Using a Python environment of your choice –

1. Create the following three dictionaries: Gary, Alice, and Tyler

Gary = {

"name": "Gary",

"homework": [90.0,97.0,75.0,92.0],

"quizzes": [88.0,40.0,94.0],

"tests": [75.0,90.0]

}

Alice = {

"name": "Alice",

"homework": [100.0, 92.0, 98.0, 100.0],

"quizzes": [82.0, 83.0, 91.0],

"tests": [89.0, 97.0]

}

Tyler = {

"name": "Tyler",

"homework": [0.0, 87.0, 75.0, 22.0],

"quizzes": [0.0, 75.0, 78.0],

"tests": [100.0, 100.0]

}

• Insert one additional (new) dictionary of your choice
• Create a new list named students that contains four dictionary items
• for each student in your students list, print out that student's data, as follows:
  • print the student's name
  • print the student's homework
  • print the student's quizzes
  • print the student's tests
• Write a function average that takes a list of numbers and returns the average
  • Define a function called average that has one argument, numbers
  • Inside that function, call the built-in sum() function with the numbers list as a parameter. Store the result in a variable called total
  • Use float() to convert total and store the result in total
  • Divide total by the length of the numbers list. Use the built-in len() function to calculate that
  • Return that result
• Write a function called get_average that takes a student dictionary (like lloyd, alice, or tyler) as input and returns his/her weighted average.
  • Define a function called get_average that takes one argument called student.
  • Make a variable homework that stores the average() of student["homework"].
  • Repeat step 2 for "quizzes" and "tests".
  • Multiply the 3 averages by their weights and return the sum of those three. Homework is 10%, quizzes are 30% and tests are 60%.
• Define a function called get_class_average that has one argument, students. You can expect students to be a list containing your three students.
  • First, make an empty list called results.
  • For each student item in the class list, calculate get_average(student) and then call results.append() with that result.
  • Finally, return the result of calling average() with results.
• Finally, print out the result of calling get_class_average with the students list.

Using a Python environment of your choice –

1. Create the following three dictionaries: Gary, Alice, and Tyler

Gary = {

"name": "Gary",

"homework": [90.0,97.0,75.0,92.0],

"quizzes": [88.0,40.0,94.0],

"tests": [75.0,90.0]

}

Alice = {

"name": "Alice",

"homework": [100.0, 92.0, 98.0, 100.0],

"quizzes": [82.0, 83.0, 91.0],

"tests": [89.0, 97.0]

}

Tyler = {

"name": "Tyler",

"homework": [0.0, 87.0, 75.0, 22.0],

"quizzes": [0.0, 75.0, 78.0],

"tests": [100.0, 100.0]

}

• Insert one additional (new) dictionary of your choice
• Create a new list named students that contains four dictionary items
• for each student in your students list, print out that student's data, as follows:
  • print the student's name
  • print the student's homework
  • print the student's quizzes
  • print the student's tests
• Write a function average that takes a list of numbers and returns the average
  • Define a function called average that has one argument, numbers
  • Inside that function, call the built-in sum() function with the numbers list as a parameter. Store the result in a variable called total
  • Use float() to convert total and store the result in total
  • Divide total by the length of the numbers list. Use the built-in len() function to calculate that
  • Return that result
• Write a function called get_average that takes a student dictionary (like lloyd, alice, or tyler) as input and returns his/her weighted average.
  • Define a function called get_average that takes one argument called student.
  • Make a variable homework that stores the average() of student["homework"].
  • Repeat step 2 for "quizzes" and "tests".
  • Multiply the 3 averages by their weights and return the sum of those three. Homework is 10%, quizzes are 30% and tests are 60%.
• Define a function called get_class_average that has one argument, students. You can expect students to be a list containing your three students.
  • First, make an empty list called results.
  • For each student item in the class list, calculate get_average(student) and then call results.append() with that result.
  • Finally, return the result of calling average() with results.
• Finally, print out the result of calling get_class_average with the students list.

Case 11A-7 Transfer Pricing; Divisional Performance [LO11-5]

Weller Industries is a decentralized organization with six divisions. The company’s Electrical Division produces a variety of electrical items, including an X52 electrical fitting. The Electrical Division (which is operating at capacity) sells this fitting to its regular customers for $10.00 each; the fitting has a variable manufacturing cost of $5.23.

The company’s Brake Division has asked the Electrical Division to supply it with a large quantity of X52 fittings for only $8.00 each. The Brake Division, which is operating at 50% of capacity, will put the fitting into a brake unit that it will produce and sell to a large commercial airline manufacturer. The cost of the brake unit being built by the Brake Division follows:

Although the $8.00 price for the X52 fitting represents a substantial discount from the regular $10.00 price, the manager of the Brake Division believes the price concession is necessary if his division is to get the contract for the airplane brake units. He has heard “through the grapevine” that the airplane manufacturer plans to reject his bid if it is more than $58 per brake unit. Thus, if the Brake Division is forced to pay the regular $10.00 price for the X52 fitting, it will either not get the contract or it will suffer a substantial loss at a time when it is already operating at only 50% of capacity. The manager of the Brake Division argues that the price concession is imperative to the well-being of both his division and the company as a whole.

Weller Industries uses return on investment (ROI) to measure divisional performance.

Required:

1. Assume that you are the manager of the Electrical Division.

a. What is the lowest acceptable transfer price for the Electrical Division?

b. Would you supply the X52 fitting to the Brake Division for $8.00 each as requested?

2. Calculate the net positive effect on the company's profit per brake unit the Electrical Division to supply the fittings to the Brake Division and if the airplane brakes can be sold for $58?

3. In principle, within what range would that transfer price lie?

(For all requirements, enter your "Financial Disadvantage" amounts as a negative value and round your final answers to 2 decimal places.)

Northwood Company manufactures basketballs. The company has a ball that sells for $23. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $15 per ball, of which 65% is direct labor cost.

Last year, the company sold 30,000 of these balls, with the following results:                   

1. Compute the CM ratio

2. Compute the Break-even point

3. Find the Margin of Safety at the last year's sales.

4. Due to an increase in labor rates, the company estimates that variable costs will increase by $2 per ball next year. If this change takes place and the selling price per ball remains constant at $23, what will be the new CM ratio and break-even point in balls?

5. Refer to the data in (point 4) above. If the expected change in variable costs takes place, how many balls will have to be sold next year to earn the same net operating income $90,000 as last year?

6. Refer again to the data in (point 4) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year, what selling price per ball must it charge next year to cover the increased labor costs?

7. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable costs per ball by 40%, but it would cause fixed costs per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?

8. Refer to the original data. Find the multi-product breakeven point, if the company decides to produce another types of balls (of higher quality) it is expected that the sell at a price of $40 of which 60% is variable cost and no more fixed cost is required. If the company is expecting to have sales at a value of 890,000 of which this new balls would be about 20% of the total sales value. All information related to the original types of balls remains the same.                                            

The Province of Quebec is facing power shortfalls. Quebec Hydro plans to address this problem by investing in developing coal fired energy and hydropower facilities in the coming seven years, and have $1.5 billion with which to do so.   Every $ million spent on coal fired plants will result in 15 megawatts of power capacity when the plant construction is completed, and every $ million spent on hydropower dams will result in 20 megawatts of power capacity when the dam construction is completed. Completion of coal fired plants takes 3 years and completion of hydropower dams takes 4 years.    Once these facilities are built they will require additional operating funds that are equivalent to 25% of their initial cost annually. Funds set aside for plant operations cannot be used to invest in new plants or dams, but can be invested in the stock market and net an interest of 12%. Any unspent funds can also be invested in this way. Quebec Hydro currently has 40 megawatts of capacity and it can price energy so as to keep the demand at this level in the next two years. Thereafter, however demand will rise to 56, 60, 68, 75, and 87 megawatts of additional power in the third, fourth, fifth, sixth and seventh years, respectively. Assume that once a plant is operational, it is always operational.

a) FORMULATE the Linear Programming decision model that meets the power demand, and maximizes the funds available to Quebec Hydro at the end of the seventh year. Define all decision variables and label (1-5 word description) each constraint. Define C_t and HP_tto be the amount invested in coal fired plants and hydropower dams, respectively, in year t. Define F_t to be the money invested into the stock market in year t. NOT SOLVE THE MODEL.

In 2021, the Marion Company purchased land containing a mineral mine for $1,770,000. Additional costs of $590,000 were incurred to develop the mine. Geologists estimated that 250,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $110,000.

To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $127,500. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $102,000 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $4,500 after the mining project is completed.

In 2021, 67,000 tons of ore were extracted and sold. In 2022, the estimate of total tons of ore in the mine was revised from 250,000 to 341,500. During 2022, 102,000 tons were extracted.

Required:
1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2021 and 2022. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment.
2. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2022.

Compute depletion and depreciation of the mine and the mining facilities and equipment for 2021 and 2022. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment. (Do not round intermediate calculations.)

Compute the book value of the mineral mine, structures, and equipment as of December 31, 2022. (Do not round intermediate calculations.)

Q 1

(Investor, capital gains)

Karl Kruger is a 38 year-old single Australian resident taxpayer. During the 2017/18 tax year, Karl received and retained the following records:

Other Information:

• Karl’s rental property was built in 1999 when total construction costs of $200,000 were incurred. Karl has owned and leased the property since 2009.
• Karl made mortgage repayments on his rental property of $20,000, of which $12,100 was principal.
• Karl also sold the following assets during the year:

Required:

1. Calculate Karl’s net capital gain/loss for the 2017/18 tax year.
2. Calculate Karl’s taxable income for the 2017/18 tax year.

Surrounding the Great Lake are four paper-mills, each producing 100 tons of paper per year. The paper is sold on the national market for $2 per ton, and including all the costs of production, costs for each firm are $1 per ton. Thus each firm earns a pure economic profit of $1 per ton. These paper mills require fresh water to operate, and also produce a pollutant called gunk, which they dump into the Great Lake.

New paper mills can also locate on the Great Lake, and produce at a base cost of $1 per ton. However, for each new paper mill which arrives, the water will become more polluted with gunk, and each firm will have to install a water treatment facility to obtain fresh water. This externality associated with new plants will raise the costs of paper production at all facilities, including the new one, by $.15 per ton for each new mill.

1. Assume there is free access to the Great Lake. If paper mills will continue to locate as long as there is any economic profit to be earned, how many new mills will be built? What is the number of mills that maximizes total combined profits for the paper producers? (Hint: Average revenue remains constant at $2. Create a table which compares average revenues with average and marginal costs as new firms locate around the lake.)

2. Suppose that government regulation reduced the number of mills by one from the number that would have resulted given free access. Show that the increase in profits to the remaining firms (the resource rent) is sufficient to compensate the firm that is denied access for its lost profits.

Project Scope Statement: The scope statement is the “top-level document for articulating the overall project goals, objectives, and mission-critical parameters, such as overall timing and resource constraints. It defines the project baseline for all other documentation and management actions.” (Thamhain, 2005, p. 148) The scope of a project defines what is included in and excluded from the project. Based on your project proposal and the information provided in the project charter, submit a list of what will be included in the scope of your project and what will be excluded. Include the following headings and include the necessary information under each heading based on your individual project. The Project Scope Statement should be no longer than a page or page and half (single spaced). • Project objective – 1-2 sentences o Example: To construct a high-quality custom insulated doghouse within 4 weeks at a cost not to exceed $5,000. • Deliverables: What are you going to accomplish. o Example: § A 5’ x 7’ finished doghouse with one doorway § White aluminum siding § Shingled Roof § One (1) Doorway • Milestones: Dates for specific high-level milestones for the project. o Example: § Permits approved – June 1, 2016 § Foundation poured – June 10, 2016 § Framed, siding and roof completed – June 25 § Final inspection – June 30 • Technical Requirements: o Examples: § Doghouse must meet local building codes. § Wall and ceiling insulation must meet ______. § Floor insulation must meet ______. • Limits and Exclusions o Examples: § The doghouse will be built to the specifications and designed provided by the customer. § Owner is responsible for landscaping. § Doghouse does not include windows or a door. § Site work will be limited to Monday through Friday, 8:00am5:00pm

Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company’s financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine.

Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She has also projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $635 million today, and it will have a cash outflow of $45 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the table. Bullock Mining has a required return of 12 percent on all of its gold mines.

Year    Cash Flow
0    −$635,000,000
1    89,000,000
2    105,000,000
3    130,000,000
4    173,000,000
5    205,000,000
6    155,000,000
7    145,000,000
8    122,000,000
9    −    45,000,000

1. Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine.

2. Based on your analysis, should the company open the mine?

3. Bonus question: Most spreadsheets do not have a built-in formula to calculate the payback period. Write a VBA script that calculates the payback period for a project.