John Rigas (founder and CEO of Adelphia Communications Corporation) was an extraordinary
man. Throughout his professional career, he was honored for his entrepreneurial achievements
and his humanitarian service. Among other awards, he received three honorable doctorate
degrees from distinguished universities, was named Entrepreneur of the Year by Rensselaer
Polytechnic Institute (his college alma mater) and was inducted into the Cable Television Hall of
Fame by Broadcasting and Cable magazine. He worked hard to acquire wealth and status. But a
$2.3 billion financial fraud eventually cost Rigas everything.

Rigas and his company, Adelphia Communications, started out small. With $72,000 of borrowed
money, he began his business career in 1950 by purchasing a movie theater in Coudersport,
Pennsylvania. Two years later, he overdrew his bank account to buy the town cable franchise
with $300 of his own money. Through risky debt-financing, Rigas continued to acquire assets
until, in 1972, he and his brother created Adelphia Communications Corporation. The company
grew quickly, eventually becoming the sixth largest cable company in the world with over 5.6
million subscribers.

From its inception, Adelphia had always been a family business, owned and operated by the
Rigas clan. During the 1990s, the company was run by John Rigas, his three sons, and his son-in-
law. Altogether, members of the Rigas family occupied a majority five of the nine seats on
Adelphia’s board of directors and held the following positions:
John Rigas, CEO and chairman of the board (father); Tim Rigas, CFO and board member (son);
Michael Rigas, executive vice president and board member (son); James Rigas, executive vice
president and board member (son); Peter Venetis, board member (son-in-law).
This family dominance in the company was maintained through stock voting manipulation. The
company issued two types of stock: Class A stock, which held one vote each, and Class B stock,
which held 10 votes each. When shares of stock were issued, however, the Rigas family kept all
Class B shares to themselves, giving them a majority ruling when company voting occurred.
With a majority presence on the board of directors and an effectual influence among voting
shareholders, the Rigas family was able to control virtually every financial decision made by the
company. However, exclusive power led to corruption and fraud. The family established a cash
management system, an enormous account of commingled revenues from Adelphia, other Rigas
entities, and loan proceeds. Although funds from this account were used throughout all the
separate entities, none of their financial statements were ever consolidated.

The family members began to dip into the cash management account, using these funds to
finance their extravagant lifestyle and to hide their crimes. The company paid $4 million to buy
personal shares of Adelphia stock for the family. It paid for Tim Rigas’s $700,000 membership at
the Golf Club at Briar’s Creek in South Carolina. With company funds, the family bought three
private jets, maintained several vacation homes (in Cancun, Beaver Creek, Hilton Head, and
Manhattan), and began construction of a private world-class golf course. In addition, Adelphia
financed, with $3 million, the production of Ellen Rigas’s (John Rigas’s daughter) movie Song
Catcher. John Rigas was honored for his large charitable contributions. But these contributions
also likely came from company proceeds.

In the end, the family had racked up approximately $2.3 billion in fraudulent off-balance-sheet
loans. The company manipulated its financial statements to conceal the amount of debt it was
accumulating. False transactions and phony companies were created to inflate Adelphia’s
earnings and to hide its debt. When the family fraud was eventually caught, it resulted in an SEC
investigation, a Chapter 11 bankruptcy filing, and multiple indictments and heavy sentences. The
perpetrators (namely, John Rigas and his sons) were charged with the following counts:

Violation of the RICO Act

Breach of fiduciary duties

Waste of corporate assets

Abuse of control

Breach of contract

Unjust enrichment

Fraudulent conveyance

Conversion of corporate assets

Until he was convicted of serious fraud, everybody loved John Rigas. He was trusted and respected in the small town of Coudersport and famous for his charitable contributions and abilityto make friends. He had become a role model for others to follow. With a movie theater and a $300 cable tower, he had built one of the biggest empires in the history of cable television. From small beginnings, he became a multimillion-dollar family man who stressed good American values. But his goodness only masked the real John Rigas, and in the end, it was his greed and deceit that ultimately cost him and his family everything.

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.

Last year, the company sold 48,000 of these balls, with the following results:

Required:

1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level.

2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls?

3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $161,000, as last year?

4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs?

5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?

6. Refer to the data in (5) above.

a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $161,000, as last year?

b. Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage.

Complete this question by entering your answers in the tabs below.

Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

Refer to the data in Required (2). If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $161,000, as last year? (Round your answer to the nearest whole unit.)

Refer again to the data in Required (2). The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.)

Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

Show less

If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $161,000, as last year? (Round your answer to the nearest whole unit.)

Assume the new plant is built and that next year the company manufactures and sells 48,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. (Round "Degree of operating leverage" to 2 decimal places.)

2.

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.

Last year, the company sold 62,000 of these balls, with the following results:

Required:

1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level.

2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls?

3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $194,000, as last year?

4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs?

5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?

6. Refer to the data in (5) above.

a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $194,000, as last year?

b. Assume the new plant is built and that next year the company manufactures and sells 62,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage

Req1

Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level. (Round "Unit sales to break even" to the nearest whole unit and other answers to 2 decimal places.)

CM Ratio

Unit Sales to Break Even

Degree of Operating Leverage

Req2

Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

CM Ratio

Unit Sales to Break Even

Req3

Refer to the data in Required (2). If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $194,000, as last year? (Round your answer to the nearest whole unit.)

Number of Balls

Req4

Refer again to the data in Required (2). The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.)

Selling Price

Req5

Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

CM Ratio

Unit Sales to Break even

Req6a

If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $194,000, as last year? (Round your answer to the nearest whole unit.)

Number of Balls

Req6b

Assume the new plant is built and that next year the company manufactures and sells 62,000 balls (the same number as sold last year). Prepare a contribution format income statement and compute the degree of operating leverage. (Round "Degree of operating leverage" to 2 decimal places.)

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost.

Last year, the company sold 42,000 of these balls, with the following results:

Required:

1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level.

2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls?

3. Refer to the data in (2) above. If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $154,000, as last year?

4. Refer again to the data in (2) above. The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs?

5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls?

6. Refer to the data in (5) above.

a. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $154,000, as last year?

b. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year). Prepare a contribution format income statement and Compute the degree of operating leverage.

Compute (a) last year's CM ratio and the break-even point in balls, and (b) the degree of operating leverage at last year’s sales level. (Round "Unit sales to break even" to the nearest whole unit and other answers to 2 decimal places.)

1.

2. Due to an increase in labor rates, the company estimates that next year's variable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remains constant at $25.00, what will be next year's CM ratio and the break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

3. Refer to the data in Required (2). If the expected change in variable expenses takes place, how many balls will have to be sold next year to earn the same net operating income, $154,000, as last year? (Round your answer to the nearest whole unit.)

4. Refer again to the data in Required (2). The president feels that the company must raise the selling price of its basketballs. If Northwood Company wants to maintain the same CM ratio as last year (as computed in requirement 1a), what selling price per ball must it charge next year to cover the increased labor costs? (Round your answer to 2 decimal places.)

5. Refer to the original data. The company is discussing the construction of a new, automated manufacturing plant. The new plant would slash variable expenses per ball by 40.00%, but it would cause fixed expenses per year to double. If the new plant is built, what would be the company’s new CM ratio and new break-even point in balls? (Round "CM Ratio" to 2 decimal places and "Unit sales to break even" to the nearest whole unit.)

6A. If the new plant is built, how many balls will have to be sold next year to earn the same net operating income, $154,000, as last year? (Round your answer to the nearest whole unit.)

6B. Assume the new plant is built and that next year the company manufactures and sells 42,000 balls (the same number as sold last year). Prepare a contribution format income statement and Compute the degree of operating leverage. (Round "Degree of operating leverage" to 2 decimal places.)

Identify and research a service business in your pathway. Using the internet, go to the company’s website and obtain their most recent (less than 2 years old) Annual Report/10K.

Write a three paragraph discussion post with the following information:

• Name of the company, in the subject line of your post.

• Why are you interested in this company?

• What industry are they in?

• What do they do specifically?

• What is the date of the most recent income statement presented, what was the net income on that statement? If the statement is in millions, state it that way.

Examples of businesses in pathways could be:

• AHCD: Dance, Theater, Film production, Social media, Graphics design or architecture business
• Business: Accounting office, caterer, advertising firm, dry cleaner, restaurant, any business is acceptable
• Education: K-12 tutoring, Child care, Charter schools
• Health Sciences: Dr. or Dentist office, PT office, Hospital, Insurance co,
• IMCT: Engineering Co., Aviation maintenance, Aviation distribution, Supply Chain Management
• Public Safety: Law office, PI, Equipment providers for the industry
• STEM: Engineering Co., Vet. Office, Computer Services co.
• SGSHS: Psychology office, Non-profit agencies, Social Media

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals.

A random sample of 55 home theater systems has a mean price of ​$136.00. Assume the population standard deviation is ​$18.60.

a) The​ 90% confidence interval is ​____

b) The​ 95% confidence interval is ____

c) Interpret the results. Choose the correct answer below.

a.

With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

b.

With​ 90% confidence, it can be said that the sample mean price lies in the first interval. With​ 95% confidence, it can be said that the sample mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

c.

With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is narrower than the​ 90%.

Java- Fill in the blanks

Print numbers 0, 1, 2, ..., userNum as shown, with each number indented by that number of spaces. For each printed line, print the leading spaces, then the number, and then a newline. Hint: Use i and j as loop variables (initialize i and j explicitly). Note: Avoid any other spaces like spaces after the printed number. Ex: userNum = 3 prints:

0
 1
  2
   3

--------------------------------------------

public class NestedLoop {
public static void main (String [] args) {
int userNum = 0;
int i = 0;
int j = 0;

/* Your solution goes here */

return;
}
}

----------------------------------------------------

Given numRows and numCols, print a list of all seats in a theater. Rows are numbered, columns lettered, as in 1A or 3E. Print a space after each seat, including after the last. Use separate print statements to print the row and column. Ex: numRows = 2 and numCols = 3 prints:

1A 1B 1C 2A 2B 2C 

-----------------------------------------------------------

public class NestedLoops {
public static void main (String [] args) {
int numRows = 2;
int numCols = 3;

// Note: You'll need to declare more variables

/* Your solution goes here */

System.out.println("");

return;
}
}

For each of the following anecdotes, briefly explain (i) why the described is potentially inconsistent with standard economic theory and (ii) why it is potentially consistent with a behavioral theory we learned in this course.

(a) Some students who were about to buy a ticket to a campus theater group were randomly selected and given a discount. Those who were given the discount were much more likely to buy a ticket for a second showing.

(b) The AARP recently asked a series of prominent lawyers to provide services for retirees at a highly discounted rate of $30 an hour. Very few lawyers agreed to do so. Then, the AARP simply asked the lawyers to volunteer their time for free to help the same retirees. At that point, many lawyers agreed to help out

(c) A bank offers two types of savings accounts, called Gold and Silver. The two types of accounts give the same rate of return, but the Silver account does not allow you to withdraw any money for six months. The bank manager is surprised when many people sign up for the Silver account.

(d) Cab drivers in New York City work longer hours on warm, sunny days (when their per-hour wage is low).

Scenario 1 - Ethical Dilemma - Reclassify Employees

You are on the management team of Crystal Clear Electronics (CCE) Inc., a company that specializes in high-quality home theater systems. In addition to selling these systems, CCE provides custom installation on all purchases and is known for the professionalism of its installation staff. This reputation is due to the rigorous policies its home installation staff must follow. All employees are required to attend bi-monthly training sessions, wear CCE uniforms, observe the installation dates and times agreed on by CCE and the customer, and follow any instructions given by CCE as to how to perform the installation.

Faced with shrinking margins and cash flow problems, CCE is looking to cut costs and increase cash flows. You realize that by reclassifying the installation staff as independent contractors, CCE will be able to accomplish both objectives. Because the installation staff would be independent contractors, the company would not have to pay payroll taxes, social security, and Medicare expenses. The reduction in these costs and the corresponding increase in cash flow would certainly help the company's liquidity. Furthermore, such a change would not affect the quality of the service provided and would be virtually invisible to customers.

Question: Discuss the ethical implications of this reclassification.