Two major automobile manufacturers have produced compact cars with the same size engines. We are interested in determining whether or not there is a significant difference in the MPG (miles per gallon) of the two brands of automobiles. A random sample of eight cars from each manufacturer is selected, and eight drivers are selected to drive each automobile for a specified distance. The following data show the results of the test and if the variance of MPG is the same, Driver Manufacturer A Manufacturer B 1 32 28 2 27 22 3 26 27 4 26 24 5 25 24 6 29 25 7 31 28 8 27 27 Refer to Exhibit 6. The test statistic and the p-value at 99% confidence level are
In: Statistics and Probability
1)In monopolistic competition, profit is maximized when the amount produced is such that
A.
marginal revenue is greater than marginal cost.
B.
marginal revenue equals marginal cost.
C.
total revenue is maximized.
D.
total revenue equals total cost.
2)Dole Co. operates in a monopolistically competitive market. To try to earn an economic profit, Dole Co. will
A.
increase output.
B.
prevent other firms from entering the market.
C.
continually seek to differentiate its product.
D.
increase its product's price.
3) How does a single-price monopoly determine the price it will charge its customers?
A single-price monopoly _______.
A.
produces the quantity at which marginal revenue equals marginal cost and sets the price equal to marginal revenue at that quantity
B.
charges the price from the demand curve that corresponds to the quantity where the price elasticity of demand equals 1
C.
produces the quantity at which average total cost is minimized and charges the highest price consumers will pay for that quantity from the demand curve
D.
produces the quantity at which marginal revenue equals marginal cost and charges the highest price consumers will pay for that quantity from the demand curve
4) What are some of the ways that real-world airlines price discriminate?
Real-world airlines price discriminate by separating travelers according to _______.
A.
their price elasticity of demand, their form of identification, and whether they are traveling first class or economy
B.
how far in advance they purchase tickets, physical disabilities that make boarding difficult, and the length of time required to make a connection
C.
their price elasticity of demand, whether they will stay at their destination over a weekend, and how far in advance they purchase tickets
D.
their willingness to go through airport security, their proximity to an airport, and the number of children traveling in the family
5) AT&T Moves Away From Unlimited-Data Pricing
AT&T said it will eliminate its $30 unlimited data plan as the crush of data use from the iPhone has hurt call quality. AT&T is introducing new plans costing $15 a month for 200 megabytes of data traffic or $25 a month for 2 gigabytes. AT&T says those who exceed 2 gigabytes of usage will pay$10 a month for each additional gigabyte. AT&T hopes that these plans will attract more customers.
Source:
The
Wall Street
Journal,
June 2, 2010
Explain why AT&T's new plans might be price discrimination.
AT&T's new plans might be price discrimination because ______.
A.
AT&T is selling data plans at different prices but its marginal cost is the same regardless of how much data is downloaded
B.
AT&T is a monopoly and only monopolies can price discriminate
C.
AT&T changed their price structure because of an increase in demand for data traffic
D.
the cost of supplying different sizes of data plans increases as more data is downloaded
In: Economics
Read the overview below and complete the activities that follow.
While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.
The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition. The lower the costs given the customer value proposition, the greater the ability of the business model to be a moneymaker. The nitty-gritty issue surrounding a company’s business model is whether it can execute its customer value proposition profitably. Just because company managers have crafted a strategy for competing and running the business does not automatically mean that the strategy will lead to profitability—it may, or it may not.
Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports indicate that its business model is working. Are its subscription fees increasing or declining? Is its revenue stream from advertising and equipment sales growing or declining? Does its cost structure allow for acceptable profit margins?
Are Sirius XM’s subscription fees increasing or decreasing? Explain your answer. Make this original and answer all 3 question.
In: Economics
Strategy and a Company's Business Model
Read the overview below and complete the activities that follow.
While the company’s strategy sets forth an approach to offering superior value, a company’s business model is management’s blueprint for delivering a valuable product or service to customers in a manner that will yield an attractive profit. In this exercise you will be asked to evaluate the business model for SiriusXM.
The two elements of a company’s business model are (1) its customer value proposition and (2) its profit formula. The customer value proposition is established by the company’s overall strategy and lays out the company’s approach to satisfying buyer wants and needs at a price the customer will consider to be a good value. The greater the value provided and the lower the price, the more attractive the value proposition is to customers. The profit formula describes the company’s approach to determining a cost structure that will allow for acceptable profits given the pricing tied to its customer value proposition. The lower the costs given the customer value proposition, the greater the ability of the business model to be a moneymaker. The nitty-gritty issue surrounding a company’s business model is whether it can execute its customer value proposition profitably. Just because company managers have crafted a strategy for competing and running the business does not automatically mean that the strategy will lead to profitability—it may, or it may not.
Go to investor.siriusxm.com and check whether Sirius XM’s recent financial reports indicate that its business model is working. Are its subscription fees increasing or declining? Is its revenue stream from advertising and equipment sales growing or declining? Does its cost structure allow for acceptable profit margins?
Are Sirius XM’s subscription fees increasing or decreasing? Explain your answer. Make this original and within the last 3 yrs
In: Operations Management
CMBS B-piece buyers were, from 2005-2007, able to greatly reduce or completely eliminate their risk exposure that they held as owners of first-loss / subordinate bonds. How did they do this?
In: Finance
Evaluate how outdated motivation theories can lead to ineffective and antiquated rewards systems, as noted by Bowey (2005).
Analyze the role that culture as a component of compensation design plays in the creation of motivation theories.
In: Operations Management
|
December 1: Anne made an investment in Byte of Accounting, Inc., by purchasing 2,000 shares of its common stock paying $48,000.00 in cash. The par value of the common stock was $22.00 per share. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
December 3: Purchased a Ricoh Color copier for $5,200.00. The invoice number was 61298. We paid 10% and signed a 3 year note for the remaining balance. Interest at a rate of 6% a year will be paid semiannually. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 3: Check # 6001 for $2,600.00 was paid for rent of the office space for December. Rent is journalized to the prepaid rent account. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 3: In response to requests from our customers we have decided to purchase and install Super Toners at our clients locations. We received 19 Super Toners for resale to our customers at a cost of $21.00 per toner. The Invoice number was 7249, and we will pay them within 30 days. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 10: Sold 13 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Sales Revenue. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 10: Sold 13 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Cost of Goods Sold, using FIFO. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 11: Check # 6002 was used to pay salaries of $2,250.00 to equipment operators. Ignore payroll taxes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 14: Check # 6003 was used to purchase a one-year insurance policy covering its computer equipment for $6,504.00 from Seth's Insurance. The effective date of the policy was December 16 and the invoice number was 2387. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 15: Lauryn paid $2,276.00 for airline tickets to send the kids to Grandma Ellen's for the holiday. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 16: Received 5 Super Toners for resale to our customers. The cost was $23.00 per toner. The Invoice number was 7359, and we will pay them within 30 days. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 17: We were informed that Mr. Madoff who has an account with us will never pay the $674.00 he owes us. Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 17: We were informed that Mr. Madoff who has an account with us will never pay the $674.00 he owes us. Record the transaction to write off Mr. Madoff's accounts receivable account using the allowance method. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 17: Received invoice number 26354 in the amount of $750.00 from the local newspaper for advertising. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 18: Check # 6004 was used to pay Accounts Payable in the amount of $1,020.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 19: Sold 7 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Sales Revenue. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 19: Sold 7 Super toners to a customer on account for $53.00 each. The Sales order number was 12100, record the Cost of Goods Sold, using FIFO. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 21: Record the cost of computers for various customers on account, $6,100.00. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 21: Billed various miscellaneous local customers $12,200.00 for computers that cost us $6,100.00, record the Sales Revenue. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 21: Billed various miscellaneous local customers $12,200.00 for computers that cost us $6,100.00, record the Cost of Goods Sold. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 22: Check # 6005 was used to pay salaries of $2,250.00 to equipment operators. Ignore payroll taxes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 22: Received a bill for $1,265.00 from Computer Parts and Repair Co. for repairs to the computer equipment. The invoice number was 43254. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 22: Check # 6006 was used to pay the advertising bill that was previously received and recorded from the local newspaper for advertising, invoice number 26354. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 22: Received 12 Super Toners for resale to our customers. The cost was $25.00 per toner. The Invoice number was 7988, and we will pay them within 30 days. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 23: Cash from customers in the amount of $21,225.00 was received on billings. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 23: Record the cost of computers for various customers on account, $7,350.00. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 28: Billed various miscellaneous local customers $14,700.00 for computers that cost us $7,350.00, record the Sales Revenue. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 28: Billed various miscellaneous local customers $14,700.00 for computers that cost us $7,350.00, record the Cost of Goods Sold. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 28: Paid the bill that was previously received and recorded from Computer Parts and Repairs Co with Check # 6007 . The invoice number was 43254. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 29: Cash from customers in the amount of $14,375.00 was received on billings. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 29: Received a bill for the amount of $630.00 from AT&T for the telephone. The invoice number was 784537. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 30: Check # 6008 was used to pay salaries of $2,250.00 to equipment operators. Ignore payroll taxes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 30: Check # 6009 was used to pay was used to pay for a cash dividend of $.20 per share to Lauryn, a shareholder of Byte. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 30: Check # was used to pay was used to pay for a cash dividend of $.20 per share to Anne, a shareholder of Byte. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 30: Received a $7,965.00 check from Le Corporation for merchandise ordered which will be delived January 16th. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Please note: The bookkeeper that we had before you arrived was not very good. He never created a Trial Balance and after he left we realized that he neglected to record the issuances of the bond issued on January 1 of this year and the recording of the interest payment on June 30. Since we do not make entries into "closed" periods record the entries as of December 31st. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ` | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31: On January 1, Byte received $193,390.20 when they issued a $180,000.00, 7%, 10 year bond. Interest is to be paid semiannually on June 30 and December 31. The market rate was 6%. This entry was never recorded. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| December 31: Please record the timely interest payment for the bond using the straight line method that was made on June 30th, with check # 5367. This entry was never recorded.. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
December 31: Please record the timely interest payment for the bond using the straight line method that was made on December 31st, with check # 6010. I need help journalizing these entries! The accounts given to me are:
|
In: Accounting
Financial Statement Effects of Accounts Payable Transactions
Petroni Company engages in the following sequence of
transactions every month:
1. Purchases $500 of inventory on credit.
2. Sells $500 of inventory for $640 on credit.
3. Pays other operating expenses of $125 in cash.
4. Collects $640 in cash from customers.
5. Pays supplier of inventory $500.
a. Create a monthly income statement and statement of operating cash flow (direct method) for four consecutive months.
Do not use negative signs with any of your answers below.
| 1 | 2 | 3 | 4 | |
|---|---|---|---|---|
| Income statement: | ||||
| Revenue | $Answer | $Answer | $Answer | $Answer |
| Cost of goods sold | Answer | Answer | Answer | Answer |
| Operating expenses | Answer | Answer | Answer | Answer |
| Income | $Answer | $Answer | $Answer | $Answer |
| Operating cash flows | ||||
| Receipts | $Answer | $Answer | $Answer | $Answer |
| Payments to suppliers | Answer | Answer | Answer | Answer |
| Payments for operating expenses | Answer | Answer | Answer | Answer |
| Net cash flow from operations | $Answer | $Answer | $Answer |
$Answer |
b. The CFO is disappointed with the cash flows from the business. They do not provide the support for investment and growth that she wants. She proposes delaying supplier payments by a month. That is, each month's inventory purchase will be paid for in the following month. How would this change the monthly income statements and operating cash flows in part a?
Do not use negative signs with any of your answers below.
| 1 | 2 | 3 | 4 | |
|---|---|---|---|---|
| Income statement: | ||||
| Revenue | $Answer | $Answer | $Answer | $Answer |
| Cost of goods sold | Answer | Answer | Answer | Answer |
| Operating expenses | Answer | Answer | Answer | Answer |
| Income | $Answer | $Answer | $Answer | $Answer |
| Operating cash flows | ||||
| Receipts | $Answer | $Answer | $Answer | $Answer |
| Payments to suppliers | Answer | Answer | Answer | Answer |
| Payments for operating expenses | Answer | Answer | Answer | Answer |
| Net cash flow from operations | $Answer | $Answer | $Answer | $Answer |
In: Accounting
Company: Walmart grocery
Describe the total market for your solution: Who are potential customers? (ex: “Everyone who ________”). Who are their Target Customers? Be specific including an explanation of the most key segments within this market. Identify and briefly describe at least three target segments that this company serves, being sure to identify them using as many as possible of the target characteristics outlined in the market segmentation module (demographic, geographic, psychographic or behavioral).
In: Operations Management
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:
| Present Truck |
New Truck |
|||||
| Purchase cost (new) | $ | 25,000 | $ | 30,000 | ||
| Remaining book value | $ | 11,000 | ||||
| Overhaul needed now | $ | 11,000 | ||||
| Annual cash operating costs | $ | 12,500 | $ | 10,000 | ||
| Salvage value-now | $ | 5,000 | ||||
| Salvage value-five years from now | $ | 4,000 | $ | 5,000 | ||
If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.
The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 11% discount rate.
Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Accounting