Better Products, Inc., manufactures three products on two machines. In a typical week, 40 hours are available on each machine. The profit contribution and production time in hours per unit are as follows:

Two operators are required for machine 1; thus, 2 hours of labor must be scheduled for each hour of machine 1 time. Only one operator is required for machine 2. A maximum of 100 labor-hours is available for assignment to the machines during the coming week. Other production requirements are that product 1 cannot account for more than 50% of the units produced and that product 3 must account for at least 20% of the units produced.

How many units of each product should be produced to maximize the total profit contribution? If required, round your answers to the nearest integer.

What is the projected weekly profit associated with your solution?

$  

How many hours of production time will be scheduled on each machine? If required, round your answers to two decimal places.

Machine Hours Schedule: Machine 1:  hours; Machine 2:  hours

What is the value of an additional hour of labor? If required, round your answer to two decimal places.

$  

Assume that labor capacity can be increased to 120 hours. Develop the optimal product mix, assuming that the extra hours are made available. If required, round your answers to the nearest integer.

Profit = $  

Would you be interested in using the additional 20 hours available for this resource?

7.) A researcher measures the relationship between Internet use (hours per week) and social interaction (hours per week) in a sample of 10 students. The following table lists the hypothetical results of this study.

(a) Compute the Pearson correlation coefficient. (Round your answer to three decimal places.)


(b) Compute the coefficient of determination. (Round your answer to three decimal places.)


(c) Using a two-tailed test at a 0.05 level of significance, state the decision to retain or reject the null hypothesis.

Retain the null hypothesis

.Reject the null hypothesis.    

1. Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $970. Selected data for the company’s operations last year follow:

The absorption costing income statement prepared by the company’s accountant for last year appears below:

Required:

1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year?

2. Prepare an income statement for last year using variable costing.

2. During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $255,000 fixed each year.

The company’s $35 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operatons are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

The following data give the percentages of random samples of United Kingdom citizens who were smokers, in a variety of years.

  Age (years)

Year 16–19 20–24 25–34 35–49 50–59 60+

1978 34 44 45 45 45 30

1988    28 37 36 36 33 23

1998 31 40 35 30 27 16

2000 29 35 35 29 27 16

2002 25 38 34 28 26 15

2007 20 31 27 22 21 12

(a) Test the hypothesis that the actual percentages of smokers do not depend on the year considered. (b) Test the hypothesis that there is no effect due to age group.

Problem 2

The POW Corporation is working at full production capacity producing 15,000 units of a unique product, Alpha. Manufacturing cost per unit for Alpha is:

Manufacturing overhead cost per unit is based on variable cost per unit of $8 and fixed costs of $150,000 (at full capacity of 15,000 units). Marketing cost per unit, all variable, is $6, and the selling price is $72.

A customer, JayCo, has asked POW to produce a one-time-only order of 4,000 units of Gamma, a modification of Alpha. Gamma would require the same manufacturing processes as Alpha. JayCo has offered to pay POW $50 for a unit of Gamma. No marketing costs would be incurred for this special order.

Required (show your workings):

1. Should POW accept JayCo’s special order of 4,000 units of Alpha? (Adding capacity to fulfil this special order is not an option). (12 points)
2. Now assume that POW had been working at less than full capacity, producing 11,000 units of Alpha, at the time that the JayCo offer was made. Calculate the minimum price POW should accept for Gamma under these conditions. (Ignore the previous $50 selling price.) (8 points)
3. Discuss two (2) qualitative factors that might reinforce and two (2) qualitative factors that might change POW’s decision in requirement 1. (5 points)

MM without Taxes

Companies U and L are identical in every respect except that U is unlevered while L has $7 million of 6% bonds outstanding. Assume that (1) there are no corporate or personal taxes, (2) all of the other MM assumptions are met, (3) EBIT is $3 million, and (4) the cost of equity to Company U is 12%.

1. What value would MM estimate for each firm? Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to two decimal places.

   Company U	$   million
   Company L	$   million

   
   
2. What is r_s for Firm U? Round your answer to two decimal places.
   %
   
   What is r_s for Firm L? Do not round intermediate calculations. Round your answer to two decimal places.
   %
   
3. Find S_L. Round your answer to two decimal places. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000.
   $   million
   
4. What is the WACC for Firm U? Round your answer to one decimal place.
   %
   
   What the WACC for Firm L? Round your answer to one decimal place.
   %
   
5. Suppose V_U = $20 million and V_L = $22 million. According to MM, are these values consistent with equilibrium?
   -Select-Yes/No Item 8

Demand and supply are Key elements of the U.S. economic system. So, too, is competition. This exercise will challenge you to better understand the ethical dimensions of a system that relies on demand, supply, and competition.

The Situation

You are a businessperson in a small town, where you run one of two local pharmacies. The population and economics base are fairly stable. Each pharmacy controls about 50 percent of the market. Each is reasonably profitable, generating solid if unspectacular revenues.

The Dilemma

You have just been approached by the owner of the other pharmacy. He has indicated an interest either in buying your pharmacy or in selling his to you. He argues that neither of you can substantially increase your profits and complains that if one pharmacy raises its prices, customers will simply go to the other one. He tells you outright that if you sell to him, he plans to raise prices by 10 percent. He believes that the local market will have to accept the increase for two reasons: (1) The town is too small to attract national competitors, such as Walgreens, and (2) locals customers can’t go elsewhere to shop because the nearest town with a pharmacy is 40 miles away.

Questions for Discussion -

1. What are the roles of supply, demand, and competition in this scenario?

2. What are the underlying ethical issues?

3. What would you do if you were actually faced with this situation?

A data set is provided, entitled oldfaithful_asst, on the duration and height of the Old Faithful geyser in the Yellowstone National Park.

1. Construct a scatterplot using Excel or any software (SPSS or Minitab) between the variables “duration” and “height.” Please title the graph “Scatterplot 1 Old Faithful” and create labels for both axes.
2. There seems to be a an outlier in the data set. Although an outlier is not a detriment to the data analysis, as part of an exercise, identify the outlier and delete it (simply erase its value, do not replace with zero).

• Show the new (second) scatterplot and title the graph “Scatterplot 2 Old Faithful”
• Describe the pattern that emerges. What might this relationship imply?

3. Compute the correlation coefficient between the two variables and interpret this correlation. Refer to both the strength and direction of the correlation in your interpretation. Also interpret the correlation in terms of r-squared (coefficient of determination).
4. Conduct a regression to predict duration of an eruption using height and interpret the sample slope coefficient in words.
5. What is the predicted duration for an eruption that is 115?

Old Faithful data set to answer problem:

in C language only.

Write a program called gamecards.c that has a card game logic by comparing the cards from 4 people and calculating which player has the best card.

1. Every card must be represented by exactly two chars
representing a rank and a suit.

ranks: '2', '3', '4', '5', '6', '7', '8', '9', 'T', 'J', 'Q', 'K', 'A'. ('T' = 10)

Suits: 'H', 'D', 'S', 'C'.

7D represents the “7 of Diamond” etc..

2. Write a function called isRank(char c) which
calculate if the given character is one of the ranks. It would return a char with a value of 1 if the character is a valid rank and 0 if not.

Write a function called isSuit(char c) which calculate if the given character is one of the suits. It should return a char with a value of 1 if the character is a valid suit and 0 if not.
(Lowercase are not valid for both functions)

Alpha Taxi & Hauling Company has seven cabs stationed at the railway station. The company has determined that during the late‐evening hours on weeknights, customers request cabs at a rate that follows the Poisson distribution with a mean of 6.6 per hour. Service time is exponential with a mean of 50 minutes per customer. Assume that there is one customer per cab. Using multi‐server model find the following: • Average queue length Lq • Average waiting time Wq • Utilization factor ρ • Probability that there are no customers in the system P0