Maximizing Profit

The total daily revenue (in dollars) that a publishing company realizes in publishing and selling its English-language dictionaries is given by

R(x, y) = −0.005x² − 0.003y² − 0.002xy + 20x + 15y

where x denotes the number of deluxe copies and y denotes the number of standard copies published and sold daily. The total daily cost of publishing these dictionaries is given by

C(x, y) = 6x + 3y + 240

dollars. Determine how many deluxe copies and how many standard copies the company should publish each day to maximize its profits. (Round your answers to the nearest whole number of copies.)

deluxe copies =

standard copies =

What is the maximum profit realizable? (Round your answer to the nearest cent.)

$ _____

Write code in SAS to do each of the following I have posted the data below from a pace delimited data set consisting of 66 randomly selected cars

1. Upload the data set to SAS and store it as a SAS data set called cars. Make sure the full values are stored for all character variables.
2. Create a comparative bar chart (with appropriate title and labels) displaying the brands of each car by fuel type (so that fuel type is on the x-axis). Do not stack the bars.
3. Write a program to determine the mean, variance, 20th percentile, and mode (and only those statistics) of the KMs and Price variables.
4. Perform a hypothesis test to determine if the mean price of cars with the petrol fuel type differs from the mean price of cars with the CNG fuel type.
5. Run a regression analysis using Price as the dependent variable and KMs as the independent variable such that 90% confidence intervals on the coefficients are included.

"Brand" "Condition" "Fuel" "KMs" "Model" "Price" "City" "Transaction" "Year"
"Daihatsu" "New" "Petrol" 19000 "Move" 1125000 "Karachi" "Cash" 2014
"Mazda" "Used" "Petrol" 89999 "Azwagon" 799999 "Karachi" "Cash" 2007
"Toyota" "Used" "Petrol" 140000 "Prius" 1225000 "Karachi" "Cash" 2007
"Toyota" "Used" "Petrol" 95000 "Corrolla Altis" 995000 "Karachi" "Cash" 1995
"Toyota" "Used" "Petrol" 61000 "Passo" 1150000 "Karachi" "Cash" 2012
"Suzuki" "Used" "Petrol" 100000 "Alto" 380000 "Karachi" "Cash" 2001
"Toyota" "Used" "Petrol" 86000 "Passo" 1650000 "Karachi" "Cash" 2015
"Suzuki" "New" "Petrol" 130000 "Alto" 525000 "Karachi" "Cash" 2001
"Nissan" "Used" "Petrol" 100000 "Tiida" 875000 "Karachi" "Cash" 2007
"Honda" "Used" "Petrol" 182000 "Civic EXi" 720000 "Karachi" "Cash" 2004
"Daihatsu" "Used" "Petrol" 85000 "Other" 625000 "Karachi" "Cash" 2011
"Suzuki" "Used" "Hybrid" 78523 "Alto" 545000 "Karachi" "Cash" 2010
"Suzuki" "Used" "CNG" 105000 "Mehran VX" 255000 "Karachi" "Cash" 2000
"Suzuki" "Used" "CNG" 100000 "Khyber" 135000 "Karachi" "Cash" 1989
"Other Brands" "New" "CNG" 660 "Other" 250000 "Karachi" "Cash" 1993
"Nissan" "New" "Petrol" 97000 "Dayz" 985000 "Karachi" "Cash" 2015
"Suzuki" "Used" "Petrol" 35000 "Cultus VXR" 580000 "Karachi" "Cash" 2008
"Toyota" "Used" "CNG" 127000 "Corolla GLI" 1390000 "Karachi" "Cash" 2012
"Suzuki" "Used" "CNG" 20880 "Mehran VXR" 430000 "Karachi" "Cash" 2011
"Suzuki" "Used" "Petrol" 88000 "Every" 885000 "Karachi" "Cash" 2012
"Suzuki" "Used" "CNG" 60000 "Mehran VXR" 150000 "Karachi" "Cash" 1998
"Toyota" "Used" "Petrol" 118000 "Corolla XLI" 975000 "Karachi" "Cash" 2008
"Honda" "New" "Petrol" 80999 "Civic VTi" 350000 "Karachi" "Cash" 1995
"Daihatsu" "Used" "Petrol" 10000 "Mira" 1500000 "Karachi" "Cash" 2017
"Toyota" "New" "CNG" 80000 "Corolla XLI" 1250000 "Islamabad" "Cash" 2005
"Toyota" "Used" "Petrol" 120000 "Prado" 5500000 "Karachi" "Cash" 2007
"Daihatsu" "New" "Petrol" 68000 "Mira" 1100000 "Karachi" "Cash" 2014
"Suzuki" "Used" "CNG" 123456 "Cultus VXR" 470000 "Karachi" "Cash" 2003
"Suzuki" "Used" "Petrol" 95000 "Mehran VX" 325000 "Gujranwala" "Cash" 2003
"Toyota" "Used" "Petrol" 127000 "Corolla GLI" 1150000 "Karachi" "Cash" 2009
"Suzuki" "Used" "CNG" 50000 "Cultus VXR" 430000 "Karachi" "Cash" 2003
"Mitsubishi" "New" "Petrol" 100000 "Pajero Mini" 500000 "Karachi" "Cash" 1998
"Suzuki" "Used" "Petrol" 8884 "Swift" 795000 "Karachi" "Cash" 2011
"Daihatsu" "Used" "Petrol" 22500 "Mira" 1250000 "Karachi" "Cash" 2016
"Honda" "Used" "Petrol" 560800 "Civic EXi" 240000 "Karachi" "Cash" 1990
"Suzuki" "Used" "CNG" 114000 "Alto" 595000 "Karachi" "Cash" 2011
"Suzuki" "Used" "Petrol" 35000 "Wagon R" 1200000 "Karachi" "Cash" 2014
"Suzuki" "Used" "CNG" 111111 "Mehran VX" 200000 "Karachi" "Cash" 1996
"Toyota" "Used" "CNG" 123 "Estima" 650000 "Karachi" "Cash" 1993
"Suzuki" "Used" "CNG" 14500 "Alto" 420000 "Karachi" "Cash" 2008
"Suzuki" "Used" "CNG" 10000 "Alto" 435000 "Karachi" "Cash" 2004
"Suzuki" "New" "CNG" 5 "Mehran VX" 250000 "Karachi" "Cash" 2003
"Toyota" "New" "Petrol" 59000 "Prado" 6000000 "Karachi" "Cash" 2009
"Suzuki" "Used" "Petrol" 28000 "Swift" 1400000 "Karachi" "Cash" 2015
"Hyundai" "Used" "Petrol" 70000 "Santro" 515000 "Karachi" "Cash" 2007
"Suzuki" "New" "Petrol" 45000 "Mehran VXR" 480000 "Karachi" "Cash" 2012
"Suzuki" "Used" "CNG" 2500 "Margalla" 335000 "Karachi" "Cash" 1996
"Daihatsu" "Used" "Petrol" 113000 "Cuore" 555000 "Karachi" "Cash" 2005
"Toyota" "Used" "Petrol" 84000 "Other" 1300000 "Karachi" "Cash" 2005

Question 1

The Kingsmill Furniture Company sells its products, offering 30 days’ credit to its customers. Uncollectible amounts are estimated to be equal to 2% of credit sales. At the end of the year, the allowance for doubtful accounts is adjusted based on an aging of accounts receivable. The company began 2017 with the following balances in its accounts:

Accounts receivable                $305,000

Allowance for doubtful accounts        (25,500)

During 2017, sales on credit were $1,300,000, cash collections from customers were $1,250,000 and actual write-offs of accounts were $25,000. An aging of accounts receivable at the end of 2017 indicates a required allowance of $30,000.

Required:

1. Determine the balances in accounts receivable and allowance for doubtful accounts at the end of 2017.

2. Determine the bad debt expense for 2017.

3. Prepare journal entries to accrue bad debts, write-off the receivables, and the year-end adjusting entry required to adjust the allowance for doubtful accounts to the required allowance of $30,000. Include explanations for each journal entry.

Discuss how you can create an effective website that will attract your customers. Give some features of this website. (Assume that you have a company of your own and state what company is this.)

Record transactions using journal entries: Suppose Mask, Inc. identified the following transactions during January 2018:

1/1/18: Purchased inventory worth $11,300 on account.

1/3/18: Sold inventory, which originally cost $2,750, for $3,180 on account to customers.

1/15/18: Paid $5,000 cash to suppliers from transaction a.

1/20/18: Received $1,700 cash payment from customers in transaction b.

1/31/18: Paid $2,250 cash for January wages.

Record all of the above transactions using journal entries (HINT: there will be two separate entries to record for transaction b.). I have completed transaction a. for you as an example. Assume Mask, Inc, uses the following accounts: Cash, A/R, Inventory, A/P, Sales Revenue, Cost of Goods Sold (COGS), Wages Expense.

1/1/18                                                       DEBIT             CREDIT

            Inventory                                             $11,300

                        Accounts Payable (A/P)                                  $11,300

            To record purchase of inventory on account.

T-accounts: Below is the T-account for Accounts Receivable (A/R) for She’s A Star, Ltd.:

                                                   Accounts Receivable (A/R)

                    Beginning balance $135,000

                              (transaction 1) $21,800           $12,500 (transaction 2)

                                                                        $XX,XXX (transaction 3)

                      Ending balance      $126,560

What is the missing value $XX,XXX for transaction 3?

Give one example of a transaction that would have resulted in the posting of transaction 1 to the A/R account.

Give one example of a transaction that would have resulted in the posting of transaction 2 to the A/R account.

1. Sprint charges its current customers an average of $55 per month. It costs Sprint $4.50 per month to serve these customers. It also spends $3 per customer per month to keep these customers loyal. Over the last few years Sprint has been able to retain 80% of its customers. Assume a discount rate of 5% annually.

1. Calculate Sprint’s customer lifetime value of its current customers. [2]

2. Sprint is willing to spend $320M in advertising to 10 million viewers, and $375M in buying out contracts for T-Mobile and AT&T customers. They expect that at least 10% of those in the targeted group will switch. In addition to cutting rates of these potential customers, leading to an average monthly price of $40 per month per customer. These customers would also pay $50 in activation fees. Calculate the CLV for these customers at the same discount rate, retention spending, and variable cost, however the retention rate is expected to be 88% for these new customers. (hint: Initial margin = activation fee) [3]

CLV=Initial margin+ Mr/(1+d-r)-AC

3. What is the minimum acquisition rate they would need to achieve for this promotion to be justified (breakeven acquisition rate)? [2]

  Breakeven Acquisition Rate= Acquisition Spending/CLV

4. Assume that Sprint they fell short of the 10% goal, and got 7.5% of the targeted customers to switch, and year-to-year Sprint can increase their margins from these customers by 6%. Out of the buyout money, they paid an average of $125 in early termination fees per customer. Calculate their new CLV using the acquisition cost. (Hint: use the formula with g. AC = [advertising/number of people who switched] + average buyout cost). [3]

CLV= Initial + M x r / (1+d-r[1+g]) - AC

The chief accountant for Grandview Corporation provides you with the company’s 2021 statement of cash flows and income statement. The accountant has asked for your help with some missing figures in the company’s comparative balance sheets. These financial statements are shown next ($ in millions).

Required:
1. Calculate the missing amounts.
2. Prepare the operating activities section of Grandview’s 2021 statement of cash flows using the indirect method.

Calculate the missing amounts. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Prepare the operating activities section of Grandview’s 2021 statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Following are dated August 31, 2018

1.When the corporation was formed on September 1, 2017, common shares were sold to the sole shareholder, Uncle Bob, for $10,000 cash.

2.Uncle Bob added up all of the invoices the company issued to its customers and the total came to $229,400. All of these were issued on credit.

3.The company received $190,000 cash from customers when they paid their invoices.

4.The company rents a small repair shop for $3,500 per month. The shop was rented for the full year and all rent was paid in cash. In addition, the landlord required the company to pay one month's rent in advance.

5.Salaries to employees totalled $120,000 for the year and were paid in cash.

6.Uncle Bob determined from a review of numerous invoices that the office expenses for the year were $36,400. Of these, all were paid except $4,000 that was still owing.

7.In late August, a new customer approached the company and signed a contract for service to be done to its computers starting in October 2018. The customer paid the company $2,000 in advance to secure the service.

8.Uncle Bob estimated that, given the net income earned by the company this year, income tax  

   expense should be $6,200 but this would not have to be paid for another two months.

9.The company declared and paid $1,000 of dividends to shareholders at the end of the year.

Question:

a)  Prepare an equation analysis of the effects of the above transactions on the expanded accounting equation.

b) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.

McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:

Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers.

Prepare a vertical analysis of the segments. If required, round percentages to one decimal place.