A Dance Studio sells all types of items for dancing.
Some items are inexpensive ribbons, while some are expensive, made-to-order dresses. Some items are sold to individuals while others are bought in large quantities by dance companies. The manager does not understand why many of those long-term customers are finding other suppliers.
The company uses a conventional costing system and maintains only a single overhead allocation basis for all types of customers and all products are assumed to share same amount of time and effort.
Required:
Explain why so many long-time customers are finding other suppliers
and what changes to the costing system might be useful to avoid
losing further customers.
In: Accounting
At a Noodles & Company restaurant, the probability that a customer will order a nonalcoholic beverage is .34.
a. Find the probability that in a sample of 9 customers, none of the 9 will order a nonalcoholic beverage. (Round your answer to 4 decimal places.)
Probability b. Find the probability that in a sample of 9 customers, at least 6 will order a nonalcoholic beverage. (Round your answer to 4 decimal places.)
Probability c. Find the probability that in a sample of 9 customers, fewer than 7 will order a nonalcoholic beverage. (Round your answer to 4 decimal places.) Probability ]
d. Find the probability that in a sample of 9 customers, all 9 will order a nonalcoholic beverage. (Round your answer to 4 decimal places.) Probability
In: Statistics and Probability
Suppose that a market research analyst for a cell phone company conducts a study of their customers who exceed the time allowance included on their basic cell phone contract; the analyst finds that for those people who exceed the time included in their basic contract, the excess time used follows an exponential distribution with a mean of 22 minutes. Consider a random sample of 144 customers who exceed the time allowance included in their basic cell phone contract.
a. Find P(20 < x¯ < 30).
b. Find P(Σx is at least 3,000).
c. Find the 75th percentile for the sample mean excess time of 144 customers.
d. Find the 85th percentile for the sum of 144 excess times used by customers.
In: Statistics and Probability
XERCISE 1:
You want to accumulate a 200.000 euros retirement fund and you plan to make the first deposit on March 1, 1984 and the last on September 1, 2005. Find the size of each deposit, if he makes the deposits
(a) semi-annually in a fund that pays 12.5% per annum compounded semi-annually
(b) monthly in a fund that pays 12.5 % per annum compounded monthly.
EXERCISE 2:
Your friend makes regular deposits of 500$ at the end of each half-year for 5 years and then $800 for the next 3 years. Find the accumulated value of her deposit if interest is at 11%
In: Finance
Deseasonalize the data and use an appropriate technique to find the seasonally unadjusted forecasts for the next year. Include your results here, showing the deseasonalized data and the seasonally unadjusted forecasts.
|
Period |
Year |
Quarter |
Sales |
|
1 |
1 |
1 |
40 |
|
2 |
1 |
2 |
60 |
|
3 |
1 |
3 |
65 |
|
4 |
1 |
4 |
80 |
|
5 |
2 |
1 |
44 |
|
6 |
2 |
2 |
70 |
|
7 |
2 |
3 |
72 |
|
8 |
2 |
4 |
91 |
|
9 |
3 |
1 |
46 |
|
10 |
3 |
2 |
77 |
|
11 |
3 |
3 |
74 |
|
12 |
3 |
4 |
100 |
|
13 |
4 |
1 |
50 |
|
14 |
4 |
2 |
80 |
|
15 |
4 |
3 |
83 |
|
16 |
4 |
4 |
109 |
In: Statistics and Probability
Problem 13-28 Net Present Value Analysis [LO13-2]
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:
|
Present Truck |
New Truck |
|||||
| Purchase cost new | $ | 34,000 | $ | 44,000 | ||
| Remaining book value | $ | 21,000 | - | |||
| Overhaul needed now | $ | 20,000 | - | |||
| Annual cash operating costs | $ | 16,500 | $ | 15,000 | ||
| Salvage value-now | $ | 10,000 | - | |||
| Salvage value-five years from now | $ | 9,000 | $ | 9,000 | ||
If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.
The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 6% discount rate.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Finance
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:
|
Present Truck |
New Truck |
|||||
| Purchase cost new | $ | 38,000 | $ | 48,000 | ||
| Remaining book value | $ | 28,000 | - | |||
| Overhaul needed now | $ | 27,000 | - | |||
| Annual cash operating costs | $ | 20,000 | $ | 18,500 | ||
| Salvage value-now | $ | 10,000 | - | |||
| Salvage value-five years from now | $ | 14,000 | $ | 12,000 | ||
If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.
The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 7% discount rate.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Accounting
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: Present Truck New Truck Purchase cost (new) $ 28,000 $ 38,000 Remaining book value $ 15,000 Overhaul needed now $ 14,000 Annual cash operating costs $ 14,500 $ 13,000 Salvage value-now $ 10,000 Salvage value-five years from now $ 9,000 $ 12,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 13% discount rate. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Accounting
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:
| Present Truck |
New Truck |
|||||
| Purchase cost new | $ | 35,000 | $ | 50,000 | ||
| Remaining book value | $ | 25,000 | - | |||
| Overhaul needed now | $ | 24,000 | - | |||
| Annual cash operating costs | $ | 18,500 | $ | 18,000 | ||
| Salvage value-now | $ | 15,000 | - | |||
| Salvage value-five years from now | $ | 11,000 | $ | 9,000 | ||
If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.
The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 13% discount rate.
Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Accounting
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information:
| Present Truck |
New Truck |
|||||
| Purchase cost (new) | $ | 36,000 | $ | 48,000 | ||
| Remaining book value | $ | 23,000 | ||||
| Overhaul needed now | $ | 22,000 | ||||
| Annual cash operating costs | $ | 17,500 | $ | 16,000 | ||
| Salvage value-now | $ | 12,000 | ||||
| Salvage value-five years from now | $ | 15,000 | $ | 6,000 | ||
If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above.
The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate.
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
1. What is the net present value of the “keep the old truck” alternative?
2. What is the net present value of the “purchase the new truck” alternative?
3. Should Bilboa Freightlines keep the old truck or purchase the new one?
In: Accounting