Veekay Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was disappointed, however, when the income statement for June also showed a loss. June’s income statement follows.
Sales $660,000
Less operating expenses
Selling and administrative salaries $ 39,000
Rent on facilities 40,000
Purchases of raw materials 219,000
Insurance 10,000
Depreciation, sales equipment 11,000
Utilities costs 55,000
Indirect labour 119,000
Direct labour 99,000
Depreciation factory equipment 13,000
Maintenance factory 8,000
Advertising 80,000 691,000
Operating loss $(31,000)
After seeing the $31,000 loss for June, Veekay's president stated, "I was sure we'd be profitable within six months, but after eight months we're still spilling red ink. Maybe it's time for us to throw in the towel. To make matters worse, I just heard that Debbie won't be back from her surgery for at least six more weeks."
Debbie is the company's controller; in her absence, the statement above was prepared by a new assistant who has had little experience in manufacturing operations. Additional information about the company follows:
a. Only 85% of the rent on facilities applies to factory operations; the remainder applies to selling and administrative activities.
b. Inventory balances at the beginning and end of June were as follows:
June 1 June 30
Raw materials $19,000 $46,000
Work in process . $77,000 $94,000
Finished goods $22,000 $76,000
c. Some 90% of the insurance and 80% of the utilities cost apply to factory operations; the remaining amounts apply to selling and administrative activities.
The president has asked you to check over the above income statement and make a recommendation as to whether the company should continue operations.
Required:
Required:
In: Accounting
Racism, juries, and interactions: In a study of racism, Nail, Harton and Decker (2003) had participants read a scenario in which a police officer assaulted a motorist. Half the participants read about an African American officer who assaulted an European American motorist, and half read about a European American officer who assaulted an African American motorist. Participants were categorized based on political orientation: liberal, moderate, or conservative. Participants were told that the officer was acquitted on assault charges in state court but found guilty of violating the motorist’s rights in federal court. Double jeopardy occurs when an individual is tried twice for the same crime. Participants were asked to rate, on a scale of 1-7, the degree to which the officer had been placed in double jeopardy by the second trial. The researchers reported the interaction as F= (2,58)=10.93, p<0.0001. The means for the liberal participants were 3.18 for those who read about the African American officer and 1.91 for those who read about the European American officer. The mean for the moderate participants were 3.50 for those who read about the African American officer and 3.33 for those who read about the European American officer. The means for the conservative participants were 1.25 for those who read about the African American officer and 4.62 for those who read about the European American officer.
a. Draw a table of cell means that includes that actual means for this study.
b. Do the reported statistics indicate that there is a significant interaction? If yes, describe the interaction in your own words.
c. Draw a bar graph that depicts the interaction. Include lines that connect the tops of the bars and show the pattern of the interaction.
d. Is this quantitative or qualitative interaction? Explain
e. Change the cell mean for the conservative participants who read about an African American officer so that this is now a quantitative interaction.
f. Draw a bar graph that depicts the patter that includes the new cell means
g. Change the cell means for the moderate and conservative participants who reads about an African American officer so that there is now no interaction.
h. Draw a bar graph that depicts the pattern that includes the new cell means.
In: Math
Profit Center Responsibility Reporting
A-One Freight Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance using operating income as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 20Y3.
| Revenues—Air Division | $ 1,290,700 |
| Revenues—Rail Division | 1,562,500 |
| Revenues—Truck Division | 2,729,100 |
| Operating Expenses—Air Division | 817,900 |
| Operating Expenses—Rail Division | 929,900 |
| Operating Expenses—Truck Division | 1,650,400 |
| Corporate Expenses—Shareholder Relations | 196,300 |
| Corporate Expenses—Customer Support | 665,000 |
| Corporate Expenses—Legal | 294,000 |
| General Corporate Officers’ Salaries | 433,500 |
The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company’s point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered:
| Air | Rail | Truck | ||||
| Number of customer contacts | 4,800 | 5,700 | 8,500 | |||
| Number of hours billed | 1,200 | 2,000 | 1,700 | |||
Division management does not control activities related to the shareholder relations department and general corporate officers’ salaries.
Required:
a. Prepare quarterly income statements showing operating income for the three divisions. Use three column headings: Air, Rail, and Truck.
| A-One Freight Inc. | |||
| Divisional Income Statements | |||
| For the Quarter Ended December 31, 20Y3 | |||
| Air | Rail | Truck | |
| Revenues | $ | $ | $ |
| Operating expenses | |||
| Operating income before service department charges | $ | $ | $ |
| Less service department charges: | |||
| Customer support | $ | $ | $ |
| Legal | |||
| Total service department charges | $ | $ | $ |
| Operating income | $ | $ | $ |
b. What is the profit margin percentage of each division? Round to one decimal place.
| Division | Profit Margin |
| Air Division | % |
| Rail Division | % |
| Truck Division | % |
Identify the most successful division according to the profit
margin percentage.
Truck
3. All of the following statements are true regarding the evaluation of divisional performance for A-1 except:
A better measure for A-1 Freight than the amount of operating income per dollar of earned revenue would be either rate of return on investment or residual income, because both measures incorporate asset utilization into the measures.
A better measure for A-1 Freight than the amount of operating income per dollar of earned revenue would be either rate of return on investment or residual income, because the amount of assets used by a division in earning a return is a very important consideration in evaluating divisional performance.
A better measure for A-1 Freight than the amount of operating income per dollar of earned revenue would be either rate of return on investment or residual income, because this company requires a significant investment in fixed assets and distribution facilities.
All of these choices are correct.
Select the correct answer from the choices above.:
d
In: Accounting
Mary Tappin, an assistant Vice President at Galaxy Toys, was disturbed to find on her desk a memo from her boss, Gary Resnick, to the controller of the company. The memo appears below:
GALAXY TOYS INTERNAL MEMO
Sept 15
To: Harry Wilson, Controller
Fm: Gary Resnick, Executive Vice President
As you know, we won't start recording many sales until October when stores start accepting shipments from us for the Christmas season. Meanwhile, we are producing flat-out and are building up our finished goods inventories so that we will be ready to ship next month.
Unfortunately, we are in a bind right now since it looks like the net income for the quarter ending on Sept 30 is going to be pretty awful. This may get us in trouble with the bank since they always review the quarterly financial reports and may call in our loan if they don't like what they see. Is there any possibility that we could change the classification of some of our period costs to product costs--such as the rent on the finished goods warehouse?
Please let me know as soon as possible. The President is pushing for results.
Mary didn't know what to do about the memo. It wasn't intended for her, but its contents were alarming.
Required:
a. Why has Gary Resnick suggested reclassifying some period costs as product costs?
b. Why do you think Mary was alarmed about the memo?
In: Accounting
What is Privacy? Is there any Privacy for an individual? What issues can occur to an individual if there is lack of Privacy in the information age? Explain.
In: Computer Science
In a study of academic procrastination, the authors of a paper reported that for a sample of 431 undergraduate students at a midsize public university preparing for a final exam in an introductory psychology course, the mean time spent studying for the exam was 7.24 hours and the standard deviation of study times was 3.50 hours. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of students taking introductory psychology at this university.
(a) Construct a 95% confidence interval to estimate μ, the mean time spent studying for the final exam for students taking introductory psychology at this university. (Round your answers to three decimal places.)
(b) The paper also gave the following sample statistics for the percentage of study time that occurred in the 24 hours prior to the exam.
n = 431 x = 43.18 s = 21.26
Construct a 90% confidence interval for the mean percentage of
study time that occurs in the 24 hours prior to the exam. (Round
your answers to three decimal places.)
( , ) ( , )
In: Statistics and Probability
In a study of academic procrastination, the authors of a paper reported that for a sample of 481 undergraduate students at a midsize public university preparing for a final exam in an introductory psychology course, the mean time spent studying for the exam was 7.54 hours and the standard deviation of study times was 3.80 hours. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of students taking introductory psychology at this university.
(a) Construct a 95% confidence interval to estimate μ,
the mean time spent studying for the final exam for students taking
introductory psychology at this university. (Round your answers to
three decimal places.)
(b) The paper also gave the following sample statistics for the
percentage of study time that occurred in the 24 hours prior to the
exam.
n = 481 x = 43.78 s = 21.46
Construct a 90% confidence interval for the mean percentage of
study time that occurs in the 24 hours prior to the exam. (Round
your answers to three decimal places.)
In: Statistics and Probability
In a study of academic procrastination, the authors of a paper reported that for a sample of 441 undergraduate students at a midsize public university preparing for a final exam in an introductory psychology course, the mean time spent studying for the exam was 7.74 hours and the standard deviation of study times was 3.40 hours. For purposes of this exercise, assume that it is reasonable to regard this sample as representative of students taking introductory psychology at this university.
a) Construct a 95% confidence interval to estimate μ, the mean time spent studying for the final exam for students taking introductory psychology at this university. (Round your answers to three decimal places.)
(__________ , __________ )
b) The paper also gave the following sample statistics for the percentage of study time that occurred in the 24 hours prior to the exam.
n = 441 x = 43.78 s = 21.46
Construct a 90% confidence interval for the mean percentage of study time that occurs in the 24 hours prior to the exam. (Round your answers to three decimal places.)
(_________ , _________ )
In: Statistics and Probability
A confidence interval, at the 95% confidence level, will be used to answer the question, "What is the mean annual salary (in US dollars) of a Tesla car owner?" Data was collected from 36 Tesla owners across the US. The mean annual salary of those 36 Tesla owners was $254000. The standard deviation of ALL Tesla owners is known to be $1057.
a) The value at the center of the confidence interval represents what quantity? Choose an option from the list and type its corresponding letter in the box.
Answer for (a):
b) Is z* or t* used when building this confidence interval? Choose an option from the list and type its corresponding letter (A or B) in the box.
Answer for (b):
A confidence interval, at the 95% confidence level, will be used to answer the question, "What is the mean annual salary (in US dollars) of a Tesla car owner?" Data was collected from 36 Tesla owners across the US. The mean annual salary of those 36 Tesla owners was $254000. The standard deviation of ALL Tesla owners is known to be $1057.
a) The value at the center of the confidence interval represents what quantity? Choose an option from the list and type its corresponding letter in the box.
Answer for (a):
b) Is z* or t* used when building this confidence interval? Choose an option from the list and type its corresponding letter (A or B) in the box.
Answer for (b):
c) Determine the value of the letter indicated in part (b) using one of the following tables: normal table, t table. Type the number, recorded to 3 decimals, in the box.
Answers for (c):
d) What are the lower and upper bounds of this confidence interval? Type the numbers, rounded to 2 decimals, in their corresponding boxes.
Answers for (d): Lower Bound - ? Upper Bound - ?
e) If the sample size is decreased to 20 Tesla owners, what would happen to the confidence interval? Choose an option and write its corresponding letter the blank below.
Answer for (e): ?
In: Statistics and Probability
Unemployment compensation has been a benefit available to most American workers for many decades. This benefit is provided though a combination of State and Federal programs. Funding for these programs comes from taxes paid by businesses on their payrolls. Discussion and debate has been on going regarding the level of benefits that should be paid, the length of time that these benefits should be paid, and the relative ecomomic benefit that the payments ultimately have.
Please comment on unemployment benefits, unemployment taxes and related matters by considering the following questions:
1. If you are aware of situations where the unemployment benefit system has benefited someone, or a situation where it has been abused by someone, please describe the situation. You don't need to use specific names, places or businesses, but give us a general discussion of what you knew to be true.
2. Give your opinion as to why the situtation was either beneficial or abusive. Suggest ways that the system could have worked inorder to catch the people who were taking advantage of the situation.
3. Discuss whether you believe that the taxes paid by businesses are excessive (consider the % required and the level of payroll that is taxed). Do these taxes help encourage or discourage businesses from locating in our state?
In: Finance