On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $176,000 of 7% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled:

Labels and Amount Descriptions

Differential Analysis

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1. Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.

Score: 35/71

Points:

8.38 / 17

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Final Questions

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2. Based on the results disclosed by the differential analysis, should the proposal be accepted?

No

Yes

The company is indifferent since the result is the same regardless of which alternative is chosen.

Points:

1 / 1

3. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years?

Points:

0 / 1

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Please answer questions by filling in the blanks.

Assignment 4 - Writing Exercise - Developing a mobile phone app On-the-Go Software, a start-up company in your community, would like to develop a new mobile phone app that will be profitable. As part of the company’s preliminary planning, the CEO, Etta Hawkins, has hired you to research the most popular apps for iPhones and other mobile devices and to analyze why you believe these apps are successful. As you research, identify who is buying these apps and hypothesize why. Also identify features that have received positive comments and hypothesize why these features are important. Write a three- to five-page letter report to present the results of your research. In addition, include a list of references as an attachment. You may include other attachments if you believe they will be helpful. Address your report to Etta Hawkins, On-the-Go Software, 1111Main Street, Mytown, MyState, MyZip

Benson Company is a manufacturing firm. Presented below is information concerning one of its products:

Part A

Compute the cost of goods sold under the following situations:

Periodic system, FIFO cost flow

Perpetual system, FIFO cost flow

Periodic system, LIFO cost flow

Perpetual system, LIFO cost flow

Periodic system, weighted-average cost flow

Perpetual system, moving-average cost flow

Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.

Part B

Summarize the cost of goods sold in a one-page memo to Benson Corporation's CEO.

Students are to complete Module 4, Human Resources and Capacity (Scenario) in Practice Operations. Based on their observations in this scenario, and upon a careful review of the available literature, the student is to consider him - or herself to be the Production Manager of Kibby and Strand, the company in the scenario.

The CEO is thinking of expanding Kibby and Strand, and you are tasked to create a data collection plan and measurement criteria for how production output and product quality will be measured. Create your collection plan and output measurement criteria assuming the current production capacity in the simulation scenario will be doubled.

In addition, the HR manager asks for a list of qualifications and skill sets required for production shift managers to staff the expansion. Create your job ad to include qualifications and desired skill sets.

The student is to create the data collection plan, measurement criteria, job qualifications list, and staffing plan based on knowledge learned in the scenario, and post it in the discussion

Amazon’s CEO, Jeff Bezos, introduced the company’s Amazon Prime membership service. For a $79 annual fee, a customer receives “free” (prepays might be more accurate) shipping on every single order the customer places during the year. Jeff acknowledged the Prime service would be "expensive for the company in the short term" but "more convenient for customers." Before introducing this program, you can be sure that the managerial accounting staff at Amazon went through a lot of differential analysis. Put yourself in their shoes and answer the following:

What would a differential analysis for adopting the “Amazon Prime” model need to consider?

Show an example of a differential analysis for adopting the “Amazon Prime” model.

What non-numeric considerations would need to be taken into account?

After reviewing the above would you advise Jeff for or against adopting the Amazon Prime model? Why?

In 2005, Jeff Bezos, Amazon’s CEO, introduced the company’s Amazon Prime membership service. For a $79 annual fee, a customer receives “free” (prepays might be more accurate) shipping on every single order the customer places during the year. Bezos acknowledged the Prime service would be "expensive for the company in the short term" but "more convenient for customers." Before introducing this program, you can be sure that the managerial accounting staff at Amazon went through a lot of differential analysis. Put yourself in their shoes and answer the following:

What would a differential analysis for adopting the “Amazon Prime” model need to consider?

Show an example of a differential analysis for adopting the “Amazon Prime” model.

What non-numeric considerations would need to be taken into account?

After reviewing the above would you advise Mr. Bezos for or against adopting the Amazon Prime model? Why?

Wilhelms Cola Company plans to market a new lime-flavored cola this summer. The decision is whether to package the cola in returnable or non-returnable bottles. Currently, the legislature is considering eliminating nonreturnable bottles. The CEO of Wilhelms has discussed the problem with state legislators and established that there is a 50-50 chance that returnable bottles will be eliminated. The following table has been created to show estimated monthly profits in returnable vs nonreturnable bottles.

1. Compute the expected opportunity loss for returnable bottles.  Round to one decimal.

2. Compute the expected opportunity loss for non-returnable bottles.  Round to one decimal.

3. Compute the expected value of perfect information.  Round to one decimal

Carlson Automotive Company manufactures fuel-injection systems. It manufactured and sold 60,000 units
in 2018 and 64,000 units in 2019 at $25 per unit. In 2018, the firm used 75,000 pounds of alloy TPX–45 at
$7.20 per pound and used 10,000 direct labor hours at an hourly wage rate of $30. In 2019, the firm used
89,600 pounds of alloy TPX–45 at $6.80 per pound and used 10,847 direct labor hours at an hourly wage
rate of $32. The total amount of all other expenses remains the same at $450,000 each year. Jerry Olson,
CEO, was disappointed that although the total sales increased in 2019, operating income declined from
$210,000 in 2018 to $193,616 in 2019.

1. Detailed partition of partial financial productivity.
2. Total productivity for 2018 and 2019 as measured in both units and sales dollars.

Underline Electronics had a free cash flow for FY 2018 of $2,150 (all amounts are in $000). Rand McDandy, CEO, projected a free cash flow growth of 3% per years for the next 5 fiscal years (FY2019 - FY2023). Beginning at the end of FY2023, free cash flow was expected to slow grow at only .5% in perpetuity. McDandy expected Underline Electronics cost of capital to remain constant at 6.12% until the end of the beginning of FY2024 at which point he projected the cost of capital to lower and remain at 4.25% in perpetuity. Considering this forecast he asked his CFO (you) to determine the fair market value (NPV) of the company. Choose the best answer from the list of options below. For this question consider FY2019 as Year 1 and FY2023 as Year 5.

Benson Company is a manufacturing firm. Presented below is information concerning one of its products:

Part A

Compute the cost of goods sold under the following situations:

Periodic system, FIFO cost flow

Perpetual system, FIFO cost flow

Periodic system, LIFO cost flow

Perpetual system, LIFO cost flow

Periodic system, weighted-average cost flow

Perpetual system, moving-average cost flow

Your answers must be submitted in an Excel file and must show all calculations used to arrive at the final answers.

Part B

Summarize the cost of goods sold in a one-page memo to Benson Corporation's CEO.