QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers.

Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant.

Vosilo has just heard that QualSupport has received a bid from an outside vendor to supply the equivalent of the entire annual output of the Denver Cover Plant for $21.2 million. Vosilo was astonished at the low outside bid because the budget for the Denver Cover Plant’s operating costs for the upcoming year was set at $24.5 million. If this bid is accepted, the Denver Cover Plant will be closed down.

The budget for Denver Cover’s operating costs for the coming year is presented below.

*Fixed corporate expenses allocated to plants and other operating units based on total budgeted wage and salary costs.

Additional facts regarding the plant’s operations are as follows:

1. Due to Denver Cover’s commitment to use high-quality fabrics in all of its products, the Purchasing Department was instructed to place blanket purchase orders with major suppliers to ensure the receipt of sufficient materials for the coming year. If these orders are canceled as a consequence of the plant closing, termination charges would amount to 25% of the cost of direct materials.
2. Approximately 330 plant employees will lose their jobs if the plant is closed. This includes all of the direct laborers and supervisors as well as the plumbers, electricians, and other skilled workers classified as indirect plant workers. Some would be able to find new jobs while many others would have difficulty. All employees would have difficulty matching Denver Cover’s base pay of $12.80 per hour, which is the highest in the area. A clause in Denver Cover’s contract with the union may help some employees; the company must provide employment assistance to its former employees for 12 months after a plant closing. The estimated cost to administer this service would be $0.72 million for the year.
3. Some employees would probably choose early retirement because QualSupport has an excellent pension plan. In fact, $0.69 million of the annual pension expense would continue whether Denver Cover is open or not.
4. Vosilo and his staff would not be affected by the closing of Denver Cover. They would still be responsible for administering three other area plants.
5. If the Denver Cover Plant were closed, the company would realize about $1.9 million salvage value for the equipment and building. If the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate and should last indefinitely.

Required:

2. QualSupport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify:

a. The annual budgeted costs that are relevant to the decision regarding closing the plant.

b. The annual budgeted costs that are not relevant to the decision regarding closing the plant.

c. Any nonrecurring costs that would arise due to the closing of the plant.

3. Looking at the data you have prepared in (2) above,

a. Calculate the financial advantage (disadvantage) of closing the plant.

b. Should the plant be closed?

QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant, which makes seat covers.

Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His budget as the regional manager is charged to the Denver Cover Plant.

Vosilo has just heard that QualSupport has received a bid from an outside vendor to supply the equivalent of the entire annual output of the Denver Cover Plant for $21.66 million. Vosilo was astonished at the low outside bid because the budget for the Denver Cover Plant’s operating costs for the upcoming year was set at $24.96 million. If this bid is accepted, the Denver Cover Plant will be closed down.

The budget for Denver Cover’s operating costs for the coming year is presented below.

*Fixed corporate expenses allocated to plants and other operating units based on total budgeted wage and salary costs.

Additional facts regarding the plant’s operations are as follows:

1. Due to Denver Cover’s commitment to use high-quality fabrics in all of its products, the Purchasing Department was instructed to place blanket purchase orders with major suppliers to ensure the receipt of sufficient materials for the coming year. If these orders are canceled as a consequence of the plant closing, termination charges would amount to 25% of the cost of direct materials.
2. Approximately 360 plant employees will lose their jobs if the plant is closed. This includes all of the direct laborers and supervisors as well as the plumbers, electricians, and other skilled workers classified as indirect plant workers. Some would be able to find new jobs while many others would have difficulty. All employees would have difficulty matching Denver Cover’s base pay of $12.90 per hour, which is the highest in the area. A clause in Denver Cover’s contract with the union may help some employees; the company must provide employment assistance to its former employees for 12 months after a plant closing. The estimated cost to administer this service would be $0.86 million for the year.
3. Some employees would probably choose early retirement because QualSupport has an excellent pension plan. In fact, $0.79 million of the annual pension expense would continue whether Denver Cover is open or not.
4. Vosilo and his staff would not be affected by the closing of Denver Cover. They would still be responsible for administering three other area plants.
5. If the Denver Cover Plant were closed, the company would realize about $2.15 million salvage value for the equipment and building. If the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate and should last indefinitely.

Required:

2. QualSupport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify:

a. The annual budgeted costs that are relevant to the decision regarding closing the plant.

b. The annual budgeted costs that are not relevant to the decision regarding closing the plant.

c. Any nonrecurring costs that would arise due to the closing of the plant.

3. Looking at the data you have prepared in (2) above,

a. Calculate the financial advantage (disadvantage) of closing the plant.

b. Should the plant be closed?

How much should I save at the beginning of every month for retirement? I want to provide myself with increasing income starting at age 60 lasting to age 95, replacing 100% of my current income.

Assumptions:

Current age 30

Inflation 2.5%

Projected return before retirement 8%

Projected return after retirement 6%

Current income $50,000

Estimated Social Security $20,000

Wage Replacement Ratio 100%

Current Retirement Accounts $10,000

Late one night, a patient being treated after cardiac arrest expresses to her family and health care providers her desire to forego further resuscitation efforts. Her family does not agree with her decision. The health care providers believe that the patient is sufficiently competent to make her own choices. However, a second cardiac arrest occurs before legal action is taken. Discuss the issues involved when patients, their families, and health care providers disagree.

You are a shareholder in a "C" corporation. This corporation earns $4 per share before taxes. After it has paid taxes, it will distribute the remainder of its earnings to you as a dividend. The dividend is income to you, so you will then pay taxes on these earnings. The corporate tax rate is 21% and your tax rate on dividend income is 15%. The effective tax rate on your share of the corporation's earnings is closest to:
Select one:
A. 33%.
B. 15%.
C. 50%.
D. 45%.

Carlson Corporation a calendar year c corporation owned a truck it used in its business operation that was fully depreciated. The truck was involved in an accident. Immediately before the accident, the fair market value of the truck was $12,000. Immediately after the accident, the fair market value of the truck was $7,000. Carlson only carried liability insurance on the vehicle so it did not receive any insurance reimbursement for the damage to the truck. Under the circumstances, what amount is deductible by Carlson Corporation as a casualty loss?

A person standing on a bridge at a height of 115m above river drops a 0.250kg rock. A). What is the rock's total mechanical energy at the time of release relative to the surface of the river? B). What are the rock's kinetic, potential, and total mechanical energies after it has fallen 75.0m? C). Just before the rock hits the water, What are its speed and total mechanical energy? D). Answer parts (A)-(C) for reference point (y=0) at the elevation where the rock is released.

A) A 25 mL sample of 0.723M HClO4 is titrated with a 0.273M KOH solution. What is the pH before any base is added?

B) A 25 mL sample of 0.22M hydrazoic acid (HN3 ; Ka=2.6e-5) is titrated with a 0.30M KOH solution. What is the pH of the solution after 16 mL of base is added?

C) A 25 mL sample of an HCl solution is titrated with a 0.15M NaOH solution. The equivalence point is reached with 75 mL of base. The concentration of HCl is _____M.

Stella's Bakery calculated their net income to be $100,000 before any adjusting journal entries were recorded. What amount of net income will Stella's Bakery report after adjusting journal entries are recorded for the following transactions:

1. Record depreciation expense of $15,000
2. Earned $25,000 of rent revenue that was initially recorded as unearned revenue
3. Reclassified $10,000 of maintenance expense to a prepaid asset (represents prepaid maintenance coverage for the upcoming year)
4. Estimated bad debt expense of $10,000; there is no beginning allowance balance