Experiences with a school-age child whose family is at or near the poverty level. How did poverty impact their life? Include examples of strengths within the child and family, or relationships and resources available to them outside of the family that may have helped them overcome some of the obstacles to their success.

1.) (15 pts.) Miamiville Interiors is a small shop that produces a variety of items that are sold through home improvement departments at local hardware stores. Among the items MI produces are replacement cabinet facings for kitchen and bathroom cabinets. The production manager must decide how many of each of two types of cabinet should be produced in the next production period. The net revenues and demand for each type of cabinet are listed in the table below. Also, in the table are production cost per unit and the units available for each of three types of wood used in the cabinet construction. Revenue per unit Maple Pine Walnut Demand Cabinet A $8 6 11 400 Cabinet B 13 4 9 600 Cost/unit $3.00 $1.80 $3.75 Units Available 400 600 200 Formulate a linear program to determine how many of each of the types of cabinet should be produced, using each type of wood. You seek to maximize profit (revenue – cost), while satisfying demand for the two cabinet styles.

Toll lanes on a section of the​ I-40 freeway are being considered in order to reduce traffic congestion and travel times. Since this is a government​ project, the​ B-C ratio method must be applied in the evaluation. The following are cost and other​ estimates:

Construction costs​ = ​$17,300,000

Operating and maintenance costs​ = ​$532,000 per year

Projected service life​ = 30 years

Savings in travel times and revenues generated from the tolls​ = ​$5,244,000 in the first year of operation and projected to increase by 2.75​% per year due to the projected annual increase in traffic. In​ addition, environmental analysis estimates that the project will result in increased noise and air pollution that will cause an additional societal health cost of ​$644,000 the first year and is also projected to increase at 2.75​% per year.

Assuming zero market​ (salvage) value at the end of 30 years and a MARR of 10​%per​ year, should the toll lanes be​constructed?

The conventional​ benefit-cost ratio of the project with PW is______​(Round to two decimal​ places.)

According to the​ B-C ratio​ method, the toll lanes should

A.not be constructed

B. be constructed

#1

Toll lanes on a section of the​ I-40 freeway are being considered in order to reduce traffic congestion and travel times.

Since this is a government​ project, the​ B-C ratio method must be applied in the evaluation. The following are cost and other​ estimates:

-Construction costs​=​$17,200,000

Operating and maintenance costs​ =​$521,000 per year

Projected service life​ =24 years

Savings in travel times and revenues generated from the tolls​ =​$5,152,000 in the first year of operation and projected to increase by 2.5% per year due to the projected annual increase in traffic. In​ addition, environmental analysis estimates that the project will result in increased noise and air pollution that will cause an additional societal health cost of $552,000 the first year and is also projected to increase at 2.5% per year.Assuming zero market​ (salvage) value at the end of 24 years and a MARR of 9​% per​ year, should the toll lanes be constructed?

a). The conventional​ benefit-cost ratio of the project with PW is_______

b). According to the​ B-C ratio​ method, the toll lanes should be constructed or not?

Berry Company is an architectural firm located in Toronto, Ontario. The company works with small and medium-size construction businesses to prepare building plans according to client contract. Berry employs 10 professionals and 5 staff. The following data are provided for last year:

Number of designs completed and sold                      700

Beginning inventory of direct materials                $20,000

Beginning inventory of designs in process          $60,000

Ending inventory of direct materials                                 $0

Ending inventory of designs in process                $100,000

Purchases, direct materials                                    $40,000

Direct labour                                                             $800,000

Manufacturing overhead                                         $100,000

Administrative expense                                           $150,000

Selling expense                                                        $60,000

Required:

1. Calculate the cost of services sold.

2. Assume that the average fee for a design is $2,100 Prepare an income statement for Berry Company.

3. Refer to the cost of services sold (calculated in Requirement 1). What is the dominant cost Will this always be true of service organizations? If not, provide an example of an exception

4. Why does Berry Company show zero inventory of finished plans? What change(s) in the company could result in a positive finished goods inventory?

Variable and Fixed Costs, Cost Formula, High-Low Method

Li Ming Yuan and Tiffany Shaden are the department heads for the accounting department and human resources department, respectively, at a large textile firm in the southern United States. They have just returned from an executive meeting at which the necessity of cutting costs and gaining efficiency has been stressed. After talking with Tiffany and some of her staff members, as well as his own staff members, Li Ming discovered that there were a number of costs associated with the claims processing activity. These costs included the salaries of the two paralegals who worked full time on claims processing, the salary of the accountant who cut the checks, the cost of claims forms, checks, envelopes, and postage, and depreciation on the office equipment dedicated to the processing. Some of the paralegals’ time appears to vary with the routine processing of uncontested claims, but considerable time also appears to be spent on the claims that have incomplete documentation or are contested. The accountant’s time appears to vary with the number of claims processed.

Li Ming was able to separate the costs of processing claims from the costs of running the departments of accounting and human resources. He gathered the data on claims processing cost and the number of claims processed per month for the past 6 months. These data are as follows:

Required:

1. Classify the claims processing costs that Li Ming identified as variable and fixed.

2. What is the independent variable?

What is the dependent variable?

3. Use the high-low method to find the fixed cost per month.
$

Use the high-low method to find the variable rate. Round to two decimal places.
$ per claim

What is the cost formula?
Total cost of claims processing = $ + ( $ per unit ×   )

4. Conceptual Connection: Suppose that an outside company bids on the claims processing business. The bid price is $4.60 per claim. If Tiffany expects 75,600 claims next year, should she outsource the claims processing or continue to do it in-house?

Pharoah Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34,200. Purchases since January 1 were $64,800; freight-in, $3,060; purchase returns and allowances, $2,160. Sales are made at 33 1/3% above cost and totaled $99,000 to March 9. Goods costing $9,810 were left undamaged by the fire; remaining goods were destroyed.

Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, e.g. 15% or 125.)

Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/₃% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

The following information is available for three companies:

Required
a. Determine the annual before-tax interest cost for each company in dollars.

b. Determine the annual after-tax interest cost for each company in dollars. (Round your answers to the nearest dollar amount.)

c. Determine the annual after-tax interest cost for each company as a percentage of the face value of the bonds. (Round your answers to 1 decimal place.)

Sheridan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $34,960. Purchases since January 1 were $66,240; freight-in, $3,128; purchase returns and allowances, $2,208. Sales are made at 33 ¹/₃% above cost and totaled $102,000 to March 9. Goods costing $10,028 were left undamaged by the fire; remaining goods were destroyed.

1. Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, e.g. 15% or 125.)

2. Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/₃% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)