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A Hospital has a budget of 75,795,000 and must reduce expenses
by 12,000,000 in the upcoming year so service lines must be
eliminated.One group of board members want to prioritize lines by
financial performance. (cut something ) and the second group want
to maximize the number of patients served. Make two program
budgets. A-Rank programs by the financial performance, what program
(s) should be cut |
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| Total | Total | ||
| Patients | Revenue | Cost | |
| Pediatrics | 500 | $3,500,000 | $3,400,000 |
| Cardiology | 400 | 12,000,000 | 11,800,000 |
| Medicine | 1,400 | 18,200,000 | 17,920,000 |
| General surgery | 500 | 11,500,000 | 11,375,000 |
| Oncology | 800 | 20,800,000 | 20,600,000 |
| Psychiatry | 500 | 4,000,000 | 4,250,000 |
| Obstetrics | 600 | 6,000,000 | 6,450,000 |
| 4,700 | $76,000,000 | $75,795,000 | |
| Total | Total | ||
| Patients | Revenue | Cost | |
| Pediatrics | 500 | 3500000 | 3400000 |
| Cardiology | 400 | 12000000 | 11800000 |
| General surgery | 500 | 11500000 | 11375000 |
| Psychiatry | 500 | 4000000 | 4250000 |
| Obstetrics | 600 | 6000000 | 6450000 |
| Oncology | 800 | 20800000 | 20600000 |
| Medicine | 1400 | 18200000 | 17920000 |
| 4700 | 76000000 | 75795000 |
In: Accounting
Problem 14-8 Calculating Cost of Debt [LO2]
|
Jiminy’s Cricket Farm issued a bond with 30 years to maturity and a semiannual coupon rate of 5 percent 3 years ago. The bond currently sells for 94 percent of its face value. The company’s tax rate is 22 percent. The book value of the debt issue is $65 million. In addition, the company has a second debt issue on the market, a zero coupon bond with 7 years left to maturity; the book value of this issue is $45 million, and the bonds sell for 74 percent of par. |
| a. |
What is the company’s total book value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) |
| b. | What is the company’s total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) |
| c. |
What is your best estimate of the aftertax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
a) total book value?
b) total market value?
c) cost of debt?
please help
In: Finance
•Calculate the variance analysis for the information provided below using this problem and the formula provided to you.
Data:
| Budget | Actual | Variance | |
| Total Payroll Cost | $65,600.00 | $78,627.50 | $13,027.50 |
| Total Nursing Hours | 1600 | 1850 | 250 |
| Composite Hourly Pay Rate | $30.00 | $33.00 | $3.00 |
| Patient Days | 350 | 375 | 25 |
Formulas to use in calculations for variance analysis:
Step #1: Compute the Efficiency Variance.
Budgeted nursing hours / Budgeted patient days = HPPD Budgeted
Actual nursing hours / Actual patient days = HPPD Actual
HPPD Actual - HPPD Budgeted
Actual patient days X extra nursing care hours = Total extra
Total extra X Budgeted hourly wage = Efficiency (in dollars)
Step #2: Compute the volume variance.
Actual patient days - Budgeted patient days = A
A X Budgeted HPPD = B
B X Budgeted pay = V (dollars)
Step #3: Compute the cost variance.
Actual $ paid - Budgeted $ paid = D
D X Actual hours worked = C (dollars)
Step #4: Calculate the Budget Variance.
Efficiency + Volume + Cost = Budget Variance
In: Finance
The market demand curve is P = 90 − 2Q, and each firm’s total cost function is C = 100 + 2q2.
1. Suppose there is only one firm in the market. Find the market price, quantity, and the firm’s profit.
2.Show the equilibrium on a diagram, depicting the demand function D (with the vertical and horizontal intercepts), the marginal revenue function MR, and the marginal cost function MC. On the same diagram, mark the optimal price P, the quantity Q, and the average total cost ATC. Illustrate the firm’s profit. Hint: You don’t need to draw the AT C curve.
3.Using the demand function, find the elasticity of demand at the monopoly price and quantity.
4.Verify that the monopoly price and quantity satisfy the monopo- list’s rule of thumb for pricing.
5.What is the monopolist’s factor markup of price over marginal cost?
6.How does the monopolist’s factor markup of price over marginal cost compare to that of a perfectly competitive firm?
In: Economics
Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine.
|
MONTH |
||||||||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
Total |
|
120 |
135 |
140 |
120 |
125 |
125 |
140 |
135 |
1,040 |
|
a. |
Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. |
|
b. |
Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month. There should not be a backlog in the last month. |
In: Advanced Math
Alpha company is producing chocolate bars and its average variable cost is given by the following equation: ???=0.5?2−24?+432.
3.1) If total fixed cost for the firm is 100, compute the total cost of producing chocolate bars for the firm.
3.2) Compute the number of chocolate bars that minimizes the average variable cost for the firm. What is the value of marginal cost at this point?
3.3) Assume that chocolate market is a perfectly competitive market and market price for chocolate is P=150. What do you think about profit (or loss) of Alpha company in the short run when market price is P=150?
3.4) Calculate the price for the shut-down point of Alpha company in the short-run (i.e. below which price Alpha company may shut down its plant?) Do you think Alpha company may shut- down its plant if market price is P=100?
In: Economics
| Total Product | Average Fixed Cost | Average Variable Cost | Average Total Cost | Marginal Cost |
| 1 | $100.00 | $17.00 | $117.00 | $17 |
| 2 | 50.00 | 16.00 | 66.00 | 15 |
| 3 | 33.33 | 15.00 | 48.33 | 13 |
| 4 | 25.00 | 14.25 | 39.25 | 12 |
| 5 | 20.00 | 14.00 | 34.00 | 13 |
| 6 | 16.67 | 14.00 | 30.67 | 14 |
| 7 | 14.29 | 15.71 | 30.00 | 26 |
| 8 | 12.50 | 17.50 | 30.00 | 30 |
| 9 | 11.11 | 19.44 | 30.55 | 35 |
| 10 | 10.00 | 21.60 | 31.60 | 41 |
| 11 | 9.09 | 24.00 | 33.09 | 48 |
| 12 | 8.33 | 26.67 | 35.00 | 56 |
The accompanying table gives cost data for a firm that is selling in a purely competitive market. If the market price for the firm's product is $12, the competitive firm should produce
Multiple Choice
4 units at an economic profit of $31.75.
4 units at a loss of $109.
zero units at a loss of $100.
8 units at a loss of $48.80.
In: Economics
1. Monopolistic competitive firms and perfectly competitive firms are similar in that both
Group of answer choices
set price equal to marginal cost.
face a horizontal demand curve.
face no barriers to entry or exit.
produce a homogeneous product.
all of the above
2. Does the monopolistic competitive firm exhibit resource-allocative efficiency?
Group of answer choices
No, because at its chosen quantity of output, price does not equal the lowest possible average total cost.
Yes, because at its chosen quantity of output, price equals marginal cost.
No, because at its chosen quantity of output, price is greater than marginal cost.
Yes, because at its chosen quantity of output, price is less than marginal cost.
3. If the top four firms account for $85 billion in sales and total industry sales are $250 billion, it follows that the four-firm concentration ratio is
Group of answer choices
0.34.
0.66.
1.34.
1.66.
In: Economics
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
| Manufacturing overhead costs incurred: | ||
| Indirect materials | $ | 16,000 |
| Indirect labor | 140,000 | |
| Property taxes, factory | 9,000 | |
| Utilities, factory | 80,000 | |
| Depreciation, factory | 251,500 | |
| Insurance, factory | 11,000 | |
| Total actual manufacturing overhead costs incurred | $ | 507,500 |
| Other costs incurred: | ||
| Purchases of raw materials (both direct and indirect) | $ | 410,000 |
| Direct labor cost | $ | 70,000 |
| Inventories: | ||
| Raw materials, beginning | $ | 21,000 |
| Raw materials, ending | $ | 31,000 |
| Work in process, beginning | $ | 41,000 |
| Work in process, ending | $ | 71,000 |
The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 20,700 machine-hours were used during the year.
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.
In: Accounting
The following cost data relate to the manufacturing activities of Chang Company during the just completed year:
| Manufacturing overhead costs incurred: | ||
| Indirect materials | $ | 15,600 |
| Indirect labor | 136,000 | |
| Property taxes, factory | 8,600 | |
| Utilities, factory | 76,000 | |
| Depreciation, factory | 250,700 | |
| Insurance, factory | 10,600 | |
| Total actual manufacturing overhead costs incurred | $ | 497,500 |
| Other costs incurred: | ||
| Purchases of raw materials (both direct and indirect) | $ | 406,000 |
| Direct labor cost | $ | 66,000 |
| Inventories: | ||
| Raw materials, beginning | $ | 20,600 |
| Raw materials, ending | $ | 30,600 |
| Work in process, beginning | $ | 40,600 |
| Work in process, ending | $ | 70,600 |
The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead cost to jobs. A total of 20,300 machine-hours were used during the year.
Required:
1. Compute the amount of underapplied or overapplied overhead cost for the year.
2. Prepare a schedule of cost of goods manufactured for the year.
In: Accounting