ACC 2234 Hand-In Assignment 3 v3

QUESTION 1

Transfer Pricing Basics

Gerbig Company's Electrical Division produces a high-quality transformer. Sales and cost data on the transformer follow:

Selling price per unit on the outside market            $40

Variable costs per unit                                                 $21

Fixed costs per unit (based on capacity)                                $9

Capacity in units                                                      60,000

Gerbig Company has a Motor Division that would like to begin purchasing this transformer from the Electrical Division. The Motor Division is currently purchasing 10,000 transformers each year from another company at a cost of $38 per transformer.

Gerbig Company evaluates its division managers on the basis of divisional profits.

Required:

Assume that the Electrical Division is now selling only 50,000 transformers each year to outside customers.

From the standpoint of the Electrical Division, what is the lowest acceptable transfer price for transformers sold to the Motor Division?

From the standpoint of the Motor Division, what is the highest acceptable transfer price for transformers acquired from the Electrical Division?

If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 10,000 transformers from the Electrical Division to the Motor Division? Why or why not?

From the standpoint of the entire company, should a transfer take place? Why or why not?

Assume that the Electrical Division is now selling to outside customers all of the transformers it can produce.

From the standpoint of the Electrical Division, what is the lowest acceptable transfer price for transformers sold to the Motor Division?

From the standpoint of the Motor Division, what is the highest acceptable transfer price for transformers acquired from the Electrical Division?

If left free to negotiate without interference, would you expect the division managers to voluntarily agree to the transfer of 10,000 transformers from the Electrical Division to the Motor Division? Why or why not?

From the standpoint of the entire company, should a transfer take place? Why or why not?

QUESTION 2

Transfer Pricing from the Viewpoint of the Entire Company

Division A manufactures components for plasma TVs. The components can be sold either to Division B of the same company or to outside customers. Last year, the following activity was recorded in Division A:

Selling price per component........................$525

Variable cost per component ......................$390

Number of components:

Produced during the year ........................20,000

Sold to outside customers .......................16,000

Sold to Division B ......................................4,000

Sales to Division B were at the same price as sales to outside customers. The components purchased by Division B were used in a TV set manufactured by that division. Division B incurred $900 in additional variable cost per TV and then sold the TVs for $1,800 each.

Required:

1. Prepare income statements for last year for Division A, Division B, and the company as a whole.

2. Assume that Division A's manufacturing capacity is 20,000 components per year. Next year Division B wants to purchase 5,000 components from Division A, rather than only 4,000 components as it did last year. (Components of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the 1,000 additional components to Division B, or should it continue to sell them to outside customers? Explain

QUESTION 3

Compute the Return on Investment (ROl)

Tamarind Services Company, a division of a major oil company, provides various services to operators of an oil field in northern Alberta. Data concerning the most recent year are as follow:

Sales ........................................$12,000,000

Operating income .......................$3,600,000

Average operating assets .........$24,000,000

Required:

1. Compute the margin for Tamarind Services Company.

2. Compute the turnover for Tamarind Services Company.

3. Compute the return on investment (ROI) for Tamarind Services Company.

QUESTION 4

Residual Income

British firm Midlands Design Ltd. specializes in providing design services to residential developers. Last year the company had operating income of £600,000 on sales of £2,400,000. The company's average operating assets for the year were £4,400,000 and its minimum required rate of return was 9%.

Required:

Compute the company's residual income for the year.

#11-16. For each study described, state whether it will experimental or observational. If observational, identify which type specifically (retrospective cohort, prospective cohort, case-control, cross-sectional, ecological). Briefly explain how you can tell.

• We plan to distribute a questionnaire to all UNLV faculty, students and staff ages 40 and 60. In that questionnaire, we will ask if they suffer from kidney disease, and if they take regular medications including BZDs. We than assess how many people with kidney disease take BZDs and how many people without KC take BZDs.

• We select a group of 1,000 middle-aged volunteers without kidney disease who are likely to suffer from insomnia/anxiety. We assign them randomly into two groups. Group 1 is told to live their lives as normal and take any meds proscribed by their doctor. Group 2 is told not to use BZDs for 2 years, and doctors prescribe Group 2 with natural alternatives to BZDs. After those 2 years, we follow them up and check to see who developed kidney disease in each group, and compare the groups.   

• We will get the age-adjusted incidence rates of kidney disease in 30 different countries and compare those with the rates of BZD consumption per capita (total usage in country/total population of that country). We will then check to see if there is a correlation between the BZD consumption and kidney disease.

• In 2010, we examined the medical records of 2,000 patients ages 53+ associated with Kaiser Permanente (large health care organization) who did NOT have kidney disease in 2005. Then, we look back in the records to see who took BZDs from 2000-2005. After that, we look to see who developed kidney disease from 2006 until 2008. We compared the rates of kidney disease among those who took the BZDs and those who didn’t.

• We plan to select a large healthy group of 4000 50-year old people from the general population and give them a questionnaire to fill out. One of the questions concerns the use of BZDs. We are going to follow them for 5 years and compare how many developed kidney disease among those who said yes to BZD consumption and among those who said no to BZD consumption.

• We will select 200 patients with kidney disease and 600 patients without kidney disease. We will then access their prescription records to see if they used BZDs regularly when they were aged 40-50 years of age.

a. How could you improve the readability of this table?

b. The file GDPyears contains sample data from the United Nations Statistics Division on 30 countries and their GDP values from 2005 to 2010 in U.S. dollars ($). Create a table that provides all these data for a user. Format the table to make it as easy to read as possible. (Hint: It is generally not important for the user to know GDP to an exact dollar. It is more typical to present in millions or billions of dollars).

1.) The most obese countries in the world have obesity rates that range from 11.4% to 74.6%. This data is summarized in the following table.

1. What is the best estimate of the average obesity percentage for these countries?
2. The United States has an average obesity rate of 33.9%. Is this rate above average or below?
3. How does the United States compare to other countries?

In excel format, please

2.) Two baseball players, Fredo and Karl, on different teams wanted to find out who had the higher batting average when compared to his team. Which baseball player had the higher batting average when compared to his team?

In excel format, please

3.)  Find the standard deviation for the following frequency tables using the formula. Check the calculations with the TI 83/84.

1. Grade	Frequency
   49.5–59.5	2
   59.5–69.5	3
   69.5–79.5	8
   79.5–89.5	12
   89.5–99.5	5

2. Daily Low Temperature	Frequency
   49.5–59.5	53
   59.5–69.5	32
   69.5–79.5	15
   79.5–89.5	1
   89.5–99.5	0

3. Points per Game	Frequency
   49.5–59.5	14
   59.5–69.5	32
   69.5–79.5	15
   79.5–89.5	23
   89.5–99.5	2

Use the following information to answer the next nine exercises: The population parameters below describe the full-time equivalent number of students (FTES) each year at Lake Tahoe Community College from 1976–1977 through 2004–2005.

• μ = 1000 FTES
• median = 1,014 FTES
• σ = 474 FTES
• first quartile = 528.5 FTES
• third quartile = 1,447.5 FTES
• n = 29 years

whats the midpoint, formula in excel format, please

1) Company Koala is a restaurant in Salihli, Manisa. It specializes in southwestern style meals in moderate price range. Ziya Taskent, the manager of Company X, has determined that during the last 2 years the sales mix and contribution margin ratio of its offerings are as follows:

Item Percent of Total Sales Contribution Margin Ratio

Appetizers 17% 50%

Main Entrees 56% 27%

Desserts 18% 50%

Beverages 88%

Ziya Bey’s goal is to generate a target net income of TL117,000. The company has fixed costs of TL1,058,000 per annum.

a) Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.

b) Ziya Bey believes the restaurant could greatly improve its profitability by reducing the complexity and selling price of its entrees to increase the number of clients that it serves. It would then more heavily market its appetizers and beverages. He is proposing to reduce the contribution margin ratio on the main entrees to 10% by dropping its average selling price. He envisions an expansion of the restaurant that would increase fixed costs by an additional TL586,000. At the same time, he is proposing to change sales mix as follows:

Item Percent of Total Sales Contribution Margin Ratio

Appetizers 25% 54%

Main Entrees 27% 10%

Desserts 10% 58%

Beverages 80%

Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.

c) Suppose that Ziya Bey reduces the selling price on entrees and increases the fixed costs as proposed in Question 5, but customers are not swayed by the marketing efforts and the sales mix remains what it was in part a Calculate the sales of Beverages in TL that would be necessary to achieve the desired target net income.

2) Company Whale has an existing machine which is straight line depreciated to process its invoices. Following information pertains to this machine.

Item Amount Unit

Existing machine original cost 100,700 TL

Existing machine total useful life 4 years

Existing machine remaining useful life 3 years

Existing machine operating cost pa 105,800 TL

Existing machine salvage value 50,400 TL

The company is considering replacing this machine with a new one. New machine will cost TL160,000 and will have 3 years useful life. Per annum operating costs of the new machine are TL80,040. Determine if the company should retain or replace the existing machine ignoring the time value of money. (Note enter 1 if the machine is retained, enter 2 if the machine is replaced.)

3) Company Owl operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows:

Item C D

Units sold 9,000 20,000

Selling price per unit 97 75

Variable cost per unit 50 40

Fixed cost per unit 24 24

For purposes of simplicity, the firm averages total fixed costs over the total number of units produced. The research department has developed a new product (E) as a replacement for product D. Market studies show that the firm could sell 10,000 units of E next year at a price of TL114. The variable cost per unit of E is TL46. The introduction of E will lead to a 18% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year’s results to be the same as last year’s.

a) Calculate net income for the next year if the company does not introduce product E.

b) Calculate net income for the next year if the company introduces product E.

A telephone company claims that less than 20% of its customers have at least two telephone lines. The company selects a random sample of 500 customers and finds that 88 have two or more telephone lines. Use LaTeX: \alpha α = 0.05 and the P-value method. Correctly state a) your conclusion about what to do with H0 AND b) your conclusion about the claim that is being made.

Bensen Company started business by acquiring $26,300 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,300 that had a $3,900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,330 cash. Bensen uses straight-line depreciation. Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $ 7,640 $ 8,140 $ 8,340 $ 7,140 $ 0 Required Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years.

A statistical program is recommended.

A certain company produces and sells frozen pizzas to public schools throughout the eastern United States. Using a very aggressive marketing strategy, they have been able to increase their annual revenue by approximately $10 million over the past 10 years. But increased competition has slowed their growth rate in the past few years. The annual revenue, in millions of dollars, for the previous 10 years is shown.

(b)

Using Minitab or Excel, develop a quadratic trend equation that can be used to forecast revenue (in millions of dollars). (Round your numerical values to three decimal places.)

T_t =

(c)

Using the trend equation developed in part (b), forecast revenue (in millions of dollars) in year 11. (Round your answer to two decimal places.)

$  million

URGENT - i NEED ASSISTANCE WITH QUESTIONS 6-9 ONLY

Following a strategy of product differentiation, Positive Charge Ltd. makes high quality electronic components. Positive Charge Ltd. presents the following data for the past two years relating to its AA01 product.

Year 1 Year 2

Units of AA01 produced and sold 4,000 4,320

Selling price $800 $850

Direct materials (kilograms) 10,400 12,360

Direct materials costs per kilogram $60 $64

Manufacturing capacity for AA01 (units) 15,000 15,000

Conversion costs $1,350,000 $1,440,000

Conversion costs per unit of capacity $90 $96

Selling and customer-service capacity (customers) 80 78

Total selling and customer-service costs $760,000 $780,000

Selling and customer-service capacity cost per customer $9,500 $10,000

Positive Charge produces no defective units but it wants to reduce direct materials usage per unit in Year 2. Manufacturing conversion costs in each year depend on production capacity defined in terms of units that can be produced. Selling and customer-service costs depend on the number of customers that the customer and service functions are designed to support. Neither conversion costs nor customerservice costs are affected by changes in actual volume. Positive Charge has 60 customers in Year 1 and 66 customers in Year 2. The industry market size for the product increased 6% from Year 1 to Year 2. Of the $50 increase in unit selling price, $30 is attributable to a general price increase. Required:

1) What is the operating income for Year 1?

2) What is the operating income in Year 2?

3) What amount is the revenue effect of the growth component?

4) What amount is the cost effect of the growth component?

5) What is the net effect on operating income as a result of the growth component?

6) What amount is the revenue effect of the price-recovery component?

7) What amount is the cost effect of the price-recovery component?

8) What is the net effect on operating income as a result of the price-recovery component?

9) What is the net effect on operating income as a result of the productivity component?

Task G. Checkerboard (3x3)

Write a program checkerboard3x3.cpp that asks the user to input width and height and prints a checkerboard of 3-by-3 squares. (It should work even if the input dimensions are not a multiple of three.) Don't use function. Please explain in detail and make it simple. And be clear with the {}. Thank you in advance.

Example 1:

Input width: 16
Input height: 11

Shape:
***   ***   ***
***   ***   ***
***   ***   ***
   ***   ***   *
   ***   ***   *
   ***   ***   *
***   ***   ***
***   ***   ***
***   ***   ***
   ***   ***   *
   ***   ***   *

Example 2:

Input width: 27
Input height: 27

Shape:
***   ***   ***   ***   ***
***   ***   ***   ***   ***
***   ***   ***   ***   ***
   ***   ***   ***   ***   
   ***   ***   ***   ***   
   ***   ***   ***   ***   
***   ***   ***   ***   ***
***   ***   ***   ***   ***
***   ***   ***   ***   ***
   ***   ***   ***   ***   
   ***   ***   ***   ***   
   ***   ***   ***   ***   
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