Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $96 per unit, and variable expenses are $66 per unit. Fixed expenses are $833,700 per year. The present annual sales volume (at the $96 selling price) is 25,900 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.) 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

What is the present break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)

What is the present break-even point in unit sales and in dollar sales? (Do not round intermediate calculations.)

Break-even point in units is 27790

Break even point in dollar sales is 2667840

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

a) maxium Profit

B/ number of units

c? selling price

The following are the cash flows of two projects:

If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

The following information is available from the books of Exclusive Ltd. for the year ended 31st March 2016: (a) Cash sales for the year were Rs.10,00,000 and sales on account Rs.12,00,000. (b) Payments on accounts payable for inventory totaled Rs.7,80,000. (c) Collection against accounts receivable were Rs.7,60,000. (d) Rent paid in cash Rs.2,20,000, outstanding rent being Rs.20,000. (e) 4,00,000 Equity shares of Rs.10 par value were issued for Rs.48,00,000. (f) Equipment was purchased for cash Rs.16,80,000. (g) Dividend amounting to Rs.10,00,000 was declared, but yet to be paid. (h) Rs.4,00,000 of dividends declared in the previous year were paid. (i) An equipment having a book value of Rs.1,60,000 was sold for Rs.2,40,000. (j) The cash account was increased by Rs.37,20,000. Prepare a cash flow statement using direct method.

It is December 31. Last year, Campbell Construction had sales of $120,000,000, and it forecasts that next year’s sales will be $114,000,000. Its fixed costs have been—and are expected to continue to be—$60,000,000, and its variable cost ratio is 21.00%. Campbell’s capital structure consists of a $15 million bank loan, on which it pays an interest rate of 8%, and 750,000 shares of common equity. The company’s profits are taxed at a marginal rate of 40%. Given this data, complete the following sentences: Note: For these computations, round each EPS to two decimal places.

• The company’s percentage change in EBIT is . -12.26% -13.62% -16.34%

• The percentage change in Campbell’s earnings per share (EPS) is . -11.28% -14.10% -19.74%

• The degree of financial leverage (DFL) at $114,000,000 is . 0.97 1.04 2.82

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.

1. Prepare a multiple-step income statement.

2. Prepare a comprehensive income statement for 2017, using the two statement format.

3. Prepare a retained earnings statement for 2017.

2. How will pension expense in the current year change if the actual rate of return increases?
3. How will pension expense in the current year change if the discount rate increases?

Personal Budget

At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

c. Malloy can see that her present plan   sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $   at the end of December, with no time left to adjust.

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 49 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.3 pounds, what is the probability that the sample mean will be each of the following?

Appendix A Statistical Tables

a. More than 60 pounds
b. More than 56 pounds
c. Between 55 and 57 pounds
d. Less than 55 pounds
e. Less than 48 pounds

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

a. enter the probability that the sample mean will be more than 60 pounds

b. enter the probability that the sample mean will be more than 56 pounds

c. enter the probability that the sample mean will be between 55 and 57 pounds

d. enter the probability that the sample mean will be less than 55 pounds

e. enter the probability that the sample mean will be less than 48 pounds

total factory overhead for Bardot Marine Company is budgeted for the year at $778,050, divided into four activities: fabrication, $357,000; assembly, $147,000; setup, $148,050; and inspection, $126,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:

Each product is budgeted for 3,500 units of production for the year.

a. Determine the activity rates for each activity.

b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.