Here are some true and false questions to see if you understand the revenue and profit terms and the three key rules to maximize profit. Briefly explain why you chose that answer

1)If a firm sells 200 units of its product at a price of 8 dollars, its total profit will be 1600.

2)If the average revenue from 150 units is 20 dollars, the firm's total revenue is 3000 dollars.

3)If the marginal revenue from the 21st unit is 30 dollars, then the total revenue from 22 units is 30 dollars greater than the total revenue from 21 units

4) As long as MR is greater than MC, a firm's total profit will increase if it increases its level of output.

What began as an addiction for fine jewelry and clothing, ended in a major expense reimbursement fraud totaling $240,000. The perpetrator became a first-time offender shortly after acquiring a management position in a worldwide consulting firm in Chicago. Her position created an opportunity to abuse expense reimbursements. She rationalized her exorbitant purchases of consumer goods as the only remedy for her severe depression.

Beginning in the summer of 2001, Jennifer Childe submitted false and inflated expense reports to her new employer, Andrew Consulting. Even with her $150,000 salary and her husband's ample attorney income, when the opportunity to commit fraud increased then her appetite for spending grew proportionately. It appears that Childe believed she could get away with this fraud when she sought reimbursement for fees paid in advance for attendance at an upcoming conference. After she was unable to attend, she received a refund from the conference planners for the same amount that Andrew had previously reimbursed. Childe decided to keep the extra money and pay off some credit card debt. Because this crime was easy, she then falsified other expense documents. First, she filled her pockets with almost $19,000 by inflating her legitimate expenses 160 times. She also received roughly $89,000 by billing for about 100 airfares that were already charged to the company. She padded her bank account with another $115,000 by requesting funds for 25 conferences that she never attended. She generated an additional $16,000 by resubmitting receipts for expenses previously reimbursed. Finally, she gained another $1,000 from labeling many personal expenses as business charges.

The firm finally discovered her crimes but not until Childe committed 323 acts of fraud against Andrew Consulting over a three-year period ending April 2005. (Later in 2009, she was caught shoplifting at Neiman Marcus, pleaded guilty, and was put on probation.) Childe was promptly fired and company officials called the FBI. Before the judgment, she had to sell stock and take out a second mortgage on her condo to pay back Andrew. On May 23, 2006, Childe was sentenced to five years of probation, six months’ worth of weekend home confinement, six weeks of service in a Salvation Army work release center, and a small $30,000 fine. Additionally, the judge prohibited acquirement of any credit cards and required counseling for her problem. In July 2008, the Seventh Circuit Court of Appeals didn't agree with this decision and remanded the case for jail sentencing. After doing her time, she now works as a consultant for the Computer Science Corporation and earns $25,000 more than her $150,000 salary at Andrew. She's receiving psychotherapy for her shopaholic tendencies and her new employer keeps a close eye on her expense reports!

Overpurchasing resulted when Childe requested and received reimbursement from Andrew for conferences that she later canceled and then also collected refunds from the planners of the conferences.

Additionally, Childe submitted expenses multiple times to receive duplicate payments. Furthermore, she submitted plane ticket receipts for purchases the company already paid, receiving double reimbursement for the same expense. Finally, Childe mischaracterized some of her personal expenses as business expenses for reimbursement.

Required: Describe ways in which employees can commit expense reimbursement fraud? How could the company have prevented and detected the various schemes that Childe used?

Suppose you are a salesperson and your company's CRM forecasts that your quarterly sales will be substantially under quota. You call your best customers to increase sales, but no one is willing to buy more.

Your boss says that it has been a bad quarter for all the salespeople. It's so bad, in fact, that the vice president of sales has authorized a 20 percent discount on new orders. The only stipulation is that customers must take delivery prior to the end of the quarter so that accounting can book the order. "Start dialing for dollars," she says, "and get what you can. Be creative!"

Using your CRM information system, you identify your top customers and present the discount offer to them. The first customer balks at increasing her inventory: "I just don't think we can sell that much."

"Well," you respond, "how about if we agree to take back any inventory you don't sell next quarter?" (By doing this, you increase your current sales and commission in this quarter, and you also help your company make its quarterly sales projections . The additional product is likely to be returned next quarter, but you think "Hey, that's then and this is now.")

"OK," she says, "but I want you to stipulate the return option on the purchase order."

You know that you cannot write that on the purchase order because accounting won't book all of the order if you do. So you tell her that you'll send her an email with that stipulation. She increases her order, and accounting books the full amount.

With another customer, you try a second strategy. Instead of offering the discount, you offer the product at full price but agree to pay a 20 percent credit in the next quarter. That way you can book the full price now. You pitch this offer as follows: "Our marketing department analyzed past sales using our new information system, and we know that increasing advertising will cause additional sales. So, if you order more product now, next quarter we'll give you 20 percent of the order back to pay for the advertising."

In truth, you doubt the customer will spend the money on advertising. Instead, it will just take the credit and sit on a bigger inventory . That will kill your sales to the company next quarter, but you'll solve the problem when you get to it next quarter.

Even with these additional orders, you're still under quota. In desperation, you decide to sell product to a fictitious company that you say is owned by your brother-in-law. You set up a new account, and when accounting calls your brother-in-law for a credit check, he cooperates with your scheme. You then sell $40,000 of product to the fictitious company and ship the product to your brother-in-law's garage. Accounting books the revenue in the quarter, and you have finally made quota. A week into the next quarter, your brother-in-law returns the merchandise.

Meanwhile, unknown to you, your company's ERP system is scheduling production. The program that creates the production schedule reads the sales from your activities (and those of other salespeople) and finds a sharp increase in product demand (imagine that!). Accordingly, it generates a schedule that calls for substantial production increases and schedules worker for the production runs. The production system, in turn, schedules the material requirements with the inventory application, which increases raw materials purchases to meet the increased production schedule

Regarding your shipping to the fictitious company:

1/ Is your action ethical according to the categorical imperative perspective? Explain.

2/ Is your action ethical according to the utilitarian perspective? Explain.

3/ Is your action legal?

The Palace Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed No. 101 Cash $6,000, No. 140 Land $12,000, No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000, No. 157 Equipment $6,000, No. 201 Accounts Payable $2,000, No. 275 Mortgage Payable $10,000, and No. 311 Common Stock $20,000. During April, the following events and transactions occurred.

In addition to the accounts identified above, the chart of accounts shows No. 112 Accounts Receivable, No. 136 Prepaid Rent, No. 400 Service Revenue, No. 429 Rent Revenue, No. 610 Advertising Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense.

A. Enter the beginning balances in the ledger as of April 1

b.Journalize the April transactions. Palace records admission revenue as service revenue, rental of the concession stand as rent revenue, and film rental expense as rent expense.

c.Post the April journal entries to the ledger.

d.Prepare a trial balance on April 30, 2017.

1} List the benefits of providing good customer service to both internal and external customers in relation to health care.

2} Discuss how each interaction and response may differ when providing customer service to internal and external customers in relation to health care.

Include your personal experience.

Task: Write 3 paragraphs (5 to 7 sentences each)

NOTE: Please could answer be in 3 paragraphs AND answering both 1 & 2 questions.

If done this way, I will give a thumbs up & positive comment. Thanks *smile*

At the end of its first year of business, Fred Company reported $120,000 of unearned subscription revenues. This unearned revenue was Fred’s only temporary difference. In its second year of business, Fred reported pretax financial income of $200,000. At the end of Fred’s second year, the unearned subscription revenues account decreased to $90,000 and Fred estimates it will reverse in year 3. The enacted tax rate for every year is 20%. Prepare the journal entry to record Fred’s income tax expense, deferred taxes, and income taxes payable for its second year.

Cruz Inc. manufactures a popular premium toy. During its first year, the company incurred these costs:

$427000 Cost to manufacture 7000 toys
$110000 Research and development costs
$35000 Cost to ship completed products to retailers

Cruz sells 80% of its products for $183 each.

1. What will Cruz report as sales revenue for Year1?  

2. What will Cruz report as the cost of goods sold for Year1?  

3. What will Cruz report as net income for Year1?  

4. What will Cruz report as inventory on the balance sheet as of the end of Year1?  

Draw the cash flow diagram for the following data.
A company purchases a machine to make widgets for $10,000. the collect payment for their widgets at the end of the year in which they are delivered. At the end of 5 years the machine must be scrapped at which time its value is $0. The following is the net revenue generated by the widget machine.
Year 1 - $2,500
Year 2 - $3,500
Year 3 - $2,250
Year 4 - $3,000
Year 5 - $2,000

What is the present worth of the widget machine if the companies TVOM is 5.37%? $  
What is the future worth at the end of the 5 year life cycle? $

Question 1
(1) An item of stock costing $60,000 was written down to its realizable value of $35,000.
(2) School fees paid to the proprietor's son was debited to the Drawings account.
(3) $2,500 paid for a printer was written off as expense(instead of being capitalized).
(4) Assets like inventory are valued in dollars, not units, for the financial statements.
(5) Company reports revenue when it is earned instead of when the cash is collected.
(6) Assets will normally be recorded at their historical cost in balance sheet.

Required:

Identify the name of the concept or principle for the above events.

1.

T/F/Explain

Price elasticity of demand is measured using the slope of the demand curve.

2.

Our company, Slim ‘N Trim, Inc. sells pants for $40 a pair. After a successful year, you decide to try raising the price to $60. Your observation: sales drop from 50 pairs to 40. What is your price elasticity of demand calculated using the midpoint formula?

3.

After observing the value of your elasticity, does increasing your price increase, decrease, or have no effect on your total revenue? Why?