1.      Air enters a converging-diverging nozzle with a total pressure of 1100 kPa and a total temperature of 127°C.  The exit area to throat area ratio is 1.8.  The throat area is 5 cm².  The velocity at the throat is sonic and the diverging section acts as a nozzle.  Determine the following:

a.       The mass flow rate

b.      The exit pressure and temperature

c.       The exit Mach number

d.      The exit velocity

2.      The converging-diverging nozzle now has a throat area of 100 mm² and an exit area of 160 mm². The inlet flow is helium at a total pressure of 1 MPa and total temperature of 102°C. Determine the back pressure that will give sonic condition at the throat, but subsonic everywhere else.

RoofCo reports total book income before taxes of $20 million and a total tax expense of $8 million. FloorCo reports book income before taxes of $30 million and a total tax expense of $12 million. The companies’ breakdown between current and deferred tax expense (benefit) is as follows.

Decision Making Communications

RoofCo FloorCo Current tax expense $10.0 $13.0

     Deferred tax benefit (2.0) (1.0)

    Total tax expense $8.0 $12.0

RoofCo’s deferred tax benefit is from a deferred tax asset created because of differences in book and tax depreciation methods for equipment. FloorCo’s deferred tax benefit is created by the expected future use of an NOL. Compare and contrast these two companies’ effective tax rates. How are they similar? How are they different?

2. The Burger Hut has sales of $29 million, total assets of $43 million, and total debt of $13 million. The profit margin is 11 percent. What is the return on equity?

3. Gladstone Pavers has a long-term debt ratio of 0.6 and a current ratio of 1.3. Current liabilities are $700, sales are $4,440, the profit margin is 9.5 percent, and the return on equity is 19.5 percent. How much does the firm have in net fixed assets?

4. You have just made a $1,500 contribution to your individual retirement account. Assume you earn a 12 percent rate of return and make no additional contributions. How much more will your account be worth when you retire in 25 years than it would be if you waited another 10 years before making this contribution?

Orion Limited had total overheads for a month of £24,000. The total monthly budgeted labour hours were 1,200 and the total budgeted material usage was 1,600 kg. During the month the company gives a quotation for a job which requires 60 kg of materials at £7.50 per kg and 12 direct labour hours at £25 per hour. Overheads are recovered on the basis of direct labour hours. The profit is 25% based on selling price.

(i) if the actual direct labour hours worked on the job were 15, what would be the new profit, assuming that the quoted selling price could not be renegotiated?

(ii) if overheads were instead recovered based on material usage rather than labour hours, would that have changed your answer to part (i) above, if so what would be the new profit?

(c) “Managing costs is very important given the competitive environment in which modern businesses operate “. Discuss this statement including in your discussion some of the recent approaches to costing which have emerged to help businesses manage their costs (maximum 600 words).

TASK-4  Calculate the total quantity of materials required for a production process and the total funds required to purchase the materials.

Mr. Fateh is the operations manager in an electrical equipment manufacturing company producing 3 different products. He needs to prepare a materials requirement plan for all THREE of his Products A, B & C, that is good for 6 months operation. Prepare an MRP chart for him and calculate the total budget (money) required for these materials. The BOM for each item is given under.

B.O.M (Bill of Materials)

Monthly Demand for Item-A is 700 units, Item-B is 500 units and Item-C is 900 units. (Use the table format as shown in the slide show for MRP)

ABC Electronics has sales of $225,000, profit margin of 9%, total assets of $280,000, and total equity of $210,000. The firm does not pay any dividends and does not plan to pay any dividends in the future. Currently, the firm is operating at 80% capacity. All costs vary directly with sales. The firm does not want to obtain any additional external equity. At the sustainable rate of growth, what will be the amount of debt on the firm’s pro-forma balance sheet? Will the firm raise new debt or repay debt? How much? Show full work, including current and pro-forma financial statements

Here are some of the demographics. Answer the questions below.

a.    Calculate labor force percentages and the unemployment rate.

b.    Calculate the employment rate.

c.     Use this data to explain what the problem is with the unemployment rate statistics.

d.    Explain why the employment rate is so important in labor economics.