You run a company (Alpha) that is trying to enter the ice cream industry. The new line production requires an investment of 600,000 today and will be depreciated within 12 years with straight line depreciation method. In the 12th year the machine will be worth 3,500. Sales are estimated at 100,000 for each year but after the 12th year production will stop. The annual operating costs are 15,000 per year.

There are two competing companies (which have a 50% market share) Delta and Epsilon with the following financial data:

The interest-free rate is 1%, the expected market return is 8% and the tax rate is 24%. If all of the above sizes are on an annual basis, do you think that this investment should be made?

Two Brother's Moving Company purchased a group of new moving trucks for a total amount of $125,000. The vehicles are expected to last five years due to the heavy use and have a residual/scrap/salvage value of $10,000 at the end of that life. Usage of the vehicle is tracked in miles and the vehicles in total are expected to last 2,000,000 miles. During year one 750,000 miles were used, during year two 600,000 miles were used, during year three 500,000 miles were used, during year four no miles were used due to a temporary closing of the moving line of business, and during year five 150,000 miles were used. Using the depreciation template provided, determine the amount of depreciation expense for the third year under each of the following assumptions:

1. The company uses the straight-line method of depreciation.
2. The company uses the units-of-production method of depreciation.
3. The company uses the double-declining-balance method of depreciation.

1. Assuming straight line depreciation, prepare the journal entry for the third year.
2. Assume the company sold the vehicles at the end of the fourth year for $50,000. Prepare a journal entry for asset disposal in the fourth year.
3. Assume you are the chief accountant of this company. Determine how you will choose, based on best industry practices, the depreciation method for them to use.

Many exercise apps record both the time and the distance a user covers while walking, running, biking, or swimming. Some users of the apps want to know their average pace in minutes and seconds per mile, while others want to know their average speed in miles per hour. In many cases, we are interested in projected time over a specific distance. For example, if I run 6.3 miles in 53 minutes and 30 seconds, my average pace is 8 minutes and 29 seconds per mile, my average speed is 7.07 miles per hour and my projected time for 2.7 miles is 22 minutes and 55 seconds. Your job in Part 2 of this homework is to write a program that asks the user for the minutes, seconds, miles run, and miles to target from an exercise event and outputs both the average pace and the average speed. You can expect minutes and seconds to both be integers, but miles will be a float. All minutes and seconds must be maintained as integers so please use integer division and modulo operations. Note that if you have a float value then the function int gives you the integer value.

For example:

>>> x = 29.52

>>> y = int(x)

>>> print(y) 29

The output for the speed will be a float and should be printed to 2 decimal places. Notice also that our solution generates a blank line before the output of calculations.

Background: Anorexia is well known to be difficult to treat. The data set provided below contains data on the weight gain for three groups of young female anorexia patients. These groups include a control group, a group receiving cognitive behavioral therapy and a group receiving family therapy. Source: Hand, D. J., Daly, F., McConway, K., Lunn, D. and Ostrowski, E. eds (1993) A Handbook of Small Data Sets. Chapman & Hall, Data set 285 (p. 229).

Directions: Click on the Data button below to display the data. Copy the data into a statistical software package and click the Data button a second time to hide it. Then perform an analysis of variance (ANOVA) to determine whether or not the differences in weight gain between the treatment groups is statistically significant.

Data

1. State the null and alternative hypotheses.
   
   
   
2. Compute the test statistic. Document how SSTr and SSE were computed. Use 4 decimal places for the sample means, sample standard deviations and the grand mean and round your answers for SSTr and SSE to 2 decimal places.
   
   Use the values for SSTr and SSE to complete the following ANOVA table. Round each of your answers to 2 decimal places.
   

   Source	S.S.	df	M.S.	F
   Treatment
   Error
   Total

3. Compute the p-value. Provide the name of the distribution and the parameters used to compute the p-value. Then enter your answer rounded to 4 decimal places.
   
   
   
4. Interpret the results of the significance test. Is this result statistically significant? Is this result important from a practical perspective?
   

Background: Anorexia is well known to be difficult to treat. The data set provided below contains data on the weight gain for three groups of young female anorexia patients. These groups include a control group, a group receiving cognitive behavioral therapy and a group receiving family therapy. Source: Hand, D. J., Daly, F., McConway, K., Lunn, D. and Ostrowski, E. eds (1993) A Handbook of Small Data Sets. Chapman & Hall, Data set 285 (p. 229).

Directions: Click on the Data button below to display the data. Copy the data into a statistical software package and click the Data button a second time to hide it. Then perform an analysis of variance (ANOVA) to determine whether or not the differences in weight gain between the treatment groups is statistically significant.

Data

1. State the null and alternative hypotheses.
   
   
   
2. Compute the test statistic. Document how SSTr and SSE were computed. Use 4 decimal places for the sample means, sample standard deviations and the grand mean and round your answers for SSTr and SSE to 2 decimal places

   Use the values for SSTr and SSE to complete the following ANOVA table. Round each of your answers to 2 decimal places.

   Source	S.S.	df	M.S.	F
   Treatment
   Error
   Total

3. Compute the p-value. Provide the name of the distribution and the parameters used to compute the p-value. Then enter your answer rounded to 4 decimal places.
   
   
   
4. Interpret the results of the significance test. Is this result statistically significant? Is this result important from a practical perspective?
   

you currently drive 300 miles per week in a car that gets 20 miles per gallon of gas. you are considering buying a new fuel-efficient car for $12,000 ( after trade-in on your current car) that gets 50 miles per gallon. Insurance premiums for the new and old car are $900 and $500 per year, respectively. you anticipate spending $1300 per year on repairs for the old car and having no repairs on the new car. assume gas costs $3.50 per gallon. over a five-year period, is it less expensive to keep your old car or buy the new car? by how much?

the old car is $690 less expensive

the new car is $940 less expensive

the old car is $940 less expensive

the new car is $690 less expensice

Miles per Gallon. The following stem-leaf plot is representing the number of miles per gallon achieved on the highway for 2013 small car models. Construct an Ogive of data by first construction a cumulative frequency table with class width of five. Include: Limits, frequency, and cumulative frequency.

Russell Preston delivers parts for several local auto parts stores. He charges clients $1.45 per mile driven. Russell has determined that if he drives 2,700 miles in a month, his average operating cost is $0.90 per mile. If he drives 3,700 miles in a month, his average operating cost is $0.80 per mile. Russell has used the high-low method to determine that his monthly cost equation is total cost = $1,380 + $0.53 per mile.

Required:
1. Determine how many miles Russell needs to drive to break even.

2. Assume Russell drove 2,000 miles last month. Without making any additional calculations, determine whether he earned a profit or a loss last month.

3. Determine how many miles Russell must drive to earn $1,840 in profit.

4-a. Prepare a contribution margin income statement assuming Russell drove 2,000 miles last month.

4-b. Use the information provided in Req 4a to calculate Russell’s degree of operating leverage.

Exercise 11-29 Cost Allocation: Step Method (LO 11-3) Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow: Proportion of Services Used by Department Direct Costs Maintenance Cafeteria Machining Assembly Machining $ 120,000 Assembly 80,000 Maintenance 53,000 — 0.2 0.5 0.3 Cafeteria 42,000 0.7 — 0.2 0.1 Required: Use the step method to allocate the service costs, using the following: a. The order of allocation starts with Maintenance. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) b. The allocations are made in the reverse order (starting with Cafeteria). (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)