A fashion magazine provides a yearly subscription service. According to historical data, about 72% of the customers renew their subscriptions each year. The manager of the magazine office believes the percentage would be higher if they change their service to be a monthly subscription. After 12 months, the manager randomly selected 500 customers and found 387 of them renewed the subscription. She conducts a hypothesis test where H0:p=0.72, and Ha:p>0.72 at the α=.05 level. She finds the p-value is 0.0036.

Select one or more:

a. 0.0036 is the probability of having 387 or fewer customers renew their subscription in a sample of 500 customers given that the true proportion of renewing subscription is 0.72.

b. 0.0036 is the probability of having exactly 387 customers renew their subscription in a sample of 500 customers given that the true proportion of those who renew their subscription is 0.72.

c. 0.0036 is the probability of having 387 or more customers renew their subscription in a sample of 500 customers given that the true proportion of those who renew their subscription is 0.72.

d. Because the p-value 0.0036 is not higher than 0.05, it is not statistically significant at that level, so we fail to reject the null hypothesis.

e. Because the p-value 0.0036 is less than 0.05, it is statistically significant at that level, and so we should reject the null hypothesis in favor of the alternative hypothesis.

f. 0.0036 is the probability that the true proportion of customers who renew their subscription is 0.72.

Question B.2

Leyton and Dustin run a service station in a country town, the service station sells petrol and a number of other goods, which are displayed near the cash register and outside the office. Leyton and Dustin are partners in the business, though they have an old written agreement that states that neither will order goods or services over the value of $3,000 unless the contract contains signatures from both partners.

Leyton has been approached by a supplier of magazines who offers the business the delivery of 100 copies of a particular publication each month. Leyton convinced that the magazine is popular and will make some money, signs a contract with a promise to pay $5,000 in instalments for the delivery of the magazines.

The magazines arrive and Dustin is very upset, first because the magazine is quite unsuitable for display in the business and may result in a loss of customers if they see this publication, but he is also upset that Leyton has made an agreement without consulting him. There is an argument between the partners and Leyton takes sick leave and stays at home to recover from the stress of the argument. In the meantime, Dustin communicates with the supplier of the magazines and declares that the agreement to supply the publication is invalid due to a breach of the partnership agreement, and that the magazines will be returned and no payments will be forthcoming from the business.

Explain, with reference to partnership law:

a.     Whether Dustin can cancel the contract with supplier of the magazines?       

[Answer here]

b.     Whether Dustin can be liable for the actions of Leyton?                          

How many calories are in a hot dog? Consumer Reports magazine presented the following data on the number of calories in a hot dog for each of 17 brands of meat hot dogs: 173 191 182 190 172 147 146 139 175 136 179 153 107 195 135 140 138

a) Make a stemplot of the distribution of calories in meat hot dogs and briefly describe the shape of the distribution. b) Most brands of meat hot dogs contain a mixture of beef and pork, with up to 15% poultry allowed by government regulations. The only brand with a different makeup was Eat Slim Veal Hot Dogs. Which point on your stemplot do you think represents this brand? Explain your answer.

How many calories are in a hot dog, again? Consumer Reports magazine presented the following data on the number of calories in a hot dog for each of 17 brands of meat hot dogs (same data from Part 2 above): 173 191 182 190 172 147 146 139 175 136 179 153 107 195 135 140 138

a) Find the five-number summary and construct a boxplot. b) Compare the stemplot (from Part 2), five-number summary, and boxplot. The stemplot and boxplot show important facts about the distribution that the numerical summary does not tell us. What are these facts?

Leyton and Dustin run a service station in a country town, the service station sells petrol and a number of other goods, which are displayed near the cash register and outside the office. Leyton and Dustin are partners in the business, though they have an old written agreement that states that neither will order goods or services over the value of $3,000 unless the contract contains signatures from both partners.

Leyton has been approached by a supplier of magazines who offers the business the delivery of 100 copies of a particular publication each month. Leyton convinced that the magazine is popular and will make some money, signs a contract with a promise to pay $5,000 in instalments for the delivery of the magazines.

The magazines arrive and Dustin is very upset, first because the magazine is quite unsuitable for display in the business and may result in a loss of customers if they see this publication, but he is also upset that Leyton has made an agreement without consulting him. There is an argument between the partners and Leyton takes sick leave and stays at home to recover from the stress of the argument. In the meantime, Dustin communicates with the supplier of the magazines and declares that the agreement to supply the publication is invalid due to a breach of the partnership agreement, and that the magazines will be returned and no payments will be forthcoming from the business.

Explain, with reference to partnership law:

1. Whether Dustin can cancel the contract with supplier of the magazines?         

[Answer here]

2. Whether Dustin can be liable for the actions of Leyton?                  

[Answer here]

3a)Which group of the following manufacturing cost elements occurs in a process cost system?

3b)

For which one of the following would a process cost system most likely be used?

3c)

The primary benefit of ABC is it provides

3d)

The primary benefit of ABC is it provides

1. ) Computers in some vehicles calculate various quantities related to performance.  One of these is the fuel efficiency, or gas mileage, usually expressed as miles per gallon (mpg).  For one vehicle equipped in this way, the car was set to 60 miles per hour by cruise control, and the mpg were recorded at random times.  Here are the mpg values from the experiment:

37.2     21.0     17.4     24.9     27.0     36.9     38.8     35.3     32.3     23.9

19.0     26.1     25.8     41.1     34.4     32.5     25.3     26.5     28.2     22.1

The vehicle sticker information for the vehicle states a highway average of 27 mpg.  Perform a hypothesis test at 5% significance level to determine if the results of this experiment are consistent with the vehicle sticker.

1. (30 points) Give the hypotheses, test statistic, rejection region, p-value, decision, and interpretation.
2. (5 points) What would a Type II error be in this situation?

For each of the following individuals, calculate the applicable self-employment tax. Assume that each individual files tax returns under Married Filing Jointly status.

NOTE: For simplicity, all calculations throughout this exercise, both intermediate and final, should be rounded to two decimal places at each calculation.

1:Annabelle Jefferson earns net self-employment income of $68,400. She does not work a second job.

Self-Employment tax =

2:Alexander Ryan earns net self-employment income of $117,800. He works a second job from which he receives FICA taxable earnings of $50,500.

Self-Employment tax =

3:Morgan Cruise earns net self-employment income of $223,400. She works a second job from which she receives FICA taxable earnings of $109,400.00.

Self-Employment tax =

Johnson Company is preparing budgets for the upcoming quarter ending October 31st . The marketing director has provided the following information to the Budget Committee. Currently the company sells one product, the korda, for $25 per unit. Budgeted sales for the next five months are as follows:

August 15,000

September 45,000

October 37,500

November 25,500

December 26,250

To minimize the risk of stockouts, the company has a policy to maintain an ending inventory of 18% of the following month’s budgeted sales. At the beginning of the quarter, the company had 7,500 units of korda in inventory. Each unit of korda requires 2 kilograms of direct materials. The company has a policy that materials on hand at the end of each month must be a minimum of 20% of the following month’s production. At the beginning of the quarter, the company has 15,600 kilograms of direct materials on hand. Each kilogram of direct material costs $3.00. Each unit of korda requires 0.2 hours (12 minutes) of direct labour. The company pays employees a standard wage of $15.00 per hour. The company applies overhead on the basis of direct labour hours. The variable manufacturing overhead rate is $12.00 per direct labour hour. Fixed overhead is $81,978 per month. The company has variable selling and administrative costs that are equal to $0.75 per unit sold. Fixed selling and administrative costs are estimated to be $100,000 per month. All sales are made on account. The company collects 65% of the sales revenue in the month of the sale, and the remaining 35% in the month following the sale. At the start of 2 the quarter, the company has $45,000 in accounts receivable that are deemed to be fully collectible. As stated, the company pays $3.00 per kilogram of direct materials. The company pays for 70% the direct materials purchases in the month of the purchase and pays the remaining 30% in the month following the purchase. At the beginning of the month, the company owes $20,000 to creditors.

Required:

(A) Prepare a sales budget for August, September, and October, and for the quarter.

(B) Prepare a production budget for August, September, and October, and for the quarter-end. (Note: You should also compute November’s production needs. That information is necessary for section (C).)

(C) Prepare the direct materials purchases budget for August, September, and October, and for the quarter-end.

(D) Prepare the direct labour budget for August, September, and October, and for the quarter-end.

(E) Prepare the overhead budget for August, September, and October, and for the quarter-end.

(F) Prepare the ending finished goods inventory budget for the quarter-end.

(G) Prepare a cost of goods sold budget for the quarter-end.

(H) Prepare the selling and administrative expense budget for August, September, and October, and for the quarter-end.

(I) Prepare a budgeted income statement for the quarter-end.

(J) Prepare the schedule of expected cash collections on sales for August, September, and October, and for the quarter-end.

(K) Prepare the schedule of expected cash disbursements for August, September, and October, and for the quarter-end.