Presidio, Inc. produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete Presidio’s cost data table. (Round your Cost per Unit answers to 2 decimal places.)

2. Calculate Presidio’s contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $640. (Round your Margin Ratio percentage answers to 2 decimal places (i.e. .1234 should be entered as 12.34%.))



3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $640. (Round your answers to the nearest whole dollar amount.)

Solomon Bank’s start-up division establishes new branch banks. Each branch opens with three tellers. Total teller cost per branch is $99,000 per year. The three tellers combined can process up to 85,000 customer transactions per year. If a branch does not attain a volume of at least 55,000 transactions during its first year of operations, it is closed. If the demand for services exceeds 85,000 transactions, an additional teller is hired and the branch is transferred from the start-up division to regular operations.

Required

What is the relevant range of activity for new branch banks?

Determine the amount of teller cost in total and the average teller cost per transaction for a branch that processes 55,000, 65,000, 75,000, or 85,000 transactions. In this case (the activity base is the number of transactions for a specific branch), is the teller cost a fixed or a variable cost?

Determine the amount of teller cost in total and the average teller cost per branch for Solomon Bank, assuming that the start-up division operates 20, 25, 30 or 35 branches. In this case (the activity base is the number of branches), is the teller cost a fixed or a variable cost?

1. Suppose two firms, All-American Power (Firm A) and Big Energy Inc. (Firm B) have the following marginal abatement cost curves: MAC_A = 400 – 2e_A and MAC_B = 600 – 3e_B, and the government wants to use an effluent tax to keep total emissions down to 200.

1. (Question 7A: 2 Points) Using the Marginal Abatement Cost curves and the government constraint, calculate the optimal number of emissions for Firm A under an optimal effluent tax.

2. (Question 7B: 2 Points) Using the Marginal Abatement Cost curves and the government constraint, calculate the optimal number of emissions for Firm B under an optimal effluent tax.

3. (Question 7C: 2 Points) Using the information from question 7, calculate the optimal effluent tax set by the government

4. (Question 7D: 4 Points) Using the information from question 7, calculate the total cost for firm A (tax cost plus abatement cost) at their optimal number of emissions.

5. (Question 7E: 4 Points) Using the information from question 7, calculate the total cost for firm B (tax cost plus abatement cost) at their optimal number of emissions.

An analyst at a local bank wonders if the age distribution of customers coming for service at his branch in town is the same as at the branch located near the mall. He selects 100 transactions at random from each branch and researches the age information for the associated customer. Use the table below to answer the questions.

1. What are the null and alternative hypotheses?

a. Ho: The age distributions of customers at the two branches are not the same.

     Ha: The age distributions of customers at the two branches are the same.

b. Ho: Age is not independent of branch.

    Ha: Age is independent of branch.

c. Ho: The age distributions of customers at the two branches are the same.

    Ha: The age distributions of customers at the two branches are not the same.

d. Ho: Age is independent of branch.

    Ha: Age is not independent of branch.

2. What type of test is this?

a. Chi-square goodness-of-fit-test

b. Chi-square test of independence

c. Chi-square test of homogeneity

3. What are the expected numbers for each cell if the null hypothesis is true?

4. Find the X2 statistic.

X2 =               (round to two decimal places)

5. How many degrees of freedom does the X2 statistic have?

df =

6. Find the critical value at alpha = 0.05

X2 =               (round to three decimal places)

7. What do you conclude?

The test statistic is (greater than or less than) the critical value. There is (insufficient or sufficient) evidence to reject Ho.

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the departmental predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 140% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the molding and fabrication department predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 130% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 34,000 44,000 78,000 Fixed manufacturing overhead costs $ 790,000 $ 220,000 $ 1,010,000 Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70: Molding Fabrication Total Direct materials cost $ 380,000 $ 322,000 $ 702,000 Direct labor cost $ 230,000 $ 130,000 $ 360,000 Machine-hours 24,000 10,000 34,000 Job C-200: Molding Fabrication Total Direct materials cost $ 260,000 $ 210,000 $ 470,000 Direct labor cost $ 110,000 $ 230,000 $ 340,000 Machine-hours 10,000 34,000 44,000 Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the departmental predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 31,000 41,000 72,000 Fixed manufacturing overhead costs $ 710,000 $ 230,000 $ 940,000 Variable manufacturing overhead cost per machine-hour $ 6.00 $ 6.00 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70: Molding Fabrication Total Direct materials cost $ 377,000 $ 325,000 $ 702,000 Direct labor cost $ 200,000 $ 160,000 $ 360,000 Machine-hours 21,000 10,000 31,000 Job C-200: Molding Fabrication Total Direct materials cost $ 200,000 $ 290,000 $ 490,000 Direct labor cost $ 170,000 $ 250,000 $ 420,000 Machine-hours 10,000 31,000 41,000 Delph had no underapplied or overapplied manufacturing overhead during the year. 2. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph’s cost of goods sold for the year?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the departmental predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs:

Delph had no underapplied or overapplied manufacturing overhead during the year.

2. Assume Delph uses departmental predetermined overhead rates based on machine-hours.

a. Compute the departmental predetermined overhead rates.

b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200.

c. If Delph establishes bid prices that are 120% of total manufacturing costs, what bid prices would it have established for Job D-70 and Job C-200?

d. What is Delph’s cost of goods sold for the year?