Usually, Djikstra’s shortest-path algorithm is not used on graphs with negative-weight edges because it may fail and give us an incorrect answer. However, sometimes Djikstra’s will give us the correct answer even if the graph has negative edges.
You are given graph G with at least one negative edge, and a source s. Write an algorithm that tests whether Djikstra’s algorithm will give the correct shortest paths from s. If it does, return the shortest paths. If not, return ‘no.’ The time complexity should not be longer than that of Djiksta’s algorithm itself, which is Θ(|E| + |V | log |V |).
(Hint: First, use Djikstra’s algorithm to come up with candidate paths. Then, write an algorithm to verify whether they are in fact the shortest paths from s.)

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

  Click here for the Excel Data File

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

At the 0.05 significance level is there a significant interaction between the number of sales calls and the miles driven?

Cincinnati Paint Company sells quality brands of paints through hardware stores throughout the United States. The company maintains a large sales force who call on existing customers and look for new business. The national sales manager is investigating the relationship between the number of sales calls made and the miles driven by the sales representative. Also, do the sales representatives who drive the most miles and make the most calls necessarily earn the most in sales commissions? To investigate, the vice president of sales selected a sample of 25 sales representatives and determined:

• The amount earned in commissions last month (y)
• The number of miles driven last month (x₁)
• The number of sales calls made last month (x₂)

The information is reported below.

Develop a regression equation including an interaction term. (Negative amount should be indicated by a minus sign. Round your answers to 3 decimal places.)

Comissions= ______+_______ calls +__________ Miles +__________

Complete the following table. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)

Compute the value of the test statistic corresponding to the interaction term. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places.)

1. A quick history: When I was taking finance classes in the early 1990s, My finance professor, an intimidating guy from Rochester, NY, impressed upon us all that we'd have to be fools not to be earning 10% in the market. This was largely due to the times. Everyone made money in the early 90s. The way you measure your gains against everyone else is by using CAPM. Your text mentions some shortfalls of CAPM that have popped up over the years. If we assume the problems with CAPM were always there, how might the prevalent use of CAPM have led to irrational capital pricing decisions and how might that affect the value of a company?

3. What are the advantages/disadvantages of financing an expansion with debt rather than equity? Does this change if you are financing a replacement project?

Your U.S. based company has purchased equipment from a German manufacturer worth €10,000,000 that is payable in one year. The current spot rate S(EUR/USD) is $1.13 and the F₁₂(EUR/USD) is $1.1037. The US interest rate is 5 percent and the German interest rate is 7.5 percent. Additionally, a call to buy euros at a strike price $1.11 in 12 months has a premium of $0.0007 per euro and a put at the same strike price have a premium of $0.003. Show the actions you would take and the net cost of the purchase in USD at the time the obligation is due using:

a) the forward market

b) a money market hedge

c) an options contract if the S₁₂ (EUR/USD) is $1.19

d) an options contract if the S₁₂ (EUR/USD) is $1.09.

Zoysia University must purchase mowers for its landscape department. The university can buy four EVF mowers that cost $7,600 each and have annual, year-end maintenance costs of $1,675 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy six AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $6,600 and have annual, year-end maintenance costs of $1,875 per mower. Each AEH mower will have a resale value of $800 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 9 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower? (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Zoysia University must purchase mowers for its landscape department. The university can buy four EVF mowers that cost $7,600 each and have annual, year-end maintenance costs of $1,675 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy six AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $6,600 and have annual, year-end maintenance costs of $1,875 per mower. Each AEH mower will have a resale value of $800 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 9 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower? (Your answers should be a negative value and indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Evian Corporation is a private corporation formed for the purpose of providing

the products and the services needed to irrigate farms, parks, commercial projects,

and private homes. It has a centrally located factory in a U.S. city that manufactures the

products it markets to retail outlets across the nation. It also maintains a division that

provides installation and warranty servicing in six metropolitan areas.

The mission of Evian is to manufacture quality parts that can be used for effective

irrigation projects that also conserve water. By that effort, the company hopes to satisfy

its customers, provide rapid and responsible service, and serve the community and

the employees who represent them in each community.

The company has been growing rapidly, so management is considering new ideas to

help the company continue its growth and maintain the high quality of its products.

Evian was founded by Will Winkman who is the company president and chief

executive officer (CEO). Working with him from the company’s inception was Will’s brother,

Ben, whose sprinkler designs and ideas about the installation of proper systems have been

a major basis of the company’s success. Ben is the vice president who oversees all aspects

of design and production in the company. The factory itself is managed by Todd Senter who hires his line managers to supervise the factory employees. The factory makes all of the parts for the irrigation systems. The purchasing department is managed by Hector Hines.

The installation and training division is overseen by vice president Henry Writer, who

supervises the managers of the six local installation operations. Each of these local managers

hires his or her own local service people. These service employees are trained by the home

office under Henry Writer’s direction because of the uniqueness of the company’s products.

There is a small Human Resources department under the direction of Sally Fenton,

a vice president who handles the employee paperwork, though hiring is actually performed

by the separate departments. Sam Totter is the vice president who heads the sales

and marketing area; he oversees 10 well-trained salespeople.

The accounting and finance division of the company is headed by Abe Headman, who

is the chief financial officer (CFO) and a company vice president; he is a member of the

Institute of Management Accountants and holds a certificate in management accounting.

He has a small staff of Certified Public Accountants, including a controller and a treasurer,

and a staff of accounting input operators who maintain the financial records.

A partial list of Evian’s accounts and their balances for the month of November 2012 follows.

Accounts Receivable                                                                $ 245,000

Advertising Expenses                                                                   54,000

Cash                                                                                                250,000

Depreciation—Factory Equipment                                              16,800

Depreciation—Office Equipment                                                  2,400

Direct Labor                                                                                     42,000

Factory Supplies Used                                                                   16,800

Factory Utilities                                                                               10,200

Finished Goods Inventory, November 30                                                67,700

Finished Goods Inventory, October 31                                       72,500

Indirect Labor                                                                                 48,000

Office Supplies Expense                                                                 1,600

Other Administrative Expenses                                                  72,000

Prepaid Expenses                                                                          41,250

Raw Materials Inventory, November 30                                   52,600

Raw Materials Inventory, October 31                                      38,300

Raw Materials Purchases                                                           184,500

Rent—Factory Equipment                                                          47,000

Repairs—Factory Equipment                                                       4,500

Salaries for the office workers                                               325,500

Sales                                                                                         1,225,000

Sales Commissions                                                                      40,500

Work In Process Inventory October 31                                    52,700

Work In Process Inventory, November 30                              41,000

Instructions for part 1

(a) Based on the information given, construct an organizational chart of Evian

Corporation. (see illustration 1-2 in text)

(b) A list of accounts and their values are given above. From this information, prepare a cost of goods manufactured schedule, a cost of goods sold schedule, an income statement, and the current assets section of the balance sheet for Evian Corporation for the month of November 2012. (see illustrations in the text)

Part 2

Evian has two major public-park projects to provide with comprehensive

irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres

of landscaped terrain which will require special-order sprinkler heads to meet the specifications

of the project. Using a job cost system to produce these parts, the following

events occurred during December 2012:

Raw materials were requisitioned from the company’s inventory on December 2 for

$4,995; on December 8 for $960; and on December 14 for $3,306. In each instance, two-

thirds (2/3) of these materials were for J57 and the rest for K52.

Six time tickets were turned in for these two projects for a total amount of 18 hours

of work. All the workers were paid $16.50 per hour. The time tickets were dated December 3,

December 9, and December 15. On each of those days, 6 labor hours were spent on these

jobs, two-thirds (2/3) for J57 and the rest for K52.

The predetermined overhead rate is based on machine hours. The expected machine

hour use for the year is 2,112 hours, and the anticipated overhead costs are $842,688

for the year. The machine were used by workers on projects K52 and J57 on December 3, 9,

and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours

were used for project J57 (2.5 the first day and 3 each of the other days). Both of these

special orders were completed on December 15, producing 235 sprinkler heads for J57

and 145 sprinkler heads for K52.

Additional job order activities during this period of time included:

Dec. 1 Purchased raw materials from Durbin Supply Company on account for $53,200.

Dec. 2 Issued $42,000 of direct materials from the company’s inventory to jobs other than K52 and J57 and $3,000 of indirect materials.

Dec. 12 Paid Evian’s factory salaries and wages in the amount of $67,000.

Dec. 13 Paid the factory’s water bill of $3,000.

Dec. 18 Transferred $50,000 of costs from other completed jobs to finished goods.

Dec. 21 Paid the factory’s electric bill of $12,000 for factory.

Instructions for part 2

(a) Set up the job cost sheets for Job No. J57 and Job No. K52. Determine the total cost for each manufacturing special order for these jobs. (Round unit cost to nearest cent.)

(b) Journalize the activities from these job cost sheets in the general journal. Also journalize the other costs that occurred during this period of time.

(c) Assuming that Manufacturing Overhead has a credit balance of $3,400, determine whether overhead has been under/over applied and make the adjusting entry.

Part 3

Because most of the parts for its irrigation systems are standard, Evian handles

the majority of its manufacturing as a process cost system. There are multiple process

departments. Three of these departments are the Molding, Cutting, and Welding departments.

All items eventually end up in the Package department which prepares items for

sale in kits or individually.

The following information is available for the Molding department for January.

Work in process beginning: 22,000 units , Total costs in beginning work in process $252,854

Costs in work in process inventory:   Materials $168,020, Labor 67,564, Overhead 17,270

Units started into production in January 60,000

Units completed and transferred-out in January 58,000

Costs added to production: Materials $264,940, Labor 376,188, Overhead 60,578 =Total costs added into production in January $701,706

Work in process ending:

Units in process 24,000

Stage of completion for materials 100%

Stage of completion for labor and overhead 30%

Instructions for part 3

(a) Prepare a production cost report for Evian using the weighted-average method.

Part 4

Direct labor or machine hours may not be the appropriate cost driver for overhead

in all areas of manufacturing due to the complexities of many manufacturing

processes. Many companies use activity-based costing (ABC) which uses multiple drivers

(items that consume resources) rather than just one driver to apply overhead to their

activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship

in its applied overhead costs.

Evian looked into ABC as a method of costing because of the variety of items it

produces and the many different activities in which it is involved. The activities listed

below are a sample of possible cost pools for Evian.

Assembling

Payroll

Billing

Plant supervision

Digging trenches

Purchasing materials

Machine maintenance

Selling

Machine setups

Testing

Molding

Welding

Packaging

Instructions for part 4

(a) For each of these cost pools, what would be the likely activity cost driver?

(b) Using the following information, determine the overhead rates and the actual cost assigned for each of the activity cost pools in a possible ABC system for Evian.

EVIAN CORPORATION

Expected

Use of                              Actual

Estimated           Cost Drivers                             Use of

Activity Cost Pools                        Cost Drivers      Overhead           per Activity                              Drivers

Irrigation installation                    Labor cost         $1,999,500               12,900                                     12,941

Machining (all machine use)       Machine hours 1,670,400         33,408,000                              33,409,000

Customer orders                            # of orders               30,636                    2,553                                       2,520

Shipping                                          none (direct)                    N/A traced directly

Design                                              Cost per design             820                       10                                           7

Selling                                              Number of calls       372,300              21,900                                     22,100

(d) (1) The results of ABC can provide a more accurate picture of costs. Discuss the value of Evian using this system to determine overhead costs.

(2) How might using ABC affect decision making at Evian?

Cullumber Company reports the following operating results for the month of August: sales $382,500 (units 5,100), variable costs $247,000, and fixed costs $96,000. Management is considering the following independent courses of action to increase net income.

Compute the net income to be earned under each alternative.