain, with support, two of the most likely reasons why this specific Company opted to lease the machinery rather than purchase it.

3. Explain how the lease will affect Earnings-before-Interest-Taxes-Depreciation (EBITDA).

4. Explain how the debt-to-equity ratio would be affected if the Company choose to borrow funds from a bank to purchase the machinery rather than leasing it. Be specific.

Blue Lagoon Inc., a publically-traded company, manufactures a wide variety of scuba diving equipment and supplies, in addition to owning a chain of retail scuba stores and scuba diving training centers. Eighteen months ago the company developed and began to market a new product line of oxygen tanks under various trade names. Sales and profitability of this product line during the current fiscal year greatly exceeded management's expectations. The new product line will account for 10 percent of the company's total sales and 12 percent of the company's operating income for this fiscal year. Additionally, Management believes sales and profits will be significant for several years. Blue Lagoon is concerned that its market share and competitive position may suffer if it discloses the volume and profitability of its new product line in its annual financial statements. Management is not sure how ASC 280 applies in this case.

• Is Blue Lagoon required to report the Scuba Tank operations as a separate segment? Please justify your opinion.
• What options, if any, does Blue Lagoon, Inc. have with the disclosure of its new product line? Be sure to explain your answer and support your conclusions with references to the authoritative literature.

Refer to the accompanying data set and construct a 95​% confidence interval estimate of the mean pulse rate of adult​ females; then do the same for adult males. Compare the results.

Construct a 95​% confidence interval of the mean pulse rate for adult females.

Males
86
71
52
60
54
64
53
76
51
59
73
60
63
76
80
63
65
97
40
89
74
63
73
70
52
65
57
81
72
66
63
97
56
64
57
59
68
69
86
60

Females
79
96
55
69
53
82
76
85
89
56
38
64
86
79
78
64
66
77
62
66
81
84
72
76
88
89
90
87
91
94
71
90
82
81
74
55
97
72
74
74

In its present state, IDEA 2004 has undergone several revisions since introduced as PL 92-142. As a group, discuss these revisions and their current impact on the educational system servicing SPED students now.

A sample of nurses with affiliation to private hospitals (affiliation = 0) and to university hospitals (affiliation = 1) was asked to rate their confidence in making the right decisions based on their level of ongoing inservice professional development. Use a Mann-Whitney U-test to determine if the distribution of confidence in each group is the same. The file is the first tab in “nonparametric.xlsx.”

Be sure to always write the null and alternate hypotheses, so that the decision is made in the correct direction. Also, conduct all as two-tailed tests at α = 0.05.