Contribution Margin Analysis—Sales
Select Audio Inc. sells electronic equipment. Management decided early in the year to reduce the price of the speakers in order to increase sales volume. As a result, for the year ended December 31, the sales increased by $19,100 from the planned level of $1,025,100. The following information is available from the accounting records for the year ended December 31.
| Actual | Planned | Increase or (Decrease) | ||||
| Sales | $1,044,200 | $1,025,100 | $19,100 | |||
| Number of units sold | 22,700 | 20,100 | 2,600 | |||
| Sales price | $46 | $51 | $(5) | |||
| Variable cost per unit | $8 | $8 | $0 | |||
a. Prepare an analysis of the sales quantity and unit price factors. Use a minus sign for any negative amounts.
| Select Audio Inc. | ||
| Contribution Margin Analysis—Sales | ||
| For the Year Ended December 31 | ||
| Effect of changes in sales: | ||
| Sales quantity factor | $ | |
| Unit price factor | ||
| Total effect of changes in sales | $ | |
b. Did the price decrease generate sufficient volume to result in a net increase in contribution margin if the actual variable cost per unit was $8, as planned?
In: Accounting
| Citrin Corporation reported the following information related to 20X7 and 20X8: | |||||
| 20X7 | 20X8 | ||||
| Beginning inventory | $ 634,400 | $ 530,400 | |||
| Purchases | 1,899,990 | 2,450,500 | |||
| Cost of goods available for sale | $ 2,534,390 | $ 2,980,900 | |||
| Less: Ending inventory | 530,400 | 480,000 | |||
| Cost of goods sold | $ 2,003,990 | $ 2,500,900 | |||
| Sales | $ 3,003,990 | $ 4,500,900 | |||
| Cost of goods sold | 2,003,990 | 2,500,900 | |||
| Gross profit | $ 1,000,000 | $ 2,000,000 | |||
| The 20X7 ending inventory value used in the above presentation erroneously failed to include $200,000 of goods purchased FOB shipping point. The purchase and related accounts payable were correctly recorded by Citrin Corporation. Citrin Corporation uses a periodic inventory system. | |||||
| (a) |
Prepare a corrected presentation of the above data. *PLEASE EXPLAIN WHAT CHANGES MUST OCCUR WHEN YOU SOLVE THE ERROR |
||||
| (b) |
Prepare a corrected presentation of the above data, but this time assume that the company had also failed to record the purchase before 20X8 (in addition to omitting the $200,000 from 20X7 ending inventory). *PLEASE EXPLAIN WHAT CHANGES MUST OCCUR WHEN YOU SOLVE THE ERROR |
||||
In: Accounting
Data for Tropical Enterprises? follows:
2019
2018
2017
Total Current Assets
$400,000
$300,000
$250,000
Total Current Liabilities
190,000
150,000
125,000
Compute the dollar amount of change and the percentage of change in Tropical ?Enterprises's working capital each year during 2019 and 2018. What do the calculated changes? indicate?
Begin by selecting the formula to compute the working? capital, the dollar amount of change and the percentage of change in Tropical ?Enterprises' working capital.
Working capital =__________________________________
Dollar amount of change = __________________________
Percentage of change = _________________________________
?First, calculate the amount and percentage of change in working capital in 2018. ?(Round the percentage to one decimal? place, X.X%.)
The amount of change in working capital is ________
The percentage of change in working capital is _________%
. ?Next, calculate the amount and percentage of change in working capital in 2019. ?(Round the percentage to one decimal? place, X.X%.)
The amount of change in working capital is__________ .
The percentage of change in working capital is_________ %.
What do the calculated changes? indicate?
Tropical ?Enterprises' working capital has ? -deteriorated or improved -year over year from 2017 to 2019.
In: Accounting
The real growth rate is calculated by
- The BEA adjusting the GDP for inflation
- The BEA using nominal rates to reflect the GDP
- The BLS adjusting the GDP per capita for inflation
- The BLS calculating price level changes and population changes
Productivity growth is usually an indicator of
- The possibility of inflation
- Future increases in the unemployment rate
- The decline in the health and prosperity of the economy
- The increase in the health and prosperity of the economy
What would NOT be one of the reasons for a much lower real GDP in 1905, compared with 2007?
- Productive capability in 1905 was lower than in 2007
- Fewer goods and services were available in 1905 than in 2007
- On average, there were fewer poor people in 1905 than in 2007
- Automobiles were rare in 1905, but common in 2007
By 2016, economists had drawn what conclusion about the very low productivity growth that lasted from 2005 to 2015?
- It was merely a temporary pause in otherwise strong productivity growth
- Productivity slowed because of government overregulation
- Productivity slowed because of a decrease in investment
- Productivity averaged only 1.2 percent during that time
In: Economics
Problem 1. Mitochondria may be prepared from cells and tested in cell free experiments. If supplied with pyruvate and oxygen, isolated mitochondria are capable of aerobic metabolism.
C. You as the investigator measure the energy state of the mitochondria as the ratio [NADH]/[NAD+]
1. Describe how the ratio is high and low for high and low energy charge, respectively
2. You remove the supply of oxygen. Explain how the ratio changes in response
3. You add an inhibitor of ATP synthase. Explain how the ratio changes in response
D. You as the investigator makes three measurements at the end of a test that lasts 10 min (exact time is not important). You measure 10 nmol (10-9 moles) of pyruvate consumed (this number is important). You also measure the nmol of CO2 and citrate produced.
1. Explain how 30 nmol of CO2 were produced.
2. Explain how 0 nmol of citrate were produced.
3. Based on the measurements above, predict how many nmol of acetyl-CoA were produced. Explain.
In: Biology
LG
Following is the seven-year forecast for LG: (all amounts in $000)
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | |
| EBIT | $(1000) | $(900) | $200 | $1,200 | $2,500 | $3000 | $3,050 |
| Capital Expenditures | $550 | $350 | $200 | $175 | $175 | $160 | $150 |
| Changes in Working Capital | $400 | $300 | $200 | $100 | $100 | ($100) | ($100) |
| Depreciation | $40 | $80 | $125 | $150 | $150 | $150 | $150 |
Beginning after year 2026 the annual growth in EBIT is expected to be 1.5%, a rate that is projected to be constant over LG remaining life as an enterprise. Beginning in 2026 LG capital expenditures and depreciation are expected to offset each other (capex - depreciation = 0) and year to year changes in working capital are expected to be zero (working capital levels remain constant year over year). For discounting purposes consider 2020 as year 1.
Assume a tax rate is 21% and a cost of capital of 7.75%
Calculate the fair market value (NPV) for LG. Assume that the Net Present Value of LG free cash flow for the period 2020 - 2026 is $3000
In: Finance
Which of the "Seven QC Tools" would be most useful in addressing each of the following situations? Explain your reasoning. A copy machine suffers frequent paper jams and users are often confused as to how to fix the problem. The publication team for an engineering department wants to improve the accuracy of its user documentation but is unsure of why documents are not error-free. A bank needs to determine how many teller positions, drive-through stations, and ATM machines it needs for a new branch bank in a certain busy location. Its information includes the average numbers and types of customers served by other similar facilities, as well as demographic information to suggest the level of customer traffic in the new facility. A contracting agency wants to investigate why they had so many changes in their contracts. They believe that the number of changes may be related to the dollar value of the original contract or the days between the request for proposal and the contract award. A travel agency is interested in gaining a better understanding of how call volume varies by time of year in order to adjust staffing schedules.
In: Operations Management
In the dataset airways (see R code), we have the change in airflow from moderate exercise for 19 subjects under 2 different exposure conditions – regular air (air) and 0.25% sulpher dioxide (so2).
a) Look at the correlation, and use the t-table to test the null hypothesis that air flow change under these two conditions is uncorrelated. Test at significance level 0.05. Show your work.
b) Use a linear model and the summary function in R to test the null hypothesis that air flow changes are uncorrelated among people at the alpha = 0.05.
c) Look at the scatterplot of the airway changes. Does a linear model fully explain the relationship between these variables? Why or why not?
R codes:
##################
subject = 1:19
air = c(0.82,0.86,1.86,1.64,12.57,1.56,1.28,1.08,4.29,1.37,14.68,3.64,3.89,0.58,9.50,0.93,0.49,31.04,1.66)
so2 = c(0.72,1.05,1.40,2.30,13.49,0.62,2.41,2.32,8.19,6.33,19.88,8.87,9.25,6.59,2.17,9.93,13.44,16.25,19.89)
airways = data.frame(subject,air,so2)
airways
# part a, get the correlation
cor(air,so2)
# part b, make a model and get the summary
fit = lm(air ~ so2, data=airways)
summary(fit)
## part c, to see a scatterplot...
plot(air ~ so2, data=airways)
In: Statistics and Probability
Below are pairs of economic outcomes in (a)-(g). For each pair, provide 1 Determinant Change or 1 Monetary Policy stance (Expan or Contr) or 1 Fiscal Policy stance (Expan or Contr) that could cause the pair of outcomes under the assumptions of: wages are rigid (expect for (g)); secondary effects are smaller than initial effects; international financial account responses are stronger than international current account responses; and default concerns are low. Determinant changes / policies may be repeated. a. Unemployment rises, Real GDP rises b. Real GDP falls, Flexible Exchange Rate depreciates c. Real Interest Rate falls, Unemployment falls d. Inflation falls, Budget Balance moves toward surplus e. Real GDP rises, Official International Reserves rise. f. Inflation rises, Flexible Exchange depreciates g. Wage Rate falls, Interest Rates rise h. Choose 1 of your (a) – (g) answers and provide a brief analytical chronology of how the determinant/policy change leads to the 2 outcome changes.
In: Economics
Clearly, things are beginning to change, especially with Georgia's Tom Price out as head of DHHS. Nonetheless, the midterm assignment for this course is to prepare a 5-page paper in APA-format which addresses one of the following topics integral to the US Affordable Care Act. You are allowed to use appropriate resources such as information from prior courses, briefs or white papers from the "think-tanks" listed at the bottom of the module section, peer-reviewed articles from journals such as Health Affairs, JAMA, NEJM, Lancet, etc. Be sure to check the Due Date...late assignments will not be accepted without a "one-letter grade per day" penalty.
Your paper should provide an introduction to the topic, 3-5 major issues related to each topic, conclusion, and any recommendations you might have to improve upon issues related to that particular topic. Remember to note any significant changes or discussions about significant changes (if any) to your topic since the current administration took office.
In: Economics