Consider the applications for home mortgages data in the file of P12_04.xlsx. Use multiple regression to develop an equation that can be used to predict future applications for home mortgages (hint: use dummy variables for the quarters and create a time variable for the quarter numbers)
| Quarter | Year | Applications |
| 1 | 1 | 96 |
| 2 | 1 | 114 |
| 3 | 1 | 112 |
| 4 | 1 | 81 |
| 1 | 2 | 97 |
| 2 | 2 | 103 |
| 3 | 2 | 120 |
| 4 | 2 | 99 |
| 1 | 3 | 105 |
| 2 | 3 | 110 |
| 3 | 3 | 117 |
| 4 | 3 | 96 |
| 1 | 4 | 74 |
| 2 | 4 | 94 |
| 3 | 4 | 100 |
| 4 | 4 | 96 |
| 1 | 5 | 95 |
| 2 | 5 | 122 |
| 3 | 5 | 113 |
| 4 | 5 | 100 |
| 1 | 6 | 102 |
| 2 | 6 | 96 |
| 3 | 6 | 116 |
| 4 | 6 | 98 |
In: Statistics and Probability
Ivanhoe Company sells one product. Presented below is
information for January for Ivanhoe Company.
| Jan. 1 | Inventory | 125 | units at $4 each | ||
| 4 | Sale | 104 | units at $8 each | ||
| 11 | Purchase | 158 | units at $6 each | ||
| 13 | Sale | 130 | units at $9 each | ||
| 20 | Purchase | 149 | units at $6 each | ||
| 27 | Sale | 87 | units at $11 each |
Ivanhoe uses the FIFO cost flow assumption. All purchases and sales
are on account.
1. Assume Ivanhoe uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 111 units.
2. Compute gross profit using the periodic system.
3.Assume Ivanhoe uses a perpetual system. Prepare all necessary journal entries.
4. Compute gross profit using the perpetual system.
In: Accounting
|
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects available to the company. Assume the discount rate for all projects is 12 percent. Further, the company has only $22 million to invest in new projects this year. |
| Cash Flows (in $ millions) |
| Year | CDMA | G4 | Wi-Fi | ||||||
| 0 | –$ | 8 | –$ | 14 | –$ | 22 | |||
| 1 | 11 | 12 | 20 | ||||||
| 2 | 7.5 | 27 | 34 | ||||||
| 3 | 5.5 | 22 | 22 | ||||||
| a. |
Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the NPV for each investment. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) |
In: Finance
|
Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects available to the company. Assume the discount rate for all projects is 9 percent. Further, the company has only $29 million to invest in new projects this year. |
| Cash Flows (in $ millions) |
| Year | CDMA | G4 | Wi-Fi | ||||||
| 0 | –$ | 8 | –$ | 21 | –$ | 29 | |||
| 1 | 12 | 19 | 27 | ||||||
| 2 | 8.5 | 34 | 41 | ||||||
| 3 | 5.5 | 29 | 29 | ||||||
| a. |
Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
| b. | Calculate the NPV for each investment. (Do not round intermediate calculations and enter your answer in dollars, not millions, rounded to 2 decimal places, e.g., 1,234,567.89) |
In: Finance
Revised Problem 5-65
Fresno Fiber Optics, Inc. manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company VP of marketing, the cost management staff has recently completed a customer profitability study. The following activity-based costing information was the basis for the analysis.
| Customer - Related Activities | Cost Driver Base | Cost Driver Rate | ||||||
| Sales activity | Sales visits | $ 860 | ||||||
| Billing and Collection | Invoices | 160 | ||||||
| Order taking | Purchase orders | 220 | ||||||
| Special shipping | Shipments | 430 | ||||||
| Customer - Related Activities | Trace Telecom | Caltex Computer | ||||||
| Sales activity | 14 visits | 18 visits | ||||||
| Billing and Collection | 22 invoices | 26 invoices | ||||||
| Order taking | 26 orders | 28 orders | ||||||
| Special Shipping | 12 shipments | 14 shipments | ||||||
The following additional information has been completed for Fresno Fiber Optics for two of its customers, Trace Telecom and Caltrex Computer, for the most recent year.
| Trace Telecom | Caltex Computer | ||||
| Sales revenue | $ 240,000 | $ 226,000 | |||
| Cost of goods sold | 140,000 | 110,000 | |||
| General selling costs | 42,000 | 32,000 | |||
| General administrative costs | 24,000 | 18,000 | |||
| Required: | |||||
| 1. Prepare a customer profitability analysis for Trace Telecom and Caltex Computer. | |||||
| (Hint: Refer to Exhibit 5-13 for guidance). | |||||
| 2. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement (1) above. | |||||
| Show how the solution will change if the following information changes: Trace Telecom's | |||||
| cost of goods sold was $114,000 and Caltex Computer's sales revenue was $206,000. | |||||
In: Accounting
5. The Claron Corporation’s main competitor, Brighton company, just filed for bankruptcy, presenting a potential opportunity for an increase in customers and revenue at Claron. As a result, several of Brighton’s salespeople have contacted George Wills, Claron’s vice president of sales, inquiring about employment at Claron. Currently Wills has no openings on his 10-person salesforce. However, he does not want to dismiss the Brighton reps, some of whom are top performers that might be able to enhance Brighton’s revenue stream that has been falling for the past year.
After speaking to his CEO about adding a position to his salesforce, Wills was given permission to do so as long as the new salesperson made more of his salary in commissions than base salary. Wills, however would like to add three of Brighton’s salespeople. Currently there are four salespeople on Wills’s staff that outperform the other six, who are approximately equal in talent. Yet, Wills is hard-pressed to identify a clear laggard whom he would dismiss in favor of the competition’s salespeople. Wills is also concerned that he could disrupt the team chemistry he has worked hard to build the past two years by firing some of his current salespeople and hiring those from Brighton. However, he does not know if he can pass up this opportunity to upgrade his salesforce.
How should Wills approach this dilemma? Should he hire the new reps and deal with the ramifications of letting two of his people go, or can he afford to pass on the new reps altogether?
In: Economics
| Fresno Fiber Optics, Inc. manufactures fiber optic cables for the computer | |||||||||
| and telecommunication industries. At the request of the company VP of | |||||||||
| marketing, the cost management staff has recently completed a customer- | |||||||||
| profitability study. The following activity-based costing information was | |||||||||
| the basis for the analysis. | |||||||||
| Customer - Related Activities | Cost Driver Base | Cost Driver Rate | |||||||
| Sales activity | Sales visits | $860 | |||||||
| Billing and Collection | Invoices | 160 | |||||||
| Order taking | Purchase orders | 220 | |||||||
| Special shipping | Shipments | 430 | |||||||
| Customer - Related Activities | Trace Telecom | Caltex Computer | |||||||
| Sales activity | 14 visits | 18 visits | |||||||
| Billing and Collection | 22 invoices | 26 invoices | |||||||
| Order taking | 26 orders | 28 orders | |||||||
| Special shipping | 12 shipments | 14 shipments | |||||||
| The following additional information has been compiled for Fresno Fiber Optics | |||||||||
| for two of its customers, Trace Telecom and Caltex Computer, for the most recent year. | |||||||||
| Trace Telecom | Caltex Computer | ||||||||
| Sales revenue | $240,000 | $226,000 | |||||||
| Cost of goods sold | 140,000 | 110,000 | |||||||
| General selling costs | 42,000 | 32,000 | |||||||
| General administrative costs | 24,000 | 18,000 | |||||||
| Required: | |||||||||
| 1. Prepare a customer profitability analysis for Trace Telecom and Caltex Computer. | |||||||||
| (Hint: Refer to Exhibit 5-13 for guidance). | |||||||||
| 2. Build a spreadsheet: Construct an Excel spreadsheet to solve requirement (1) above. | |||||||||
| Show how the solution will change if the following information changes: Trace Telecom's | |||||||||
| cost of goods sold was $114,000 and Caltex Computer's sales revenue was $206,000. | |||||||||
In: Accounting
Q1. Arrival of customers to a local store may be modeled by a Poisson process with an average of 1 arrival every 10 min period. Each customer on average stays for a time exponentially distributed with mean 15 minutes. This is modeled as a birth-death process.
(i) What assumption is necessary for this process to be modeled as a birth-death process?
(ii) Compute the probability that the number of customers in the store reaches 30, if we have 3 customers at the start.
Pls explain with workings. Thxs
In: Advanced Math
Historical data show that customers who download music from a popular Web service spend approximately $24 per month, with a standard deviation of $3. Assume the spending follows the normal probability distribution. Find the probability that a customer will spend at least $20 per month. How much (or more) do the top 7% of customers spend?
What is the probability that a customer will spend at least $20 per month?
How much do the top 7% of customers spend?
In: Statistics and Probability
In: Operations Management