A billing company that collects bills for doctors' offices in the area is concerned that the percentage of bills being paid by medical insurance has risen. Historically, that percentage has been 33%. An examination of 9,378 recent, randomly selected bills reveals that 34% of these bills are being paid by medical insurance. Is there evidence of a change in the percent of bills being paid by medical insurance? (Consider a P-value of around 5% to represent reasonable evidence.)
Perform the test and find the P-value. What is the test statistic?
(Round to two decimal places as needed.)
In: Statistics and Probability
The owner of
Brooklyn
Restaurant is disappointed because the restaurant has been averaging
5,000
pizza sales permonth, but the restaurant and wait staff can make and serve
8,000
pizzas per month. The variable cost (for example,ingredients) of each pizza is
$1.35.
Monthly fixed costs (for example, depreciation, property taxes, business license, and manager's salary) are
$8,000
per month. The owner wants cost information about different volumes so that some operating decisions can be made.
|
1. |
Use the chart below to provide the owner with the cost information. Then use the completed chart to help you answer the remaining questions. |
|
2. |
From a cost standpoint, why do companies such as
Brooklyn Restaurant want to operate near or at full capacity? |
|
3. |
The owner has been considering ways to increase the sales
volume. The owner thinks that
8,000 pizzas could be sold per month by cutting the selling price per pizza from$6.25 a pizza to$5.75. How much extra profit (above the current level) would be generated if the selling price were to be decreased? (Hint: Find the restaurant's current monthly profit and compare it to the restaurant's projected monthly profit at the new sales price and volume.) |
Requirement 1. Use the chart below to provide the owner with the cost information. Then use the completed chart to help you answer the remaining questions. (Enter total variable costs to the nearest dollar. Enter costs per pizza, price per pizza, and profit per pizza to the nearest cent.)
|
Monthly pizza volume. . . . . . . . . |
4,000 |
5,000 |
8,000 |
||
|
Total fixed costs. . . . . . . . . . . . . . . |
|||||
|
Total variable costs. . . . . . . . . . . . |
|||||
|
Total costs |
|||||
|
Fixed cost per pizza. . . . . . . . . . . . |
|||||
|
Variable cost per pizza. . . . . . . . . . |
|||||
|
Average cost per pizza. . . . . . . . . |
|||||
|
Selling price per pizza. . . . . . . . . . |
$6.25 |
$6.25 |
$6.25 |
||
|
Average profit per pizza. . . . . . . . . |
In: Accounting
Frank operates a construction business in Dallas, Texas. On May 1, 2020, Frank purchased a warehouse for his business. The warehouse cost $1,500,000 ($500,000 for land and $1,000,000 for improvements). In November 2020, Frank purchased the following business property: equipment for $100,000, light-duty truck for $50,000, and office furniture for $50,000. Please calculate Frank’s 2020 depreciation deductions. You can ignore bonus depreciation and Section 179. Be sure to explain your calculations fully.
What income would Frank report if he decided to sell the warehouse and equipment on January 1, 2022 so he could upgrade the business? Assume he could sell the warehouse for $1,500,000 and the equipment for $190,000 ($95,000 for equipment, $47,500 for truck, and $47,500 for office furniture). Be sure to fully explain your answer.
In: Accounting
. Belton Concrete Company pours concrete slabs for single-family dwellings. Clint construction Company, which operates outside Belton’s normal sales territory, asks Belton to pour 200 slabs for Clint’s new development of homes. Belton has the capacity to build 2,400 slabs and is presently working on 2,000 of them. Clint explains that she is willing to pay only $2,200 per slab.
Belton’s costs when it produces 1,500 units are given as follows:
Direct Material Cost $ 2.400.000
Direct Labor 1.200.000
Facility Level Manufacturing Overhead 600.000
Belton estimates 5% increase in “Facility Level Manufacturing Overhead” if it accepts the special order.
Required: Should Belton accept or reject the special order to pour 200 slabs for $2,000 each? Support your answer with appropriate computations.
In: Accounting
A specialty concrete mixer used in construction was purchased for $290,000 7 years ago. It is MACRS-GDS 5-year property. Its annual O&M costs are $80,000. At the end of an 8-year planning horizon, the mixer will have a salvage value of $6,500. If the mixer is replaced, a new mixer will require an initial investment of $375,000, and at the end of the 8-year planning horizon, the new mixer will have a salvage value of $45,000. Its annual O&M cost will be only $40,000 due to newer technology. Use an EUAC measure, a tax rate of 40 percent, and an after-tax MARR of 9 percent to perform an after-tax analysis to see if the concrete mixer should be replaced if the old mixer is sold for its market value of $55,000.
In: Finance
Question Traverse County needs a new county government building that would cost $10 million. The politicians feel that voters will not approve a municipal bond issue to fund the building because it would increase taxes. They opt to have a state bank issue $10 million of tax-exempt securities to pay for the building construction. The county then will make yearly lease payments (of principal and interest) to repay the obligation. Unlike conventional municipal bonds, the lease payments are not binding obligations on the county and, therefore, require no voter approval.
Required
1. Do you think the actions of the politicians and the bankers in this situation are ethical?
2. In terms of risk, how do the tax-exempt securities used to pay for the building compare to a conventional municipal bond issued by Traverse County
In: Accounting
On July 1, 2011, Apache Company sold a parcel of undeveloped land to a construction company for $3,000,000. The book value of the land on Apache's books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual payments of $150,000 plus interest at an appropriate interest rate due on each July 1 beginning in 2012. Apache has no significant obligations to perform services after the sale.
Requirements:
a. How much gross profit will Apache recognize in both 2011 and 2012 assuming point of delivery profit recognition?
b. How much gross profit will Apache recognize in both 2011 and 2012 applying the installment sales method?
c. How much gross profit will Apache recognize in both 2011 and 2012 applying the cost recovery method?
In: Accounting
During 2020, Susan Building Company constructed various assets
at a total cost of $12,600,000. The weighted average accumulated
expenditures on assets qualifying for capitalization of interest
during 2020 were $8,138,000. The company had the following debt
outstanding at December 31, 2020:
| 1. | 10%, 5-year note to finance construction of various assets, dated January 1, 2020, with interest payable annually on January 1 | $5,452,000 | ||
| 2. | 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31 | 5,946,000 | ||
| 3. | 9%, 3-year note payable, dated January 1, 2019, with interest payable annually on January 1 | 2,973,000 |
Compute the amounts of each of the following.
| 1. | Avoidable interest | $ | |
| 2. | Total interest to be capitalized during 2020 | $ |
In: Accounting
samtech manufacturing purchased land and building for 3 million. In addition to the purchase price samtec made the following expenditures in connection with the purchase of the land and building. Title Insurance 30,000. Legal fees for drawing the contract 7000. Prorated property taxes for the. After acquisition 50,000. State transfer fees 5400. An independent appraisal estimated the fair values of the land and building if purchased separately at 3 and 1 million respectively shortly after acquisition samtec spent 96,000 to construct a parking lot and 54000 for landscaping determine the initial evaluation of each asset assuming that immediately after acquisition samtec demolish the building and the demolition cost for 390,000 and the Salvage materials were sold for 8000. In addition stamp tax spent 93,000 clearing and grading the land in preparation for the construction of a new building
In: Accounting
Question one:
Briefly explain the following statements:
A) Accounting reporting may improve the allocation of resources in the economy.
B) Natural and physical theories are built on the scientific approach, but we can't depend on it when we set accounting theory.
C) Earning quality is the degree of correlation accounting income and economic income but earning management is the influence on reported income.
D) There is overload problem in accounting standards.
E) When accounting theory set, we should distinction between theorizing and theory construction.
F) Accounting theory solved the expectation gap problems.
G) Expenses and losses are non-revenue- producing cost expirations.
H) There are many measurement techniques used in valuing assets and liabilities which lead to confuse the financial statement stakeholders.
In: Accounting