Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

   
Additional production information concerning its two product lines follows.

  
Required:
1. Using ABC, compute the overhead cost per unit for each product line.
2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $111 for Model 212.
3. If the market price for Model 145 is $573.06 and the market price for Model 212 is $324.92, determine the profit or loss per unit for each model.

Labor supply. Santi derives utility from the hours of leisure (l) and from the amount of goods (c) he consumes. In order to maximize utility, he needs to allocate the 24 hours in the day between leisure hours (l) and work hours (h). Santi has a Cobb-Douglas utility function, u(c, l) = c 2/3 l 1/3 . Assume that all hours not spent working are leisure hours, i.e, h + l = 24. The price of a good is equal to 1 and the price of leisure is equal the hourly wage, w. Santi also has passive income of M per month from his asset.

1. Write Santi’s budget equation and draw his budget constriant with consumption on the x-axis and leisure on the y-axis.

2. Set up Santi’s utility maximization problem.

3. Find the first order condition for optimal consumption and leisure. Derive his consumption and leisure demand functions from the first order condition and budget constraint.

4. Suppose Santi has non-labor income from this return in asset of $100 per month and he makes an hourly wage of $10. What is his consumption, leisure, and work hours per day?

5. Find Santi’s elasticity of leisure demand with respect to hourly wage. (Ed = ∂l/∂w w/l )

6. Find Santi’s elasticity of leisure demand with respect to non-labor income. (EI = ∂l/∂M M/l )

7. How do his leisure, and work hours change when his wage increases? Explain the effects in 2-3 sentences.

8. Suppose now the return on asset is taxed, which results in a decrease in his non labor income, M. Explain the impact that the tax on asset returns has on his leisure, and work hours.

9. Given that his leisure hour l cannot be more than 24 hours, l ≤ 24, and the hourly wage is equal to $10. Find the minimum non-labor income that will guarantee Santi to no longer work, i.e work hour =0, and l = 24.

Heart of the City Electrical Supplies are merchandisers of household fixtures & fittings. The business began the last quarter of 2017 (October to December) with 25 Starburst Wall Clocks at a total cost of $153,000. The following transactions took place during the quarter. October 10 100 clocks were purchased on account at a cost of $6,225 each. In addition, Heart paid $120 cash on each clock to have the inventory shipped from the vendor’s warehouse to their warehouse October 31 During the month 90 clocks were sold at a price of $8,300 each. (20 of these clocks sold were on account to a long-standing customer of the business) November 1 A new batch of 60 clocks was purchased at a total cost of $406,500 November 10 5 of the clocks purchased on November 1 were returned to the supplier, as they were damaged November 30 The sales for November were 58 clocks which yielded total sales revenue of $428,000 December 2 Owing to increased demand, a further 110 clocks were purchased at a cost of $7,400 each and these were subject to a trade discount of 2% each. December 6 William Paul, a customer to whom 8 clocks were sold at the start of the first business day in November, returned 2 of the clocks, as they did not match his specifications. December 31 117 clocks were sold during December at a unit selling price of $9,220. December 31 An actual inventory count was carried out which revealed that there were 22 Starburst wall clocks in the store room. Unless otherwise stated, assume that all purchases are on account and all sales are for cash. Required: i) Prepare a perpetual inventory record for this merchandise, using the last in, first out (LIFO) method of inventory valuation, to determine the company’s cost of goods sold for the quarter and the value of ending inventory. ii) Given that selling & distribution and administrative costs for the quarter were $96,800 and $134,400 respectively, prepare an income statement for Heart of the City Electrical Supplies for the period ended December 31, 2017 iii) State the journal entries necessary to record the transactions on October 10 and October 31, assuming the company uses a: -Periodic inventory system -Perpetual inventory system

1. (11 pts) All Boots is a retailer of boots. It sources a kind of waterproof hunting boots from an Asian supplier for $40 each and sells them to customers for $108 each. Leftover boots at the end of season will be sold to an outlet mall at $30 each. Given the $108 retail price, All Boots forecasts the demand distribution as follows:

Now suppose All Boots found a reliable vendor in the United States that can produce boots very quickly but at a higher price than All Boots’ Asian supplier. Hence, in addition to boots from Asia, All Boots can buy an unlimited quantity of additional boots from this American vendor at $65 each after demand is know.

a) Suppose All Boots orders 500 boots from the Asian supplier (Note that the first order quantity of 500 units is given, which may not be the optimal order quantity). What is the probability that All Boots will order from the American supplier once demand is known, i.e., the probability of placing a second order? (Hint: given the 1st order quantity of 500 units, with what demand outcomes will All Boots need to place a second order?)

b) Again assume that All Boots orders 500 boots from the Asian supplier. On average, how many boots should the American supplier expect that All Boots will order, i.e., the expected second order quantity? Parts c) and d) are separate from parts a)

c) Given the opportunity to order from the American supplier at $65 per boot, what order quantity from its Asian supplier now maximizes All Boots’ expected profit, i.e., optimal first order quantity?

d) Given the order quantity in part c) (not the quantity in parts a and b), what is All Boots’ expected profit? [Hint: expected profit = maximum profit – mismatch cost, where maximum profit = (p-c)* ?]

In a Monopoly market, a firm is a price setter. Fixed Costs remains at $1,000.00, where are the firm’s profit maximization point, break-even point, and shut-down?

Calculate the revenue, costs, and profit (if any).graph  

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.

Using the financial statements given above, what is Rosnan's 2019 free cash flow (FCF)? Use a minus sign to indicate a negative FCF. Round your answer to the nearest cent.

$  

Rosnan Industries' 2013 and 2012 balance sheets and income statements are shown below.

The balance in the firm's cash and equivalents account is needed for operations and is not considered "excess" cash.

Using the financial statements given above, what is Rosnan's 2013 free cash flow (FCF)? Use a minus sign to indicate a negative FCF.

The following data shown are the Test scores from our first Test .

63        70        93        80        90        82        75        75        48        92        97        70

56        79        34        67        48        66        60        90        95        89        76        82

    61      96         60        93         54        88       59         71       92        55        70         57

59        69        80        45         74       75        68        57        100    86       79         59 *

1. Construct the Histogram and Calculate Statistics from data for the first test.

2. If minimum averages have been established for each of these grades:

A         93%                 B83%              C73%              D63%              F< 60%  

Construct a Pie Graph and Bar Chart for the data

3. Construct a Box plot

4. Calculate the z-score for your first test score.

5. Compute the percentile score for your first test score.

6. What value corresponds to the 40^th percentile?

7. Check the data for outliers. Does your score belong to outliers?

8. From Histogram determine if the data are approximately normally distributed .

9. Using Chebyshev’s theorem at least what percentage will fall between B and C grade.

10. If I curve the scores by10% how will the standard deviation be affected.