PK Ltd manufactures four types of mobile phones which all use “goggles”, a component made in only one factory. Each goggle costs $50 to purchase. Due to a prolonged strike in the goggle factory, PK Ltd will only be able to purchase 20,000 goggles this year. The following information relates to each type of mobile manufactured by PK Ltd: Mobile A Mobile B Mobile C Mobile D Maximum demand(units) 11000 3000 3500 700 Cost per mobile: $ $ $ $ Goggle 50 100 200 350 Other direct materials 30 80 98 300 Direct Labour 30 40 30 55 Fixed Costs 60 80 40 70 Profit per mobile 50 70 52 490 Selling Price per mobile 220 370 420 1265 (a) Calculate the numbers of each type of mobile to be produced and sold that would maximize the profit of PK Ltd. (b) Prepare a Marginal Income Statement showing the profit for the year. PK Ltd has been approached by an outside supplier who can supply any of the four mobile phones at a cost of 80% of PK Ltd’s selling price. (c) Calculate the overall profitability if PK Ltd wants to supply all the four types of mobile phones at normal capacity. 3 (d) Identify and explain two issues which PK Ltd should take into account when buying ready-made mobiles from an outside supplier. (e) PK Ltd has a normal credit period of 55 days. The new policy of company is to allow a discount of 3% for payment within 12 days. The company operates a bank overdraft at 16.5% per annum. You are required to calculate the cost of the discount for Rs100 sales and advise if any
In: Finance
Relevant cash flows long dash—No terminal value
Central Laundry and Cleaners is considering replacing an existing piece of machinery with a more sophisticated machine. The old machine was purchased 3 years ago at a cost of
$47,500,
and this amount was being depreciated under MACRS using a 5-year recovery period. The machine has 5 years of usable life remaining. The new machine that is being considered costs
$75,700 and requires $4,000 in installation costs. The new machine would be depreciated under MACRS using a 5-year recovery period. The firm can currently sell the old machine for
$55,600 without incurring any removal or cleanup costs. The firm is subject to a tax rate of 40%.
The revenues and expenses (excluding depreciation and interest) associated with the new and the old machines for the next 5 years are
given in the table
|
New machine |
Old machine |
||||
|
Year |
Revenue |
Expenses (excluding depreciation and interest) |
Revenue |
Expenses (excluding depreciation and interest) |
|
|
1 |
$749,000 |
$719,200 |
$673,100 |
$659,700 |
|
|
2 |
749,000 |
719,200 |
675,100 |
659,700 |
|
|
3 |
749,000 |
719,200 |
679,100 |
659,700 |
|
|
4 |
749,000 |
719,200 |
677,100 |
659,700 |
|
|
5 |
749,000 |
719,200 |
673,100 |
659,700 |
|
. (Table)
|
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes |
||||
|
Percentage by recovery year* |
||||
|
Recovery year |
3 years |
5 years |
7 years |
10 years |
|
1 |
33% |
20% |
14% |
10% |
|
2 |
45% |
32% |
25% |
18% |
|
3 |
15% |
19% |
18% |
14% |
|
4 |
77% |
12% |
12% |
12% |
|
5 |
12% |
99% |
99% |
|
|
6 |
55% |
99% |
88% |
|
|
7 |
99% |
77% |
||
|
8 |
44% |
66% |
||
|
9 |
66% |
|||
|
10 |
66% |
|||
|
11 |
44% |
|||
|
Totals |
100% |
100% |
100% |
100% |
|
*These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention. |
||||
contains the applicable MACRS depreciation percentages.) Note: The new machine will have no terminal value at the end of 5 years.
a. Calculate the initial investment associated with replacement of the old machine by the new one.
b. Determine the incremental operating cash inflows associated with the proposed replacement. (Note: Be sure to consider the depreciation in year 6.)
c. Depict on a time line the relevant cash flows found in parts
(a) and (b) associated with the proposed replacement decision.
In: Finance
The local library if they get more patrons visiting by shifting some early morning hours to evening. They take a sample of days with morning hours included (8-5) compared to 12-9. Data below.
8am-5pm hours: 50, 40, 60, 60, 70, 35, 40 12-9 PM hours : 40, 80, 70, 60, 85, 90, 70
a) Provide null and alternative hypotheses in formal terms and layperson's terms for the t test for independent samples
b) Do the math and reject/accept at a=.05
c) Explain the results in layperson's terms
d) Calculate and explain a 95% confidence interval in layperson's terms if appropriate. If not, you must explain why not.
In: Math
Use the heights from the SCC data to answer the following questions. Men are to use the male data, and women are to use the female data (only answer the questions for ONE set of data, not both).
2. State the following for the SCC sample male heights.
a. Sample size (n)
b. Sample mean (?̅)
c. Sample standard deviation (s
male Student # Gender Height Shoe Age Hand
1 M 67 10 19 R
2 M 74 12 17 R
3 M 72 11.5 19 R
4 M 69 10 35 R
5 M 66 9 18 R
6 M 71 10.5 17 R
7 M 72 10.5 17 R
8 M 66 10 20 R
9 M 67 10 18 R
10 M 71 10.5 24 R
11 M 66 10 21 R
12 M 71 10.5 18 R
13 M 69 10 22 R
14 M 66 9.5 18 L
15 M 76 14 18 R
16 M 69 11 22 R
17 M 68 9 19 R
18 M 70 12 30 R
19 M 67 10 24 R
20 M 70 11 21 R
21 M 70 10 52 R
22 M 63 9 27 R
23 M 69 11 22 R
24 M 72 10 22 R
25 M 76 11.5 20 L
26 M 75 11 17 R
27 M 72 11 50 L
28 M 69 11 20 R
29 M 70 12 20 R
30 M 69 11.5 23 R
31 M 70 11 18 R
32 M 67 10 21 R
33 M 68 11 44 R
34 M 76 13 48 R
35 M 62 8 23 L
36 M 69 9 19 R
37 M 72 10 60 R
38 M 73 11.5 41 R
39 M 70 9.5 39 R
40 M 78 15 24 R
41 M 65 8.5 23 R
42 M 68 9.5 20 R
In: Statistics and Probability
You measure 44 watermelons' weights, and find they have an average weight of 54 grams. Assume the population standard deviation is 4.8 grams. Based on this, what is the margin of error associated with a 99% confidence interval for the true population mean watermelon weight. The sample size is sufficiently large that the normal distribution value can be used in deriving the margin of error. Give your answer as a decimal, to two places
In: Statistics and Probability
I’m trying to determine whether there is a relationship between e-commerce activities and satisfaction.
1-Using summary output generated in ms-excel regression analysis, make the relevant interpretation using r and r2 (I’ve found the “correlation” coefficient 0,28275. Where does this information belong in regression equation?)
2- Explanation the meaning of regression coefficients
3- is this regression significant? Why?
4- what would you predict satisfaction to be where the e-commerce activities rating is 2.00?
ID E-Commerce Activities Satisfaction
1 3,9 8,2
2 2,7 5,7
3 3,4 8,9
4 3,3 4,8
5 3,4 7,1
6 2,8 4,7
7 3,7 5,7
8 3,3 6,3
9 3,6 7
10 4,5 5,5
11 3,2 7,4
12 4,9 6
13 5,6 8,4
14 3,9 7,6
15 4,5 8
16 3,2 6,6
17 4 6,4
18 4,1 7,4
19 3,4 6,8
20 4,5 7,6
21 3,8 5,4
22 5,7 9,9
23 3,6 7
24 2,4 8,6
25 4,1 4,8
26 3,6 6,6
27 3 6,3
28 3,3 5,4
29 3 6,3
30 3,6 5,4
31 3,4 6,1
32 2,5 6,4
33 3,7 5,4
34 3,3 7,3
35 4 6,3
36 3,2 5,4
37 3,4 7,1
38 4,1 8,7
39 3,6 7,6
40 4,9 6
41 3,4 7
42 3,8 7,6
43 5,1 8,9
44 5,1 7,6
45 2,5 5,5
46 4,1 7,4
47 4,3 7,1
48 3,8 7,6
49 3,7 8,7
50 3,9 8,6
51 3,6 5,4
52 2,7 5,7
53 2,5 8,7
54 3,4 6,1
55 3,3 7,3
56 3,8 7,7
57 5,1 9
58 3,6 8,2
59 4,3 7,1
60 2,8 7,9
61 3,2 6,6
62 3,8 8
63 3,9 6,3
64 2,2 6
65 3,6 5,4
66 3,8 7,6
67 4 6,4
68 3,7 6,1
69 3,5 5,2
70 3,6 6,6
71 4,5 7,6
72 3,2 5,8
73 4,3 7,9
74 3,7 8,6
75 3,9 8,2
76 3 7,1
77 3,6 6,4
78 3,8 7,6
79 3,5 8,9
80 3,4 5,7
81 3 7,1
82 3,2 7,4
83 2,9 6,6
84 3,2 5
85 2,6 8,2
86 3,5 5,2
87 3,6 5,2
88 2,6 8,2
89 3,6 7,3
90 5,5 8,2
91 3,7 7,4
92 4,2 4,8
93 3,9 7,6
94 3,5 8,9
95 3,8 7,7
96 4,8 7,3
97 3,4 6,3
98 3,2 5,4
99 4,9 6,4
100 3 6,4
In: Statistics and Probability
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.
|
Balance Sheet (in $ millions) |
|||||
| Assets | Liabilities and Stockholders' Equity | ||||
| Cash | $ | 11 | Accounts payable | $ | 24 |
| Accounts receivable | 29 | Accrued wages | 11 | ||
| Inventory | 32 | Accrued taxes | 17 | ||
| Current assets | $ | 72 | Current liabilities | $ | 52 |
| Fixed assets | 49 | Notes payable | 19 | ||
| Common stock | 24 | ||||
| Retained earnings | 26 | ||||
| Total assets | $ | 121 | Total liabilities and stockholders' equity | $ | 121 |
Owen’s has an aftertax profit margin of 9 percent and a dividend payout ratio of 30 percent.
If sales grow by 25 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
In: Finance
|
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity. |
|
Balance Sheet (in $ millions) |
|||||
| Assets | Liabilities and Stockholders' Equity | ||||
| Cash | $ | 4 | Accounts payable | $ | 17 |
| Accounts receivable | 22 | Accrued wages | 4 | ||
| Inventory | 25 | Accrued taxes | 10 | ||
| Current assets | $ | 51 | Current liabilities | $ | 31 |
| Fixed assets | 42 | Notes payable | 12 | ||
| Common stock | 17 | ||||
| Retained earnings | 33 | ||||
| Total assets | $ | 93 | Total liabilities
and stockholders' equity |
$ | 93 |
|
Owen’s has an aftertax profit margin of 7 percent and a dividend payout ratio of 25 percent. |
|
If sales grow by 20 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).) New FUNDS would be _________??? |
In: Finance
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.
| Balance Sheet (in $ millions) |
|||||
| Assets | Liabilities and Stockholders' Equity | ||||
| Cash | $ | 10 | Accounts payable | $ | 23 |
| Accounts receivable | 28 | Accrued wages | 10 | ||
| Inventory | 31 | Accrued taxes | 16 | ||
| Current assets | $ | 69 | Current liabilities | $ | 49 |
| Fixed assets | 48 | Notes payable | 18 | ||
| Common stock | 23 | ||||
| Retained earnings | 27 | ||||
| Total assets | $ | 117 | Total liabilities and stockholders' equity | $ | 117 |
Owen’s has an aftertax profit margin of 8 percent and a dividend payout ratio of 30 percent.
If sales grow by 20 percent next year, determine how many
dollars of new funds are needed to finance the growth. (Do
not round intermediate calculations. Enter your answer in dollars,
not millions, (e.g., $1,234,567).)
|
In: Finance
Owen’s Electronics has nine operating plants in seven southwestern states. Sales for last year were $100 million, and the balance sheet at year-end is similar in percentage of sales to that of previous years (and this will continue in the future). All assets (including fixed assets) and current liabilities will vary directly with sales. The firm is working at full capacity.
| Balance Sheet (in $ millions) |
|||||
| Assets | Liabilities and Stockholders' Equity | ||||
| Cash | $ | 11 | Accounts payable | $ | 23 |
| Accounts receivable | 28 | Accrued wages | 10 | ||
| Inventory | 29 | Accrued taxes | 13 | ||
| Current assets | $ | 68 | Current liabilities | $ | 46 |
| Fixed assets | 46 | Notes payable | 18 | ||
| Common stock | 20 | ||||
| Retained earnings | 30 | ||||
| Total assets | $ | 114 | Total liabilities and stockholders' equity | $ | 114 |
Owen’s has an aftertax profit margin of 10 percent and a dividend payout ratio of 50 percent.
If sales grow by 30 percent next year, determine how many dollars of new funds are needed to finance the growth. (Do not round intermediate calculations. Enter your answer in dollars, not millions, (e.g., $1,234,567).)
New Funds:
In: Finance