AHH! Corporation has three product lines with limited demand. The firm has NO fixed costs. Below are some facts about the firm. Oh! No! Way! Monthly demand (units) 100 120 140 Machine hours per unit 3 6 8 Price per unit $70 $75 $80 Variable costs per unit $60 $62 $60 The firm can only supply 1,800 hours of machine time per month between the three product lines. What is the firm's maximum monthly profit? Selected Answer: c. $4,300 Answers: a. $5,560 b. $4,510 c. $4,300 d. $4,650
In: Accounting
| X | Y/1 | Y/0 | |
| Years Exp | Successful | Unsccessful | total |
| 4 | 17 | 83 | 100 |
| 8 | 40 | 60 | 100 |
| 12 | 50 | 50 | 100 |
| 16 | 56 | 44 | 100 |
| 20 | 96 | 4 | 100 |
The data in tab #2 pertain to the years of experience of project managers and the numbers of successes and failures they have had on major projects. Use the data set given in tab #2 in the attached Excel workbook and logistic regression to find the following:
The probability of success given 10 years of experience is: .
The probability of failure given 18 years of experience is: .
In: Math
Test to determine if the average cell phone bill differs when compared to the same programs and same areas. A random sample of cell phone bills (in dollars) from four companies is reported below a = .01
Verizon 100 125 105 100 110
Sprint 100 130 90 120 90
At and T 90 90 90 100 120
T Mobile 100 100 110 90 80
In: Statistics and Probability
Using the following variables, calculate an organization's cost of debt on a $100,000 bond.
Calculate a company's total leverage given the following information:
Eadie owns 300 shares of stock in Company A that were valued at
$2/share.
After Company A announces a 3-to-1 reverse stock split,
Eadie calculates that she will own __________.
What does the residual dividend model assume about the relationship between dividends and share value?
Why might investors prefer stock dividends over cash dividends?
Oran just noticed that the price of a stock in his portfolio
went up after the company announced a larger than usual
dividend.
The market's response to the company's decision is
attributable to __________.
In: Finance
Hashem Hats Inc. needs to develop an estimate of its cost of capital. Assume that you are an assistant to the financial vice president. He has provided you with the following information:
The firm’s marginal tax rate is 40%. The current price of the firm’s 12 percent coupon, semiannual payment bonds with 15 years remaining to maturity is $1,153.72. The current price of the firm’s 10% $100 par value quarterly dividend perpetual preferred stock is $110.00. TSI’s common stock is currently selling at $50 per share. Its last dividend was 4.19, and dividends are expected to grow at a constant rate of 5 % forever. The firms’s beta is 1.2, the yield on T-bills is 7 percent, and the market risk premium is estimated to be 6%. For the bond yield plus risk premium approach, the firm uses a 4% risk premium. The firm estimates that if it issues new common stock, the flotation cost will be 15 percent. TSI’s capital structure is 30 percent debt, 10 percent preferred stock, and 60 percent common equity. The firm’s component cost of equity is 14% The firm has $1 million in its retained earnings account. Ignore all extraneous information in the above passage. Please provide the following, showing all work:
Calculate the firm’s component cost of debt and component cost of preferred stock. Then, asssume that Hashem Inc. is considering a single project this capital budgeting period, labeled Project C. This 3 year project has an initial cost of $100 dollars and pays three annual cash flows of $50 at the end of each year. Find the NPV of Project C. Show all work.
In: Finance
Jordan is a construction contract company involved in building commercial properties. Its current policy for determining the percentage of completion of its contracts is based on the proportion of cost incurred to date compared to the total expected cost of the contract.
One of Jordan’s contracts has an agreed price of $250 million and estimated total costs of $200 million.
The cumulative progress of this contract is:
Year ended: 30 September 2011 30 September 2012
$million $million
Costs incurred 80 145
Work certified and billed 75 160
Billings received 70 150
Based on the above, Jordan prepared and published its financial statements for the year ended 30 September 2011. Relevant extracts are:
Statement of Profit and Loss
$million
Revenue (balance) 100
Cost of sales (80)
––––
Profit (50 x 80/200) 20
––––
Statement of financial position
$million
Current assets
Amounts due from customers
Contract costs to date 80
Profit recognised 20
––––
100
Progress billings (75)
––––
25
––––
Contract receivables (75 – 70) 5
Jordan has received some adverse publicity in the financial press for taking its profit too early in the contract process, leading to disappointing profits in the later stages of contracts. Most of Jordan’s competitors take profit based on the percentage of completion as determined by the work certified compared to the contract price.
Required:
In: Accounting
CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in building 2. Monthly capacities and production levels are as follows:
| Building 1 (Desks) | Building 2 (Chairs) | |
| Monthly capacity | 400 | 500 |
| Monthly production | 400 | 400 |
The company will sell a desk only with a chair and can sell 500 desks per month. The units (desk with chair) sell for $327 each and have a variable cost of $134 each.
Required:
a. Is there a bottleneck at CompDesk in Building 1 or Building 2?
b. CompDesk’s production supervisors state they could increase building 1’s capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would not affect the sales price. Variable cost per unit would increase by $34 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $21,800 per month.
b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)
b-2. Should CompDesk produce desks on the weekend?
c. Independent of the situation in requirement (b), CompDesk could add additional equipment and workers to building 1, which would increase its capacity by 100 desks per month. This would not affect the sales price or variable cost per unit but would increase fixed costs by $15,900 per month.
c-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.)
c-2. Should CompDesk add the additional equipment and workers to building 1?
In: Accounting
IN C LANGUAGE
You decide you want to build a skate park in your backyard, so you need to buy a lot of concrete. The good news is, you can get a discount when you buy in bulk. The price of concrete for different grades of concrete per cubic yard is as follows:
Write a program that calculates the price of an order of concrete when given the grade and quantity.
Notes
Examples
What grade of concrete (low/cheap, high/expensive)? low How many cubic yards of concrete? 75 The cost is $7500
The answer to the example above is calculated from 75 * $100 (low grade, less than 200 cubic yards) = $7500
What grade of concrete (low/cheap, high/expensive)? cheap How many cubic yards of concrete? 75 The cost is $7500
What grade of concrete (low/cheap, high/expensive)? high How many cubic yards of concrete? 75 The cost is $11250
What grade of concrete (low/cheap, high/expensive)? expensive How many cubic yards of concrete? 75 The cost is $11250
In: Computer Science
The TEMKO Company encountered the problem of defects in some of its
pur- chased tractor short-block castings. The short-block castings
are used to build the R-208 tractor engines. TEMKO installs the
heads, manifold, carburetor, and other engine parts, which consist
of approximately 13 percent of the short-block casting purchase
price. When the defects are discovered, the short blocks have to be
disas- sembled and repaired. It takes approximately eight hours per
repair. Even with this process, almost 4 percent of the incoming
short blocks end up as scrap. In other words, approximately 10 out
of every 100 units are repaired and 40 percent of the repaired
short blocks are scrapped. Each short-block casting costs between
$1,550 and $1,700 depending on the supplier. There is also a cost
of downtime as- sociated with interruptions on the shop
floor.
The internal labor cost of assembling each incoming short-block
casting and repair as necessary is approximately $878 per short
block. The estimated overhead, which is 150 percent of direct
labor, consists of 33 percent variable and 67 percent fixed costs;
the shop floor disruption cost is estimated to be $500 per
disruption.
Recently, James Sun, the purchasing manager, released a request for
quote (RFQ) for the short blocks to three prequalified suppliers of
assembled tractor en- gines. However, only one supplier, ACE
Manufacturing, Inc., showed an interest. ACE was a small startup
company that was looking for work. In order to produce assembled
R-208 engines, an investment in precision machinery of more than
$1,500,000 would need to be made. ACE was willing to both invest in
the neces- sary machine and guarantee at least 100 engines per
month—provided TEMKO would contract with it as a sole source for
the engines for the next three years. The price per engine would be
$3,500 the first year, with an annual increase of 3 per- cent.
TEMKO anticipated that they would need at least 1,000 finished
engine as- semblies per year for the next five years. As the
purchasing manager for TEMKO, how would you analyze this
outsourcing decision? (Make sure your analysis is complete.)
1. Develop a unit cost breakdown for R-208 tractor engines utilizing both available current
data and assumptions in the process of calculations. State all assumptions
2. What would the estimated probable cost resulting from poor quality of incoming shortblocks
castings? Suggest probable solutions to this quality problem.
5. According to ACE Manufacturing, what would the resulting cost reduction from
outsourcing to ACE Manufacturing be? Discuss the probable sources of this cost reduction.
What would be the consequence of exploiting these sources to TEMKO and ACE
Manufacturing?
In: Finance
Case History:
On Monday, February 26, 2001, Los Angeles County Sheriff's Department Lost Hills Station responded to a 911 emergency call at the residence of Mr. and Mrs. Patrick Valentini near the end of Wagon Road in Agoura Hills at 23:15. When police arrived on scene they found Mrs. Christine Valentini face down in the backyard swimming pool of the Valentini’s home. First responders noted that a few bubbles were coming from Mrs. Valentini’s mouth. CPR was performed and Mrs. Valentini was transported to Los Robles and Medical Center located in Thousand Oaks Hospital.
Christine Valentini was pronounced DOA at 01:32 on February 27, 2001. The police initially treated this as an accidental death pending autopsy report.
Upon further investigation, the police learned that the victim had four life insurance policies, two of which previously named Patrick Valentini as the beneficiary. The policies totaled $1 million dollars. The other two policies previously named Joshua Rojas as the beneficiary which totaled $1.5 million. On February 26, 2001 at 21:00 the beneficiaries of all the policies had been changed Mrs. Grace Stevenson. All of the policies had a suicide clause and paid no money in the event of a suicide.
Interview with Patrick Valentini, male, 32 years old:
Mr. Valentini reported returning home from work at 21:45. He stated that he had talked to his wife about the Koi fish in the pond that the family had built in the backyard. He then fed the cat and went upstairs to take a shower. Mr. Valentini stated that their marriage of two years was extremely stable, and that his wife enjoyed her job as a personal nutritionist and fitness expert. He stated that his wife had been injured at work several weeks ago. He also noted she had several well-known celebrity clients and was an avid world traveler.
Mr. Valeniti admitted that his wife had been in an abusive relationship a few years prior to their marriage. He also shared that he was suspicious that his wife had started seeing her ex-boyfriend again. He stated that her behavior and mental health seemed to decline in the weeks prior to her death. Mr. Valentini disclosed that he did have two life insurance policies on his wife that totaled $200,000 in the event of her death. Mr. Valentini was adamant that his wife had been alive when he returned home from work and that their relationship was secure.
Interview with Consuela Suarez, female, 56 years old:
Ms. Suarez is the Valentini’s housekeeper. She had just returned to the Valentini home the day before, and therefore was in Mexico when Mrs. Valentini died.
She is very nervous talking to the police. She finally states that Mr. Valentini often had women over to the house when Mrs. Valentini was out. When asked if she had ever seen Mr. Valentini act in a violent way, she states Mr. Valentini once hit Mrs. Valentini and sometimes kicked the family’s black cat, Sooty. She states Mr. Valentini was a good boss though and gave her the time off to go visit her family in Mexico.
Interview with Grace Stevenson, female, 57 years old:
Mrs. Grace Stevenson, victim’s mother, reported that her daughter was attempting to leave her husband, Patrick Valentini. Mrs. Stevenson phoned the victim’s home at 22:04 and hung up when the answering machine picked up the call. Mrs. Stevenson indicated that her daughter had left twice due to the physical abuse she was sustaining at the hands of Mr. Valentini. However, the victim was determined to make her marriage work because she was in love with her husband and returned home both times at the encouragement of her brother-in-law Peter Valentini. Mrs. Stevenson revealed that her daughter was officially leaving her husband and had planned on returning to her parent’s home on February 27, 2001. Mrs. Stevenson stated that Mr. Valentini was fully aware of his wife’s plan to divorce him. Mrs. Stevenson also stated that her daughter was independently wealthy and had a net worth of $2.5 million. She informed police that her daughter’s husband struggled with money and had lost his family business. Due to strains in the marriage Christine Valentini did not share any of her income with her husband and put it into a separate account to which only Christine and her parents had access.
Interview with Rose Stevenson, female, 24 years old:
Miss Rose Stevenson, victim’s younger sister, revealed that she and her sister were extremely close. Rose divulged that her sister had recently been in contact with her ex-boyfriend and was planning on getting back together with him once she divorced her husband. Rose also stated that Christine had discovered that Patrick had been cheating on her with various women, one of which was stalking Christine and had threatened to kill her. The last time she had lunch with Christine, she said she seemed paranoid and kept looking around. Unfortunately, Christine never told Rose the woman’s name - only that she was a dog walker.
Interview with Joshua Rojas, male, 29 years old:
Mr. Joshua Rojas, victim’s ex-boyfriend, indicated that he had last talked to the victim at 20:02 on February 26, 2001. He indicated that he and the victim were in the process of reconciling their relationship. He indicated that Christine was terribly regretful for marrying Patrick. He stated that Christine had told him of how Patrick had physically abused her while trying to get money out of her. He also indicated that Christine ’s mental state was perfectly normal in the weeks prior to her death, however she was seeing a psychologist to help deal with the stress of her failing marriage.
Interview with Sam Kang, male, 42 years old:
Mr. Kang was the Valentini’s closest neighbor. On the night of her death, he reports that he let his dog out and it began barking along the Valentini’s fence insistently at about 2200. He had hard time getting the dog back in and heard loud music coming from the Valentini’s. He stated this was not normal and he was about to call the Valentini’s to complain when the ambulance arrived. He also complained that a lot of cars seemed to come and go from the Valentini’s home, sometimes at speed and it was dangerous for pedestrians. He also reported that he had seen Mrs. Valentini in a verbal altercation with another woman in a white BMW near the end the Valentini’s driveway about two weeks prior to her death. He was unable to remember what the woman looked like, only that she wore sunglasses and had a large dog in her backseat.
Interview with Sandra Amaya, female, 31 years old:
Ms. Amaya is an avid triathlete and the sole owner and employee of a pet sitting and dog walking service. She has several clients in the neighborhood of the Valentini’s and in August of 2000 had pet sit for the Valentini’s while they vacationed in Aruba. She denied having an affair or relationship at all with Patrick Valentini. She stated that she had offered to walk the Valentini’s dog for free while Mrs. Valentini was recovering from her foot injury, but Mrs. Valentini declined her offer. Several neighbors mentioned that they often saw Ms. Amaya walking dogs in the neighborhood.
---------------------
Autopsy Report - Christina Valentini
Report of Investigation by County Medical Examiner
Decedent: Christine Valentini
Date of Birth: January 11, 1973
Height: 5'11
Weight: 125 lbs
Pronounced Dead at: 01:32, 2/27/2001
External Examination
The victim appeared to be dressed for bed. The clothing included a bathrobe, a night shirt and matching pants, underwear, and a single slipper. The victim was reportedly in a work accident three weeks prior to her death in which her right foot had been broken. There were elevated levels of amylase in the saliva.
The body appeared to have multiple contusions on the torso in various stages of healing. The victim's body showed slight signs of rigor mortis in the fingers and jaw. Liver mortis was present at the time of autopsy examination, however there was evidence of blanching. The x-rays of the victim's right foot showed healing consistent with an injury that occurred two weeks prior to death.
Internal Examination
The victim's body showed multiple rib fractures in various stages of healing. The victim's body showed recent signs of consensual sexual activity. The victim's hyoid bone was fractured and trauma to the throat indicated recent trauma. Fluids were found in the victim's lungs. Samples of the victim's lung contents were collected.
Questions
For this assignment, you will need to refer back to the case file and to the autopsy report above.
In: Biology