Managing a healthcare organization through revenue generation and cost control is beneficial for the sustainability of the organization. “There is a statistically significant relationship between hospital financial performance and quality of care (Dong, G.N., 2015).” Evidence supports the concept that well fiscally managed healthcare organizations deliver better healthcare to patients then organizations that do not. In a few paragraphs, conduct some research to either support or refute this claim.

1. Problems and Applications Q1

A publisher faces the following demand schedule for the next novel from one of its popular authors:

The author is paid $800,000 to write the novel, and the marginal cost of publishing the novel is a constant $4 per copy.

Complete the second, fourth, and fifth columns of the following table by computing total revenue, total cost, and profit at each quantity.

Which of the following quantity–price combinations would a profit-maximizing publisher choose? (Note: If the publisher is indifferent between more than one choice, select all of the indifferent combinations.) Check all that apply.

150,000 copies at a price of $28

200,000 copies at a price of $24

250,000 copies at a price of $20

300,000 copies at a price of $16

Complete the third column of the previous table by computing marginal revenue. (Hint: Recall that MR=ΔTRΔQMR=ΔTRΔQ.)

True or False: At each quantity, marginal revenue is less than the price.

True

False

Use the black points (plus symbol) to graph the marginal revenue from the 50,000th, 100,000th, 150,000th, 200,000th, 250,000th, and 300,000th copy of the novel. Remember to plot from left to right and to plot between integers. For example, if the marginal revenue of increasing production from 50,000 copies to 100,000 copies were 10, then you would plot a point at (75, 10). Next use the orange line (square symbol) to graph the marginal-cost curve faced by the publisher. Finally, use the blue points (circle symbol) to graph demand at the following quantities (in thousands): 0, 50, 100, 150, 200, 250, 300, 350, 400, 450, and 500.

Marginal RevenueMarginal CostDemandDeadweight Loss0501001502002503003504004505004036322824201612840-4PriceQuantity (Thousands of copies)200, 24Y-Intercept: 4Slope: 0

The marginal-revenue and marginal-cost curves intersect at a quantity of   copies.

On the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss.

If the author were paid $1 million instead of $800,000 to write the book, the publisher would   the price it charges for a copy of the novel.

Suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency, and the author of a novel was paid $800,000 to write the book.

In this case, the publisher would charge

for a copy of the novel and earn a profit of

. (Note: If the publisher experiences a loss, be sure to enter a negative number for profit.)

1. Create a scatter plot between the children’s BMI and their adoptive parents’ BMI. Format the plot into an APA-styled “figure” (see week 1 video for APA figure format). (3 points total: 1 for correct scatter graph type, 1 for correct data, 1 for APA format- figure number and title/caption)

1. Calculate the mean and standard deviation for the adoptive parents’ BMI. (2 points total: 1 for mean and 1 for SD- deduct .5 if the process is correct but result is wrong)

2. Calculate the Z scores for all the data points for the adoptive parents. (1 point for calculating adoptive parents’ Z scores. Deduct .5 for each error in calculation)

3. Calculate the Pearson’s correlation coefficient r between children’s BMI and their adoptive parents’ BMI. Note that the children’s Z scores have been calculated in Part 1 of this scenario. (2 points total: 1 for work, 1 for r value)

4. Explain the direction and strength of the relationship based on the r. (2 points total: 1 for direction, 1 for strength)

5. What is the proportion of shared variance between children’s BMI and their adoptive parents’ BMI? That is, how much of the variance in the children’s BMI can be predicted from their adoptive parents’ BMI? (2 points total: 1 for work, 1 for result)

6. Based on the two r statistics, what would be the answer to the research question of whether children’s BMI is influenced more by nature or nurture? (1 point)

During a maternity leave of the full-time bookkeeper at a privately owned furniture repair business, a temporary employee was involved in the following transactions.

1.
Work was completed on the order for one of the customers who had paid the full price in advance of $570 several months ago. At that time it was recorded as unearned revenue. The journal entry to record completing the work was a debit to Cash and a credit to Service Revenue.
2.
A cheque in the amount of $1,070 was received in payment of a customer’s account: Accounts Receivable was debited and Cash was credited.
3.
Prepaid insurance for $490 was paid by cheque. The resulting entry included a debit to Prepaid Insurance and a credit to Insurance Expense for $490.
4.
10 cartridges of printer toner were purchased on account for $580. This transaction was recorded as a debit to Equipment and a credit to Accounts Payable. None of the cartridges has been used.
5.
Interest for one month on a $5,600 note payable was accrued as a debit to Interest Expense and credit to Interest Payable for $560. The annual rate of interest is 10%.
6.
When the owner, L. Lowe, used $1,140 cash for personal expenses, a debit was made to L. Lowe, Capital and a credit was made to Cash.
7.
Equipment costing $440 was purchased on account. This was recorded with a debit to Repairs Expense and a credit to Cash.

Correct each error by reversing the incorrect entry and then recording the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
1.
Reversing incorrect entry:
    
Prepaid Insurance    
Cash    
Repairs Expense    
Service Revenue    
Unearned Revenue    
Accounts Payable    
Interest Payable    
Accounts Receivable    
Supplies    
L. Lowe, Capital    
Insurance Expense    
L. Lowe, Drawings    
Equipment    
Interest Expense    
    
Interest Payable    
Cash    
Supplies    
Accounts Payable    
Insurance Expense    
Interest Expense    
Repairs Expense    
Service Revenue    
Unearned Revenue    
Accounts Receivable    
Prepaid Insurance    
L. Lowe, Capital    
L. Lowe, Drawings    
Equipment    
Correct entry:
    
Supplies    
Unearned Revenue    
Accounts Payable    
Repairs Expense    
Accounts Receivable    
L. Lowe, Capital    
Interest Payable    
Insurance Expense    
Prepaid Insurance    
Service Revenue    
Equipment    
Interest Expense    
L. Lowe, Drawings    
Cash    
    
Repairs Expense    
Prepaid Insurance    
Insurance Expense    
Unearned Revenue    
L. Lowe, Drawings    
Interest Expense    
L. Lowe, Capital    
Accounts Payable    
Accounts Receivable    
Service Revenue    
Cash    
Equipment    
Supplies    
Interest Payable    
2.
Reversing incorrect entry:
    
L. Lowe, Drawings    
Unearned Revenue    
Equipment    
Repairs Expense    
Service Revenue    
Accounts Receivable    
Cash    
Insurance Expense    
Interest Payable    
Prepaid Insurance    
Accounts Payable    
Supplies    
Interest Expense    
L. Lowe, Capital    
    
Supplies    
Unearned Revenue    
Accounts Payable    
Accounts Receivable    
Insurance Expense    
Prepaid Insurance    
Interest Expense    
Equipment    
Interest Payable    
L. Lowe, Capital    
L. Lowe, Drawings    
Repairs Expense    
Service Revenue    
Cash    
Correct entry:
    
Interest Payable    
Insurance Expense    
Accounts Receivable    
Prepaid Insurance    
Repairs Expense    
Equipment    
L. Lowe, Capital    
Accounts Payable    
Unearned Revenue    
Supplies    
Interest Expense    
L. Lowe, Drawings    
Service Revenue    
Cash    
    
Cash    
Prepaid Insurance    
Supplies    
Unearned Revenue    
Interest Payable    
Insurance Expense    
L. Lowe, Capital    
Service Revenue    
Repairs Expense    
Accounts Payable    
L. Lowe, Drawings    
Accounts Receivable    
Equipment    
Interest Expense    
3.
Reversing incorrect entry:
    
Accounts Receivable    
Interest Expense    
L. Lowe, Drawings    
Interest Payable    
Insurance Expense    
L. Lowe, Capital    
Prepaid Insurance    
Supplies    
Repairs Expense    
Service Revenue    
Cash    
Unearned Revenue    
Accounts Payable    
Equipment    
    
Unearned Revenue    
Service Revenue    
Accounts Receivable    
Insurance Expense    
Interest Expense    
Accounts Payable    
L. Lowe, Capital    
Prepaid Insurance    
Interest Payable    
Cash    
Equipment    
L. Lowe, Drawings    
Repairs Expense    
Supplies    
Correct entry:
    
Accounts Receivable    
L. Lowe, Drawings    
Repairs Expense    
Prepaid Insurance    
Insurance Expense    
Equipment    
Supplies    
Interest Expense    
Interest Payable    
Cash    
L. Lowe, Capital    
Unearned Revenue    
Service Revenue    
Accounts Payable    
    
L. Lowe, Drawings    
L. Lowe, Capital    
Equipment    
Cash    
Repairs Expense    
Supplies    
Insurance Expense    
Accounts Payable    
Interest Expense    
Unearned Revenue    
Interest Payable    
Accounts Receivable    
Prepaid Insurance    
Service Revenue    
4.
Reversing incorrect entry:
    
Prepaid Insurance    
Service Revenue    
Interest Payable    
Repairs Expense    
Accounts Receivable    
L. Lowe, Capital    
Supplies    
Interest Expense    
Insurance Expense    
Accounts Payable    
Cash    
Unearned Revenue    
Equipment    
L. Lowe, Drawings    
    
Interest Payable    
L. Lowe, Capital    
L. Lowe, Drawings    
Insurance Expense    
Unearned Revenue    
Prepaid Insurance    
Accounts Payable    
Repairs Expense    
Service Revenue    
Equipment    
Supplies    
Cash    
Accounts Receivable    
Interest Expense    
Correct entry:
    
Repairs Expense    
Interest Expense    
L. Lowe, Drawings    
L. Lowe, Capital    
Service Revenue    
Cash    
Accounts Payable    
Supplies    
Accounts Receivable    
Unearned Revenue    
Insurance Expense    
Prepaid Insurance    
Equipment    
Interest Payable    
    
Cash    
Unearned Revenue    
Accounts Payable    
Equipment    
L. Lowe, Drawings    
Repairs Expense    
Supplies    
Accounts Receivable    
Interest Expense    
Insurance Expense    
Interest Payable    
L. Lowe, Capital    
Service Revenue    
Prepaid Insurance    
5.
Reversing incorrect entry:
    
Unearned Revenue    
Prepaid Insurance    
Equipment    
Interest Expense    
Supplies    
Cash    
Accounts Payable    
Interest Payable    
Accounts Receivable    
L. Lowe, Capital    
Insurance Expense    
L. Lowe, Drawings    
Repairs Expense    
Service Revenue    
    
Service Revenue    
Prepaid Insurance    
Interest Payable    
Accounts Receivable    
Accounts Payable    
Insurance Expense    
L. Lowe, Capital    
Equipment    
Cash    
Unearned Revenue    
Supplies    
Interest Expense    
L. Lowe, Drawings    
Repairs Expense    
Correct entry:
    
Prepaid Insurance    
Interest Expense    
Interest Payable    
Unearned Revenue    
Insurance Expense    
L. Lowe, Capital    
Accounts Payable    
Equipment    
Supplies    
L. Lowe, Drawings    
Repairs Expense    
Accounts Receivable    
Service Revenue    
Cash    
    
Equipment    
Service Revenue    
Insurance Expense    
Supplies    
L. Lowe, Capital    
Cash    
Unearned Revenue    
L. Lowe, Drawings    
Accounts Payable    
Interest Payable    
Accounts Receivable    
Prepaid Insurance    
Interest Expense    
Repairs Expense    
6.
Reversing incorrect entry:
    
Service Revenue    
Equipment    
Interest Expense    
Interest Payable    
Cash    
Prepaid Insurance    
L. Lowe, Capital    
Repairs Expense    
Unearned Revenue    
Accounts Payable    
L. Lowe, Drawings    
Supplies    
Accounts Receivable    
Insurance Expense    
    
Cash    
Interest Payable    
Interest Expense    
Equipment    
Prepaid Insurance    
L. Lowe, Drawings    
L. Lowe, Capital    
Supplies    
Repairs Expense    
Service Revenue    
Unearned Revenue    
Accounts Receivable    
Accounts Payable    
Insurance Expense    
Correct entry:
    
Cash    
Interest Payable    
L. Lowe, Capital    
Accounts Receivable    
Repairs Expense    
Insurance Expense    
Service Revenue    
Prepaid Insurance    
L. Lowe, Drawings    
Unearned Revenue    
Equipment    
Accounts Payable    
Supplies    
Interest Expense    
    
Insurance Expense    
L. Lowe, Drawings    
Supplies    
Prepaid Insurance    
Interest Expense    
Cash    
Equipment    
Interest Payable    
L. Lowe, Capital    
Accounts Payable    
Repairs Expense    
Unearned Revenue    
Service Revenue    
Accounts Receivable    
7.
Reversing incorrect entry:
    
Accounts Receivable    
L. Lowe, Capital    
Interest Expense    
Supplies    
Insurance Expense    
Prepaid Insurance    
Accounts Payable    
Service Revenue    
Interest Payable    
Equipment    
L. Lowe, Drawings    
Repairs Expense    
Cash    
Unearned Revenue    
    
Cash    
Supplies    
Accounts Receivable    
Unearned Revenue    
Accounts Payable    
L. Lowe, Drawings    
Insurance Expense    
Prepaid Insurance    
Equipment    
Service Revenue    
Repairs Expense    
Interest Expense    
Interest Payable    
L. Lowe, Capital    
Correct entry:
    
L. Lowe, Drawings    
Interest Payable    
Interest Expense    
L. Lowe, Capital    
Supplies    
Repairs Expense    
Unearned Revenue    
Accounts Payable    
Cash    
Service Revenue    
Accounts Receivable    
Prepaid Insurance    
Insurance Expense    
Equipment    
    
Service Revenue    
Cash    
Insurance Expense    
Unearned Revenue    
Interest Payable    
Accounts Payable    
L. Lowe, Capital    
Accounts Receivable    
Prepaid Insurance    
Repairs Expense    
Equipment    
Supplies    
Interest Expense    
L. Lowe, Drawings    

Consider the situation faced by Neal’s Yard Dairy, Britain’s premier cheese monger. Neal’s Yard works with farmers all over Great Britain, buying high quality artisanal cheeses that they sell to customers in their three London shops. Routinely the Dairy purchases cheeses that are not yet ripe, and it ripens them in their caves below their original shop on Neal’s Yard in Convent Garden. Every day the cheese experts have to decide at what point they want to bring some cheeses out from the cave for sale, and what cheeses they want to keep in the cave for further ripening. (Some cheeses have a single ripening point, but many cheeses, like Cheddar and blues, can be offered at different ages – 1-year old, 3-year old…..) It’s a tough decision: selling the cheese now brings revenue for the owners; aging the cheese promises higher prices for the cheese in the future. Of course, keeping cheese for ripening means financing their inventory a bit longer; the going interest rate in London right now is 6%.

a) Draw a set of curves that describes the decision that faces Neal’s yard Dairy. Decide how much cheese should be sold and how much stored.

b) Now suppose on of the owners of Neal’s Yard is about to have twins and needs to buy a bigger new house pronto. She needs cash now. Show how her preference for current consumption has increased, and how she can manage to satisfy her needs while maximizing profit for the cheese monger.

Gibson Corporation makes custom-order furniture to meet the needs of persons with disabilities. On January 1, 2018, the company had the following account balances: $88,000 for both cash and common stock. In 2018, Gibson worked on three jobs. The relevant direct operating costs follow: Direct Labor Direct Materials Job 1 $ 4,300 $ 5,300 Job 2 2,100 2,200 Job 3 8,400 3,700 Total $ 14,800 $ 11,200 Gibson’s predetermined manufacturing overhead rate was $.40 per direct labor dollar. Actual manufacturing overhead costs amounted to $5,672. Gibson paid cash for all costs. The company completed and delivered Jobs 1 and 2 to customers during the year. Job 3 was incomplete at the end of the year. The company sold Job 1 for $16,100 cash and Job 2 for $8,100 cash. Gibson also paid $3,300 cash for selling and administrative expenses for the year. Gibson uses a just-in-time inventory management system. Consequently, it does not have raw materials inventory. Raw materials purchases are recorded directly in the Work in Process Inventory account. Required Record the preceding events in a horizontal statements model. The first row shows beginning balances. Record the entry to close the amount of underapplied or overapplied overhead for the year to Cost of Goods Sold (in the expense category) in the horizontal financial statements model. Determine the gross margin for the year.

Calculate the MODE and MEDIAN. The measures of center for following GFDT. Data Frequency

60 - 64 13

65 - 69 19

70 - 74 10

75 - 79 9

80 - 84 8

85 - 89 5

90 - 94 4

95 - 99 1

100 - 104 2

calculate the MODE and MEDIAN

In a statistic class, 11 scores were randomly selected with the following results were obtained: 68, 74, 66, 37, 52, 71, 90, 65, 76, 73, 22. What are the outer fences?

A)-6.0, 140.0

B)-10.0, 92.0

C)2.0, 128.0

D)2.0, 162.0

E)37.0, 107.0

You are audit senior at Bernstein and Griffiths and have been assigned to the audit of Stockman Ltd (Stockman) for the current year. Stockman manufactures, wholesales and retails Australian outback clothing for sale both in Australia and overseas. During the planning stage of the audit, you have identified the following three key internal controls over the functioning of Stockman’s online inventory management system:

• Internal control 1 – the system will not allow a customer to place an order for an item of inventory that is currently out of stock.
• Internal control 2 – all new wholesale customers must undergo a credit approval check, which has to be signed off by Stockman’s credit manager and chief financial officer (CFO), before their credit limits are approved and a debtor account established.
• Internal control 3 – each customer is required to enter their unique customer identification number and personal identification number (PIN) before an order can be processed. This is to ensure that unauthorised inventory orders are not placed and only customers who are approved customers are able to order online.

1. For each of internal controls 1, 2 and 3 above, describe a test that you would perform to assess whether the control was functioning effectively.
2. Outline the result that you would expect to see if the internal controls was functioning effectively.

Suppose a grocery store is considering the purchase of a new self-checkout machine that will get customers through the checkout line faster than their current machine. Before he spends the money on the equipment, he wants to know how much faster the customers will check out compared to the current machine. The store manager recorded the checkout times, in seconds, for a randomly selected sample of checkouts from each machine. The summary statistics are provided in the table.

df=94.99897df=94.99897

Compute the lower and upper limits of a 95% confidence interval to estimate the difference of the mean checkout times for all customers. Estimate the difference for the old machine minus the new machine, so that a positive result reflects faster checkout times with the new machine. Use the Satterthwaite approximate degrees of freedom, 94.99897. Give your answers precise to at least three decimal places.

upper limit:

lower limit: