The Lunchbox is one of many options for workers in Lanford, Illinois to get a quick and tasty meal at reasonable prices. The manager of the restaurant wanted to raise prices but did not know if the quantity demanded would fall off too much. He decided to raise prices and wait and see before making the increases permanent. In the first week after he raised prices on the menu an average of 10%, the restaurant served fewer lunches but revenue did not fall. Based on this, he decided to keep the new menu. Would you expect revenue to continue at this level?

Using textbook

According to GAAP, uncollectible receivables must be estimated and recorded as an expense in the period in which the corresponding revenue is earned. This ensures compliance with the matching principle.

(1) Compare and contrast the percent of revenue method and the percent of receivables method.

(2) Why would a financial manager or analyst be concerned if the Allowance for Doubtful Accounts balance increased or decreased significantly?

These financial statement items are for Rugen Company at year-end, July 31, 2020.
Prepare a owner’s equity statement for the year.

Prepare a classified balance sheet at July 31.

The data below are estimated for the project study of a certain business investment. If money is worth 12%, what is the difference in Present Worth between the alternatives?

Alternative A: The initial investment is $3,500, with an annual revenue of $1,900. Annual disbursement amounts to $645 with no salvage value at the end of its life, which is 4 years.

Alternative B: The initial investment is $5,000 with an annual revenue of $2,500. Annual disbursements is $1,383 with no salvage value at the end of its useful life, which is 8 years.

CHOICES:

A. $154

B. 238

C. $39

D. $481

Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

1. A multiple linear regression model should not be used if:
A The variables are all statistically significant.
B The coefficient of determination R2 is large.
C Both of the above.
D Neither of the above.

2. Consider a multiple linear regression model where the output variable is a company's revenue for
different months, and the purpose is to investigate how the revenue depends upon the company's advertising budget. The input variables can be time-lagged so that the first input variable is the advertising budget in that month, the second input variable is the advertising budget in the previous month, etc.
A True.
B False.

Cost Data:

Cleaning supplies                $1.80q

Electricity           $1,200 +   $.15q

Rent        $8,000

Larry expects to wash 9,000 cars at an average price of $4 per wash in August.

1. what is Larry planned budget?

2. Larry actually washes 8,800 cars in August. What’s Larry’s flexible budget?

Actual Results (8,800 washes)

Revenue $34,900

Cleaning supplies             17,300

Electricity     2,670

Rent     8,000

Total Expense

Operating income         $ 6,930

Prepare a flexible budget performance report that shows the activity variances and the revenue and spending variances for August.

1. For small countries, free trade results in a higher level of national welfare than tariff protection.

2.

Suppose that Germany levies a tariff on oranges, but none are grown in Germany. This tariff has

3. Tariff avoidance is the legal utilization of the tariff system to one's own advantage in order to reduce the amount of tariff that is payable by means that are within the law.