The table below lists the prices and quantities consumed of three different goods from 2014−2016.

a. For 2014, 2015, and 2016, determine the amount that a typical consumer pays each year to purchase the quantities listed in the table above.

Instructions: Round your answers to the nearest whole number.

Instructions: Round your answers to two decimal places.

b. The percentage change in the amount the consumer paid is  % from 2014 to 2015 and  % from 2015 to 2016.

c. It is problematic to use your answers to part b as a measure of inflation because  (Click to select)  only income is changing  both price and consumption are changing  only consumption is changing  only price is changing  .

Instructions: Round your answers to two decimal places.

d. Suppose we take 2014 as the base year, which implies that the market basket is fixed at 2014 consumption levels. Using 2014 consumption levels, the rate of inflation is % from 2014 to 2015 and  % from 2015 to 2016. (Hint: First calculate the cost of the 2014 market basket using each year's prices and then find the percentage change in the cost of the basket.)

Instructions: Round your answers to two decimal places.

e. Repeat the exercise from part d, now assuming that the base year is 2015. Using 2015 consumption levels, the rate of inflation is  % from 2014 to 2015 and  % from 2015 to 2016. (Hint: First calculate the cost of the 2015 market basket using each year's prices and then find the percentage change in the cost of the basket.)

f. Your answers from parts d and e were different because  (Click to select)  the base years have the same consumption quantities  income has changed  the base years put different weights on the goods  prices have changed

McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $575,000; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 52 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations.

c.What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places.

d. What is the percentage cost of trade credit to customers who do not take the discount and pay in 52 days? Round your answers to two decimal places. Do not round intermediate calculations.

e.  What would happen to McEwan’s accounts receivable if it toughened up on its collection policy with the result that all nondiscount customers paid on the 40th day? Round your answers to two decimal places. Do not round intermediate calculations.

1A. If Canace Company, with a break-even point at $489,800 of sales, has actual sales of $620,000, what is the margin of safety expressed (1) in dollars and (2) as a percentage of sales? Round the percentage to the nearest whole number.

1. $

2.   %

b. If the margin of safety for Canace Company was 30%, fixed costs were $1,656,900, and variable costs were 70% of sales, what was the amount of actual sales (dollars)?
(Hint: Determine the break-even in sales dollars first.)
$

1B. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $496,000, and the sales mix is 80% bats and 20% gloves. The unit selling price and the unit variable cost for each product are as follows:

a. Compute the break-even sales (units) for the overall enterprise product, E.
units

b. How many units of each product, baseball bats and baseball gloves, would be sold at the break-even point?

Kaler Company has sales of $1,410,000, cost of goods sold of $785,000, other operating expenses of $198,000, average invested assets of $4,400,000, and a hurdle rate of 11 percent. Required:

1. Determine Kaler’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin answer to the nearest whole percentage, (i.e., 0.1234 should be entered as 12%). Round your Investment Turnover answers to 4 decimal places.)

Please calculate step-by-step

2. Several possible changes that Kaler could face in the upcoming year follow. Determine each scenario’s impact on Kaler’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.))

a. Company sales and cost of goods sold increase by 5 percent.

b. Operating expenses increase by $83,000.

c. Operating expenses decrease by 10 percent.

d. Average invested assets decrease by $385,000.

e. Kaler changes its hurdle rate to 8 percent.

Part 2: Receivables Investment

In addition to your solution to each computational problem in this part of your assessment, you must show the supporting work leading to your solution to receive credit for your answer.

If you choose to solve the problems algebraically, be sure to show your computations.

If you use a financial calculator, show your input values.

If you use an Excel spreadsheet, show your input values and formulas.

XYZ Inc. sells on terms of 2/10, net 30. Total sales for the year are $1,000,000. Consider that 30 percent of the customers take discounts and pay on the 10th day, while the other 70 percent pay, on average, 45 days after their purchases.

What is the days' sale outstanding?

Determine the average amount of receivables.

For the customers who take the discount, what is the percentage cost of trade credit?

For the customers who do not take the discount and pay in 45 days, what is the percentage cost of trade credit?

What would happen to XYZ's accounts receivable if it created a new collection policy that required all non-discount customers to pay on the 30th day?

Q73. the price is 3, the quantity demanded is 8. When the price is 6, the quantity demanded is 4. What is the price elasticity of When demand?      -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Q74. A perfectly inelastic demand curve will be ---------------- on a graph while a perfectly elastic demand curve will be ------------------on a graph.        a. vertical; horizontal             b. horizontal; vertical           c. vertical; vertical                       d. horizontal; horizontal

Q75. When demand is price-inelastic, a price decrease will result in:

a. an increase in total cost.   b. an increase in total revenue.       c. a decrease in total cost.      d. a decrease in total revenue.

Q76. The practice of charging different prices to different buyers is called:

a. total revenue.             b. price discrimination.                 c. price elasticity.                 d. an increase in demand.

Q77. A percentage change in quantity supplied divided by a percentage change in price is called:

a. income elasticity.              b. price elasticity of demand.            c. price elasticity of supply.        d. elasticity of substitution.

Q78. When governments restrict agricultural production, the supply curve to shifts to the ----------, the equilibrium price ---------------, and the result is --------------------------------- revenue for farmers.

a. right; decreases; higher         b. left; decreases; higher             c. left; increases; lower               d. left; increases; higher

A. Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows:

Required: Compute Lobster Trap’s degree of operating leverage before and after automation. (Round your answers to 4 decimal places.)

1. Calculate Lobster Trap’s break-even sales dollars before and after automation.

2. Compute Lobster Trap’s degree of operating leverage before and after automation.

B. Last month, Laredo Company sold 520 units for $60 each. During the month, fixed costs were $8,211 and variable costs were $9 per unit.

(Round your Contribution Margin Ratio to the nearest whole percentage.)

Required:

1. Determine the unit contribution margin and contribution margin ratio.

2. Calculate the break-even point in units and sales dollars.

3. Compute Laredo’s margin of safety in units and as a percentage of sales.

Solano Company has sales of $720,000, cost of goods sold of $480,000, other operating expenses of $45,000, average invested assets of $2,150,000, and a hurdle rate of 10 percent. Required: 1. Determine Solano’s return on investment (ROI), investment turnover, profit margin, and residual income. (Do not round your intermediate calculations. Enter your ROI and Profit Margin percentage answer to the nearest 2 decimal places, (i.e., 0.1234 should be entered as 12.34%). Round your Investment Turnover answer to 4 decimal places.) 2. Several possible changes that Solano could face in the upcoming year follow. Determine each scenario’s impact on Solano’s ROI and residual income. (Note: Treat each scenario independently.) (Enter your ROI percentage answers to 2 decimal places, (i.e., 0.1234 should be entered as 12.34%.)) a. Company sales and cost of goods sold increase by 40 percent. b. Operating expenses decrease by $9,000. c. Operating expenses increase by 20 percent. d. Average invested assets increase by $410,000. e. Solano changes its hurdle rate to 16 percent.

A coffee manufacturer blends three component coffee beans into three final blends of coffee. The Table below summarizes the very precise recipes for the final coffee blends, the cost and availability information for the three components, and the wholesale price per pound of the final blends. The percentages in the body of the table indicate the percentage of each component to be used in each blend.

Table: Percentage of each component to be used in each blend

_____________________________________________________________________________                                    Final Blend (percent)                

                                                                                    Cost Per            Maximum Availability

            Component                    1         2          3              Pound           Each Week (Pound)

_____________________________________________________________________________                                                                                                  

                 1                  80        0          20        $0.60        40,000

                 2                  50        15        35        $0.80        25,000

                 3                  0          40        60        $0.55        20,000

_____________________________________________________________________________  

            Wholesale Price/lb.       $1.25   $1.50   $1.40 _____________________________________________________________________________

Weekly capacity for the processor's plant is 100,000 pounds, and the company wishes to operate at capacity. There is no problem in selling the final blends, although there is a requirement that minimum production level of 10,000, 25,000 and 30,000 pounds, respectively, be met for blends 1, 2 and 3. The manufacturer wishes to determine the number of pounds of each component to be purchased so as to maximize total weekly profit.

Formulate the problem as an L.P. model.  

1.Two independent situations follow:

For each situation above, prepare the appropriate journal entry for the redemption of the bonds. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2.