Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow:

Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 31,000 tons of pulp per year from a supplier at a cost of $21 per ton, less a 10% purchase discount. Hrubec’s president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out.

Required:

For (1) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $21 per ton.

1. What is the lowest acceptable transfer price from the perspective of the Pulp Division? What is the highest acceptable transfer price from the perspective of the Carton Division? What is the range of acceptable transfer prices (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 31,000 tons of pulp next year?

2. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 31,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole?

For (3)–(6) below, assume that the Pulp Division is currently selling only 61,000 tons of pulp each year to outside customers at the stated $21 price.

3. What is the lowest acceptable transfer price from the perspective of the Pulp Division? What is the highest acceptable transfer price from the perspective of the Carton Division? What is the range of acceptable transfer prices (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 31,000 tons of pulp next year?

4-a. Suppose the Carton Division’s outside supplier drops its price (net of the purchase discount) to only $17 per ton. Should the Pulp Division meet this price?

4-b. If the Pulp Division does not meet the $17 price, what will be the effect on the profits of the company as a whole?

5. Refer to (4) above. If the Pulp Division refuses to meet the $17 price, should the Carton Division be required to purchase from the Pulp Division at a higher price for the good of the company as a whole?

6. Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 31,000 tons of pulp each year from the Pulp Division at $21 per ton. What will be the effect on the profits of the company as a whole?

A fashion magazine provides a yearly subscription service. According to historical data, about 72% of the customers renew their subscriptions each year. The manager of the magazine office believes the percentage would be higher if they change their service to be a monthly subscription. After 12 months, the manager randomly selected 500 customers and found 387 of them renewed the subscription. She conducts a hypothesis test where H0:p=0.72, and Ha:p>0.72 at the α=.05 level. She finds the p-value is 0.0036.

Select one or more:

a. 0.0036 is the probability of having 387 or fewer customers renew their subscription in a sample of 500 customers given that the true proportion of renewing subscription is 0.72.

b. 0.0036 is the probability of having exactly 387 customers renew their subscription in a sample of 500 customers given that the true proportion of those who renew their subscription is 0.72.

c. 0.0036 is the probability of having 387 or more customers renew their subscription in a sample of 500 customers given that the true proportion of those who renew their subscription is 0.72.

d. Because the p-value 0.0036 is not higher than 0.05, it is not statistically significant at that level, so we fail to reject the null hypothesis.

e. Because the p-value 0.0036 is less than 0.05, it is statistically significant at that level, and so we should reject the null hypothesis in favor of the alternative hypothesis.

f. 0.0036 is the probability that the true proportion of customers who renew their subscription is 0.72.

Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)

Use the Income Statement and Balance Sheet to determine the changes in:

• assets, liabilities, and equity
• total revenue and net income

Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder's view.

Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.)

Use the Income Statement and Balance Sheet to determine the changes in:

• assets, liabilities, and equity
• total revenue and net income

Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder's view.

Inventory Turnover and Days’ Sales in Inventory The Southern Corporation installed a new in-

ventory management system at the beginning of 2018. Shown below are data from the company’s

accounting records as reported by the new system:

2018 2019

Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000,000 $20,000,000

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,600,000 9,200,000

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,500,000 2,530,000

Ending inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,530,000 2,600,00

Calculate the company’s (a) inventory turnover (round to three decimal places) and (b) days’ sales in

inventory for 2018 and 2019. Comment on your results

explain he results :

Zambian Breweries sells its products in Zambia and three neighboring countries. Data collected from 2010 to 2018 shows that the company produced 300,000 barrels of beer annually. During this period, the average price per barrel of beer P (in Kwacha) was related to the quantity of beer sold Q (in thousands of barrels) by the demand function

P=-0.3224Q+245.4031

The total cost of producing Q thousand barrels of beer was

TCQ=101.1995Q+4699.3441

1. At what output level revenue be maximized?
2. Find the quantity and price levels that maximize profit.

Heineken sells its products in Namibia and three neighboring countries. Data collected from 2010 to 2018 shows that the company produced 300,000 barrels of beer annually. During this period, the average price per barrel of beer P (in Namibian dollars) was related to the quantity of beer sold Q (in thousands of barrels) by the demand function

P=-0.3224Q+245.4031

The total cost of producing Q thousand barrels of beer was

TCQ=101.1995Q+4699.3441

1. At what output level revenue be maximized?

2. Find the quantity and price levels that maximize profit.

Select one (1) U.S. publicly traded company and review its most recent Annual Report. (You may use one (1) of the three (3) companies you selected for your Stock Journal assignment.) Use the Income Statement and Balance Sheet to determine the changes in: assets, liabilities, and equity total revenue and net income Briefly describe the change from the current and prior years in each of these key areas and determine if the changes would be positive or negative from an investor / stockholder’s view.