1. Cash Payback Method

   Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:

   Year		Liquid Soap		Body Lotion
   1		$170,000		$ 90,000
   2		150,000		90,000
   3		120,000		90,000
   4		100,000		90,000
   5		70,000		90,000
   6		40,000		90,000
   7		40,000		90,000
   8		30,000		90,000
   Total		$720,000		$720,000

   a. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.
   

   Payback period for liquid soap
   Payback period for body lotion

   b. The project with the_________ net cash flows in the early years of the project life will be favored over the one with the _________ net cash flows in the initial years.

Cash Payback Method

Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:

a. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.

b. The project with the   net cash flows in the early years of the project life will be favored over the one with the   net cash flows in the initial years.

Cash Payback Method

Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:

a. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.

b. The project with the   net cash flows in the early years of the project life will be favored over the one with the   net cash flows in the initial years.

1 What is the difference between primary, secondary, and tertiary sources? Give an example of each.
2 What are the key elements of a research work plan?
3 What is a desktop search tool and how can it help you?
4 What is the effect of using quotation marks around search terms in web or database searches? What happens if you do not use quotation marks?
5 Explain the three criteria for evaluating whether a source is credible.
6 Name two advantages of conducting survey research and two advantages of conducting interview research.
7 Identify at least two ways to find experts you can interview on a topic.
8 What is anecdotal evidence and how may it be useful in your research?
9 What are two benefits of organizing and storing research materials online, in the cloud, rather than just on your computer?

Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 25Q1+2.5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 75Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost? If required, round your answers to the nearest whole number. Round intermediate calculations to two decimal places.

Aynor

Spartanburg

Total cost $

aro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

Total Costs

Machining

Assembly

Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:

How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23?

Job cm-22 job cm-23

Machining

Assembly

Caro Manufacturing has two production departments, Machining and Assembly, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs used by the various departments for the month of August follow:

1)

Compute the allocation of service department costs to producing departments using the direct method. (Do not round intermediate calculations.)

Machining

Assembly

2) Assume that both Machining and Assembly work on just two jobs during the month of August: CM-22 and CM-23. Costs are allocated to jobs based on machine-hours in Machining and labor-hours in Assembly. The number of labor- and machine-hours worked in each department are as follows:

How much of the service department costs allocated to Machining and Assembly in the direct method should be allocated to Job CM-22? How much should be allocated to Job CM-23? (Round "Department rate" to 2 decimal places.)
CM-22 CM-23

Machining:

Assembly:

X-Cee-Ski Company recently expanded its manufacturing capacity, which will allow it to produce up to 21,000 pairs of cross-country skis of the mountaineering model or the touring model. The Sales Department assures management that it can sell between 9,000 and 14,000 pairs of either product this year. Because the models are very similar, X-Cee-Ski will produce only one of the two models.

The following information was compiled by the Accounting Department:

Fixed costs will total $320,000 if the mountaineering model is produced but will be only $220,000 if the touring model is produced. X-Cee-Ski is subject to a 40 percent income tax rate.

Required:

1. If X-Cee-Ski Company desires an after-tax net income of $48,000, how many pairs of touring model skis will the company have to sell?
pairs of touring skis

2. Suppose that X-Cee-Ski Company decided to produce only one model of skis. What is the total sales revenue at which X-Cee-Ski Company would make the same profit or loss regardless of the ski model it decided to produce?
$

3. If the Sales Department could guarantee the annual sale of 12,000 pairs of either model, which model would the company produce? (CMA adapted)
Mountaineering model

Feedback

1. See Cornerstone 16.4.

2. Determine operating income formulas for each ski model, set them equal to one another and solve for X (units)

3. Use the number of pairs given for X in the operating income formula for each model

Find the equation of the regression line for the given data. Then construct a scatter plot of the data and draw the regression line.​ (Each pair of variables has a significant​ correlation.) Then use the regression equation to predict the value of y for each of the given​ x-values, if meaningful. The caloric content and the sodium content​ (in milligrams) for 6 beef hot dogs are shown in the table below. font size decreased by 1 font size increased by 1 Calories comma x 160 170 130 120 90 190 ​(a) xequals180 calories ​(b) xequals100 calories ​Sodium, y 415 465 350 370 270 530 ​(c) xequals150 calories ​(d) xequals220 calories Find the regression equation. ModifyingAbove y with caretequals nothingxplus​( nothing​) ​(Round to three decimal places as​ needed.) Choose the correct graph below. A. 0 200 0 560 Calories Sodium (mg) A scatterplot has a horizontal axis labeled "Calories" from 0 to 200 in increments of 20 and a vertical axis labeled "Sodium (in milligrams)" from 0 to 560 in increments of 40. The following points are plotted: 90 units to the right of and 270 units above the origin; 120 units to the right of and 370 units above the origin; 130 units to the right of and 350 units above the origin; 160 units to the right of and 415 units above the origin; 170 units to the right of and 465 units above the origin; 190 units to the right of and 530 units above the origin. A line rises from left to right and passes through the points (50, 173) and (100, 295). All coordinates are approximate. B. 0 200 0 560 Calories Sodium (mg) A scatterplot has a horizontal axis labeled "Calories" from 0 to 200 in increments of 20 and a vertical axis labeled "Sodium (in milligrams)" from 0 to 560 in increments of 40. The following points are plotted: 10 units to the right of and 250 units above the origin; 20 units to the right of and 110 units above the origin; 30 units to the right of and 265 units above the origin; 40 units to the right of and 315 units above the origin; 70 units to the right of and 170 units above the origin; 70 units to the right of and 230 units above the origin. A line falls from left to right and passes through the points (0, 202) and (83, 0). All coordinates are approximate. C. 0 200 0 560 Calories Sodium (mg) A scatterplot has a horizontal axis labeled "Calories" from 0 to 200 in increments of 20 and a vertical axis labeled "Sodium (in milligrams)" from 0 to 560 in increments of 40. The following points are plotted: 100 units to the right of and 285 units above the origin; 100 units to the right of and 320 units above the origin; 130 units to the right of and 420 units above the origin; 140 units to the right of and 400 units above the origin; 180 units to the right of and 480 units above the origin; 100 units to the right of and 320 units above the origin. A line rises from left to right and passes through the points (50, 179) and (100, 301). All coordinates are approximate. D. 0 200 0 560 Calories Sodium (mg) A scatterplot has a horizontal axis labeled "Calories" from 0 to 200 in increments of 20 and a vertical axis labeled "Sodium (in milligrams)" from 0 to 560 in increments of 40. The following points are plotted: 70 units to the right of and 170 units above the origin; 100 units to the right of and 270 units above the origin; 110 units to the right of and 80 units above the origin; 130 units to the right of and 315 units above the origin; 130 units to the right of and 365 units above the origin; 150 units to the right of and 430 units above the origin. A line falls from left to right and passes through the points (0, 402) and (166, 0). All coordinates are approximate. ​(a) Predict the value of y for xequals180. Choose the correct answer below. A. 586.115 B. 488.995 C. 416.155 D. not meaningful ​(b) Predict the value of y for xequals100. Choose the correct answer below. A. 586.115 B. 416.155 C. 294.755 D. not meaningful ​(c) Predict the value of y for xequals150. Choose the correct answer below. A. 294.755 B. 416.155 C. 488.995 D. not meaningful ​(d) Predict the value of y for xequals220. Choose the correct answer below. A. 488.995 B. 586.115 C. 294.755 D. not meaningful