1.Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $7 Coffee Cakes 0.3 $8 The company has oven capacity of 3750 hours. How much will contribution margin be if it produces only the most profitable product?

2.How much sales are required to earn a target income of $340000 if total fixed costs are $500000 and the contribution margin ratio is 40%?

3.Bramble Corp. manufactures a product with a unit variable cost of $100 and a unit sales price of $186. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $125 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

4. Bramble’s CVP income statement included sales of 6200 units, a selling price of $50, variable expenses of $30 per unit, and net income of $25000. Fixed expenses are $310000. $99000. $124000. $186000.

5.It costs Concord Corporation $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A foreign wholesaler offers to purchase 2300 scales at $15 each. Garner would incur special shipping costs of $1 per scale if the order were accepted. Concord has sufficient unused capacity to produce the 2300 scales. If the special order is accepted, what will be the effect on net income? $4600 decrease $6900 decrease $4600 increase $34500 increase

6.Swifty Corporation produces 1000 units of a necessary component with the following costs: Direct Materials $31000 Direct Labor 12000 Variable Overhead 11000 Fixed Overhead 10000 Swifty Corporation could avoid $6000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Swifty Corporation would accept to acquire the 1000 units externally? $53000 $58000 $60000 $54000

7.In applying the high-low method, what is the fixed cost? Month Miles Total Cost January 86000 $182000 February 64000 160000 March 78000 178000 April 94000 220000 $32000 $22000 $42000 $60000

8.At the high level of activity in November, 5000 machine hours were run and power costs were $18000. In April, a month of low activity, 1000 machine hours were run and power costs amounted to $9000. Using the high-low method, the estimated fixed cost element of power costs is $6750. $11250. $18000. $9000.

9.The required sales in units to achieve a target net income is (sales + target net income) divided by contribution margin per unit. (fixed cost + target net income) divided by contribution margin ratio. (sales + target net income) divided by contribution margin ratio. (fixed cost + target net income) divided by contribution margin per unit. Click if you would like to Show Work for this question: Open Show Wor

10.Variable costs for Coronado Industries are 40% of sales. Its selling price is $75 per unit. If Coronado sells one unit more than break-even units, how much will profit increase?

11.Crane Company produces only one product. Monthly fixed expenses are $13000, monthly unit sales are 5000, and the unit contribution margin is $10. How much is monthly net income? $63000 $0 $50000 $37000

12.Crane Company produces 1000 units of a necessary component with the following costs: Direct Materials $36000 Direct Labor 25000 Variable Overhead 5000 Fixed Overhead 7000 None of Crane Company‘s fixed overhead costs can be reduced, but another product could be made that would increase profit contribution by $8000 if the components were acquired externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external price that Crane Company would be willing to accept to acquire the 1000 units externally? $76000 $74000 $63000 $69000

13.Sheridan Company’s unit manufacturing cost is: Variable Costs $50 Fixed Costs 25 A special order for 2000 units has been received from a foreign company. The unit price requested is $54. The normal unit price is $95. If the order is accepted, unit variable costs will increase by $2 for additional freight costs. If the order is accepted, incremental profit (loss) will be $4000. $(42000). $40000. $(46000).

14.Sheffield Corp. can produce 100 units of a component part with the following costs: Direct Materials $20000 Direct Labor 4500 Variable Overhead 14000 Fixed Overhead 11000 If Sheffield Corp. can purchase the component part externally for $45000 and only $4000 of the fixed costs can be avoided, what is the correct make-or-buy decision?

Call Provision gives issuing corporations the right to call the bonds for redemption. Generally it occurs when interest rate increases substantially. The company should pay additional amount above the par value to the called bondholders, which is call premium.

True/False

At maturity, the value of any bond must equal its par value. The value of a premium bond would decrease to $1,000. The value of a discount bond would increase to $1,000.

True/False

If we expect that Federal Reserve Bank will boost interest rate soon, it is a good strategy for investors to invest in the bond market because bond price is expected to increase.

True/False

Nothing is riskless. Long-term bonds have higher interest rate risk and lower reinvestment rate risk than short-term bonds.

True/False

Corporate yield curves are higher than that of the Treasury bond. However, corporate yield curves are not necessarily parallel to the Treasury curve. The spread between a corporate yield curve and the Treasury curve widens as the corporate bond rating increases.

True/False

For a non-constant dividend growth stock, the capital gain yield of the stock is not always equal to the dividend growth rate g.

True/False

Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock, and its beta will be greater than 1.0.

True/False

The dividends of tracking stock are tied to a particular division, rather than the company as a whole. Tracking stock usually has no voting rights, and the financial disclosure for the division is not as regulated as for the company.

True/False

Use the following convention table for R-square.

Upload the ManBody data. Create a scattered plot chart with X representing the Knee size and Y representing the Ankle size (both in centimeters); plot the line and compute the R-square. Answer the questions:

I) If a person has knee size equal to 40 cm, according to the chart and the analysis, what is his predicted ankle size? (Round to two decimal places) (11.11 points)

• a. About 0.42 centimeters
• b. About 6.51 centimeters
• c. About 0.37 centimeters
• d. About 23.70 centimeters
• e. None of the above

II) If a person A has knee size equal to 30 cm and a person B has knee size equal to 32 cm, according to the chart and the analysis, which of the following can be concluded? (Round to two decimal place) (11.11 points)

• a. Person B will have on average 0.42 centimeters larger Ankle
• b. Person A will have on average 0.42 centimeters larger Ankle
• c. Person B will have on average 4.21 centimeters larger Ankle
• d. Person B will have on average 6.5 centimeters larger Ankle
• e. None of these

III) How strong is the relationship between the Knee size and Ankle size? (11.11 points)

• a. Poor
• b. Decent
• c. Good
• d. Very Good
• e. Excellent

link to data set: https://www.limes.one/Content/DataFiles/Man_body.txt

Optimal Capital Structure with Hamada

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 6%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero-growth firm and pays out all of its earnings as dividends. The firm's EBIT is $15 million, and it faces a 25% federal-plus-state tax rate. The market risk premium is 5%, and the risk-free rate is 6%. BEA is considering increasing its debt level to a capital structure with 35% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 9%. BEA has a beta of 1.0.

1. What is BEA's unlevered beta? Use market value D/S (which is the same as w_d/w_s) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.
2. What are BEA's new beta and cost of equity if it has 35% debt? Do not round intermediate calculations. Round your answers to two decimal places.

   Beta:

   Cost of equity:   %

3. What is BEA's WACC with 35% debt? Do not round intermediate calculations. Round your answer to two decimal places.

     %

   What is the total value of the firm with 35% debt? Do not round intermediate calculations. Enter your answer in millions. For example, an answer of $1.234 million should be entered as 1.234, not 1,234,000. Round your answer to three decimal places.

   $   million

Barry's Burger Shack operates a single location at NEU selling burgers, fries, and sodas to faculty and students. Revenues for 2017 were $90,000 with profits of $2,250; industry benchmarks suggest profit margins should be close to 10% of revenue. Barry noticed an increasing number of complaints from customers over the quality of his burgers and the messiness of soda service are and has hired you to estimate the cost of quality for his burger business. One in 30 customers returned burgers for a replacement due to burger being too greasy, serving too cool, or served with wrong ingredients, the cost to replace was 1,600 per year.

You observe the cooking process for a few days, and identify the following process steps as well as related material costs, labor time, and scrap % at each step

Required: Complete the chart above to compute the scrap cost per unit. Assuming Barry sells 18,000 burgers per year, what his annual cost of scrap? What would you recommend?

The following table contains approximate figures for gross domestic product (GDP) and the national debt in the United States for June 2001 and June 2010. The national debt represents the total amount of money owed by the federal government to holders of U.S. securities. All numbers are in trillions of dollars.

Source: “U.S. Treasury, Bureau of Economic Analysis.”

Net public debt is the portion of the national debt that is held outside the federal government and the Federal Reserve System. In June 2001, the net public debt as a percentage of total national debt was __________.

In June 2001, the percentage of the U.S. national debt held by foreigners (external national debt) was ________ .

The fraction of the national debt held by foreigners will eventually need to be repaid to foreigners, thereby reducing the collective purchasing power of Americans. Between 2001 and 2010, the fraction of the national debt held by foreigners __________ .

The absolute level of the debt does not necessarily provide a clear indication of a nation's debt burden. Thus, economists often look at relative measures of the national debt. One possible relative measure of the national debt is the federal debt held by the public (outside the federal government and the Federal Reserve) as a percentage of GDP. In 2001, publicly held debt was _______ of GDP. Between 2001 and 2010, publicly held debt as a percentage of GDP _________ .

The data resulting from a random sample of 5 observations are shown below. Y is the dependent variable, and X1 and X2 are the independent variables.

Use Excel's Regression tool to answer the following questions. To copy the data set, highlight the table, press Ctrl-c, click on the Excel cell to which you want to copy, then press Ctrl-v.

Fill in Multiple Blanks

For all numerical answers, show one (1) digit to the right of the decimal point, for example, 1.0, 1.2. Apply the appropriate rounding rule if necessary. Hint: You can use the “Format Cell” option in the Regression output so that it shows two digits after the decimal point. Excel will automatically round the values up or down, if necessary.

1. The estimated regression line is (enter the estimated coefficients in the appropriate space):

yhat =____________ +____________ X1 +____________ X2

2. At 95% confidence, X1  (enter is, is not) significantly related to Y.

3. At 95% confidence, X2  (enter is, is not) significantly related to Y.

4. Predict Y when X1 = 94.8 and X2 = 11.2. Yhat = .

5. While testing for overall significance at 95% confidence, the null hypothesis (shown below)  (enter should, should not) be rejected.

Ho: beta1 = beta2 = 0

Ha: At least one of the beta's does not equal 0

6. True or false? About 77% of the variability in Y is explained by X1 and X2, and about 23% of the variability in Y is explained by the other factors not included in the regression.  (Enter true, false).

1) What is the value of Q when each reactant and product is in its standard state? (See Section 10.10 in the textbook for the definition of standard states.)

What is the value of  when each reactant and product is in its standard state? (See Section 10.10 in the textbook for the definition of standard states.)

22.414 L
298 K
1 atm
1

2) For the reactionA(g)⇌2B(g), a reaction vessel initially contains only A at a pressure of PA=1.28 atm . At equilibrium, PA =0.17 atm Calculate the value of Kp. (Assume no changes in volume or temperature.)

3) Consider the reaction: 2NO(g)+Br2(g)⇌2NOBr(g) Kp=28.4 at 298 K
In a reaction mixture at equilibrium, the partial pressure of NO is 102 torr and that of Br2 is 160torr .What is the partial pressure of NOBr in this mixture?

4) The system described by the reaction CO(g)+Cl2(g)⇌COCl2(g)
is at equilibrium at a given temperature when PCO= 0.28 atm , PCl2= 0.10 atm , and PCOCl2= 0.61 atm . An additional pressure of Cl2(g)= 0.40 atm is addedFind the pressure of CO when the system returns to equilibrium.

5)At 650 K, the reaction MgCO3(s)⇌MgO(s)+CO2(g) has Kp=0.026. A 12.5 L container at 650 K has 1.0 g of MgO(s) and CO2 at P = 0.0260 atm. The container is then compressed to a volume of 0.500 L Find the mass of MgCO3 that is formed.

6) Consider the following reaction:
SO2Cl2(g)⇌SO2(g)+Cl2(g)
Kc=2.99×10−7 at 227∘C

If a reaction mixture initially contains 0.168 M SO2Cl2, what is the equilibrium concentration of Cl2 at 227 ∘C?

Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes.

Barney Smith Investment Advisors recently issued estimates for the state of the economy and the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions.

a. Calculate the expected rate of return on each alternative.

b. Calculate the standard deviation of returns on each alternative.

c. Calculate the coefficient of variation on each alternative.

d. Calculate the beta on each alternative.

A random sample of 19 wolf litters in Ontario, Canada, gave an average of x₁ = 5.6 wolf pups per litter, with estimated sample standard deviation s₁ = 1.1. Another random sample of 6 wolf litters in Finland gave an average of x₂ = 3.8 wolf pups per litter, with sample standard deviation s₂ = 1.0.

(a) Categorize the problem below according to parameter being estimated, proportion p, mean μ, difference of means μ₁ – μ₂, or difference of proportions p₁ – p₂. Then solve the problem.

μ₁ – μ₂

μ

p₁ – p₂

p

(b) Find an 99% confidence interval for μ₁ – μ₂, the difference in population mean litter size between Ontario and Finland. (Use 1 decimal place.)

(c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? all negative? of different signs? At the 99% level of confidence, does it appear that the average litter size of wolf pups in Ontario is greater than the average litter size in Finland?

Because the interval contains only positive numbers, we can say that the average litter size of wolf pups is greater in Ontario.

Because the interval contains both positive and negative numbers, we can not say that the average litter size of wolf pups is greater in Ontario.

   We can not make any conclusions using this confidence interval.

Because the interval contains only negative numbers, we can say that the average litter size of wolf pups is greater in Finland.