Problem 9-05 (Algorithmic)

Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $0.51, on one serving of Dial 911, $0.69. Each serving of Wimpy requires 0.21 pound of beef, 0.21 cup of onions, and 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires 0.21 pound of beef, 0.38 cup of onions, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 25 pounds of beef, 20 cups of onions, 75 ounces of Kilgore’s special sauce, and 53 ounces of hot sauce on hand.

1. Develop a linear programming model that will tell Kilgore how many servings of Wimpy and Dial 911 to make in order to maximize his profit today. If required, round your answers to two decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
   

   Let	W = number of servings of Wimpy to make
   	D = number of servings of Dial 911 to make

   Max	W	+	fill in the blank 2D
   s.t.
   	W	+	D	≤		(Beef)
   	W	+	D	≤		(Onions)
   	W	+	D	≤		(Special Sauce)
   	W	+	D	≤		(Hot Sauce)
   			W, D	≥	0

2. Find an optimal solution. If required, round your answers to two decimal places.
   
   W = , D = , Profit = $
   
3. What is the shadow price for special sauce? If required, round your answers to two decimal places.
   
   
   Interpret the shadow price.
   
   The input in the box below will not be graded, but may be reviewed and considered by your instructor.
   
   
   
4. Increase the amount of special sauce available by 1 ounce and re-solve. If required, round your answers to two decimal places.
   
   W = , D =   , Profit = $
   
   Does the solution confirm the answer to part (c)?

You hear someone slurring his words and slobbering all over the people near him. You suspect that the person may have had some alcoholic beverages before you arrived. You hear him saying, "Ah, you don't need an audit. Just get some accountant to prepare a set of financial statements from your own books, photocopy them, and give them to the bank. You'll get that big loan you have been looking for." Your companion is a prospective client who has never used an outside accounting firm before, other than to have tax returns prepared. Your companion wants to know what your accounting firm can do for him and the company he runs. Required: a. What is an audit? How does an audit differ from reviews and compilations? 2 b. What are some of the benefits a company receives from getting an audit by a CPA firm?

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.
$

*Please clearly state what answer goes to each part.*

Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:

During the year, Alexa rented out the condo for 100 days. She did not use the condo at all for personal purposes during the year. Alexa’s AGI from all sources other than the rental property is $200,000. Unless otherwise specified, Alexa has no sources of passive income.

Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions: (Leave no answer blank. Enter zero if applicable.)

a. Assuming that Alexa’s AGI from other sources is $90,000, what effect does the rental activity have on Alexa’s AGI (increase, decrease, or no effect) and state by what amount? Alexa makes all decisions with respect to the property.

b. Assuming that Alexa’s AGI from other sources is $120,000, what effect does the rental activity have on Alexa’s AGI(increase, decrease, or no effect) and state by what amount? Alexa makes all decisions with respect to the property.

c. Assume that Alexa’s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, $25,000 of long-term capital gain, and net rental income from another rental property in the amount of $15,000. What effect does the Cocoa Beach Condo rental activity have on Alexa’s AGI(increase, decrease, or no effect) and state by what amount?

Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers—food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process.

After months of research, the owners created a financial model that showed the following projections for the first year of operations:

In the process of pursuing capital through private investors and financial institutions, RBC was approached with several questions. The following represents a sample of the more common questions asked:

• What is the break-even point?

• What sales dollars will be required to make $120,000? To make $450,000?

• Is the product mix reasonable? (Beer tends to have a higher contribution margin ratio than food, and therefore product mix assumptions are critical to profit projections.)

• What happens to operating profit if the product mix shifts?

• How will changes in price affect operating profit?

• How much does a pint of beer cost to produce?

It became clear to the owners of RBC that the initial financial model was not adequate for answering these types of questions. After further research, RBC created another financial model that provided the following information for the first year of operations:

Required:

e. Perform a sensitivity analysis by answering the following questions:

1. What is the break-even point in sales dollars for RBC? (Round intermediate calculations to 3 decimal places and your final answer to the nearest whole dollar.)

2. What is the margin of safety for RBC? (Round intermediate calculations to 3 decimal places and your final answer to the nearest whole dollar.)

4. What sales dollars would be required to achieve an operating profit of $120,000? $450,000? (Round intermediate calculations to 3 decimal places and your final answers to the nearest whole dollar.)

Question 1:

A near-sighted person might correct his vision by wearing diverging lenses with focal length f = -50cm . When wearing his glasses, he looks not at actual objects but at the virtual images of those objects formed by his glasses. Suppose he looks at a 12cm -long pencil held vertically 2.0m from his glasses. Use ray tracing to determine the location of the image. Answer is in meters.

Question 2:

A 1.0-cm-tall object is 60 cm in front of a diverging lens that has a -30 cm focal length.

a) Calculate the image position in cm.

b) Calculate the image height in cm.

Show work please! Thank you!!

Unless otherwise stated, all objects are located near the Earth's surface, where g = 9.80 m/s2 .
At the end of most landing runways in airports, an extension of the runway is constructed using a special substance called formcrete. Formcrete can support the weight of cars, but crumbles under the weight of airplanes to slow them down if they run off the end of a runwa

If a plane of mass 1.80×10⁵ kg is to stop from a speed of 20.0 m/s on a 120 m long stretch of formcrete, what is the magnitude of the average force exerted on the plane by the formcrete?

Leighton Beridon owns "Jeemp Farms", located near Weimar, TX. The farm produces pecan trees and sod. He has so many orders from the Houston metropolitan area that he is able to sell all his inventory each year, but he is not netting as much as he has in past years. His daughter, Liesl Beridon, came home from college over Thanksgiving and mentioned ABC costing, which she learned about in her cost accounting class. Mr. Beridon does not really know what ABC costing is and is skeptical as to whether it would be right for his business. He has hired your company to educate him about ABC and whether or not he should use an ABC system. Over the next few weeks, you will work towards helping Mr. Beridon decide what is the best route for his company to take. Shortly after you get started, Mr. Beridon sends you an email stating that he feels he needs to discontinue the sod portion of his business and focus on his tree sector, as he can charge more per tree than he can charge for a foot of sod. He sends you an email stating, "I can charge so much more for a tree than a foot of grass. Therefore, I am planning on discontinuing the sod portion of the business immediately as I make so much more on the trees! I am going to plant all my sod acres with trees". Write a 700- to 1,050-word paper plan for your boss explaining how you will analyze Jeemp Farms. Include the following: Prepare an argument convincing him to hold off on his decision and see the results of your analysis first. As you have not had time to do any analysis yet, you need to convince Mr. Beridon to wait on whether to discontinue his sod business. Project potential benefits Mr. Beridon could gain from using an ABC system. Explain how ABC creates these benefits. Your team is planning on conducting an analysis of whether ABC would be beneficial to Mr. Beridon. Create a process for conducting this analysis. Include the following:

How could you apply the data in the company's general ledger?

Mexico Inc. has opened numerous restaurants near college campuses. Given below are student population in thousands (X) and annual revenue in millions at Taco Sell (Y) for various campuses.

a) Is this a time series or a causal relation case?

b) Please develop a regression equation for this case (write the equation clearly)

c) How good is the model (that is what can you say about the model given the r2 value)?

d) Now, the company is contemplating opening an outlet at IUP (current student population 10,000). Make a forecast of annual revenue at the IUP outlet of Taco Sell
.

Daniel Jones owns and managers Daniel's Restaurant, a 24-hour restaurant near a local hospital. Daniel employs 9 full-time employees and 16 part-time employees. He pays all of the full-time employees by check, the amounts determined by Daniel's bookkeeper, Gina. Daniel pays all of his part-time employees in currency. He computes their wages and withdraws the cash directly from his cash register.

Gina has repeatedly urged Daniel to pay all of his employees by check. But, as Daniel has told his friend who owns a similar business, "My part-time employees prefer the currency over a check. Also, I don't withhold or pay any taxes or worker's compensation insurance on those cash wages because they go totally unrecorded and unnoticed."

Questions -

1. What are the legal and ethical considerations regarding Daniel's handling of his payroll?

2. What are Gina's ethical responsibilities?

3. What are the implications for Daniel’s employees?

Also, cite a reference that you used to prepare your response.