I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow:

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $625,400. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit for year 1. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit for year 2. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
     

c. Should Dolan Products drop Yellow for year 3?   

I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow.

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $650,000. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor-hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1.

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit (loss) for year 2.

c. Should Dolan Products drop Yellow for year 3?

I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow:

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $764,100. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit for year 1. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit for year 2. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
     

c. Should Dolan Products drop Yellow for year 3?   

Attempts:  

          Keep the Highest:   

/ 1

6.  Problem 8.07 (Portfolio Required Return)

I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow.

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $426,400. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor-hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit (loss) for year 1.

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit (loss) for year 2.

c. Should Dolan Products drop Yellow for year 3?

Assume a major investment service has just given Big Lake Realty its highest investment​ rating, along with a strong buy recommendation. As a​ result, you decide to take a look for yourself and to place a value on the​ company's stock.​ Here's what you​ find: This​ year, Big Lake paid its stockholders an annual dividend of ​$4.93 a​ share, but because of its high rate of growth in​ earnings, its dividends are expected to grow at the rate of 9​% a year for the next five years and then to level out at 5 % a year. So​ far, you've learned that the stock has a beta of 1.15​, the​ risk-free rate of return is 4.8​%, and the expected return on the market is 10.8​%.

Using the CAPM to find the required rate of​ return, put a value on this stock.

Answer in C++ language please**

I got stuck. How do I find the Overall Average,Overall Highest number, and the Overall Lowest Number after all of this??

#include <iostream>
#include <fstream>
#include <iomanip>
#include <string>
using namespace std;

const int ALIASFILE_LINE_COUNT =16;
const float USERBONUSLEVEL = 75.09;
const float USERAWARDLEVEL = 80.72;
const int USERBONUS = 5;
const int USERAWARD = 8;
void selectionSortAsc( double list[], int length);

int main()
{cout <<"\n\nproject 3 template,.. \n ,...includes global constants for project.\n"<<endl;
//1. declare and initialize your variables.
//2. configure and test the file I/O
fstream fileName;
string inputFile;
ofstream outFile;
cout<<"Enter File Name ";
cin>>inputFile;
fileName.open(inputFile.c_str());
if(!fileName)
{
cout <<"\n\n\tINPUT FILE ERROR! Exiting.\n\n";
return 1;
}

// 3. GET RATE - read & display alias.txt file to verify.
string info1,info2,info3,info4,info5,info6,info8,info9,info10,info11,info12,info13,info14,info15,info16,info17,info18;
double rate;
string a;
string b;
const int size = 50;
while ( fileName )
{
if (fileName == false)
cout<<"Could not open the input file"<<endl;

// read another record
getline(fileName,info1);
getline(fileName,info2);
getline(fileName,info3);
getline(fileName,info4);
getline(fileName,info5);
getline(fileName,info6);
fileName>>a>>b>>rate;
getline(fileName,info8);
getline(fileName,info9);
getline(fileName,info10);
getline(fileName,info11);
getline(fileName,info12);
getline(fileName,info13);
getline(fileName,info14);
getline(fileName,info15);
getline(fileName,info16);
getline(fileName,info17);
getline(fileName,info18);
}
// display
outFile<<info1<<endl;
outFile<<info2<<endl;
outFile<<info3<<endl;
outFile<<info4<<endl;
outFile<<info5<<endl;
outFile<<info6<<endl;
outFile<<a<<b<<rate<<endl;
outFile<<info8<<endl;
outFile<<info9<<endl;
outFile<<info10<<endl;
outFile<<info11<<endl;
outFile<<info12<<endl;
outFile<<info13<<endl;
outFile<<info14<<endl;
outFile<<info15<<endl;
outFile<<info16<<endl;
outFile<<info17<<endl;
outFile<<info18<<endl;

// 4. load the arrays with the values
// declaring 2-D array of 4 rows and 7 columns

double A[4][7];

// opening files
// opening files
cout<<"_____________________________________________________"<<endl;
{
ifstream inFile;
inFile.open("update_fullOfGrace.txt");
if(inFile.fail() ){
cerr << "\n\nERROR!! Could NOT open input file!!\n\n";
return 1;
}
int row = 0;
while(row < 4){
int col = 0;
while(col < 7){
inFile>>A[row][col];
col++;
}
row++;
}
double values[7];

for(int i=0; i<4; i++){

for(int j=0; j<7; j++){
values[j]=A[i][j];

}

selectionSortAsc(values,7);
for(int k=0; k<7; k++){
A[i][k]=values[k];

}
}
for(int i=0; i<4; i++){
for(int j=0; j<7; j++)
cout<<A[i][j]<<" ";
cout<<endl;

}
cout<<"_____________________________________________________"<<endl;
for(int i=0; i<4; i++){
double sum = 0;
for(int j=0; j<7; j++)
sum = sum + A[i][j];

cout<<"Average for Week "<<(i+1)<<" is: "<<(sum/7.0)<<endl;
cout<<endl;
}

cout<<"_____________________________________________________"<<endl;

// 5. calculate averages for each week, and all weeks

// 6. calculate total average of all four weeks
// 7. find high values for each week.
double high1;
double high2;
double high3;
double high4;
double low1;
double low2;
double low3;
double low4;
high1=100;
high2=100;
high3=95;
high4=99;
low1=9.8;
low2=6.9;
low3=6.9;
low4=5.61;

cout<<" High Values "<<endl;
cout<<"Week 1: "<<high1<<endl;
cout<<"Week 2: "<<high2<<endl;
cout<<"Week 3: "<<high3<<endl;
cout<<"Week 4: "<<high4<<endl;

// 8. find low values for each week.
cout<<" Low Values "<<endl;
cout<<"Week 1: "<<low1<<endl;
cout<<"Week 2: "<<low2<<endl;
cout<<"Week 3: "<<low3<<endl;
cout<<"Week 4: "<<low4<<endl;

}

// 10. update the current rate
rate+=USERBONUS
if(overall_avg> USERBONUSLEVEL)
{
rate+= USERBONUS;
}
if(rate>USERBONUSLEVEL&&low!=0)
{
rate+=USERAWARD;
}
// 11. update the alias file with the new rate.
//12. out to screen
cout <<"\n___________________________________________________________\n";
cout<<setw(14);
cout<<"OVERALL HIGH = 100"
cout <<"\n___________________________________________________________\n";

/// 13. close out and exit gracefully,....

cout<<"\n\n\n";
return 0;
}
// 9. sort it all out.
void selectionSortAsc( double list[], int length){
int index=0, smallestIndex=0, minIndex=0;
double temp;
for (index = 0; index < length ; index++){
/// Step a
//smallestIndex = index;
for (minIndex = 0; minIndex < length-1; minIndex++)
{
if (list[minIndex] > list[minIndex + 1])
// smallestIndex = minIndex;
/// Step b
{
temp = list[minIndex];
list[minIndex] = list[minIndex + 1];
list[minIndex + 1] = temp;
}
}
}
}