You are an eager and ambitious young graduate of the Reginal F. Lewis College of Business at Virginia State University with a new Accounting degree and a great life ahead of you. One of your closest friends is an inventor and an entrepreneur who wants to start a business selling a break-through new drywall screw that she has invented and that she believe works much better than the drywall screws currently on the market. She wants to start the business by opening a factory to produce the screws which can then be sold to either wholesalers or retailers who will then sell them to the general public. After searching all over creation for the right sized building in the perfect location to properly meet the needs of her target customers, she found that the ideal building in which to put up her factory was right here in Petersburg all along.                                            

To begin, she was able to purchase the building she needed outright for $550,000. Useful life of the building is 45 years and it is depreciated on a straight-line basis. Estimated salvage value is $100,000. Property taxes on the building each year are $4,000.   

There is a new machine that another fellow VSU grad has invented that takes the metal for the screws and molds them into their proper size and shape, and takes the plastic for the anchors and molds them into their proper size and shape; an assembly line is attached to the machine where workers put the screws and anchors into boxes. The finished product is a box of 32 drywall screws and their plastic anchors that work unlike any that have come before them. She purchased this machine outright for $100,000. The machine has a useful life of 20 years with no residual value and is depreciated on a straight-line basis. The machine can produce 32,000 boxes of screws and anchors per year. She is sure that she can sell every unit produced.   

It is determined that to produce the 32 screws in each box will require 112 ounces of metal which is the only material used to make the screws and to produce the 32 anchors in each box will take 48 ounces of plastic which is the only material used to make the anchors. The metal you need is produced by multiple suppliers and you've found one so far that will allow you to buy it at $1.25 per pound. The plastic used is also produced by multiple suppliers and you've found one so far that will allow you to buy it at $.25 per pound. It takes 15 minutes for the workers on the assembly line to box the screws and anchors because they are put in there in a way that prevents them from becoming disorderly. This is part of the quality aspect of the product. Assembly line workers are paid at a rate of $15.00 per hour.                                                                                                                                    

Your friend hired a Vice President (VP) who has a degree in Marketing from VSU. He did some market research and determined that in order to be competitive with your new product you are going to charge $17.00 per box of screws and anchors. The Vice President is paid $55,000 per year. She also hired a Chief Operating Officer who will be paid $55,000 per year. Your friend has also asked you to serve as a consultant to her company to make sure that the business gets off to a good start. Your fee has not yet been determined and is not part of this problem.

It can be assumed here that 1 unit is 1 box of screws and anchors.

Prepare a variable costing format income statement assuming that the company makes and sells the maximum possible number of units. If the income is negative, what is the reason?

Your friend asks you for advice on how to increase the company income. Give her at least two possible solutions to the problem.                                                     

Which solution did you recommend to your friend? Why did you choose this particular solution?

Prepare a memo addressed to your friend/client explaining your options and your recommendation. This memo should be no more than one page long.

What is the new break-even point after implementing your solution?                                                                      

What is the maximum income the company can make after implementing your solution? Is this enough profit to justify going into business? Why or why not?                                                                                                   

Prepare both an absorption costing income statement and a variable costing income statement to reflect your solution. State your assumptions about the number of units produced and the number sold.

You are an eager and ambitious young graduate of the Reginal F. Lewis College of Business at Virginia State University with a new Accounting degree and a great life ahead of you. One of your closest friends is an inventor and an entrepreneur who wants to start a business selling a break-through new drywall screw that he has invented and that he believes works much better than the drywall screws currently on the market. He wants to start the business by opening a factory to produce the screws which can then be sold to either wholesalers or retailers who will then sell them to the general public. After searching all over creation for the right sized building in the perfect location to properly meet the needs of his target customers, he found that the ideal building in which to put up his factory was right here in Petersburg all along.                                            

To begin, he was able to purchase the building he needed outright for $525,000. Useful life of the building is 40 years and it is depreciated on a straight-line basis. Estimated salvage value is $25,000. Property taxes on the building each year are $3,500.                                                                                                                                                                                                               

There is a new machine that another fellow VSU grad has invented that takes the metal for the screws and molds them into their proper size and shape, and takes the plastic for the anchors and molds them into their proper size and shape; an assembly line is attached to the machine where workers put the screws and anchors into boxes. The finished product is a box of 32 drywall screws and their plastic anchors that work unlike any that have come before them. He purchased this machine outright for $175,000. The machine has a useful life of 25 years with no residual value and is depreciated on a straight-line basis. The machine can produce 23,000 boxes of screws and anchors per year. He is sure that he can sell every unit produced.                                                                                                                                                                                                                                     

It is determined that to produce the 32 screws in each box will require 112 ounces of metal which is the only material used to make the screws and to produce the 32 anchors in each box will take 48 ounces of plastic which is the only material used to make the anchors. The metal you need is produced by multiple suppliers and you've found one so far that will allow you to buy it at $1.50 per pound. The plastic used is also produced by multiple suppliers and you've found one so far that will allow you to buy it at $.15 per pound. It takes 15 minutes for the workers on the assembly line to box the screws and anchors because they are put in there in a way that prevents them from becoming disorderly. This is part of the quality aspect of the product. Assembly line workers are paid at a rate of $17.00 per hour.                                                                                                                                    

Your friend hired a Vice President (VP) who has a degree in Marketing from VSU. She did some market research and determined that in order to be competitive with your new product you are going to charge $20.75 per box of screws and anchors. The Vice President is paid $58,000 per year. He also hired a Chief Operating Officer who will be paid $58,000 per year. Your friend has also asked you to serve as a consultant to his company to make sure that the business gets off to a good start. Your fee has not yet been determined and is not part of this problem.               

Questions

Prepare a variable costing format income statement assuming that the company makes and sells the maximum possible number of units. If the income is negative, what is the reason? Your friend asks you for advice on how to increase the company income. Give him at least two possible solutions to the problem.Which solution did you recommend to your friend? Why did you choose this particular solution?

Prepare a memo addressed to your friend/client explaining your options and your recommendation. This memo should be no more than one page long.               

What is the new break-even point after implementing your solution?

What is the maximum income the company can make after implementing your solution? Is this enough profit to justify going into business? Why or why not?                                                                                                     

Prepare both an absorption costing income statement and a variable costing income statement to reflect your solution. State your assumptions about the number of units produced and the number sold.     

You are an eager and ambitious young graduate of the Reginal F. Lewis College of Business at Virginia State University with a new Accounting degree and a great life ahead of you. One of your closest friends is an inventor and an entrepreneur who wants to start a business selling a break-through new drywall screw that he has invented and that he believes works much better than the drywall screws currently on the market. He wants to start the business by opening a factory to produce the screws which can then be sold to either wholesalers or retailers who will then sell them to the general public. After searching all over creation for the right sized building in the perfect location to properly meet the needs of his target customers, he found that the ideal building in which to put up his factory was right here in Petersburg all along.To begin, he was able to purchase the building he needed outright for $500,000. Useful life of the building is 40 years and it is depreciated on a straight-line basis. Estimated salvage value is $25,000. Property taxes on the building each year are $3,000.There is a new machine that another fellow VSU grad has invented that takes the metal for the screws and molds them into their proper size and shape, and takes the plastic for the anchors and molds them into their proper size and shape; an assembly line is attached to the machine where workers put the screws and anchors into boxes. The finished product is a box of 32 drywall screws and their plastic anchors that work unlike any that have come before them. He purchased this machine outright for $150,000. The machine has a useful life of 20 years with no residual value and is depreciated on a straight-line basis. The machine can produce 17,500 boxes of screws and anchors per year. He is sure that he can sell every unit produced.It is determined that to produce the 32 screws in each box will require 128 ounces of metal which is the only material used to make the screws and to produce the 32 anchors in each box will take 32 ounces of plastic which is the only material used to make the anchors. The metal you need is produced by multiple suppliers and you've found one so far that will allow you to buy it at $1.50 per pound. The plastic used is also produced by multiple suppliers and you've found one so far that will allow you to buy it at $.15 per pound. It takes 15 minutes for the workers on the assembly line to box the screws and anchors because they are put in there in a way that prevents them from becoming disorderly. This is part of the quality aspect of the product. Assembly line workers are paid at a rate of $20.00 per hour. Your friend hired a Vice President (VP) who has a degree in Marketing from VSU. She did some market research and determined that in order to be competitive with your new product you are going to charge $25.00 per box of screws and anchors. The Vice President is paid $57,500 per year. He also hired a Chief Operating Officer who will be paid $57,500 per year. Your friend has also asked you to serve as a consultant to his company to make sure that the business gets off to a good start. Your fee has not yet been determined and is not part of this problem.Prepare a variable costing format income statement assuming that the company makes and sells the maximum possible number of units. If the income is negative, what is the reason?Your friend asks you for advice on how to increase the company income. Give him at least two possible solutions to the problem. Which solution did you recommend to your friend? Why did you choose this particular solution?Prepare a memo addressed to your friend/client explaining your options and your recommendation. This memo should be no more than one page long. What is the new break-even point after implementing your solution? What is the maximum income the company can make after implementing your solution? Is this enough profit to justify going into business? Why or why not?Prepare both an absorption costing income statement and a variable costing income statement to reflect your solution. State your assumptions about the number of units produced and the number sold.    

Name___________________________________

SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.

1. 1) The probability that an employee at a company eats lunch at the company cafeteria is 1) 0.32. The probability that an employee is female is 0.62. The probability than an
   employee eats lunch at the employee cafeteria and is female is 0.21. What is the
   probability that a randomly chosen employee either eats at the cafeteria or is female?

2. 2) In a recent article it was reported that 27.3% of all college students party during 2) weekdays, and 67% of these students plan on going to graduate school. What is the probability that a randomly-selected student party during weekdays and plans on
   going to graduate school?

3. 3) There are five men and four women working on a project. To handle one particular 3) aspect of the project, a subcommittee needs to be formed. In the interest of balance, it is decided that the subcommittee will consist of two men and two women. How many combinations of this subcommittee are possible?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A student has access to professor evaluations. Overall, he has enjoyed 70% of all classes he has taken. He finds that of the courses he has enjoyed, 13% were taught by professors with poor evaluations. 84% of the courses he has taken were taught by professors with good evaluations.

4) What is the probability that the class was taught by a professor with good evaluations 4) and that the student enjoyed the class?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
In a recent survey about US policy in Iraq, 62 % of the respondents said that they support US policy in Iraq. Females comprised 53% of the sample, and of the females, 46% supported US policy in Iraq. A person is selected at random.

5. 5) What is the probability that the person we select is female and supports U.S. policy in 5) Iraq?

6. 6) Are the events "does not support U.S, policy in Iraq" and "female" statistically 6) independent? Why or why not?

7. 7) Suppose we select a supporter of US policy in Iraq, what is the probability that the 7) person we select is female?

8. 8) Suppose we select a person who does not support US policy in Iraq, what is the 8) probability that the person is male?

1

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
James' Surfboard Shop makes surfboards by hand. The number of surfboards that James makes during a week depends on the wave conditions. James has estimated the following probabilities for surfboard production for the next week.

Number of Surfboards 5 6 7 8 9 10 Probability 0.13 0.22 0.31 0.17 0.13 0.04

Let A be the event that James produces more than seven surfboards. Let B be the event that James produces exactly six surfboards.

9. 9) What is the probability of event A? 9)

10. 10) What is the probability of the complement of A? 10)

11. 11) What is the probability of the intersection of events A and B ? Why? 11)

12. 12) Are events A and B collectively exhaustive? Why? 12)

13. 13) The probability that a new small business closes before the end of its first year is 42%. 13) In addition, 37% of all new businesses are started by women. The probability that a
    new business is either owned by a woman or goes out of business is 62%. Your sister
    starts a new business. What is the probability her business will still open at the end of

    the first year?

14. 14) In a survey of top executives, it was found that 17% had traveled internationally 14) on business. The probability of one of these executives fluently speaking a foreign
    language was found to be 10%. The probability that one of these executives neither
    spoke a foreign language nor had traveled internationally was 0.81. What is the

    probability that an executive who speaks a foreign language has traveled internationally?

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Consider a sample space defined by events A1, A2, B 1, B2. Let P (A1) = 0.40 , P (B 1 ! A1) = 0.60 and P (B 1 ! A2) = 0.70

15) What is P(A2)?
16) What is P(A1 "B1)? 17) What is P(A1 "B2)? 18) What is P(A2 "B1)?

15) 16) 17) 18)

Thanks, please show all work!

Suppose you are the CFO of Toyota and that you manufacture your cars in Japan and export the vehicles to the USA. Assuming your current profit per car is $1,000 and you sell 10,000 this year, please answer the following and show your computations:
   - From a profitability point of view, do you generally favor a strong or weak US Dollar versus the Japanese YEN? Why?
   - If the exchange rate is 1 US Dollar = 1.20 Japanese YEN, what is your profit this year in YEN?
   - If the YEN appreciates in value versus the Dollar, would profitability increase or decrease?

3. The table below shows the number of hybrid cars sold (in thousands) in the US in the following years.                                                          * Source: Wikipedia

1. Find an exponential regression equation for the data. Let x = 0 represent the year 2000. Round a to two decimal places, and round b to four decimal places.

2. Describe what a and b tell you from your equation above in the context of the problem. Be very specific.

You are the international manager of a US business that has just invented a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO has asked you to formulate a recommendation for how to expand into Western Europe. Your options are (a) to export from the US, (b) to license a European firm to manufacture and market the computer in Europe, and (c) to set up a wholly owned subsidiary in Europe. Suggest a course of action to your CEO.

PT Kalbe Farma (PT KF) Tbk business and research development manager has a plan to develop a new vaccine for anti coronavirus. They have to borrow money from the bank for US$ 100,000,000. A syndicate of banks offer an interest rate of 10% annually for a 5-year loan

a) How much the monthly installment (interest & loan) that PT Kalbe Farma has to pay ?

b) PT KF CFO told the Business and research Development Division only has a limited of US$ 2,000,000 to pay for the monthyl installment. Can the manager proceed with the bank loan?

2. In December 2017, the US Administration passed the Tax Cuts and Jobs Act (TCJA). This lowered the top marginal corporate tax rate from 35% to 21%.

(a) What is the definition/interpretation of the “marginal tax rate”? (

b) According to the neoclassical model of investment, what should the US corporate tax rate cut have achieved?

(c) Give an explanation of how you might use this is a natural experiment to examine the effect of the corporate taxes on investment.

(d) What have been the effects of that TCJA so far? Has it had any of the intended effects?