Consider the following data on price ($) and the overall score for six stereo headphones tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest).

(a)

The estimated regression equation for this data is

ŷ = 23.124 + 0.329x,

where x = price ($) and y = overall score. Does the t test indicate a significant relationship between price and the overall score? Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₀ ≠ 0
H_a: β₀ = 0H₀: β₁ = 0
H_a: β₁ ≠ 0    H₀: β₁ ≥ 0
H_a: β₁ < 0H₀: β₁ ≠ 0
H_a: β₁ = 0H₀: β₀ = 0
H_a: β₀ ≠ 0

Find the value of the test statistic. (Round your answer to three decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

What is your conclusion?

Reject H₀. We conclude that the relationship between price ($) and overall score is significant.Reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.     Do not reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.Do not reject H₀. We conclude that the relationship between price ($) and overall score is significant.

(b)

Test for a significant relationship using the F test. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₁ ≥ 0
H_a: β₁ < 0H₀: β₁ = 0
H_a: β₁ ≠ 0    H₀: β₁ ≠ 0
H_a: β₁ = 0H₀: β₀ = 0
H_a: β₀ ≠ 0H₀: β₀ ≠ 0
H_a: β₀ = 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Do not reject H₀. We conclude that the relationship between price ($) and overall score is significant.Do not reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.     Reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.Reject H₀. We conclude that the relationship between price ($) and overall score is significant.

(c)

Show the ANOVA table for these data. (Round your p-value to three decimal places and all other values to two decimal places.)

Consider the following data on price ($) and the overall score for six stereo headphones tested by a certain magazine. The overall score is based on sound quality and effectiveness of ambient noise reduction. Scores range from 0 (lowest) to 100 (highest).

(a)

The estimated regression equation for this data is

ŷ = 21.926 + 0.321x,

where x = price ($) and y = overall score. Does the t test indicate a significant relationship between price and the overall score? Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₁ = 0
H_a: β₁ ≠ 0H₀: β₁ ≠ 0
H_a: β₁ = 0    H₀: β₀ = 0
H_a: β₀ ≠ 0H₀: β₁ ≥ 0
H_a: β₁ < 0H₀: β₀ ≠ 0
H_a: β₀ = 0

Find the value of the test statistic. (Round your answer to three decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

What is your conclusion?

Reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.Do not reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.     Do not reject H₀. We conclude that the relationship between price ($) and overall score is significant.Reject H₀. We conclude that the relationship between price ($) and overall score is significant.

(b)

Test for a significant relationship using the F test. Use α = 0.05.

State the null and alternative hypotheses.

H₀: β₀ ≠ 0
H_a: β₀ = 0H₀: β₁ = 0
H_a: β₁ ≠ 0    H₀: β₀ = 0
H_a: β₀ ≠ 0H₀: β₁ ≠ 0
H_a: β₁ = 0H₀: β₁ ≥ 0
H_a: β₁ < 0

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to three decimal places.)

p-value =

What is your conclusion?

Do not reject H₀. We conclude that the relationship between price ($) and overall score is significant.Do not reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.     Reject H₀. We conclude that the relationship between price ($) and overall score is significant.Reject H₀. We cannot conclude that the relationship between price ($) and overall score is significant.

(c)

Show the ANOVA table for these data. (Round your p-value to three decimal places and all other values to two decimal places.)

1. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium price of rutabagas?

2. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. What is the equilibrium quantity of rutabagas?

3. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax equilibrium quantity of rutabagas?

4. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price paid by the consumers of rutabagas

5. Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the after-tax price received by the sellers of rutabagas?

6.

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the sellers of rutabagas. What is the relative burden of this rutabaga tax between buyers and sellers?

7.

Suppose the market demand for rutabagas is Q_D = 10 - 0.25P and the Q_S = 0.15P, where P is the price per box of rutabagas and Q measures the quantity of boxes. Suppose the government assesses a rutabaga tax of $5 per box on the buyers (rather than the sellers) of rutabagas. which of your previous answers would change? Mark any (between 0 and 4) correct answers.

10. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Selling price ........................................................... $100

Units in beginning inventory .......................... 0

Unit produced ...................................................... 5,500

Unit sold ................................................................. 5,400

Unit in ending inventory ................................... 100

Variable costs per unit:

Direct materials .............................................. $23

Direct labor ...................................................... $25

Variable manufacturing overhead ........... $ 2

Variable selling and administrative ......... $ 9

Fixed costs:

Fixed manufacturing overhead .................. $137,500

Fixed selling and administrative ................ $ 70,200

The total contribution margin for the month under variable costing is:

Select one:

a. $270,000

b. $135,000

c. $83,900

d. $221,400

11.

The Institute of Management Accountants' Statement of Ethical Professional Practice states that when faced with significant ethical issues, management accountants should first:

Select one:

a. submit an informative memorandum describing the ethical issue to an appropriate representative of the organization and resign if no action is taken as a result of the memorandum.

b. follow the established policies of the organization bearing on the resolution of such conflict.

c. clarify relevant concepts by confidential discussion with an objective advisor to obtain an understanding of possible courses of action.

d. discuss such problems with the immediate superior except when it appears that the superior is involved.

12.

The Sarbanes-Oxley Act of 2002 contains all of the following provisions EXCEPT:

Select one:

a. A CFO must be a CPA or CMA.

b. Both the CEO and CFO must certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations.

c. Severe penalties are established for altering or destroying documents that may eventually be used in an official proceeding.

d. The audit committee of the board of directors of a company must hire, compensate, and terminate the public accounting firm that audits the company's financial reports.

13.

A company has provided the following data:

Sales ................................... 3,000 units

Sales ................................... $70 per unit

Variable cost .................... $50 per unit

Fixed cost .......................... $25,000

If the dollar contribution margin per unit is increased by 10%, total fixed cost is decreased by 20%, and all other factors remain the same, net operating income will:

Select one:

a. increase by $61,000.

b. increase by $11,000.

c. increase by $3,500.

d. increase by $20,000.

17.       Determine the risk-adjusted present value of a biotechnology company after considering the risk factors below.                                                                                                                    (2 marks)

The biotechnology company has developed a new anti-cancer drug for Cancer X.

SECTION 3:

THE QUESTIONS BELOW RELATE TO “ANTISENSE THERAPEUTICS LIMITED”, AN AUSTRALIAN BASED BIOTECHNOLOGY COMPANY:

1. What does the company “Antisense Therapeutics” do?                                                   
2. What is the current market capitalisation of Antisense Therapeutics?                         (1 mark)
3. Who is the CEO of the company?                                                                                                 (1 mark)
4. What is the current share price of Antisense Therapeutics?                                             (1 mark)
5. What was the share price of the Company at 30 June 2015?                                            (1 mark)
6. Does the Company hold intellectual property rights? If so, how many (registered or in the process of being registered)?                                                                                                         
7. Is the company also licensing intellectual property from another company? If so, name the company.                                                                                                                          
8. What is the total equity in the company for the year ended 30 June 2019?                               (1 mark)
9. What amount of cash was received from Government grants for the year ended 30 June 2019?                                                                                                                                                       (1 mark).
10. The Company has highlighted the importance of the compound ATL1102. What is ATL1102 and what disease is it being used to treat? Does the company own the IP rights to this compound?                                                                                                                                                      
11. What is the Company’s plan to move forward with the testing of this drug?           
12. Did the Company’s make a net financial profit or loss for the year ending 30 June 2019? What was the figure?                                                                                                                                  

Question 36

In a corporate structure with shareholders, managers, and a board of directors:

Select one:

a. shareholders are agents

b. directors are agents

c. in principle, the board of directors works on behalf of the shareholders

d. managers are principals

e. shareholders are generally both principals and agents

Question 37

A project costs $525 and has cash flows of $110 for the first three years and $75 in each of the project's last five years. What is the payback period of the project?

Select one:

a. The project never pays back

b. 5.00 years

c. 5.60 years

d. 5.33 years

e. 5.67 years

Question 38

Suppose a project costs $440 and produces cash flows of $100 over each of the following seven years. What is the IRR of the project?

Select one or more:

a. There is not enough information; a discount rate is required

b. 18.6%

c. 13.2%

d. 24.3%

e. 10.0%

Question 39

Your company purchased a piece of land five years ago for $150,000 and subsequently added $175,000 in improvements. The current book value of the property is $225,000. There are two options for future use of the land: 1) the land can be sold today for $375,000 on a net after-tax basis; 2) your company can destroy the past improvements and build a factory on the land. In consideration of the factory project, what amount (if any) should the land be valued at?

Select one:

a. The present book value of $225,000.

b. The property should be valued at zero since it is a sunk cost.

c. The sales price of $375,000 less the book value of the improvements.

d. The original $150,000 purchase price of the land itself.

e. The after-tax sales value of $375,000.

Question 40

A new project will cause accounts payable to increase by $70,000, accounts receivable to increase by $70,000 and inventory to increase by $10,000. Which one of the following statements is true?

Select one:

a. Net working capital will decrease.

b. Net working capital will increase.

c. The project will not affect net working capital.

d. The change in accounts payable is a use of cash.

e. The change in inventory is a use of cash.

HL Construction Co. plans to replace one of its manufacturing equipment for a newer more technology-advance one. The new equipment has a purchase price of $8,000 and will be depreciated as a 7-year class for MACRS. Installation costs for the new equipment are $200. It is estimated that this equipment can be sold in 4 years (end of project) for $5,000. This new equipment is more efficient than the existing one and thus savings before taxes using the new equipment are $4,000 a year. Because of the advance technology of new equipment, there will be a reduction in inventory of $400 today and which will be reverted at the end of the project in year 4. This existing equipment was purchased 2 years ago at a base price of $3,000. Installation costs at the time for this old equipment were $100. The existing equipment is considered also 7-year class for MACRS. The existing equipment can be sold today for $1,000 and for $0 in 4 years. The company's marginal tax rate is 30% and the cost of capital is 10%. MACRS Fixed Annual Expense Percentages by Recovery Class Year    3-Year    5-Year    7-Year    10-Year    15-Year 1    33.33%    20.00%    14.29%    10.00%    5.00% 2    44.45%    32.00%    24.49%    18.00%    9.50% 3    14.81%    19.20%    17.49%    14.40%    8.55% 4    7.41%    11.52%    12.49%    11.52%    7.70% 5        11.52%    8.93%    9.22%    6.93% 6        5.76%    8.93%    7.37%    6.23% 7            8.93%    6.55%    5.90% 8            4.45%    6.55%    5.90% 9                6.56%    5.91% 10                6.55%    5.90% 11                3.28%    5.91% 12                    5.90% 13                    5.91% 14                    5.90% 15                    5.91% 16                    2.95% For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative (do not use parenthesis to indicate negative cash flows). For example, if your answer is $3,005.87 then enter 3,006; if your answer is -$1,200.25 then enter -1,200

what is the incremental net operating profit (NOPAT) for year 4 of this replacement project?

HL Construction Co. plans to replace one of its manufacturing equipment for a newer more technology-advance one. The new equipment has a purchase price of $8,000 and will be depreciated as a 7-year class for MACRS. Installation costs for the new equipment are $200. It is estimated that this equipment can be sold in 4 years (end of project) for $5,000. This new equipment is more efficient than the existing one and thus savings before taxes using the new equipment are $4,000 a year. Because of the advance technology of new equipment, there will be a reduction in inventory of $400 today and which will be reverted at the end of the project in year 4. This existing equipment was purchased 2 years ago at a base price of $3,000. Installation costs at the time for this old equipment were $100. The existing equipment is considered also 7-year class for MACRS. The existing equipment can be sold today for $1,000 and for $0 in 4 years. The company's marginal tax rate is 30% and the cost of capital is 10%. MACRS Fixed Annual Expense Percentages by Recovery Class Year    3-Year    5-Year    7-Year    10-Year    15-Year 1    33.33%    20.00%    14.29%    10.00%    5.00% 2    44.45%    32.00%    24.49%    18.00%    9.50% 3    14.81%    19.20%    17.49%    14.40%    8.55% 4    7.41%    11.52%    12.49%    11.52%    7.70% 5        11.52%    8.93%    9.22%    6.93% 6        5.76%    8.93%    7.37%    6.23% 7            8.93%    6.55%    5.90% 8            4.45%    6.55%    5.90% 9                6.56%    5.91% 10                6.55%    5.90% 11                3.28%    5.91% 12                    5.90% 13                    5.91% 14                    5.90% 15                    5.91% 16                    2.95% For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative (do not use parenthesis to indicate negative cash flows). For example, if your answer is $3,005.87 then enter 3,006; if your answer is -$1,200.25 then enter -1,200

what is the projects total incremental cash flow for year 4?

8. Assume that Current Sales are $100,000; and Break even in sales dollars is $75,000. What is the Margin of Safety ratio?

a. 25%

b. 50%

c. 75%

d. 100%

9. Assume Fixed costs are $10,000; Selling price is $30 and variable costs are $10. What is the break even in units? Give answer to the nearest unit.

Group of answer choices

a. 500 units

b. 1,000 units

c. 250 units

d 334 units

10. If Direct Labor is 1 hour per unit at a rate of $25 per hour, what would be the budgeted amount for Direct Labor costs for the year if we expect to use 500 hours in the first six months and 600 hours in the second six months?

a. $55,000

b. $27,500

c. $2,200

f $25,000

11. If Variable MOH is $2 per direct labor hour and the fixed MOH (all cash) is $2,500 per month, what is the amount of MOH budgeted for the month if 1,000 Direct Labor hours are budgeted?

a. $2,500

b. $2,000

c. $4,500

d. $5,000

12. Assume Fixed costs are $10,000; Selling price is $30 and variable costs are $10. What is the break even in sales Dollars?

a. $10,000

b. $12,000

c. $14,000

d. $15,000

18. The Direct materials, Direct Labor, and MOH budgers are usually based off the:

a. Sales Budget

b. Production Budget

c. Cash Budget

d. Selling & Administrative Budget

21.Where the lines cross in a Cost-Volume-Profit graph represents:

a. Cost of Goods Sold

b. Net Loss

c. Net Income

d. Break Even

22. A budget that shows expected costs for a range of activity levels is called a:

a. Sales Budget

b. Static Budget

c. Selling & Administrative Budget

d. Flexible Budget

23.

Common Fixed Costs are:

a. Fixed costs that relate to just one segment

b. fixed costs that can be avoided if segment is dropped

c. fixed costs that are not traceable to a segment

d. all of the above