Rogers Aeronautics, LTD, is a British aeronautics subcontract company that designs and manufactures electronic control systems for commercial airlines. The vast majority of all commercial aircraft are manufactured by Boeing in the U.S. and Airbus in Europe; however, there is a relatively small group of companies that manufacture narrow-body commercial jets. Assume for this exercise that Rogers does contract work for the two major manufacturers plus three companies in the second tier.
Because competition is intense in the industry, Rogers has always operated on a fairly thin 20% gross profit margin; hence, it is crucial that it manage non-manufacturing overhead costs effectively in order to achieve an acceptable net profit margin. With declining profit margins in recent years, Rogers Aeronautics' CEO, Len Rogers, has become concerned that the cost of obtaining contracts and maintaining relations with its five major customers may be getting out of hand. You have been hired to conduct a customer profitability analysis.
Rogers Aeronautics' non-manufacturing overhead consists of $2.5 million of general and administrative (G&A) expense, (including, among other expenses, the CEO's salary and bonus and the cost of operating the company's corporate jet) and selling and customer support expenses of $3 million (including 5% sales commissions and $1,050,000 of additional costs). The accounting staff determined that the $1,050,000 of additional selling and customer support expenses related to the following four activity cost pools:

Financial and activity data on the five customers follows (Sales and Gross Profit data in millions):

In addition to the above, the sales staff used the corporate jet at a cost of $800 per hour for trips to customers as follows:

The total cost of operating the airplane is included in general and administrative expense; none is included in selling and customer support costs.

a. Prepare a customer profitability analysis for Rogers Aeronautics that shows the gross profits less all expenses that can reasonably be assigned to the five customers.

Notes:

• Enter figures as complete numbers (with all zeros). For example, 17 million is 17,000,000.
• Do not use negative signs with any answers.
• Round return on sales to one decimal place. (Ex: 10.4%)

b. Now assuming that the remaining general and administrative costs are assigned to the five customers based on relative sales dollars, calculate net profit for each customer.
Enter figures as complete numbers (with all zeros). For example, 1 million is 1,000,000.
Do not use negative signs with any answers.
Do not round during calculation G&A expenses. Round final G&A expenses to the nearest whole number.
Round return on sales to one decimal place. (Ex: 10.4%)

How does a company transform its breakeven or loss customers into profitable ones while using activity-based (menu-based) pricing? Provide a specific example!

Pick a specific company or industry and then list and describe one macro and one micro environmental factor that must be considered by that organization when it tries to successfully market to their customers.

Customers have “mental rules” that impact their attitude about a business. What can a company do to help ensure that a customer’s rule is not broken? Give two examples.

How much time do Americans living in or near cities spend waiting in traffic, and how much does waiting in traffic cost them per year? The data set given includes this cost for 31 cities. For the time Americans living in or near cities spend waiting in traffic and the cost of waiting in traffic per year:

a. Compute the mean, median, first quartile, and third quartile.

b. Compute the range, interquartile range, variance, standard deviation, and coefficient of variation.

c. Construct a boxplot. Are the data skewed? If so, how?

d. Compute the correlation coefficient between the time spent sitting in traffic and the cost of sitting in traffic.

e. Based on the results of (a) through (c), what conclusions might you reach concerning the time spent waiting in traffic and the cost of waiting in traffic.

1. Given the information below about Thomas Corporation, what was the amount of dividends the company paid in the current period?

2. The ending Retained Earnings balance of Boomer Inc. decreased by $1.9 million from the beginning of the year. The company declared a dividend of $4.7 million during the year. What was the net income for the year?

3. When a company pays utilities of $1,710 in cash, the transaction is recorded as:

4. When a company pays $2,100 dividends to its stockholders, the transaction should be recorded as:

5. A company received a bill for newspaper advertising services, $460. The bill will be paid in 10 days. How would the transaction be recorded today?

6. On March 3, Cobra Inc. purchased a desk for $350 on account. On March 22, Cobra purchased another desk for $415 also on account, and then on March 24, Cobra paid $470 on account. At the end of March, what amount should Cobra report for desks (assuming these two desks were the only desks they had)?

7.

Use the following information to prepare a trial balance.

8. At the beginning of December, Global Corporation had $1,800 in supplies on hand. During the month, supplies purchased amounted to $3,000, but by the end of the month the supplies balance was only $1,400. What is the appropriate month-end adjusting entry?

9.

The following table contains financial information for Trumpeter Inc. before closing entries:

What is Trumpeter's net income?

Foreign currency analysis of NVIDIA Corp which is an American technology company which is based in Santa Clara, California. Nvidia now operates broadly as a visual computing company and serves its customers in two primary segments: GPU (graphics processing units) and Tegra processors Explain the business activities and environment of NVIDIA Corp from the perspective of foreign currency and identify three currencies that NVIDIA Corp is exposed against. This can be due to its business structure (i.g. location of factories, customers and suppliers, and the currency that the products/services are quoted), and arising from the competition against its rivals. State the rationales of your selection and references.

8-27 Straightforward 4-variance overhead analysis. The Lopez Company uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto part, based on a denominator level of 4,000 output units per year, included 6 machine-hours of variable manufacturing overhead at $8 per hour and 6 machine-hours of fixed manufacturing overhead at $15 per hour. Actual output produced was 4,400 units. Variable manufacturing overhead incurred was $245,000. Fixed manufacturing overhead incurred was $373,000. Actual machine-hours were 28,400.

Required:

1. Prepare an analysis of all variable manufacturing overhead and fixed manufacturing overhead variances, using the 4-variance analysis in Exhibit 8-4 (page 324).

2. Prepare journal entries using the 4-variance analysis.

3. Describe how individual fixed manufacturing overhead items are controlled from day to day.

4. Discuss possible causes of the fixed manufacturing overhead variances.

plz use computer writing, not hand writing

25/ A company borrowed $40,300 cash from the bank and signed a 3-year note at 10% annual interest. The present value of an annuity factor for 3 years at 10% is 2.4869. The present value of a single sum factor for 3 years at 10% is .7513. The annual annuity payments equal:

Multiple Choice

$30,277.39.

$16,204.91.

$40,300.00.

$53,640.36.

$100,222.07.

26/ A company issued 9%, 15-year bonds with a par value of $590,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is:

Multiple Choice

Debit Bond Interest Expense $26,550; credit Cash $26,550.

Debit Bond Interest Expense $53,100; credit Cash $53,100.

Debit Bond Interest Payable $39,333; credit Cash $39,333.

Debit Bond Interest Expense $540,000; credit Cash $540,000.

No entry is needed, since no interest is paid until the bond is due.

27/ A company issued 5-year, 8% bonds with a par value of $99,000. The company received $96,947 for the bonds. Using the straight-line method, the amount of interest expense for the first semiannual interest period is:

Multiple Choice

$8,330.60.

$3,754.70.

$4,165.30.

$3,960.00.

$7,920.00.

28/ A company issues 7% bonds with a par value of $200,000 at par on January 1. The market rate on the date of issuance was 6%. The bonds pay interest semiannually on January 1 and July 1. The cash paid on July 1 to the bond holder(s) is:

Multiple Choice

$14,000.

$12,000.

$7,000.

$6,000.

$0.

Which attribute would one look at to determine a stock's fundamental value?

Competitors

Revenue and profit margin

Company management

All of the above

Which "red flag" could deter a stock purchase?

Company earnings are average and cash flow is weak

A company has announced, but not delivered an innovative product

A company has a little competition in a small market

A company has top-rated management

What should determine an actual profit?

Extraordinary events

Net income

Total operating results and consistent net income

Material losses verses revenue

Which factor determines a company's long-term viability?

Concentrating sales on a small customer base

Selling everything on company credit

Developing products slowly

Ensuring excellent cash flow