Read the following scenario below:
Leighton Beridon owns "Jeemp Farms", located near Weimar, TX. The farm produces pecan trees and sod. He has so many orders from the Houston metropolitan area that he is able to sell all his inventory each year, but he is not netting as much as he has in past years. His daughter, Liesl Beridon, came home from college over Thanksgiving and mentioned ABC costing, which she learned about in her cost accounting class. Mr. Beridon does not really know what ABC costing is and is skeptical as to whether it would be right for his business. He has hired your company to educate him about ABC and whether or not he should use an ABC system. Over the next few weeks, you will work towards helping Mr. Beridon decide what is the best route for his company to take.
Shortly after you get started, Mr. Beridon sends you an email stating that he feels he needs to discontinue the sod portion of his business and focus on his tree sector, as he can charge more per tree than he can charge for a foot of sod. He sends you an email stating, "I can charge so much more for a tree than a foot of grass. Therefore, I am planning on discontinuing the sod portion of the business immediately as I make so much more on the trees! I am going to plant all my sod acres with trees".
Questions:
In: Accounting
Read the following scenario below:
Leighton Beridon owns "Jeemp Farms", located near Weimar, TX. The farm produces pecan trees and sod. He has so many orders from the Houston metropolitan area that he is able to sell all his inventory each year, but he is not netting as much as he has in past years. His daughter, Liesl Beridon, came home from college over Thanksgiving and mentioned ABC costing, which she learned about in her cost accounting class. Mr. Beridon does not really know what ABC costing is and is skeptical as to whether it would be right for his business. He has hired your company to educate him about ABC and whether or not he should use an ABC system. Over the next few weeks, you will work towards helping Mr. Beridon decide what is the best route for his company to take.
Shortly after you get started, Mr. Beridon sends you an email stating that he feels he needs to discontinue the sod portion of his business and focus on his tree sector, as he can charge more per tree than he can charge for a foot of sod. He sends you an email stating, "I can charge so much more for a tree than a foot of grass. Therefore, I am planning on discontinuing the sod portion of the business immediately as I make so much more on the trees! I am going to plant all my sod acres with trees".
Questions:
In: Accounting
Q.1. Ms. Moonmoon is going to start a new coffee shop near
Sylhet Osmani International Airport. Suggest a Brand name for her
coffee shop. Why do you think that your proposed brand
name is perfect for her business? 4
Q.2. Do you consider BRAND when you are going to purchase
something? Why or why not? 3
Q.3. Suppose, you have started an online business recently. Your
business is Sylhet metropolitan area based and you sell imported
Laptops, Tabs, Mobile phones, smartwatches, and headphones. Which
pricing strategy will you follow; Market penetration pricing or
market skimming pricing? Why?
In: Operations Management
Problem 9-05 (Algorithmic)
Kilgore’s Deli is a small delicatessen located near a major university. Kilgore’s does a large walk-in carry-out lunch business. The deli offers two luncheon chili specials, Wimpy and Dial 911. At the beginning of the day, Kilgore needs to decide how much of each special to make (he always sells out of whatever he makes). The profit on one serving of Wimpy is $0.51, on one serving of Dial 911, $0.69. Each serving of Wimpy requires 0.21 pound of beef, 0.21 cup of onions, and 5 ounces of Kilgore’s special sauce. Each serving of Dial 911 requires 0.21 pound of beef, 0.38 cup of onions, 2 ounces of Kilgore’s special sauce, and 5 ounces of hot sauce. Today, Kilgore has 25 pounds of beef, 20 cups of onions, 75 ounces of Kilgore’s special sauce, and 53 ounces of hot sauce on hand.
| Let | W = number of servings of Wimpy to make |
| D = number of servings of Dial 911 to make |
| Max | W | + | fill in the blank 2D | |||
| s.t. | ||||||
| W | + | D | ≤ | (Beef) | ||
| W | + | D | ≤ | (Onions) | ||
| W | + | D | ≤ | (Special Sauce) | ||
| W | + | D | ≤ | (Hot Sauce) | ||
| W, D | ≥ | 0 |
In: Economics
You hear someone slurring his words and slobbering all over the people near him. You suspect that the person may have had some alcoholic beverages before you arrived. You hear him saying, "Ah, you don't need an audit. Just get some accountant to prepare a set of financial statements from your own books, photocopy them, and give them to the bank. You'll get that big loan you have been looking for." Your companion is a prospective client who has never used an outside accounting firm before, other than to have tax returns prepared. Your companion wants to know what your accounting firm can do for him and the company he runs. Required: a. What is an audit? How does an audit differ from reviews and compilations? 2 b. What are some of the benefits a company receives from getting an audit by a CPA firm?
In: Accounting
Account Analysis Method
Penny Davis runs the Shear Beauty Salon near a college campus. Several months ago, Penny used some unused space at the back of the salon and bought two used tanning beds. She hired a receptionist and kept the salon open for extended hours each week so that tanning clients would be able to use the benefits of their tanning packages. After three months, Penny wanted additional information on the costs of the tanning area. She accumulated the following data on four accounts:
| Wages | Supplies and Maintenance | Equipment Depreciation | Electricity | Tanning Minutes | Number of Visits | |||||||
| January | $1,837 | $1,422 | $159 | $350 | 4,089 | 423 | ||||||
| February | 1,722 | 1,872 | 159 | 420 | 3,954 | 375 | ||||||
| March | 1,824 | 4,083 | 159 | 687 | 6,795 | 573 |
Penny decided that wages and equipment depreciation were fixed. She thought supplies and maintenance would vary with the number of tanning visits and that electricity would vary with the number of tanning minutes.
Required:
1. Calculate the average account balance for each account. Calculate the average monthly amount for each of the two drivers. (Round all answers to the nearest dollar or the nearest whole unit.) Use your rounded answers in all subsequent computations.
| Average Account Balance |
|
| Wages | $ |
| Supplies & Maintenance | $ |
| Equipment Depreciation | $ |
| Electricity | $ |
| Tanning Minutes | |
| Number of Visits |
2. Calculate fixed monthly cost and the variable rates for the account averages. Round your answers to the nearest cent and use your rounded answers in all subsequent computations.
| Variable rate for supplies & maintenance | $ per visit |
| Variable rate for electricity | $ per minute |
| Fixed cost per month | $ |
Express the results in the form of an equation for total cost. (Round to the nearest cent.)
| Cost | = | $ | + | $ (visit) | + | $ (minute) |
3. In April, Penny predicts there will be 360
visits for a total of 3,630 minutes. What is the total cost for
April? If required, round your answer to the nearest dollar.
$
4. Suppose that Penny decides to buy a new tanning bed at the beginning of April for $8,592. The tanning bed is expected to last four years and will have no salvage value at the end of that time.
What will be the new equation for total cost? If required, round your answers to the nearest cent.
Cost = $ + $ (visit) + $ (minute)
What is the new expected cost in April based on the prediction
provided in Requirement 3 (above)? When required, round your answer
to the nearest dollar.
$
In: Accounting
*Please clearly state what answer goes to each part.*
Alexa owns a condominium near Cocoa Beach in Florida. This year, she incurs the following expenses in connection with her condo:
| Insurance | $ | 2,000 |
| Mortgage interest | 6,500 | |
| Property taxes | 2,000 | |
| Repairs & maintenance | 1,400 | |
| Utilities | 2,500 | |
| Depreciation | 14,500 | |
During the year, Alexa rented out the condo for 100 days. She
did not use the condo at all for personal purposes during the year.
Alexa’s AGI from all sources other than the rental property is
$200,000. Unless otherwise specified, Alexa has no sources of
passive income.
Assuming Alexa receives $20,000 in gross rental receipts, answer the following questions: (Leave no answer blank. Enter zero if applicable.)
a. Assuming that Alexa’s AGI from other sources is $90,000, what effect does the rental activity have on Alexa’s AGI (increase, decrease, or no effect) and state by what amount? Alexa makes all decisions with respect to the property.
b. Assuming that Alexa’s AGI from other sources
is $120,000, what effect does the rental activity have on Alexa’s
AGI(increase, decrease, or no effect) and state by what amount?
Alexa makes all decisions with respect to the property.
c. Assume that Alexa’s AGI from other sources is $200,000. This consists of $150,000 salary, $10,000 of dividends, $25,000 of long-term capital gain, and net rental income from another rental property in the amount of $15,000. What effect does the Cocoa Beach Condo rental activity have on Alexa’s AGI(increase, decrease, or no effect) and state by what amount?
In: Accounting
Three entrepreneurs were looking to start a new brewpub near Sacramento, California, called Roseville Brewing Company (RBC). Brewpubs provide two products to customers—food from the restaurant segment and freshly brewed beer from the beer production segment. Both segments are typically in the same building, which allows customers to see the beer-brewing process.
After months of research, the owners created a financial model that showed the following projections for the first year of operations:
| Sales | ||
| Beer sales | $ | 769,600 |
| Food sales | 1,185,600 | |
| Other sales | 124,800 | |
| Total sales | $ | 2,080,000 |
| Less cost of sales | 524,576 | |
| Gross margin | $ | 1,555,424 |
| Less marketing and administrative expenses | 1,086,200 | |
| Operating profit | $ | 469,224 |
In the process of pursuing capital through private investors and
financial institutions, RBC was approached with several questions.
The following represents a sample of the more common questions
asked:
• What is the break-even point?
• What sales dollars will be required to make $120,000? To make $450,000?
• Is the product mix reasonable? (Beer tends to have a higher contribution margin ratio than food, and therefore product mix assumptions are critical to profit projections.)
• What happens to operating profit if the product mix shifts?
• How will changes in price affect operating profit?
• How much does a pint of beer cost to produce?
It became clear to the owners of RBC that the initial financial
model was not adequate for answering these types of questions.
After further research, RBC created another financial model that
provided the following information for the first year of
operations:
| Sales | |||||
| Beer sales (37% of total sales) | $ | 769,600 | |||
| Food sales (57% of total sales) | 1,185,600 | ||||
| Other sales (6% of total sales) | 124,800 | ||||
| Total sales | $ | 2,080,000 | |||
| Variable Costs | |||||
| Beer (14% of beer sales) | $ | 107,744 | |||
| Food (32% of food sales) | 379,392 | ||||
| Other (30% of other sales) | 37,440 | ||||
| Wages of employees (21% of sales) | 436,800 | ||||
| Supplies (2% of sales) | 41,600 | ||||
| Utilities (5% of sales) | 104,000 | ||||
| Other: credit card, misc. (1% of sales) | 20,800 | ||||
| Total variable costs | $ | 1,127,776 | |||
| Contribution margin | $ | 952,224 | |||
| Fixed Costs | |||||
| Salaries: manager, chef, brewer | $ | 132,000 | |||
| Maintenance | 29,000 | ||||
| Advertising | 17,000 | ||||
| Other: cleaning, menus, misc | 32,000 | ||||
| Insurance and accounting | 38,000 | ||||
| Property taxes | 16,000 | ||||
| Depreciation | 93,000 | ||||
| Debt service (interest on debt) | 126,000 | ||||
| Total fixed costs | $ | 483,000 | |||
| Operating profit | $ | 469,224 | |||
Required:
e. Perform a sensitivity analysis by answering the following questions:
1. What is the break-even point in sales dollars
for RBC? (Round intermediate calculations to 3 decimal
places and your final answer to the nearest whole
dollar.)
2. What is the margin of safety for RBC? (Round intermediate calculations to 3 decimal places and your final answer to the nearest whole dollar.)
4. What sales dollars would be required to achieve an operating profit of $120,000? $450,000? (Round intermediate calculations to 3 decimal places and your final answers to the nearest whole dollar.)
In: Accounting
Question 1:
A near-sighted person might correct his vision by wearing diverging lenses with focal length f = -50cm . When wearing his glasses, he looks not at actual objects but at the virtual images of those objects formed by his glasses. Suppose he looks at a 12cm -long pencil held vertically 2.0m from his glasses. Use ray tracing to determine the location of the image. Answer is in meters.
Question 2:
A 1.0-cm-tall object is 60 cm in front of a diverging lens that has a -30 cm focal length.
a) Calculate the image position in cm.
b) Calculate the image height in cm.
Show work please! Thank you!!
In: Physics
Unless otherwise stated, all objects are located near the
Earth's surface, where g = 9.80 m/s2 .
At the end of most landing runways in airports, an extension of the
runway is constructed using a special substance called
formcrete. Formcrete can support the weight of cars, but
crumbles under the weight of airplanes to slow them down if they
run off the end of a runwa
If a plane of mass 1.80×105 kg is to stop from a speed of 20.0 m/s on a 120 m long stretch of formcrete, what is the magnitude of the average force exerted on the plane by the formcrete?
In: Physics