You are the manager of a shoe producer. Your company specializes in basketball shoes and a cleaning product for basketball shoes. While the shoes bring in more revenue ($500,000 per year), the cleaning product is a strong seller as well ($150,000 of revenue per year). You are considering a 2% decrease in the price of your company's basketball shoes. Assume that the shoes have an own price elasticity of demand of -1.8 and the shoes and cleaning product have a cross-price elasticity of demand of -1.4. How much do you estimate your company's total revenue to change if you go forward with the proposed 2% shoe price decrease?

During June, Bravo Magazine sold for cash six advertising spaces for $400 each to be run in the July through December issues. On that date, Bravo properly recognized Unearned Revenue. The adjusting entry to record on July 31 includes:

a. a debit to unearned revenue of $400

b. a debit to cash for $2000

c. credit to revevue for $2000

d. credit to unearned revenue for $400

On January 1, 20X1, Bravo Company borrowed $24,000 to purchase equipment. The loan is to be repaid plus interest of 10% per year, on December 31, 20X2. Prepared the general journal adjusting entry (without explanation) needed for December 31, 20X1.

Consider a study that compares the Atkins diet to a conventional diet. A study at the University of Pennsylvania selected a sample of 63 subjects from the local population of obese adults. Researchers randomly assigned 33 to the Atkins diet and 30 subjects to a conventional diet. Test whether there is a significant difference in the mean weight loss (measured in pounds) across the two different diet programs.

I previously asked this question and when I put the data in excel, the numbers did not come out like the example. Please help. Thanks

Using software:

1. Generate summary statistics (central tendency and variability measures) for the two samples and briefly summarize what they say.
   

b.         Conduct a test of significance for the difference between the mean weight across the different diet programs. Be sure to show the output from the software and interpret the results.

c. Construct a 95% confidence interval for the difference parameter in mean weight lost and make an interpretation.

d. Finally, are there any other factors, besides the type of diet, that could possibly influence weight loss (identify at least 2)? Include a brief explanation of each.

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The Olney Company purchased a machine 3 years ago at a cost of $150,000. It had an expected life of 10 years at the time of purchase and an expected salvage value of $5,000.    The existing machine costs $54,000 year to run and generates $1,000,000 a year in revenue with a gross profit margin of 20%.   The old machine can be sold today for $55,000 and the expectation is that it can be sold for $7,500 in 7 years.

A new machine with a 7 year life can be purchased for $225,000. Cash operating expenses will be $65,000 per year. The new machine will boost revenue to $1,075,000 in the first three years of operation and then revenue of the new machine will increase to $1,090,000 per annum for the balance of machine’s life. The machine has a gross profit margin of 23% due to fewer defects. At the end of its useful life, the machine will have no value. The firm's tax rate is 34 percent. Straight-line depreciation is used for all assets. The firm’s WACC is 12 percent. The firm has an ACP of 63 days and pays its bills after 25 days.

Calculate project’s NPV and IRR.

The firm reduces its ACP to 55 days and starts to pay its bills after 30 days. What will be the project’s NPV ?

Lindstrom Company produces two fountain pen models. Information about its products follows:

Lindstrom’s fixed costs total $84,500.

Required:
1. Determine Lindstrom’s weighted-average unit contribution margin and weighted-average contribution margin ratio. (Round your weighted-average CM to 2 decimal places and your CM ratio to 1 decimal place (i.e. .123 should be entered as 12.3%)).



2. Calculate Lindstrom’s break-even point in units and in sales revenue. (Round your "Sales Revenue" answer to 2 decimal places and "Sales Units" answer to the nearest whole number.)


    
3. Calculate the number of units that Lindstrom must sell to earn a $120,000 profit. (Round your answer to the nearest whole number.)


    
4. Calculate Lindstrom’s margin of safety and margin of safety as a percentage of sales if it sells 11,000 total pens. (Round your margin of safety in units to the nearest whole number and your percentage of sales answer to 2 decimal places (i.e. .1234 should be entered as 12.34%))

The company sold merchandise to a customer on December 1, 2019, for $100,000. The customer paid with a promissory note that has a term of 6 months and an annual interest rate of 9%. The company’s accounting period ends on December 31.

What amount should the company recognize as interest revenue on December 31, 2019?

For which of the following firms is debt financing most appropriate?

a biotech company whose breakthrough drug will not be approved for the next 10 years

a small oil and gas exploration company facing trouble due to falling gas prices

Silicon Valley tech startup with no revenue

a large, mature industrial conglomerate

Using Excel Solver: We have 3,000 units of product to sell over a five-day period. From historical sales data, we have estimated the following demand curves: P = price/unit in $, Q = number of units sold. Day 1: P = 10?0.01 Q valid for prices between $3 and $8. Day 2: same as Day 1. Day 3: P = 15?0.01Q valid for prices between $6 and $10 Day 4: P = 20?0.01Q valid for prices between $6 and $12 Day 5: same as Day 1. 1) The revenue maximizing price for Day 1 is _________ (Hint: Please keep one decimal point.), and quantity sold is ________ (Hint: Please enter an integer.). 2) The revenue maximizing price for Day 2 is ___________ (Hint: Please keep one decimal point.), and quantity sold is ________ (Hint: Please enter an integer.). 3) The revenue maximizing price for Day 3 is __________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.). 4) The revenue maximizing price for Day 4 is __________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.). 5) The revenue maximizing price for Day 5 is ____________ (Hint: Please keep one decimal point.), and quantity sold is _________ (Hint: Please enter an integer.)