Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

Daytona Company operates three divisions, L, M, and Z. The following
information is available for the most recent month:

Daytona Company:
Variable costs .............    $281,000
Common fixed costs .........    $ 92,000
Net income .................    $136,000

Division L:
Traceable fixed costs ......    $ 28,000

Division M:
Sales revenue ..............    $190,000
Contribution margin ........    $ 57,000
Segment margin .............    $ 46,000

Division Z:
Variable costs .............    $ 92,000
Variable costs .............    40% of sales
Segment margin .............    $106,000

Calculate the sales revenue reported by Division L during the most
recent month.

( PARTS 5-8 Only )

1.Generate a scatter plot for CREDIT BALANCE vs. SIZE, including the graph of the "best fit" line. Interpret.

2.Determine the equation of the "best fit" line, which describes the relationship between CREDIT BALANCE and SIZE. Interpret the values for slope and intercept.

3.Determine the coefficient of correlation. Interpret.

4.Determine the coefficient of determination. Interpret.

5. Test the utility of this regression model (use a two tail test with α=.05) by setting up the appropriate test of hypothesis. Interpret your results, including the p-value.

6. Based on your findings in 1-5, what is your opinion about using SIZE to predict CREDIT BALANCE? Explain.

7.Compute the 98% confidence interval for β1 (the population slope). Interpret this interval.

8. What can we say about the credit balance for a customer that has a household size of 9 ? Explain your answer.

3. A company has calculated their point price elasticity of demand to be -0.8 when they sell 6,000 units a month at a price of $120 per unit.

3. (a) The CEO is planning to implement an aggressive price cut in order to increase the quantity sold and, therefore, the revenue of the company. What would be your feedback on such plan? Justify your answer using the economic intuition behind the concept of price elasticity of demand.

(b) What is the expected percentage change in the monthly quantity of units sold if the company raises the price by 30%? How many monthly units do they expect to sell after this change in price? Calculate price elasticity of demand at the new price and quantity.

(c) What should be the price in order to sell 7,200 units?

(d) The production manager informs the CEO of the company they just discovered a new and cheaper way to produce the good they sell. His advice is to double production because the new procedure halves the cost per unit, so costs will remain unchanged. Should the recommendation be followed? Relate your answer to the concept of elasticity.

Kind of stuck on this one with the JE. Need to know if I am on the right track with this problem. Please help

Thomas sells products that carry a 6-month manufacturer’s warranty. Customers have the opportunity at the time of purchase to also buy a 3 year extended warranty for an additional charge of $100. Thomas sold 1,000 units this year for $2,000 each. For this year’s sales, Thomas estimates the 6-month warranty costs to be 10% of sales. Thomas incurred $40,000 servicing these warranties. Thomas estimates that the service cost on the extended warranties will be $70 per warranty. During the first year, Thomas sold 200 extended warranties and incurred costs of $2,000 to service extended warranties. During the second year, Thomas incurred $12,000 servicing the extended warranty.

Constructing and Assessing Income Statements Using Cost-to-Cost Method
Assume General Electric Company agreed in May 2016 to construct a nuclear generator for NSTAR, a utility company serving the Boston area. General Electric Company estimated that its construction costs would be $360 million. The contract price of $450 million is to be paid as follows: $150 million at the time of signing; $150 million on December 31, 2016; and $150 million at completion in May 2017. General Electric incurred the following costs in constructing the generator: $144 million in 2016 and $216 million in 2017.

a. Compute the amount of General Electric's revenue, expense, and income for both 2016 and 2017, and for both years combined, under the cost-to-cost revenue recognition method.
Enter dollar amounts in millions.

1. Kiwi traders have invested in two securities traded at the Nairobi Stock Exchange (NSE). Supposing A and B’s possible returns are as follows:

X=18%, 16%, 14%, 12%, 10%, 8%, 7%, 5%, 3% and 0% for periods one to ten.

Y=6%,7%,8%,9%,11%,13%,15%,17, %19%,19.5%, for periods one to ten, and each possible return has an equal chance in both cases. Other details remain the same.

Required

If Kiwi trader’s portfolio formation is Ksh 300,000, committing equal amounts in each asset, determine the Portfolio risk? (show working)

David is product manager at HP (Nebraska), and in charge of printers and related accessories. After reviewing his sales figures for the past third quarter, David is worried that he might not hit this year’s annual sales targets. As a consequence, he considers an end-of-year promotion in cooperation with selected retailers in Nebraska. David has been approached by Samantha, owner and managing director of Direct2U, a direct marketing firm in Omaha. Samantha has offered her services in developing and implementing a sales promotion campaign to help boost HP’s end-of-year sales. She suggests an in-store promotional campaign in 10 hypermarkets: Walmart (4 stores), Staples (3 stores), Bestbuy (2 stores) and OfficeDepot (1 store). Samantha suggests placing one booth at the entrance of each hypermarket during the four crucial Saturdays before Christmas. Direct2U’s price quote is $500/day/booth including promotional material and remuneration of a sales promotion specialist. David has to make a decision. Is Samantha’s proposal interesting? The details are as follows:

In HP’s business, customer retention rates are as follows: on average, four customers out of five continue to use their inkjet printer after a full year. In fact, many customers trade up after a while to more sophisticated laserjet printers. After the second year, only half of the remaining customers continue. In other words, two customers out of four defect after year two. After year three, the remaining customers also stop using their printer. Thus, the maximum lifetime of a customer is three years. Consumers typically print 200 pages with a HP 100 ink cartridge. In a consumer household, cartridges thus generally last for 3 months before they need replacing. HP does not capture all replacement cartridge purchases. In reality, 15% of all customers buy HP-compatible low-cost and/or recycled cartridges from specialists or over the internet from vendors such as www.inktechnologies.com. Thus, at a rather conservative estimate, an average household typically buys every seventh replacement cartridge from other sources. To boost sales, David plans to sell a promotional bundle during the holiday season at a retail price of $100.88. The bundle consists of one HP Inkjet Printer ($66.90/unit), one Hi-Speed cable ($7.99/unit) and one HP 100 Black Ink cartridge ($25.99). HP achieves higher margins on cartridges (85% profit margin) and cables (80% profit margin) than on printers, which are sold at a loss (-40% profit margin).

HP forecasts annual price increases for its products of 2% per year. HP price increases come into effect on January 1 each year. The company uses a corporate-wide discount rate of 10%. To know whether he should move forward regarding Samantha’s proposal, David asks you (marketing analyst) the following questions:

Question 3: What could be done to improve the profitability of this direct marketing initiative for HP? In other words, what could HP do to enhance the economic return of acquiring these new customers? Suggest two concrete actions and briefly explain, in 3–4 sentences, how they would impact results.

ASSIGNMENT

IMHR DILEMMA: WHOM DO YOU SATISFY? EXPATRIATE OR NATIONALS

Hi-Tech Electronics Limited was established in 2006 in Kuala Lumpur, Malaysia. It produces and markets all types of electronics goods in most of the Asian and Pacific countries. It has been one among the top five companies as for the level of technology and one among the top three companies regarding marketing of the products in Malaysia. The company’s policy and practices concerning human resource management are top in the country. The company’s salary administration policies and practices were taken as guidelines not only by the other companies but also by various wage boards and pay commissions in the country. But this company has been struggling a lot because of a minor problem relating to administration of salary and benefits. The problem is stated hereunder.

The company employed nearly 400 national young graduate and post graduate engineers and 20 expatriate engineers. This employee forms the cream of the company’s present human resource. The expatriate employees occupied higher position in all the departments including Human Resource Department. The company’s salary policy and benefit policy were formulated mainly on the basis of the expatriate employee’s desire. The base salary of the company is the same for both the expatriate and national employees. But expatriate receive additional allowances like international market allowance, educational allowance, settling-in allowance, car allowance, housing allowance and entertainment allowance. Thus, expatriate receives nearly 250% more salary than the nationals doing the same job.

The national employees demanded the management to pay equally with that of expatriates immediately. According to them, the pocket frustrates them severely.

QUESTIONS:

3. What are the 4 factors affecting standardization of compensation packages for expatriate and nationals’ employees? provide mind map for more proper illustration.

4. Identify 4 challenges the company will face if they did not fulfil the national’s employees demand.

Cycle Company had the following trial balance at 3/1/2021:

4.3 Activity for the month of March

1. Use the general journal to record the March activity.
2. Create the general ledger .
3. Create the trial balance
4. Create the financial statements,