V. State whether you agree or disagree with the following statements and briefly explain why. Please draw graphs to explain your answer, where appropriate.

In some states, the state government owns and operates the liquor stores. The governor of one of these states made the following statement.

"An increase in the price we charge for liquor would fight the twin evils of alcoholism and the state budget deficit. Even a small price increase would greatly decrease the use of alcohol and would increase the revenue going to the state."  

Routing computers is Computers that decide how best to forward packets

Select One

True

False

Local area network (LAN) is a Networks of computers connected over greater distances

Select One

True

False

Culture is one of the Limiting Factors for Consumers for using E-commerce

Select One

True

False

a Web page whose content is shaped by a program in response to user requests,

Select One

True

False

Web catalog revenue model, taking the catalog model to the Web

Select One

True

False

Old Southwest Canning Co. has determined that any one of four machines can be used in its chili-canning operation. The cost and revenues of the machines are estimated below, and all machines have a 7-year life. If the minimum attractive rate of return is 10% per year, determine the incremental rate of return of the last comparison on the basis of a rate of return analysis. (As of %)

Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,500 Gross profit $ 43,500 Operating expenses 30,500 Operating income $ 13,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.

Required: a. Rearrange the preceding income statement to the contribution margin format.

Calculate operating income if sales volume increases by 6%. (Do not round intermediate calculations.

Calculate the amount of revenue required for Fairchild to break-even

Absorption costing (also called the full cost method) treats all costs of production as product costs, regardless of whether they are variable or fixed. Since no distinction is made between variable and fixed costs, absorption costing is not well suited for CVP computations. Under absorption costing, the cost of a unit of product consists of direct materials, direct labor, and both variable and fixed overhead. Variable and fixed selling and administrative expenses are treated as period costs and are deducted from revenue as incurred.

Is the above statement true or false?

ACCT 301

ASSIGNMENT 4

1. You are required to prepare a Direct Material Budget for the second quarter (April to June) by considering a manufacturing company operating in Saudi Arabia as a sample study.                                                                          (4marks)

2. You are required to prepare the Sales price variance and Revenue sales quantity variance by taking any of your choice Saudi based company and suggest the suitable reasons for the variances.                                                              (3marks)

3. You are required to allot the support department cost to operations department by taking any Saudi based operating company.                            (3marks)

What is good data? What is meant by bad data? A term that you may have already encountered is "GIGO". This term refers to Garbage In, Garbage Out. In other words, if incorrect/bad data is entered into a database, the same useless data will be extracted. This results in poor decisions, lost revenue, and unhappy customers. Have you ever been the victim of bad data?

Discuss the importance of queries and good/bad data as they relate to database reports. Describe the impact on business of erroneous reports generated by bad data or faulty queries.

You are analyzing a project with 5-year life. The project requires a capital investment of $10000 now, and it will generate uniform annual revenue of $6000 at the end of each year. Further, the project will have a salvage value of $2500 at the end of the fifth year and it will require $3000 each year for the operation. What is the net value of the project using year 1 as the basis, considering a 10% annual interest rate._________(round your answer to the nearest integer, e.g. enter 12345 if your answer is 12,345.2; enter 12346 if your answer is 12,345.7)

You are contemplating an investment in a new factory expected to generate revenues of $1 million per year for as long as you maintain it. You expect maintenance costs will begin at $500,000 per year and increase by 5% per year into the future. Given that the series of revenue and maintenance costs are end-of-year cash flows, you plan to run the operation as long as positive cash flows continue. Assume the factory can be operational immediately for a cost of $3.5 million. If the interest rate is 2.5% per year, should you invest in the factory?

Chapter 1, you created two programs to display the motto for the Greenville Idol competition that is held each summer during the Greenville County Fair. Now write a program named GreenvilleRevenuethat prompts a user for the number of contestants entered in last year’s competition and in this year’s competition. Display all the input data. Compute and display the revenue expected for this year’s competition if each contestant pays a $25 entrance fee. Also display a statement that indicates whether this year’s competition has more contestants than last year’s.