Company XYZ a baby ware makes company servers three regions near Iowa and maintains consignment inventory (owned by ZZY) at each location. Currently. ZZy uses refrigerated TL transportation to deliver separately to each customer. Each truck costs $700 plus $150 per stop. KAR Food is considering aggregating deliveries to Iowa on a single truck. A careful study of the sales regions revealed three large customers, three medium-sized customers, and ten small customers. Demand at the large customer is 60 tons a year, demand at the medium customer is 24 tons per year, and demand at the small customer is 8 tons per year. Product cost for ZZZY Company is $10,000 per ton, and it uses an annual holding cost of 25 percent. Truck capacity is 12 tons.

a. What is the annual transportation and holding cost if ZZY ships a full truckload to each customer when they are running out of stock?

b. What is the optimal delivery policy to each customer if ZZY Company ships separately to each of them? What is the annual transportation and holding cost?

c. What is the optimal delivery policy to each customer if ZZY Company aggregates shipments to each of the three customers on every truck that goes to Iowa? What is the annual transportation and holding cost?

d. Can you come up with a tailored policy that has lower costs than the policies in (b) or (c)? What are the costs and inventories for your suggested policy?

1. A firm’s cost of production is equal to A. its monetary outlay for inputs. B. explicit costsC. the implicit cost of not renting its own resources.D. the opportunity cost of its resources and the explicit costs.

2. The most important implicit cost facing large, modern firms is typically the cost of A. labor servicesB. capital.C. energyD. land

3. A firm’s costs are determined by A. it's production technology or production functionB. the interest rateC. labor negotiationsD. the weather

4. If the production function is such that the total product curve's slope is continually increasing then it means A. an infinite amount of labor is needed to make a given level of outputB. no diminishing marginal returns to laborC. no increasing marginal returns to laborD. labor is the only input

5. In the short-run, diminishing marginal returns are associated with A. falling average variable costB. rising marginal cost C. falling average cost curveD. all of the above

6. Which of the following statements about marginal cost is incorrect? A. A U-shaped marginal cost curve implies the existence of diminishing returns over all ranges of output.B. When marginal cost equals average cost, average cost is at its minimum.C. In the short-run, the marginal cost curve is parallel to the average fixed cost curve.D. When marginal cost is falling, total cost is rising at a decreasing rate.

7. Which of the following statements about the relationship between marginal cost and average cost is correct?A. When MC is falling, AC is falling.B. ACequals MC at MC's lowest point.C. When MC exceeds AC, AC must be risingD. When AC exceeds MC, MC must be rising.

8. Which of the following statements about costs in the long-run is correct? A. Fixed costs are equal to or less than variable costs. B. The U shape of the LAC is due to the law of diminishing returns.C. Marginal costs tend to exceed fixed costs.D. With increasing returns to scale LAC falls.

9. The slope of the total variable cost curve equalsA. average variable cost.B. marginal cost.C. average cost.D. marginal physical product.

10. The monetary cost of the space a restaurant rents to produce meals is what type of cost? A. Variable costB. Marginal costC. Fixed costD. Opportunity cost

11. Total fixed cost is the same regardless of how much A. money a firm borrowsB. labor a firm hires.C. capital a firm rentsD. output the firm produces

12. If fixed costs are $10,000 and variable costs are constant at $1.00 per unit over the relevant range of output, what will the average total cost be when 10,000 units are produced?A. $0.20B. $2.00C. $5.00D. $1.00

13. If fixed costs are $1,000 and variable costs are constant at $1.00 per unit over the relevant range of output, what will the average total cost be when 2,000 units are produced?A. $0.50B. $1.00C. $1.50D. $2.00

14. If total fixed costs are $1,000, variable costs are constant at $5.00 per unit over the relevant A. $100B. $1000C. $5000 D. $6000

15. Once diminishing returns have set in, each additional unit of the variable inputA. decreases total output. B. adds less to total output.C. adds more to total output. D. does not affect total output.

Custom Clothing Ltd is a manufacturer of pieces of clothing ordered by customers in their own design. The minimum number of pieces to accept an order is 80 pieces. The following information for the year 2019 is provided by this company:  

1. Calculation of OH rates

Calculate the total overhead rates (round to 2 decimal places) using:

1. Direct labour hours as the cost driver
2. Number of pieces produced as the cost driver

2. Calculation of cost and price charged for an order of 200 pieces

The company has received an order for 200 pieces of clothing designed by the customer. It is estimated the order will take 240 direct labour hours (DLH) and 140 machine hours (MH). The company applies 60% mark-up on cost.

1. Calculate the cost and price of the order separating the cost into direct materials, direct labour and overhead cost (round to 2 decimal places), assuming the company used direct labour hours as the cost driver and the estimated cost of materials for this order is $2,400.

2. Calculate the cost and price of the order separating the cost into direct materials, direct labour and overhead cost (round to 2 decimal places), assuming the company used the number of pieces produced as the cost driver and the estimated cost of materials is the number of pieces multiplied by the average cost of materials per piece for the year 2019.

Garner Strategy Institute (GSI) presents executive-level training seminars nationally. Eastern University (EU) has approached GSI to present 40 one-week seminars during 2019. This activity level represents the maximum number of seminars that GSI is capable of presenting annually. GSI staff would present the week-long seminars in various cities throughout the United States and Canada. Terry Garner, GSI’s president, is evaluating three financial options for the revenues from Eastern: accept a flat fee for each seminar, receive a percentage of Eastern’s profit before tax from the seminars, and form a joint venture to share costs and profits. Estimated costs for the 2019 seminar schedule follow: Garner Strategy Institute Eastern University Fixed costs for the year: Salaries and benefits $ 200,000 N/A * Facilities 46,000 N/A * Travel and hotel 0 $ 360,920 Other 72,000 N/A * Total fixed costs $ 318,000 $ 360,920 Variable cost per participant: Supplies and materials 0 $ 47 Marketing 0 18 Other site costs 0 35 *Eastern’s fixed costs are excluded because the amounts are not considered relevant for this decision (i.e., they will be incurred whether or not the seminars are presented). Eastern does not include these costs when calculating the profit before tax for the seminars. EU plans to charge $1,200 per participant for each 1-week seminar. It will pay all variable marketing, site costs, and materials costs. Required 1. Assume that the seminars are handled as a joint venture by GSI and EU to pool costs and revenues. a. Determine the total number of seminar participants needed to break even on the total costs for this joint venture. b. Assume that the joint venture has an effective income tax rate of 30%. How many seminar participants must the joint venture enroll to earn an after-tax income of $97,209? 2. Assume that GSI and EU do not form a joint venture, but that GSI is an independent contractor for EU. EU offers two payment options to GSI: a flat fee of $9,500 for each seminar or a fee of 40% of EU’s profit before taxes from the seminars. Compute the minimum number of participants needed for GSI to prefer the 40% fee option over the flat fee.

double figures for fixed assets because there are 2, one for gsi and one for eu

Mixed Costs and Cost Formula

Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness trainers who are expected to staff the front desk and to teach fitness classes. While on the front desk, trainers answer the phone, handle walk-ins and show them around the gym, answer member questions about the weight machines, and do light cleaning (wiping down the equipment, vacuuming the floor). The trainers also teach fitness classes (e.g., pilates, spinning, body pump) according to their own interest and training level. The cost of the fitness trainers is $600 per month and $30 per class taught. Last month, 100 classes were taught.

Required:

1. Develop a cost equation for total cost of labor.

INVENTORY CARDS

Boxes Of Copies Of NYE 1983

Boxes Of Copies Of Barry Plotter And The Chart Of Accounts

Boxes Of Copies Of Accidental Accountant

SUBSIDIARY LEDGERS

Account: ARC - Attic Books BALANCE: 5,000 DR.
Account No. 110-1

Account: ARC - Cough-up bookstore BALANCE: 59,904 DR.
Account No. 110-3

Account: ARC - Hoarders BALANCE: 0
Account No. 110-6

Account: APC - Booked Inn BALANCE: 9,900 CR.
Account No. 210-5

GENERAL LEDGERS

Account: Cash BALANCE: 73,154 DR.
Account No. 100

Account: ARC - Accounts Receivable Control BALANCE: 66,026 DR.
Account No. 110

Account: Merchandise Inventory BALANCE: 115,840 DR
Account No. 120

Account: Electricity Payable BALANCE: 1,275 CR.
Account No. 221

Account: Sales Tax Payable BALANCE: 15,775 CR.
Account No. 240

Account: Sales Revenue BALANCE: 0
Account No. 400

Account: Cost of Goods Sold BALANCE: 0
Account No. 500

Account: Wages Expense BALANCE: 0
Account No. 516

Account: Electricity Expense BALANCE: 0
Account No. 541

Fill in transactions to General Ledgers, Subsidiary Ledgers, and Inventory Cards if applicable.

Please complete the LIFO information with the information provided. (Not all information provided may be relevant in completing the question).

October 2018 transactions related to buying and selling widget inventory

3-Oct Purchased 60 widgets at a cost of $80 per widget on credit

10-Oct Sold 45 widgets at $150 each on credit

20-Oct Purchased 40 widgets at a cost of $85 per widget on credit

24-Oct Sold 35 widgets at $165 each on credit

The PHYSICAL count of widget inventory on hand at October 31, 2018 shows 23 widgets at a FIFO cost of $1,955.

Wayfarer Corporation is contemplating changing its cost system to an activity-based costing system and wants to know more about the effects of doing so. The corporation’s cost accountant has identified three overhead cost pools along with the cost drivers associated with each pool as follows:

The corporation makes three models of kitchen sinks (Deluxe, Premium, and Standard). The plans for production for the next year and the direct costs that have been budgeted for activity by product are listed below:

A. The current cost accounting system charges overhead to products on the basis of direct labor-hours. What unit product costs will be reported for the three products assuming the current cost system continues to be used?

B. What are the cost driver rates associated with the three cost pools specified by the cost accountant?

C. What unit product costs will be reported for the three products if the ABC system suggested by the cost accountant’s categorization of cost pools is utilized?

A company asks you to design a controller for a basketball machine that will indicate that a player has won a game if they get a total of 3 points. There are two sensors in this machine. One in the backboard and on the inside of the orange rim. If a player shoots a shot and the ball hits the backboard and the ball goes through the rim, then the play will gain 1 point. If the player shoots the ball and it doesn't hit the backboard and the ball just goes through the rim, then the play will gain 2 points. If the player hits the backboard and the ball does not go through the rim, then the player will lose 1 point. The total score can only go down to zero and cannot become negative. If the ball does not go through the rim or hit backboard, then it will count as a no shot and nothing will happen. Once the player scores three points, the game ends, and a light will indicate that the player has won.

Part A: Make a state table that describes each state in plain English and describe each binary value used.

Part B: Make a state diagram.

Park C: Make a k-map.

Part D: Make the synchronous machine schematic.

You can use either a Moore or Mealy machine and either a J-K Flip Flop or a D Flip Flop.

I was thinking about using 2-bit binary but then I got stuck so I switched to 3-bit binary and what I have looks good to me but now making the k-map is making me doubt what I have so here I am asking for help.

The Shoe King

You are the owner and manager of in the beautiful Horizon Mall, just outside of Schaumburg, Illinois. You purchased it from Mr. Bundy on December 31, 2018, for $805,000.

For the year 2019, the average price of a pair of shoes that you sold was $80 and over the year, you averaged selling 1,800 pairs per month.

For the shoes that you sold, you paid your suppliers $950,400.

As part of the sales deal, and so you can continue to use the valuable Al Bundy name, you pay Mr. Bundy a royalty of five percent of all sales.

You pay yourself $65,000 per year. You have 10 employees who average $40,000 per year in salary

The payroll taxes and benefits total 15 percent of all salaries.

The rent and other mall services provided (e.g., security) cost $5,000 per month. Electric costs are $2,100 per month, while your phone and internet access cost $900 per month (total for both).

Advertising efforts were distributed over three media. The store has a billboard near the mall that costs $1,000 per month. Sales announcements and coupons were delivered via direct mail at a cost of $2,000 per month. You spent that same amount ($2,000 per month) for radio advertising.

Other costs include:

Insurance $500 per month

Accounting/legal $1,000 per month

Office supplies $1,250 per month

During the year, you became concerned about your profitability. Hence, you hired a consultant to evaluate your operations. She was paid $10,000.

1) Construct the income statement for 2019. Make sure to include a column showing percentage of sales.

2) What is the gross profit in dollars and on a percentage basis?

            -$777,600 -45%

3) What is the operating profit?

4) What was the breakeven sales level for 2019?

5) What was the ROI in 2019?

6) For one pair of Johnston & Murphy Oxford shoes, you pay the supplier $80. Your retail on that pair of shoes is $155. What is your gross profit in dollars on that pair of shoes? What is your markup in dollars? What is your gross profit percentage? What is your markup percentage?

7) Suppose your cost of goods sold in dollars was reduced by 10 percent. What would your gross and operating profits be?

8) In 2020, you project a 20 percent increase in sales. You also plan to give a 6 percent wage increase to your employees, although you intend to pay yourself the same amount as in 2019. The other operating costs remain the same, except that you do not expect to hire the consultant again. The royalty rate remains the same. The cost of goods sold is projected to be 49.50%. What is the projected gross profit in dollars for 2020? What is the projected operating profit in dollars?