For the coming year, Archway Computers Inc. expects to produce and sell 200,000 computers. Of these, 80,000 will be consumer (personal) computers and 120,000 will be small business computers. Common fixed overhead is $700,000. Additional information for the coming year is as follows:

Consumer Computers      Small Business Computers

Price                                                               $780                                       $2,300

Unit Direct Materials                                    500                                         1,800

Unit Direct Labour                                        160                                            290

Unit Variable Overhead                                40                                              75

Unit Variable Selling Expenses                   75                                              70

Total Direct Fixed Overhead               120,000                                    200,000

Fixed selling and administrative expense for Archway Computers Inc. is $3,460,000 per year.

Required:

Calculate the unit variable cost under variable costing. Is this cost the same as unit variable product cost? Why or why not?

Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small business computers.

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:

Assume that direct labor is a variable cost.

Required:

a. Compute the unit product cost under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare an income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

Periodic Inventory by Three Methods The units of an item available for sale during the year were as follows: Jan. 1 Inventory 17 units at $48 Feb. 17 Purchase 20 units at $49 Jul. 21 Purchase 13 units at $51 Nov. 23 Purchase 7 units at $51 There are 11 units of the item in the physical inventory at December 31. The periodic inventory system is used. Round average unit cost to the nearest cent and final answers to the nearest whole dollar, if required.

a. Determine the inventory cost by the first-in, first-out method. $

b. Determine the inventory cost by the last-in, first-out method. $

c. Determine the inventory cost by the weighted average cost method. $

- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 10 years?

- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 1 year?

We are evaluating a project that costs $972,000, has a 4 year life, and no salvage value. Assume that depreciation is staright-line to zero over the life of the project. Sales are projected at 88,000 units per year. Price per unit is $35.15, variable cost per unit is $21.40 and fixed costs are $768,000 per year. The tax rate is 35 percent and we require a return of 13 percent on this project.

A) Calculate the best case operating cash flow and NPV

B) What is the sensitivity of NPV to changes in the sales figure?

C) If there is a 500-unit decrease in projected sales, how much would the NPV drop?

D) What is the sensitivity of OCF to changes in the variable cost figure?

E) If there is $1 decrease in estimated variable costs, how much would the increase in OCF be?

The company PR Products Corp. estimates that its quarterly sales for the next year are as follows: (units) The price per unit is $ 70

1. 1 Quarter 30,000 units

2. 2 Quarter 50,000

3. 3 Quarter 60,000

4. 4 Quarter 40,000

Accounts receivable as of December 31 are $ 90,000. The company estimates that sales are charged 60% in the quarter they are made and 40% in the following quarter.

Finished Goods' desired ending inventory represents 20% of next or next quarter unit sales. Finished Goods starting inventory is 6,000 units.

3 pounds of Raw Material per unit is required for the production required. Raw Material's desired inventory is 10% of the required production for the next quarter. Raw Material's initial inventory is 12,000 units. The cost of Raw Material is $ 1.00 per pound.

Accounts payable on 12/31 / X0 total $ 60,000. Payments for Raw Material purchases are made at the rate of 70% in the quarter of purchase and the other 30% in the following quarter.

The invested time of direct labor per unit is 1.5 hour. The hourly direct labor cost is $ 20.00.

Expected Cash Collections

Production Budget

Direct Material Budget

What is the present value of the following annuity? $704 every quarter year at the end of the quarter for the next 5 years, discounted back to the present at 16.09 percent per year, compounded quarterly?

The following data represent the number of days absent per year in a population of six employees in a small company: 1 3 6 7 9 10

a. Compute the population mean.

b. Compute the population standard deviation.

c. Assuming that you sample without replacement, select all possible samples of size n=2 and construct the sampling distribution of the mean.

d. Compute the mean of all the sample means. How does the mean of the sample means and the population mean compare?

e. Compute the standard deviation of all the sample means. How does the standard deviation of the sample means and the population standard deviation compare?

f. Repeat parts (c) – (e) for all possible samples of size n=3. How do the results compare with those of sample size n=2? Comment on what happened as the sample size increased (from 2 to 3).

1. A firm is evaluating a project that costs RM450m, has a five-year life and has a salvage value of RM3m. Assume that depreciation is straight line with zero residual value over the life of the project. Working capital of RM35m is needed initially and the same will be released in the final year. Sales are projected at 555,000 units per year with a selling price of RM505 per unit, variable cost RM315 per unit, and fixed costs are RM1,325,000 per year. The tax rate is 25% and the required rate of return is 12.5% on this project.

1. Calculate the grand cash flow and NPV. Interpret your findings

2. Re-compute NPV if the sales increase by 225000 units on an average.

A stock is expected to pay the following dividends: $1 in 1 year, $1.5 in 2 years, and $1.8 in 3 years, followed by growth in the dividend of 7% per year forever after that point. The stock's required return is 14%. The stock's current price (Price at year 0) should be $____________.

A stock is expected to pay the following dividends: $1.3 four years from now, $1.5 five years from now, and $1.8 six years from now, followed by growth in the dividend of 5% per year forever after that point. There will be no dividends prior to year 4. The stock's required return is 13%. The stock's current price (Price at year 0) should be $____________.

A stock will pay no dividends for the next 3 years. Four years from now, the stock is expected to pay its first dividend in the amount of $2.4. It is expected to pay a dividend of $2.8 exactly five years from now. The dividend is expected to grow at a rate of 8% per year forever after that point. The required return on the stock is 14%. The stock's estimated price per share exactly TWO years from now, P₂ , should be $______.

If you could do them all, you would be a life saver! Thank you.