The Brown Bag company makes a two varieties of bags for its customers. The first is an organically created, Non-GMO, totally biodegradable bag used at a large number of Whole Foods stores and various other high end groceries. The company sells these bags for $10.00 per hundred (1 unit). The second bag is a reusable bag that sells for $5.00 each. The company currently uses a plant-wide allocation for factory overhead based upon machine hours, however, the company feels like there is something amiss since they believe the biodegradable bag should be its greatest profit center but the results of the plant-wide allocation seem to be allocating in a manner not consistent with the true allocation. The company has hired your firm to give a budget, by product type, under both the plant-wide and activity based costing method and are seeking you to explain the results and give any recommendations. They are seeking a budgeted income statement under both methods for both products.

The direct materials for the Biodegradable bags is $1.50 per hundred/per unit (please note for the purposes of presentation and internal books, the company considers 100 of these bags to be 1 unit). The cost for materials for the reusable bag is $0.50 per unit. In addition, the direct labor for the biodegradable is $1.50 per unit, whereas for the reusable it is a $1.00 per unit.

The company expects to sell 50,000 units of the biodegradable units (5,000,000 individual bags) and 50,000 of the reusable bags.

The following information has been given regarding production, factory overhead.

In addition, the company pays $0.25 sales commission per unit for the biodegradable bags and $0.50 for the reusable bags.   Last, the company has other general and administrative expenses, i.e. fixed expenses, in the amount of $40,000.

Please prepare the required income statements, analysis and explanation. For the biodegradable bags, please give in units not per bag, for the reusable use per unit which equals one bag.

After you finished your budget, the company came and reported the following, they want you to do a comparison and determine the variances and give any other items you view as important. An actual contribution margin might be helpful.

The company sold 52,000 units of the bio-bags, and 55,000 units of the reusable bags at the expected sales price.

The overall labor costs for the bio-bag per unit was $1.55 and for the reusable it was $0.90. For the direct materials, there was a bio-material shortage, so the cost per unit of the bio-bag was $2.00, whereas plastic fibers went down and the cost was $0.45 per unit.

For the variable overhead above, the material handing was actually $275,000, production and packing and shipping were the same as budgeted.

Please prepare a variance report based upon the actual versus budgeted on a flexible budget methodology.

Triple Z, is providing car maintenance services for their customers in England, The Company is aiming to expand their business in the UK by establishing car services stations in Scotland. This project will cost the company £50 million. Triple Z decided to establish a separate company for this project and to name it Z Highlands. Z Highland plans to finance this project using 40% equity and 60% debt. T-bond annual rate 6.0%. Expected return on FTSE500 is 15%. The Variance of FTSE500 returns is 2. The covariance between FTSE500 and Triple Z is 1.6. Triple Z has had no debt for the last 5 years. (i.e. Debt/Equity = 0). The tax rate is 40%. Required: a) Calculate the following:

i) The Beta and cost of equity the Triple Z.

ii) The levered beta and the cost of equity for Z Highlands.

An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company:

After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $210,000.

If the relevant interest rate is 12 percent for the first six years and 6 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Child's 65th birthday          

Periodically, customers of a financial services company are asked to evaluate the company's financial consultants and services. Higher ratings on the client satisfaction survey indicate better service, with 7 the maximum service rating. Independent samples of service ratings for two financial consultants are summarized here. Consultant A has 10 years of experience, whereas consultant B has 1 year of experience. Use α = 0.05 and test to see whether the consultant with more experience has the higher population mean service rating.

(a) State the null and alternative hypotheses.

H₀:μ₁ − μ₂ ≤ 0

H_a:μ₁ − μ₂ > 0

(b) compute the value of the test statistic. (Round your answer to three decimal places.)

(c) What is the p-value? (Round your answer to four decimal places.)

(d) What is your conclusion?

Reject H₀. There is sufficient evidence to conclude that the consultant with more experience has a higher population mean rating.

Periodically, customers of a financial services company are asked to evaluate the company's financial consultants and services. Higher ratings on the client satisfaction survey indicate better service, with 7 the maximum service rating. Independent samples of service ratings for two financial consultants are summarized here. Consultant A has 10 years of experience, whereas consultant B has 1 year of experience. Use

α = 0.05

and test to see whether the consultant with more experience has the higher population mean service rating.

State the null and alternative hypotheses.

H₀:

μ₁ − μ₂ = 0

H_a:

μ₁ − μ₂ ≠ 0

H₀:

μ₁ − μ₂ > 0

H_a:

μ₁ − μ₂ ≤ 0

H₀:

μ₁ − μ₂ ≠ 0

H_a:

μ₁ − μ₂ = 0

H₀:

μ₁ − μ₂ ≤ 0

H_a:

μ₁ − μ₂ = 0

H₀:

μ₁ − μ₂ ≤ 0

H_a:

μ₁ − μ₂ > 0

(b)

Compute the value of the test statistic. (Round your answer to three decimal places.)

(c)

What is the p-value? (Round your answer to four decimal places.)

p-value =

What is your conclusion?

Reject H₀. There is insufficient evidence to conclude that the consultant with more experience has a higher population mean rating.

Reject H₀. There is sufficient evidence to conclude that the consultant with more experience has a higher population mean rating.    

Do not Reject H₀. There is sufficient evidence to conclude that the consultant with more experience has a higher population mean rating.

Do not reject H₀. There is insufficient evidence to conclude that the consultant with more experience has a higher population mean rating.

The Easy Credit Company report the following table representing a breakdown of customers accounting to the amount they owe and whether a cash advance has been made. An auditor randomly selects one of the accounts.

Show your work!

1. What is the probability that a customer received a cash advance?
2. What is the probability that a customer owed less than $200 and received a cash advance?
3. What is the probability that a customer owed less than $200 or received a cash advance?
4. Given that the customer-owned $1000 or more, what is the probability that the customer received a cash advance?
5. Are the events "receiving a cash advance" and "owning $1000 or more" independent? Explain why or why not.

The modern Age Copier Company is considering purchasing a copier for use by customers. Data for the copier under consideration is reflected in the table below. The copier is expected to last 8 years. The tax rate is 30%. The Company will not accept a project with a return of less than 12% Copier Equipment Cost $64,000 Annual Revenues $80,000 Annual Paper Costs $33,100 Annual Maintenance Costs $20,000 Annual Depreciation $ 8,000 All of the items in the table above are taxable or tax deductible except for the initial cost of the copier Equipment. Although the initial cost is not tax deductible, the initial cost will be subject to depreciation. Assume straight line depreciation with no residual value. 1. Should Modern Age Copier undertake this project? Explain and support with analysis. 2. Compute the Payback period (Round to one decimal place) Show analysis.

You are an event management company. Your customers want you to create an event with the 'wow' factor was the brief given to you by North Cypriot Young Businessman Association who were looking to hold a conference followed by an evening of entertainment for 200 guest with overnight accommodation with Palm Beach Hotel. They are going to invite investors from Turkey to make them invest in North Cyprus by the means of Tourism. As an event management company what kind of solutions can you offer them. Design an event and make your customers happy. You have a 100.000 USD budget. Just give a tentative budget doesn’t have to be too detailed. -WRITE MAXIMUM 500 WORDS

1. You are a consultant to a large telecommunications company that markets many products to many customers. The company has many competitors. Describe the level of uncertainty and Analyze all interdependences that can be used for managing this organizational environment.