​Which of these is a variable cost for a restaurant?

a. Rent for dining space

b. Insurance against damages on the rental space

c. Tax accountant’s salary

d. Wages for the servers

Explain the effect of Federal tax policy on the cost of health insurance.

What are the long term cost benefits for using an LEED building?

Cafeteria is planning to install vending machines with a cost of $300,000.

 It is estimated that these vending machines will generate annual sales of 20,000 cups with a price
of $10 per cup.
 Cash variable costs are $4 per cup while cash fixed costs are expected to be $50,000 per year.
 The vending machine’s estimated economic life would be 5 years with a salvage value of $50,000
and depreciated using the straight-line method.
 BANE is subject to a 35% income tax rate.

REQUIREMENTS:
a. Determine the payback period;
b. Determine the accounting rate of return based on original investment;
c. Determine the accounting rate of return based on the average investment

A hypothesis test was done on the mean cost of textbooks at UVA in a given semester. the null and alternative hypotheses were H₀: μ=$220 and H₁: μ < 220. A sample of 49 UVA students showed a mean of $212, and a P-value of 0.092 was calculated. The P-value is:

a) The probability of making the wrong decision

b) The probability that the true value is $212

C) The probability that if the true value is $220 we will have a sample mean of $212 or less

d) The probability that if the true value is $220 we will have a sample mean that is equal to $212

e) The probability that the true value is $220

An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume.

In the Microsoft Excel Online file below you will find a sample of production volumes and total cost data for a manufacturing operation. Conduct a regression analysis to explore the relationship between total cost and production volume and then answer the questions that follow.

1. Compute b₁ and b₀ (to 1 decimal).

   b₁

   b₀

   Complete the estimated regression equation (to 1 decimal).

   =  + x

2. According to this model, what is the change in cost (in dollars) for every unit produced (to 1 decimal)?

3. Compute the coefficient of determination (to 3 decimals). Note: report r² between 0 and 1.

   r² =

   What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)?

   %

4. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?

   $

1. There are identical firms with cost function ?(?) = ? 2 + 100. The market demand is given by the following inverse demand function ? = −0.02? + 220. The industry is a constant cost industry. This is a competitive market where each firm takes the price as given, with $5 per unit tax levied on the producers.

a) Calculate the firm’s MC, AC, AVC and supply ?(?). Graph the cost curves and the supply on a graph.

b) What is the long-run market supply curve? Graph the long-run market supply with the market demand on a graph. Explain how you come to your conclusion.

c) How many firms operate in the long-run? Explain why you will not see a more or smaller number of firms in the long run.

d) What is the short-run market supply if there are 50 firms? What is the profit in the short-run with 50 firms in the market? What is the consumer surplus, producer surplus, and the total welfare in the short run with 50 firms?

g) What is the consumer surplus, producer surplus, and the total welfare in the long-run?

One contributor to the cost of college education is the purchase of textbooks. Administrators at a private college are interested in estimating the average amount students spend on textbooks during the first four years at the college. A random sample of 200 students was taken showing a sample mean of X ̅ = $5,230. Suppose that past studies have indicated that the population standard deviation for the amount students spend on textbooks at this college is σ = $500.

a.Develop and interpret 90% confidence interval estimate of the population mean.

b.Develop and interpret 95% confidence interval estimate of the population mean.

c.Discuss what happens to the width of the confidence interval (margin of error) as the confidence level is increased?