2. Data was collected where a weightlifter was asked to do as many repetitions as possible using different amounts of weight. Below is a table that shows how much weight was on the bar, and how many repetitions the weightlifter could do: Weight 200 300 400 500 Reps 42 27 12 3
a. Calculate the correlation for this data. What does this value tell you about the relationship between these two variables?
b. Determine the least squares regression line for this data. Interpret the values for the y-intercept and the slope within this scenario.
c. Calculate r2 for this data and describe what it represents.
d. Using the regression line from part (b), calculate the predicted number of repetitions for this weight lifter if the weight is 400 pounds, and then calculate and interpret the residual for that weight using the data.
In: Statistics and Probability
|
Model |
City MPG |
Weight |
|
Mazda MX-5 Miata |
25 |
2365 |
|
Mercedes/Benz SLK |
22 |
3020 |
|
Mitsubishi Eclipse |
23 |
3235 |
|
Pontiac Firebird |
18 |
3545 |
|
Porsche Boxster |
19 |
2905 |
|
Saturn SC |
27 |
2420 |
In: Math
Between 4:00PM and 6:00PM the vehicles arrive to the entrance ramp of a regional toll road at a constant rate of 1740 vehicles per hour. The toll plaza at the entrance ramp has five toll booths, which combined can process up to 34 vehicles per minute. At 4:30PM one of the toll booths is disabled due to electronics malfunction, which reduces the vehicle processing capacity of the toll plaza to 27 vehicles per minute. At 5:00 PM the toll booth is repaired and the toll plaza capacity is restored back to 34 vehicles per minute. Assuming that the vehicle arrivals and departures at the toll plaza have uniform deterministic distributions, determine the total duration of the queue that had formed due to the toll booth closure, in minutes.
In: Civil Engineering
In Python:
Write a function called sum_odd that takes two parameters, then calculates and returns the sum of the odd numbers between the two given integers. The sum should include the two given integers if they are odd. You can assume the arguments will always be positive integers, and the first smaller than or equal to the second.
To get full credit on this problem, you must define at least 1 function, use at least 1 loop, and use at least 1 decision structure.
Examples:
sum_odd(0, 5) should return the value 9 as (1 + 3 + 5) = 9
sum_odd(6, 10) should return the value 16
sum_odd(13, 20) should return the value 64
sum_odd(7, 11) should return the value 27
In: Computer Science
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
| Date | Transactions | Units | Unit Cost | Total Cost | ||||||||||||
| March | 1 | Beginning inventory | 20 | $ | 190 | $ | 3,800 | |||||||||
| March | 5 | Sale ($280 each) | 15 | |||||||||||||
| March | 9 | Purchase | 10 | 210 | 2,100 | |||||||||||
| March | 17 | Sale ($330 each) | 8 | |||||||||||||
| March | 22 | Purchase | 10 | 220 | 2,200 | |||||||||||
| March | 27 | Sale ($355 each) | 12 | |||||||||||||
| March | 30 | Purchase | 8 | 240 | 1,920 | |||||||||||
| $ | 10,020 | |||||||||||||||
rev: 02_28_2017_QC_CS-80932
Required:
1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.
3. Using LIFO, calculate ending inventory and cost of goods sold at March 31.
4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)
6. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
In: Accounting
QUESTION 27
Company R has produced the following variance analysis report. If Company R has a policy to investigate variances over 10% of the flexible budget, which variances should be investigated?
| Actual | Flexible budget | Budget Variance | Price Variance | Quantity Variance | ||||
| DM | $78,580 | $88,000 | ($9,420) | F | $1,200 | U | ($10,620) | F |
| DL | $123580 | $145,000 | ($21,420) | F | ($2,650) | F | ($18,770) | F |
| VOH | $126,860 | $119,000 | $7,860 | U | ($5,560) | F | $2,300 | U |
|
The direct materials quantity variance and the direct labor efficiency variance. |
||
|
The direct materials price variance and the direct materials quantity variance. |
||
|
The direct materials quantity variance and the variable overhead efficiency variance. |
||
|
The direct labor rate variance and the direct labor efficiency variance. |
QUESTION 36
The current pretax income for Coretax is $40,000 (tax rate is 30%), with an average asset base of $120,000 and an expected return of 15 percent or higher. The ROI for Coretax would amount to:
|
23.3% |
||
|
33.3% |
||
|
15% |
||
|
66.7% |
QUESTION 38
Assume the following information for a product line:
| Sales revenue | $1,500,000 |
| Variable manufacturing costs | 140,000 |
| Fixed manufacturing costs | 160,000 |
| Variable selling/administrative costs | 130,000 |
| Fixed selling/administrative costs | 90,000 |
| What is the product line's segment income? |
|
$980,000 |
||
|
$1,200,000 |
||
|
$1,230,000 |
||
|
$1,250,000 |
QUESTION 39
The Rubber Division of Morgan Company manufactures rubber moldings and sells them externally for $50. At the current level of production, its variable cost is $20 per unit, and its fixed cost per unit is $7. Morgan's president wants the Rubber Division to transfer 5,000 units to another company division. Assuming the Rubber Division has available capacity for 5,000 additional units, the economic rule would set transfer price as:
|
$27. |
||
|
$50. |
||
|
$7. |
||
|
$20. |
In: Accounting
The
Situation:
In the summer of 2015, Photonics, a leader in the production of biometric sensors, started to experience a decline in sales growth for one of their most popular products, OxyAlert. OxyAlert was launched in 2011 and quickly became the industry standard in analyzing the oxygen levels of surgically repaired tissue after emergency care procedures. In the first year of sales this product captured 25% of the market in post operation biometric devices. By the second year it had rapidly overtaken the industry leader with a 55% share of the market. The success of this product was primarily due to innovative features that were not found on any other product. Features such as wireless disposable sensor probes and advance analytic software allowed doctors to shorten the recovery time of their patients in ICU units, which decreased per patient ICU expense by 10%. Based on these innovative features Photonics was able to charge a premium for this product and establish themselves as one of the most profitable companies in the industry.
Several competitors have now closed the gap in product design and functionality. In the fall of 2014, SeaBridge, one of Photonics biggest rivals, launched the product TotalDiagnostic. This product contains similar disposable sensory technology as OxyAlert, however, it allows doctors to analyze a broader range of a patient’s biometrics. While this product was priced around 10% higher than OxyAlert, doctors had the added advantage of not only maintaining the same recovery rates but also decrease the rate of post surgical infection by 15%. By February of 2015, TotalDiagnostic had captured 30% of the market.
Photonics response was swift. They immediately reduced the price of OxyAlert by 20% in order to regain market share. From March through May, sales of OxyAlertrebounded. While profit margins of the company did take a hit, it appeared that the price reduction stabilized the company’s market share. Unfortunately, recent sales reports from June show that pre-orders for OxyAlert are significantly down. As the CFO of Photonics you are worried that OxyAlert has become an obsolete product and further price reduction will have very little impact on sales growth.
Background and History:
Photonics was founded in 2008 by Rachel Walker, a professor of Bioengineering. From 2001 through 2006, Dr. Walker authored several papers on photonic measuring systems and it’s applications in biometrics. By 2007 she developed a prototype sensor that that was extremely non-invasive to the patient. She realized that this type of sensor combined with advanced computer algorithms could quickly analyze oxygen levels in surgically repaired tissues giving doctors “real time” information on the likelihood that a patient’s body would accept or reject the repaired tissue.
Dr. Walker believed that she had an important technology that could be highly profitable if she could find a way to commercialize it. Given the uniqueness of this technology she was able to obtain a patent in 2008. She felt fairly confident that her technology would be a major improvement in post-surgical care. However, several obstacles existed. The cost to turn this technology into a commercialized product was fairly substantial. However, more importantly, this was a highly disrupted technology that would require hospitals to change ICU and post operation processes. She wasn’t even sure if hospitals had a desire to change their current practices.
After interviewing several prominent hospital administrators, she concluded that that demand would be high if she could find a way to mass-produce her prototype at a cost that was on par with biometric sensors currently being sold to hospitals and other surgical centers. After several investor presentations, she was able to attract significant funding from a venture capital firm that specialized in funding small biomedical start-ups. With a $15 million dollar investment, Photonics was able to launch its first product, The BMD 1000, in January 2010.
In the first three months of 2010, sales of the BMD 1000 were tepid at best. While the product design was innovative, it did not integrate well with the current technology employed by most hospitals. Based on the criticisms of this product, Dr. Walker and her engineering team went back to the drawing board. The redesigned product was named OxyAlert and was introduced to the industry with much fanfare in January of 2011. By July of 2011, Photonics had secured orders with several large health care facilities on the East Coast. One year later, OxyAlert become the standard in the biometrics device industry.
Solutions
All along, you and Dr. Walker have known that five years was the typical product life cycle in this industry. Fortunately, you employ some of the brightest engineers in the field who have been developing three new interesting products that could restore your company’s sales growth. The first product is an improved version of OxyAlert, codenamed “OxyAlertII”. The second product is completely new to the industry and will allow doctors in emergency rooms to diagnose pre-existing conditions of incapacitated patients through breathalyzer tests. This product is codenamed “AutoAnalytics”. The third product is a complimentary product to OxyAlert that will enhance OxyAlert’s diagnostic capabilities. This product is codenamed “Diagnostic Solutions”.
The following are brief descriptions of each product’s financial costs and revenue projections:
OxyAlertII
Your marketing department believes that this product will not completely replace OxyAlert, as there will still be some companies who will want the older and cheaper version. However, they do believe that there will be significant cannibalization of your old product. By introducing this new product, sales of OxyAlert is forecasted to steadily decrease by 20% each year over the next 5 years. First year sales of OxyAlertII are projected to be $15 million with a 10% increase in revenue each year over the next 5 years. In the prior two years your company has spent $1 million on the development of this project. To finish the development of OxyAlertII and create the manufacturing infrastructure to produce it, your engineers estimate that they will need another $20 million in equipment purchases. This equipment has a 5-year life. The manufacturing process for this product will be fairly automated. As a result, cost of goods sold will be only 45% of revenue, much lower than current company averages. Incremental SG&A will be 15% of revenue. Working capital requirements will be 8% of revenue. In order to successfully launch this product, your marketing department is requesting a one-time advertising budget of $2.5 million, which will be spent in the first year of sales.
“AutoAnalytics”
This product is neither a complimentary product nor a replacement product for OxyAlert. The launch of this product is intended to create a new product line by extending Photonics core competencies into the emergency response market. Prior years’ development cost for this product has totaled $1.5 million dollars. Your engineering team estimates that it will cost $10 million dollars in new equipment purchases to manufacture this product. The economic life of this equipment is also 5 years. Your marketing department forecasts first year revenue at $9.5 million with initial one time marketing expense of $1.25 million. Based on projected demand, revenue is expected to increase by 7% year over year for the next 5 years. Because of the lack of experience in manufacturing this type of product, your operations management team expects that costs of goods sold will be somewhat high at 55% of revenue. Incremental SG&A will be 13% of revenue with an additional working capital requirement of 10% of revenue.
“DiagnosticSolutions”
DiagnosticSolutions is a series of networked probes that will allow customers to use OxyAlert in more efficient ways. Marketing believes that this complimentary product will actually help the sales of OxyAlert and prevent the full adoption of your competitor’s product, TotalDiagnostic, in the marketplace. Market share for OxyAlert is projected to slightly increase by 1.5 percent over the next 5 years. Your finance team believes that this will provide an additional $50,000 of cash flow per year in this five-year time period. While this product will help the sales of OxyAlert, it will be sold separately. Revenue projections for DiagnosticSolutions will be $4 million in the first year of sales. Since this is already a fairly saturated market, the sales of DiagnosticSolutions are projected to increase by only 2% per year over the next five years. As this is a complimentary product, the development cost is nominal. You will, however, need to expand your assembly line with more specialized equipment. This will require an additional $6 million of capital. Since this equipment is custom made it tends to have a longer life than the equipment used for the other products under consideration. Typically the economic useful life of this equipment is 7 years. Your incremental cost of goods sold and SG&A expense will be in line with current company margins of 50% and 10% respectively. Projected working capital is 12% of revenue. Given that this is a complimentary product, you will not incur any additional one time marketing expenses for launching this product.
Decisions
As the year progresses, investors and creditors are getting nervous that your company cannot maintain its leadership position within the industry. They still believe in your management team and your company’s ability to produce innovative products. As a result you have the ability to access up to $30 million dollars from your financiers. Your creditors are willing to loan you money at a 6% interest rate, while your investors expect a return of 12% on their equity. Based on the required returns on equity and debt, the company’s weighted average cost of capital is 9.45%. On all projects, assume a 30% tax rate on income. With good financial backing you have some important decisions to make in regards to these product launches. Again, your assignment is to make a recommendation on what new products to launch and provide an analysis on each product’s projected cash flow over a 5-year period. In order to support your recommendation, you will need to integrate the principles of capital budgeting decision-making in your analysis.
In: Finance
Allocating Joint Costs Using the Constant Gross Margin Method
A company manufactures three products, L-Ten, Triol, and Pioze, from a joint process. Each production run costs $12,900. None of the products can be sold at split-off, but must be processed further. Information on one batch of the three products is as follows:
Product |
Gallons | Further Processing Cost per Gallon |
Eventual
Market Price per Gallon |
| L-Ten | 3,500 | $0.50 | $ 2.00 |
| Triol | 4,000 | 1.00 | 5.00 |
| Pioze | 2,500 | 1.50 | 6.00 |
Required:
1. Calculate the total revenue, total costs, and total gross profit the company will earn on the sale of L-Ten, Triol, and Pioze.
| Total Revenue | $ |
| Total Costs | $ |
| Total Gross Profit | $ |
2. Allocate the joint cost to L-Ten, Triol, and Pioze using the constant gross margin percentage method. Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.
| Joint Cost | |
| Product | Allocation |
| L-Ten | $ |
| Triol | |
| Pioze | |
| Total | $ |
(Note: The joint cost allocation does not equal $12,900 due to rounding.)
3. What if it cost $2 to process each gallon of Triol beyond the split-off point? How would that affect the allocation of joint cost to these three products? Round the gross margin percentage to four decimal places and round all other computations to the nearest dollar.
| Joint Cost | |
| Product | Allocation |
| L-Ten | $ |
| Triol | |
| Pioze | |
| Total | $ |
(Note: The joint cost allocation does not equal $12,900 due to rounding.)
In: Accounting
Given:
Santana Rey expects second-quarter 2018 sales of her new line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 45 desk units (sales price of $1,330) and 28 chairs (sales price of $580)
| Sales† | $ | 228,270 | |
| Cost of goods sold‡ | 150,570 | ||
| Gross profit | 77,700 | ||
| Expenses | |||
| Sales commissions (10%) | 22,827 | ||
| Advertising expenses | 11,400 | ||
| Other fixed expenses | 20,400 | ||
| Total expenses | 54,627 | ||
| Net income | $ | 23,073 | |
* Reflects revenue and expense activity only related to the
computer furniture segment.
† Revenue: (135 desks × $1,330) + (84 chairs × $580) = $179,550 +
$48,720 = $228,270
‡ Cost of goods sold: (135 desks × $830) + (84 chairs × $330) +
$32,400 = $150,570
Santana Rey believes that sales will increase each month for the
next three months (April, 53 desks, 40 chairs; May, 57 desks, 43
chairs; June, 61 desks, 46 chairs) if selling prices are reduced to
$1,240 for desks and $530 for chairs, and advertising expenses are
increased by 10% and remain at that level for all three months. The
products’ variable cost will remain at $830 for desks and $330 for
chairs. The sales staff will continue to earn a 10% commission, the
fixed manufacturing costs per month will remain at $10,800 and
other fixed expenses will remain at $6,800 per month.
Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month. (Can be done in excel)
In: Accounting
1.For a linear demand curve that is downward sloping, the marginal revenue curve
Select one:
a. will be to the left of the demand curve and twice as steep.
b. will be to the right of the demand curve and twice as steep.
c. will be to the left of the demand curve and half as steep.
d. will be the same as the demand curve.
2.The demand curve that a monopolist faces is:
Select one:
a. not affected by changes in the prices of other goods.
b. the market demand curve.
c. the same as the demand curve that faces a perfectly competitive firm.
d. generally flatter than the demand curve that faces a perfectly competitive firm.
3.
The Herfindahl-Hirschman (HH) Index is used to
Select one:
a. measure the degree of market concentration in an industry.
b. None of the above
c. measure the degree of nonprice competition.
d. measure the extent of price leadership.
4.
The kinked demand curve model best reflects
Select one:
a. mutual interdependence among sellers.
b. price rigidities in oligopolistic markets.
c. a game theory approach to price-output decisions.
d. All of the above
5.
When a monopolist sells two units of output its total revenues are $100. When the monopolist sells three units of output its total revenues are $120. When the monopolist sells three units of output, the price per unit is:
Select one:
a. $33.33.
b. $6.67.
c. $40.
d. $20.
6.
When a monopolist sells two units of output its total revenues are $100. When the monopolist sells three units of output, its price per unit is $35. The monopolist's marginal revenue from selling the third unit of output is:
Select one:
a. $105.
b. $35.
c. $5.
d. $33.33.
In: Economics