Last year, a soft drink manufacturer had 20% of the market. In order to increase their portion of the market, the manufacturer has introduced a new flavor in their soft drinks. A sample of 400 individuals participated in the taste test and 96 indicated that they like the taste.

Suppose that the manufacturer is interested in determining if more than 20% of the population will like the new soft drink. State the null and alternative hypotheses.  

Find the standard error of the proportion

Find the critical value associated with a 2.5% significance level for this test.

se the critical value approach and determine whether the null hypothesis stated in ‘a’ above should be rejected or not at the 2.5% significance level.

1.

West Company estimates that overhead costs for the next year will be $3,300,000 for indirect labor and $900,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 96,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

Multiple Choice

$0.0229 per machine hour.

$34.38 per machine hour.

$43.75 per machine hour.

$9.38 per machine hour.

$0.1067 per machine hour.

2.

K Company estimates that overhead costs for the next year will be $3,800,000 for indirect labor and $970,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 106,000 direct labor hours are planned for this next year, what is the company's plantwide overhead rate?

Multiple Choice

$0.02 per direct labor hour.

$45.00 per direct labor hour.

$35.85 per direct labor hour.

$9.15 per direct labor hour.

$0.11 per direct labor hour.

3.

A company has two products: A1 and B2. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:

Annual production and sales level of Product A1 is 9,180 units, and the annual production and sales level of Product B2 is 23,010 units. What is the approximate overhead cost per unit of Product A1 under activity-based costing?

Multiple Choice

$7.43

$8.33

$10.00

$12.81

$4.41

4.

ake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 566,667 units are expected to be produced taking .75 machine hours each. How much overhead will be assigned to each unit produced given the following estimated amounts?

rev: 09_11_2017_QC_CS-99527

Multiple Choice

$11.57 per unit

$8.17 per unit

$5.61 per unit

$12.43 per unit

$10.89 per unit

5.

Flannigan Company manufactures and sells a single product that sells for $540 per unit; variable costs are $324. Annual fixed costs are $836,000. Current sales volume is $4,290,000. Compute the contribution margin per unit.

Multiple Choice

$540.

$324.

$240.

$230.

$216.

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $834,000 per year. The present annual sales volume (at the $97 selling price) is 25,700 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Suppose the percent of licensed U.S. drivers (from a recent year) that are female is 49.50. Of the females, 5.19% are age 19 and under; 79.24% are age 20-64; 15.57% are age 65 or over. Of the licensed U.S. male drivers, 5.25% are age 19 and under; 79.32% are age 20-64; 15.43% are age 65 or over.

a. construct a contingency table of the situation( round to two decimal places)

b. P(driver is female)

c. P(driver is age 65 or over | driver is female)

d. P(driver is age 65 or over AND female)

e. In words, explain the difference between the probabilities in part (c) and part (d).

f. P(driver is age 65 or over) g. Are being age 65 or over and being female mutually exclusive events? How do you know?

The company's management is considering a new 8 year project. The project will require the purchase of a new piece of equipment at a cost of $600,000. The equipment will last eight years and have no salvage value at the end of its life. This project will generate incremental net cash revenues eah year duing the assets life in the amount of $140,000. The company uses straight-line depreciation and requires a minumum of 10% return on all new projects.

1. Using simple rate of return, should the project be accpeted? why or why not?

2. Explain strenghts and weaknesses of using rimple rate of return

Joe Carter is looking to invest in a four-year bond that pays semiannual coupons at a coupon rate of 5.6 percent and has a par value of $1,000. If these bonds have a market price of $1,035, what yield to maturity is being implied in the pricing? What is the current yield? What is the effective annual yield?

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A bond has a quoted price of $900. It has a face value of

$1,000, YTM of 10%, and a maturity of 10 years. Coupon is

paid every quarter. What is its coupon rate?

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You invested $100,000 in stocks last year and earned a return

of 12 percent. If the inflation rate last year was 3 percent, what

was your real return?

Last year, 35.7 % of all employees at a large company enrolled in at least one wellness class at the company's site. A survey is sent out to a sample employees at the start of the new fiscal year to see if a greater percentage is planning to take a wellness class this year. Survey responses are received from 162 employees and 76 indicate that they plan to enroll in a wellness class. Test the appropriate hypotheses using a significance level of 0.10.

• H0:H0: Select an answer p p̂  ? < = > ≠     Ha:Ha: Select an answer p p̂  ? < ≠ >  
• αα =    decision rule: Reject H0H0 if probability ? < > ≠  αα  
• Test Statistic: z =   (Note: round the z-score to two decimal places - carry at least four decimal places throughout all of your calculations)
• probability =   (Note: round the probability to four decimal places)
• decision: Select an answer Reject H₀ Fail to reject H₀
• Conclusion: At the 0.10 level, there Select an answer is not is  significant evidence to conclude the percentage of employees that plan to enroll in at least one wellness class in the upcoming year is Select an answer less than greater than different than  than 35.7%.

Suppose that you invest in a two-year Treasury bond with a coupon rate of 6% and $1,000 par. Suppose that you buy this bond at a price of exactly $1,000. You intend to hold this bond to maturity and reinvest the coupons until the bond matures. You expect to reinvest the coupons in an account that pays an APR of 1.23%, with semi-annual compounding. What is the effective annual rate of return on your investment? Hint: see Example 8 in the Lecture.

Do not round at intermediate steps in your calculation. Express your answer in percent. Round to three decimal places. Do not type the % symbol. If the return is negative, then include a minus sign.

The average number of graduates for a school district has been 250 per year with a standard deviation of 30. What is the probability that the number of graduates next year will be:

a. Less than 220

b. Less than 325

c. Less than 285

d. More than 238

e. More than 300

f. More than 325