Pricing Strategy, Sales Variances

Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following.

At the end of the year, actual sales revenue for Product R and Product S was $2,519,000 and $3,234,600, respectively. The actual price charged for Product R was $22 and for Product S was $18. Only $8 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled $334,800 for this product.

Required:

1. Calculate the sales price and sales volume variances for each of the three products based on the original budget.

2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?

Dragon’s Fire Pty Ltd enters into three contracts in the same week with Red Hot Equipment Pty Ltd who have agreed to pay the total of $726 000 (GST inclusive). Red Hot Equipment Pty Ltd pay the total in full on 7 August 2021. The details for the three contracts are as follows:

Required:

Apply the five-step process for revenue recognition in regards to the contract with Red Hot Equipment Pty Ltd. Discuss how Dragon’s Fire shall recognise the revenue from the contract. Please list each of the five steps and show any calculations.

Twenty-one mature flowers of a particular species were dissected, and the number of stamens and carpels present in each flower were counted.

(a) Is there sufficient evidence to claim a linear relationship between these two variables at α = .05?
(i) Find r. (Give your answer correct to three decimal places.)

(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not significant evidence to claim a linear relationship. Reject the null hypothesis, there is significant evidence to claim a linear relationship.     Fail to reject the null hypothesis, there is significant evidence to claim a linear relationship. Fail to reject the null hypothesis, there is not significant evidence to claim a linear relationship.

(b) What is the relationship between the number of stamens and the number of carpels in this variety of flower?. (Give your answers correct to two decimal places.)

(c) Is the slope of the regression line significant at α = .05?(i) Find t. (Give your answer correct to two decimal places.)


(ii) Find the P-value. (Give your answer bounds exactly.)
< p <
(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not evidence of a significant slope. Reject the null hypothesis, there is evidence of a significant slope.     Fail to reject the null hypothesis, there is evidence of a significant slope. Fail to reject the null hypothesis, there is not evidence of a significant slope.

(d) Find the 99% prediction interval for the number of carpels that one would expect to find in a mature flower of this variety if the number of stamens were 59. (Give your answers correct to one decimal place.)

Twenty-one mature flowers of a particular species were dissected, and the number of stamens and carpels present in each flower were counted.

(a) Is there sufficient evidence to claim a linear relationship between these two variables at α = .05?
(i) Find r. (Give your answer correct to three decimal places.)

(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not significant evidence to claim a linear relationship. Reject the null hypothesis, there is significant evidence to claim a linear relationship.     Fail to reject the null hypothesis, there is significant evidence to claim a linear relationship. Fail to reject the null hypothesis, there is not significant evidence to claim a linear relationship.

(b) What is the relationship between the number of stamens and the number of carpels in this variety of flower?. (Give your answers correct to two decimal places.)

(c) Is the slope of the regression line significant at α = .05?(i) Find t. (Give your answer correct to two decimal places.)


(ii) Find the P-value. (Give your answer bounds exactly.)
< p <
(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not evidence of a significant slope. Reject the null hypothesis, there is evidence of a significant slope.     Fail to reject the null hypothesis, there is evidence of a significant slope. Fail to reject the null hypothesis, there is not evidence of a significant slope.

(d) Find the 90% prediction interval for the number of carpels that one would expect to find in a mature flower of this variety if the number of stamens were 57. (Give your answers correct to one decimal place.)

Twenty-one mature flowers of a particular species were dissected, and the number of stamens and carpels present in each flower were counted. x, Stamens 52 68 70 38 61 51 56 65 43 37 36 74 38 35 45 72 59 60 73 76 68 y, Carpels 21 30 29 19 18 28 31 31 18 24 21 28 29 24 26 22 34 28 32 36 33 (a) Is there sufficient evidence to claim a linear relationship between these two variables at α = .05? (i) Find r. (Give your answer correct to three decimal places.) (iii) State the appropriate conclusion. Reject the null hypothesis, there is not significant evidence to claim a linear relationship. Reject the null hypothesis, there is significant evidence to claim a linear relationship. Fail to reject the null hypothesis, there is significant evidence to claim a linear relationship. Fail to reject the null hypothesis, there is not significant evidence to claim a linear relationship. (b) What is the relationship between the number of stamens and the number of carpels in this variety of flower?. (Give your answers correct to two decimal places.) = + x (c) Is the slope of the regression line significant at α = .05? (i) Find t. (Give your answer correct to two decimal places.) (ii) Find the P-value. (Give your answer bounds exactly.) < p < (iii) State the appropriate conclusion. Reject the null hypothesis, there is not evidence of a significant slope. Reject the null hypothesis, there is evidence of a significant slope. Fail to reject the null hypothesis, there is evidence of a significant slope. Fail to reject the null hypothesis, there is not evidence of a significant slope. (d) Find the 95% prediction interval for the number of carpels that one would expect to find in a mature flower of this variety if the number of stamens were 65. (Give your answers correct to one decimal place.) Lower Limit Upper Limit

QUESTION 3 a) On 1 January 2017, Gyamera Limited granted 100 share options to each of its 300 employees, with each of the share options being conditional upon the employee working for Gyamera Limited until 31 December 2019. At the grant date, the FV of each share option was GHC15.00. During 2017, 15 employees left Gyamera Limited and the company’s directors estimated that a total of 20% of the 300 employees would leave during the three-year period 2017-2019. At the beginning of 2018, Gyamera Limited modified the terms and conditions of the share option by reducing the exercise price. This had the effect of increasing the FV of a share option at the beginning of 2018 by GHC9.00. During 2018, a further six employees left the company and the directors revised their estimate of the total number of the 300 employees to 15% that would leave the company during the three-year period 2017-2019. During 2019, a further five employees left the company. Required; Calculate the remuneration expense that should be recognised in Gyamera Limited’s financial statements in respect of the share-based payment agreement for each of the three years 2017,2018 and 2019. b) IAS 32 makes it clear that the following items are not financial instruments. i. Physical assets, eg inventories, property, plant and equipment, leased assets and intangible assets (patents, trademarks etc)Page 7 of 7 ii. Prepaid expenses, deferred revenue and most warranty obligations iii. Liabilities or assets that are not contractual in nature (Deferred revenue, warranty obligations Required Write a Memo to your CEO, Mr Francis Tagoe explaining with reasons why the items listed above do not qualify as financial instruments. c) Your managing director, Mr Nicholas Adoboe-Mensah is not convinced why your company should give something back to the society, Explain with examples to him in a form of a memo the links between corporate performance, and corporate social responsibility. d) Global Reporting Initiatives structures key performance indicators according to a hierarchy category, aspect and indicator. Indicators are grouped in terms of the three dimensions of the conventional definition of sustainability – economic, environment, and social. Required Write a memo to your Chief Executive officer Mr Baba Ahmed explaining to him the meaning of Global Reporting Initiatives and state two examples each of the aspect of each of the dimensions.

An unknown radioactive element decays into non-radioactive substances. In 340 days the radioactivity of a sample decreases by 37 percent. (a) What is the half-life of the element? (b) How long will it take for a sample of 100 mg to decay to 74 mg? time needed: (days)

According to a social media​ blog, time spent on a certain social networking website has a mean of 22 minutes per visit. Assume that time spent on the social networking site per visit is normally distributed and that the standard deviation is 4 minutes. Complete parts​ (a) through​ (d) below.

a. If you select a random sample of 25 sessions, what is the probability that the sample mean is between 21.5 and 22.5 minutes? (Round to three decimal places)

b.If you select a random sample of 25 sessions, what is the probability that the sample mean is between 21 and 22 minutes? (Round to three decimal places)

c. If you select a random sample of 144 sessions, what is the probability that the sample mean is between 21.5 and 22.5 minutes? (Round to three decimal places)

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.55 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $351,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job suport consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch—a 60-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $90.20 (400 square feet @ $22.55 per hundred square feet). Calculate the customer margin earned on this job.