Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3.30 per unit. Enough capacity exists in the company’s plant to produce 30,600 units of the toy each month. Variable expenses to manufacture and sell one unit would be $2.08, and fixed expenses associated with the toy would total $55,498 per month.

The company's Marketing Department predicts that demand for the new toy will exceed the 30,600 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $2,775 per month. Variable expenses in the rented facility would total $2.31 per unit, due to somewhat less efficient operations than in the main plant.

Required:

1. What is the monthly break-even point for the new toy in unit sales and dollar sales.

2. How many units must be sold each month to attain a target profit of $12,078 per month?

3. If the sales manager receives a bonus of 15 cents for each unit sold in excess of the break-even point, how many units must be sold each month to attain a target profit that equals a 27% return on the monthly investment in fixed expenses?

4. When the ticket price for a concert at the opera house was $50, the average attendance was 4000 people. When the ticket price was raised to $52, the average attendance was 3800 people. a. Assuming the demand function is linear, find the demand function, p. b. Find the number of tickets sold that maximize the revenue. Use the second derivative test to verify it is a maximum. c. Find the price that maximizes the revenue. d. Find the maximum revenue.

5. Find the derivative of ? a. ? = (5? + 3) 2(2? + 1) 4 using the product rule. Factor final answer as much as possible. b. ? = 3? 2−5?+2 4?+1 using the quotient rule. Clean up the numerator but do not factor it.

A monopolist providing beryllium to the oil and gas sector has the following demand function Qd = 60 – P. The price and quantity demand is given in the table 3 below:

Table 3

a) From the table above, calculate the Total Revenue and Marginal revenue values.

b)         Plot the demand and marginal revenue schedules.

c)         Using the price elasticity method, calculate MR when

i)          P = $50            ii) P = $35            iii) P = 20

Create the general journals for these transactions:

The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company’s financial condition and performance.

Cute Camel Woodcraft Company is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheet.

Given the information in the preceding balance sheet—and assuming that Cute Camel Woodcraft Company has 50 million shares of common stock outstanding—read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet.

Statement #1: Cute Camel’s net collection of inventory items increased by more than the firm's sales between Years 1 and 2.

This statement is     , because:

The accruals balance decreased by $176 million between Years 1 and 2

Total inventories of raw materials, work-in-process, and final goods decreased by $742 million between Year 1 and Year 2

Total inventories of raw materials, work-in-process, and final goods increased from $2,970 million to $3,712 million between Year 1 and Year 2

Statement #2: In Year 2, Cute Camel Woodcraft Company was profitable.

This statement is     , because:

Cute Camel’s retained earnings account increased between the end of Years 1 and 2

Cute Camel’s total assets increased between Years 1 and 2

The cash and equivalents account increased between Years 1 and 2

Statement #3: One way to interpret the change in Cute Camel’s accounts receivable balance from Year 1 to Year 2 is that more customers purchased new items on credit rather than paying off existing credit accounts.

This statement is     , because:

The change from $2,970 million to $3,712 million reflects a net accumulation of new credit sales

The decrease from $1,266 million to $1,013 million implies a net decrease in accounts receivable and that more customers are paying off their receivables balances than are buying on credit

The $253 increase in accounts receivable means either that Year 1’s existing credit customers are not paying off their owed balances and new or existing customers are making additional purchases on credit, or that Year 1’s credit customers have repaid their owed balances and Year 2 credit sales have exceeded Year 1’s credit sales

Based on your understanding of the different items reported on the balance sheet and the information they provide, which statement regarding Cute Camel Woodcraft Company’s balance sheet is consistent with U.S. Generally Accepted Accounting Principles (GAAP)?

The company’s debts should be listed from those carrying the largest balance to those with the smallest balance.

The company’s debts should be listed in order of their liquidity.

The company’s debts are listed in the order in which they are to be repaid.

(Determining the Operating Model of a Multi-Profile Company) MultiCorp is a diversified, multi-profile company. Essentially, it is a conglomerate company consisting of three diverse strategic units acting as independent businesses under separate brands in different industry sectors: Unit Alpha, Unit Beta and Unit Gamma. MultiCorp is governed from the central head office, which oversights the three subsidiary business units and their financial performance indicators, though without any operational interventions. Each strategic business unit has its own managing director with full discretion and responsibility over its competitive strategy, investment priorities, budget allocation and ensuing yearly profits. Unit Alpha is in the food manufacturing business. The unit produces and distributes a variety of goods including, but not limited to, vegetables, groceries, meat and dairy products. Each of these product lines requires unique production processes, storage arrangements, transportation approaches and underlying equipment and is organizationally implemented by a separate specialized product department. However, these products are delivered largely to the same circle of customers, including both major retailers and local food shops. All product lines are also served by a number of common unit-wide functions, e.g. HR, finance, accounting, logistics, legal, marketing and sales support. Unit Beta competes in the restaurant business. Specifically, the unit controls a chain of small fastfood restaurants occupying the low-cost market niche. In total, the chain includes more than 80 restaurants located in different geographies and more restaurants are planned to be opened in the foreseeable future. All restaurants offer same interiors, menus, prices, meals and services to their customers and imply standardized policies, working procedures and supporting equipment. However, each restaurant is run separately by a chief manager responsible for its overall financial well-being and all necessary business processes, e.g. recruiting, training, procurement, cooking, servicing, cleaning and complaints management. With the exception of Unit Beta’s lean central office, where chain-wide branding, marketing and other strategic decisions are made, the Page | 7 Asia Pacific International College Pty Ltd. Trading as Asia Pacific International College 55 Regent Street, Chippendale, Sydney 2008: 02-9318 8111 PRV12007; CRICOS 03048D Approved: 14/02/2019, Version 1 restaurants operate independently from each other and even have their own profit and loss statements. Finally, Unit Gamma runs a chain of resort hotels. These hotels gravitate towards the high-end price segment and offer premium-quality services to their customers. Unit Gamma’s competitive strategy implies improving its brand recognition and achieving consistent customer experience. For this purpose, the unit’s leadership plans to standardize all customer-facing and, to a lesser extent, backoffice processes across all hotels of the chain as well as all its suppliers and service providers. Moreover, Unit Gamma also intends to become “closer” to its customers and build lifelong customer relationships. This strategy requires collecting more information about customers, their individual preferences and transaction histories, aggregating this information globally and leveraging it for providing customized services, launching loyalty programs, developing special offers and promoting personalized discounts.

Questions

1. What is an operating model of MultiCorp and each of its three strategic business units?

2. What particular business processes are standardized company-wide and within each of its business units?

3. What specific types of data are integrated across the whole company and each of its business units?

4. What is the highest-level structure of the IT landscape in the company and in each of its business units?

Preparing Bank reconciliation & any journal entries;

The following information is for Neopolitan Ltd in July

1.Cash balance per bank, July 31, $10,670

2. Cash balance per general ledger cash account, July 31, $8,953

3. Bank Service Charge, $40

4. Deposits in Transit, $1,968

5. Electronic receipts from customers in payment of their accounts, $1,276, not previously recorded by the company

6. Outstanding cheques, $2,359

7. Cheque #373 was correctly written in the amount of $890 but was incorrectly recorded by the company’s bookkeeper at $980.

Instructions

a) Prepare the bank reconciliation at July 31

b) Prepare any journal entries required from the reconciliation

aaaaa bonded company reported the following on its 12/31/2017 financial statements:

Accounts Receivable (net of a $16,000 Allowance) of $104,000

Consider that during 2018 Layer Cake accrued bad debt at 3% of credit sales, reported actual customer write offs of $21,000, credit sales of $800,000, and cash collections from customers as payment on account of $789,000. Additionally, the controller determined (from a detailed 12/31 aging analysis) that it would be appropriate to report the receivables on the 12/31/2018 balance sheet at a net realizable value of $88,000. What value will Layer Cake report as bad debt expense for the twelve months ended at 12/31/2018?

1.

artificial price used when goods or services are transferred from one segment of the company to another.

2.

Income -(investment x cost of capital percentage)

3.

What is a balanced scorecard?

4.

When preparing the cash budget, what should be considered?