Variable Costing Income Statement for a Service Company

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Operating statistics from the management information system reveal the following for April:

a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Calculate the contribution margin ratio, rounded to one decimal place.

the 19^th of April 2009, the Venezuelan Lechuza Carakas Polo team was due to appear in the semi-final of the US Open Polo Championship in Florida. The horses of the team were kept at the Lechuza Caracas equestrian facility near the polo grounds in Wellington, about 70 miles north of Miami. When the horses were offloaded from trailers at the polo club in the afternoon, staff discovered that some animals had died and the others were showing severe respiratory problems, incoordination and recumbency.

Even though veterinarians attending the polo event immediately rushed to provide emergency treatment to the animals, 20 of the 21 horses eventually died just prior to the event, during transport to the event, or soon after unloading at the event. One horse that had developed clinical signs was transported to a veterinary clinic but died later that evening.

Investigating the cause of death of the horses

1. investigations confirmed that only the horses from the Venezuelan team were affected and no other horses at the equestrian facility or event premises showed any clinical signs. Clinical signs observed in the affected horses included severe central nervous system symptoms, with hyperexcitability, sweating, tachycardia, dyspnea, fever and sudden death. In the morning of the day of the polo event, the horses were seemingly healthy.

If you had to lead the investigation into the death of these animals, what information would you try to gather or what type of tests would you conduct? What would you speculate could have happened

Case Scenario

Your favorite seventy-two-year-old Uncle Bob recently slipped on the ice and broke his left hip. After surgery and a four-day hospital stay, the hospital is ready to discharge him. His physician believes Uncle Bob would benefit from a stay at a skilled nursing facility where he would receive skilled nursing, physical therapy and occupational therapy. The physician writes the order. Your Uncle Bob has Medicare A and Medicare B.

Questions

1. Will Medicare cover his skilled nursing facility stay?Why or Why not? Be specific.

Because the social workers cannot recommend a facility, Uncle Bob asks you, the future healthcare administrator, for your advice. He wants to stay in within 10 miles of the State College area so family and friends can visit during his stay.

2. Using the data compiled in Nursing Home Compare (Links to an external site.)Links to an external site., which facility do you recommend and why?

Compare facility information to state and national standards, speaking specifically to (a) health inspections, (b) quality and (c) staffing in your response.

3. Based on your assessment of the facility data, is the Five-Star Quality Rating System helpful to potential residents and their families in making decisions about nursing home care?

Why or why not?

4. If a facility receives a five-star rating in one period and then is downgraded to a lower rating in a later period, does it face any financial consequences? Explain.

-Fatima's records contain the following information:

1.   Donated stock having a fair market value of $4,000 to a qualified charitable organization. She acquired the stock five months previously at a cost of $3,000.

2.   Paid $900 to a church school as a requirement for the enrollment of her son.

3.   Paid $350 for annual homeowner's association dues.

4.   Drove 500 miles in his personal auto. The travel was directly related to volunteer services she performed for her church.

How much can Fatima deduct as a charitable contribution?

A) $2,456

B) $3,070

C) $3,356

D) $4,000

-GarLee Grocery, Inc., a C corporation with high taxable income, donates some of its inventory to the Local Food Bank (a charitable organization) which distributes food to the needy. At the time of the contribution, the FMV of the inventory was $20,000, and GarLee Grocery's basis was $6,000. Lee Grocery will be allowed a charitable contribution deduction of

A) $8,000.

B) $12,000.

C) $13,000.

D) $20,000.

-For non-cash charitable donations, an appraisal will be required for donations valued at more than

A) $250.

B) $500.

C) $5,000.

D) $50,000.

-Henry’s adjusted gross income is $50,000 in 2018. He donated a piece of artwork with a basis of $10,000 and a fair market value (FMV) of $25,000. He has owned the artwork for 10 years. The charity that Henry donated the artwork to is a public charity and will display the art work in its art center. What is the maximum charitable deduction in 2018 that Henry can take?

$0.

$10,000.

$15,000.

$25,000.

you are working at a firm that conducts independent testing for heavy industry. Recently, an automobile manufacturer has been in the news for complaints about the highway gas mileage of their latest model minivan. You receive a contract from a consumer action group to test and write a report on the company’s claim that its minivans get 28 miles per gallon on the highway. The car company agrees to allow you to select randomly 35 low-mileage fleet minivans to test their highway mileage. Your test results gave you the following data:

29.7     24.5     27.1     29.8     29.2     27.0     27.8     24.1     29.3

            25.9     26.2     24.5     32.8     26.8     27.8     24.0     23.6     29.2

            26.5     27.7     27.1     23.7     24.1     27.2     25.9     26.7     27.8                

            27.3     27.6     22.8     25.3     26.6     26.4     27.1     26.1

List the null and alternative hypotheses for the two-tail test for the mean. Calculate the observed value of the test statistic and the associated p-value. (75–150 words, or 1–2 paragraphs)

• Is the observed test statistic in the critical region? Is the p-value higher or lower than your alpha? (75–150 words, or 1–2 paragraphs)

List the null and alternative hypotheses for the one-tail test of the mean. Calculate the observed value of the test statistic and the associated p-value. (75–150 words, or 1–2 paragraphs)

• Is the observed test statistic in the critical region? Will the p-value be higher or lower than your alpha? (75–150 words, or 1–2 paragraphs)

R has a number of datasets built in. One such dataset is called mtcars. This data set contains fuel consumption and 10 aspects of automobile design and performance for 32 automobiles (1973-74 models) as reported in a 1974 issue of Motor Trend Magazine.

We do not have to read in these built-in datasets. We can just attach the variables by using the code

        attach(mtcars)

We can just type in mtcars and see the entire dataset. We can see the variable names by using the command

The variables are defined as follows:

mpg Miles/(US) gallon

cyl Number of cylinders

disp Displacement (cu.in.)

hp Gross horsepower

drat Rear

axle ratio

wt Weight (lb/1000)

qsec 1/4 mile time

vs V/S (“V” engine or “Straight line”) (0 or V, 1 for S)

am Transmission (0 = automatic, 1 = manual)
gear Number of forward gears
carb Number of carburetors

We want to model mpg by some or all of the other 10 variables . Do a complete regression analysis. Be sure to comment for each thing you do.

Suppose a prototype for a car was in development. This car has 6 cylinders, 250 cubic in. engine, 130 horsepower, a rear axle ratio of 3.8, weighs 2750 pounds, has a 1/4 mile time of 15.9 seconds, is a V engine type, has automatic transmission, 5 forward gears, and 6 carburetors. With 90% confidence, what is an interval estimate for the predicted mpg for this car?

1. Researchers have long suspected that texting has a detrimental effect on driving behavior. To avoid unnecessary high risk of driving on the roads, driving behavior is measured via driving simulator and the number of mistakes is recorded while texting and not texting as the person is driving the simulator. Mistakes such as failing to stay within the lane, driving at least 10 miles below or above the speed limit, and failing to use the turn signal are automatically recorded. To avoid individual differences in driving behavior, participants are tested twice: once under the “texting while driving” condition and once under the “driving without texting” condition. There are nine participants in the study. Their driving mistakes are reported in the table below.

Question: Do the data support the claim that texting has a detrimental (negative) effect on driving behavior, using an α = 0.05?

For this question, you must follow the steps of hypothesis testing and complete all your calculations by hand. Remember to show your calculations and provide your conclusions in sentence format.

Once you finish this part of the assignment, you can scan or take a photo of your work and paste the scan/photo in your Word document.

Table 1.

Number of mistakes by study participants while using the driving simulator

1.Joe is the owner of a large farm, and Joe wants to be certain that his farm will continue to be used for agricultural purposes after his death. Since none of Joe’s children are interested in maintaining the farm, Joe decides to sell his farm to Lou on condition that Lou uses the farm for agricultural purposes. If Lou fails to do so, ownership of the farm will instantly transfer to a charitable organization called the Farming Preservation Society. What is (or could be) the wording of the granting clause found in the deed that transfers ownership of the farm from Joe to Lou.

2.Eli is the owner of a small commercial farm located in Washington (the state). For the past twenty years, Eli’s farm has relied on water drawn from a lake located three miles away. Each day, Eli (or one of Eli’s employees) would take a truck to the lake and fill-up large tanks with its water. The water would then be driven back to the farm to be used to water the crops. One day, a developer bought a large plot of land adjacent to the lake. This developer intends to construct fifty luxury homes on this plot of land, and they plan to draw water from the lake to fillup the dozens of new swimming pools that will soon be constructed. As a result, there will not be enough water in the lake for Eli to use for his farm. If Eli files a lawsuit to limit the amount of water that the developer can draw from the lake, is Eli likely to succeed? Briefly explain your answer. (3 points)

3.What is the easiest and most reliable way to prove someone has title to real estate?

Josh Adams is 76 years old. Josh has always been very active and busy during his life. He was a welder until he retired at age 60. Since then, he has kept busy fishing, hunting, and golfing. In the past 5 years, Josh has realized that his body has begun to age and he had been experiencing some new aches and pains. Josh decided to see his physician to get some answers about what he is experiencing.

1. Josh states that he is no longer able to complete long drives without stopping to use the restroom. He has a 2-hour drive one way out to the woods and is frustrated that he has to stop to use the restroom. What can you tell Josh he is experiencing?
2. Josh is also upset that he does not have the energy to walk the 2 miles to the pond to fish. What can you tell Josh about his energy as he increases with age?
3. Josh also discussed with the physician his inability to see objects clearly at night. What types of things can you explain to Josh about his vision with age?
4. During the visit, the physician notices that Josh cannot understand what the physician is saying. What issues can occur with older adults and their hearing?
5. What psychological changes, associated with aging, should you be prepared to discuss with Josh?
6. What health promotion and risk reduction measures can Josh incorporate to address the common age-related changes?

1. From Statistics and Data Analysis from Elementary to Intermediate by Tamhane and
Dunlop, pg 339. The following table gives the eye color and hair color of 592 students.

Eye Hair Color Row
Color Black Brown Red Blond Total
Brown 68 119 26 7 220
Blue 20 84 17 94 215
Hazel 15 54 14 10 93
Green 5 29 14 16 64
Column Total 108 286 71 127 592

a) What test should we use to test that the eye color and hair color are associated? Give the null
and alternative hypothesis.
b) Conduct the test at α = 0.05. What do you conclude? Give more than reject or fail to reject
H0.

2. The following data is looking at how long it takes to get to work. Let x = commuting
distance (miles) and y = commuting time (minutes)

x 15 16 17 18 19 20
y 42 35 45 42 49 46

a) Give a scatterplot of this data and comment on the direction, form, and strength of this relationship.

b) Determine the least-squares estimate equation for this data set.
c) Give the coefficient of determination, R2, comment on what that means.
d) Give the residual plot based on the least-squares estimate equation.
e) Test if this least-squares estimate equation specify a useful relationship between commuting
distance and commuting time.