Some financial information is extracted from financial statements of Global Co. as follows:

The credit controller of the company considers a new credit policy introduced in 2020 has effectively reduced the receivable days, which provides customers a 1% discount if they make full payment within 30 days. Further review of the policy indicates that the policy also reduced bad debts by £800,000 a year and the cost of financing receivables was covered by a short-term loan at the interest rate of 20% pa.

Required:
a) Is there any sign(s) of overtrading for Global? Explain with appropriate

ratio(s)/figure(s).

b) Calculate the appropriate equivalent annual percentage cost of a discount of 1 per cent, which reduces the time taken by credit customers to pay from 70 days to 50

days.

c) Assuming in 2020 customers either paid in 30 days to receive the discount or still paid in 70 days as they used to, what is the percentage of customers, by value, paid

in 30 days? Calculate the net benefit/cost of the policy.

It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 25,825 units

B. What is the expected contribution margin ratio?

C. Determine the break-even sales in units and dollars. Start by using the contribution margin ratio (part B.) and then round your answers to the nearest whole number.

D. Construct a cost-volume-profit chart on your own paper. What is the break-even sales?

$

E. What is the expected margin of safety in dollars and as a percentage of sales? If applicable, use amounts previously computed and then round your answers to the nearest whole number.

F. Determine the operating leverage. Round to one decimal place.

In anticipation of the upcoming quarterly disclosure of profits, you prepare your Board of Directors for the challenge that cost-push inflation having on profits.

All America Grocery Inc - We serve communities in the middle of the income market providing low prices for all basic grocery needs. Our modest income consumers expect goods deals on good quality foods.  The Covid-19 pandemic has put upward pressure on the price of everything we sell. We have also experience in rising costs in every aspect of our operation as we have to put extra resources in protecting both our employees and the public. We are both fortunate and unfortunate that the price elasticity of demand for food is .20.  Explain

• Is the demand curve for your product relatively elastic, inelastic or unitary elastic?  Demonstrate for your company's product, by how much the quantity demanded will change if you pass on a 10% increase in cost. In other words, show your calculation of the percentage change in the quantity demanded given a 10% change in your price. You must provide calculations showing the percentage change in quantity demanded.
• Given your company's and the price elasticity of demand and the industry supply/competitive environment, you face preparing a statement for your board as to the potential impact on profits.   Who will pay the larger share of the cost increases, your firm, or your customers?

Interdepartment Services: Step Method O'Brian's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. O'Brian's allocates Personnel Department costs on the basis of the number of employees and Payroll Department costs on the basis of gross payroll. Cost and allocation information for June is as follows: Personnel Payroll Housewares Clothing Furniture Direct department cost $7,300 $3,800 $12,300 $20,000 $15,650 Number of employees 5 2 8 14 3 Gross payroll $6,100 $2,800 $10,800 $17,200 $8,500 (a) Determine the percentage of total Personnel Department services that was provided to the Payroll Department. (Round your answer to one decimal place.) Answer % (b) Determine the percentage of total Payroll Department services that was provided to the Personnel Department. (Round your answer to one decimal place.) Answer % (c) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming O'Brian's uses the step method. For each department below, enter the total costs calculated from your schedule.    Do not round until your final answers. Round answers to the nearest dollar. Service Departments Producing Departments Payroll Personnel Housewares Clothing Furniture Total costs $ Answer $ Answer $ Answer $ Answer $ Answer

Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

At the split-off point, a batch yields 1,872 barlon, 2,753 selene, 2,643 plicene, and 3,744 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $18 per unit, plicene sells for $27 per unit, and corsol sells for $32 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

2. Suppose that the products are weighted as shown below:

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

At the split-off point, a batch yields 1,104 barlon, 2,809 selene, 2,608 plicene, and 3,511 corsol. All products are sold at the split-off point: barlon sells for $13 per unit, selene sells for $21 per unit, plicene sells for $28 per unit, and corsol sells for $33 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

2. Suppose that the products are weighted as shown below:

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

At the split-off point, a batch yields 1,041 barlon, 2,290 selene, 2,394 plicene, and 4,683 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $20 per unit, plicene sells for $24 per unit, and corsol sells for $36 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

2. Suppose that the products are weighted as shown below:

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

The graph illustrates a normal distribution for the prices paid for a particular model of HD television. The mean price paid is $1000 and the standard deviation is $70.

7908609301000107011401210Distribution of Prices

What is the approximate percentage of buyers who paid more than $1210?
%

What is the approximate percentage of buyers who paid between $1000 and $1210?
%

What is the approximate percentage of buyers who paid more than $1140?
%

What is the approximate percentage of buyers who paid between $860 and $1000?
%

What is the approximate percentage of buyers who paid between $930 and $1070?
%

What is the approximate percentage of buyers who paid between $1000 and $1070?
%

1) Roberto​ Inc. operates a chain of luxury hotels in the​ Asia-Pacific region. It charges​ $540 for a one night stay. However when​ 90% of the rooms are​ occupied, Roberto charges a premium of​ 20% on room tariff for the remaining rooms. What pricing method has Roberto Inc. ​adopted? Explain your answer.

2) Due to a recent downturn in the economy, sales of luxury hotel rooms have been on a steady decline for the last 12 months. A market research study conducted revealed that Roberto Inc. can only sell one night stays for $440. Accordingly, Roberto Inc. has decided to revise its sales price per one night stay to $440. The annual target volume after the price revision is 240 one night stays. Roberto Inc. wants to earn 40% on its sales amount. Calculate the target cost per unit. Show your workings.

3) Roberto Inc.’s revised target price of $440 was based on market research. Explain other methods that could be used when estimating a target price.

1. To economists, which of the following is true of pollution?

A. It is an externality.

B. It is always produced by third parties.

C. It is never caused by the consumers of the good, only by the producers.

D. It is never caused by the producers of the good, only by the consumers.

2.The free-rider problem is most likely to occur in which of the following cases?

A. A lighthouse

B. Buying apples at a farmers’ market

C. Visits to a local theme park

D. Visits to the emergency room

3. The term exclusion refers to which of the following?

A. The likelihood that the government may exclude the private sector from the production of certain goods

B. The possibility that you may receive benefits without having paid for them

C. The condition where you can’t consume a good if you don’t pay for it

D. The condition where your consumption of a good removes that good from someone else

4. Which of the following is a basic difference between public goods and private goods?

A. A private good is an internal good.

B. A public good must have no cost.

C. Public goods have the property of exclusion.

D. Private goods have the property of exclusion.