Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

1. Assume that Cane expects to produce and sell 74,000 Alphas during the current year. A supplier has offered to manufacture and deliver 74,000 Alphas to Cane for a price of $156 per unit. What is the financial advantage (disadvantage) of buying 74,000 units from the supplier instead of making those units?

2. Assume that Cane’s customers would buy a maximum of 99,000 units of Alpha and 79,000 units of Beta. Also assume that the company’s raw material available for production is limited to 344,000 pounds. If Cane uses its 344,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

5. Assume that Cane expects to produce and sell 114,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 29,000 additional Alphas for a price of $156 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 13,000 units.

a. What is the financial advantage (disadvantage) of accepting the new customer’s order?

6. Assume that Cane normally produces and sells 109,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

7. Assume that Cane normally produces and sells 59,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

4.

The Chinese government’s tobacco monopoly accounts for 12% of the government’s revenue. It sells to China's 310 million smokers, 1/4 of the world's smoking population, who consume 1700 billion cigarettes a year, about 30% of global consumption

By imposing a 230% tax rate on foreign cigarettes, and by imposing import quotas and restrictions, the government limited legal foreign cigarette sales to less than 2% of total Chinese sales in the late 1990s. However, by 2003 the foreign cigarette share was only 10%. To appease the World Trade Association, China agreed to lift restrictions on the retail sale of imported cigarettes by January 2004, to reduce the tariff on cigarettes from the current 65% to 24% , and to phase out the tariff over the next two years. Thus, the state's monopoly will be eroded.   Expectations were that the price of imported cigarettes would drop by half and imported cigarettes would gain a major share of the Chinese market.   

1. In this case study discuss the impacts of the quotas, tariffs and restrictions on Entry into the Chinese market. What was the intended end result? Explain.

2. Given your answer in (a), use a graphical analysis to demonstrate and explain what occurred after the restrictions were lifted.

Relate the disclosure of the Sustainable Development Goals to the current business issue of social and environmental accounting and accountability.

More info will be provided next week

Gray (2006, p82) suggests that "there is a major disconnect between the implication of global data we have reviewed [on sustainability] and the partial and localized data chosen to constitute the social, environmental and sustainability reporting.” He goes on to say that if “the global data speaks truthfully and, extrapolating, the mass of corporate activity is actually highly unsustainable, then companies need to reflect this so we can discount the empty rhetoric and turn the pressure on to governments to undertake radical reconstruction.”

Required: Explain what Gray means by the above statements. Discuss the role, if any, that accountants can play in the disclosure of corporate activity especially as it relates to the issue of sustainability.

Gray, R. 2006 “Does sustainability reporting improve corporate behavior?: Wrong question? Right time?” Accounting and Business Research, Vol. 36, Supplement 1, pp65-88.

Parent Corporation purchased 75 percent of Subsidiary Corporation in 2000; Subsidiary’s current balance sheet shows the following figures: Basis Value Demand Deposit $20,000 $20,000 IBM Stock $30,000 $50,000 Parking Lot $5,000 $30,000 Building 0 $100,000 Mortgage ($15,000) ($15,000) Subsidiary has a net operating loss carryover in 2006 of $7,000 and earnings and profits of $22,000. The subsidiary redeemed in 2003 the 25% shareholder Roy Rogers. The Subsidiary distributed the IBM stock for his 25% interest. In 2006, Subsidary adpots a plan of liquidation. a. What is the tax result to Roy in 2003? (i.e. realized, recognized gain or loss, tax character)? b. Does subsidiary recognize any gain on the redemption and the liquidation? (i.e. realized, recognized, and the tax character)? c. What are Parent’s basis for the assets received? d. What happens to Subsidiary’s NOL and E&P? In your analysi give computation anf the IRC section.

Customer Profitability Analysis
Gonalong, Inc. has 10 customers that account for all of its $4,520,000 of net income. Its activity-based costing system is able to assign all costs, except for $650,000 of general administrative costs, to key activities incurred in connection with serving its customers. A customer profitability analysis based on activity costing produced the following customer profits and losses:

Prepare a customer profitability profile like the one in Exhibit 6.3. The following link includes an Excel worksheet to create the profitability profile graph: profitability_profile_template.

Using the customer profitability analysis provided in the exercise to calculate the following profits.
(i) Calculate the total profits from the 3 most profitable customers
$Answer

(ii) Calculate the total profits for the 5 most profitable customers
$Answer

(iii) Calculate the total profits for the 8 most profitable customers
$Answer

(iv) Calculate the total profits for the 9 most profitable customers
$Answer

Question B2 (30 pts): Customers arrive to Lincoln Savings Bank (LSB) with an average rate of 3 customers per minute. The average time a teller takes to serve a customer is 5 minutes. Standard deviation of customer inter-arrival time is 1.5 minutes and standard deviation of service time is 3 minutes. LSB employs 20 tellers. All customers form a single waiting line and can be served by any of the tellers in a first-come-first-serve basis as tellers become available. For simplicity, assume that there are no group arrivals, there is enough waiting space for all customers, and none of the customers abandon the line.

B2(a) - (5pts): What percent of the time a teller is busy with serving to a customer?

B2(b) - (10pts): On average, how many customers wait in the line?

B2(c) - (5pts): On average, how much time a customer spends waiting in the line?

B2(d) - (10pts): LSB estimates that for every hour a customer spends waiting in the line, LSB loses $60 due to customer dissatisfaction and losing future business. A teller is paid $20 per hour. Calculate the total hourly waiting and capacity cost generated by LSB.

Find the regression equation (rounding values to 2 places), letting the first variable be the independent variable x.

Use the regression equation values to find the best predicted gross amount for a movie with a budget of 65 million dollars. Hint: Use the exact regression values to find an accurate predicted value and then round your answer.

In the table below, all amounts are in millions of dollars.

lines = [ { "name": "student19",
"test1": "70",
"test2": "70",
"test3": "83",
"test4": "99",
"test5": "97"
},
{
"name": "student20",
"test1": "68",
"test2": "68",
"test3": "81",
"test4": "74",
"test5": "76"
},
{
"name": "student21",
"test1": "74",
"test2": "73",
"test3": "84",
"test4": "84",
"test5": "69"
},]

I need to sort the test3 only in descending order using python lambda function.

it should look like something like this:

l_func=lambda line: here goes the function

return output=sorted(lines, key=l_func)

thanks

One of your new employees notes that your debt has a lower cost of capital ​(5​%) than your equity (15​%). ​So, he suggests that the firm swap its capital structure from 26​% debt and 74​% equity to 74​% debt and 26​% equity instead. He estimates that after the​ swap, your cost of equity would be 21​%.  

a. What would be your new cost of​ debt? Make your calculations based on your​ firm's pre-tax WACC.

b. Have you lowered your overall cost of​ capital?