Mason Corporation began operations at the beginning of the current year. One of the company’s products, a refrigeration element, sells for $195 per unit. Information related to the current year’s activities follows.

Mason carries its finished goods inventory at the average unit cost of production and is subject to a 30 percent income tax rate. There was no work in process at year-end.

1.)Determine the cost of the December 31 finished goods inventory.

2.)Compute Mason’s net income for the current year ended December 31.

3.)If next year’s production decreases to 23,000 units and general cost behavior patterns do not change, what is the likely effect on

The direct-labor cost of $36 per unit?

No change

Increase

Decrease

The fixed manufacturing overhead cost of $600,000?

No change

Increase

The fixed selling and administrative cost of $860,000?

No change

Increase

Decrease

The average unit cost of production?

No change

Increase

Decrease

There is a 9%, 23 year note bond which has a ytm of 9%. The ytm alters by one percent down. By how much does the price alter? If the ytm drops by 2%, by how much does the price change? What is the exact percentage change of the bond in the 2 cases?

1. Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account and he also paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the course of the year.

c.       What is the total amount of Marc and Michelle’s deductions from AGI?

d.      What is Marc and Michelle’s taxable income?

e.       What is Marc and Michelle’s taxes payable or refund due for the year (use the tax rate schedules)?

It is known that 1 year old dogs have a mean gain in weight of 1.0 pound per month with a standard deviation of 0.40 pound. A special diet supplement, Helthpup, is given to a rando sample of 36, 1-year-old dogs for a month; their mean gain in weight is 2.15 pounds. At the 0.01 level of significance, does helthpup affect weight gain in 1-year-old dogs? (a) What is the research problem? (b) State null and alternative hypothesis (c) Is this one or two tail test? why? (d) what is the critical value? (e) what is the decision rule? (f) calculate the statistic (g) what is your decision regarding null hypothesis and why? (h)interpretation of the results?

A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is given below. The demands are all assumed to be normally distributed. Seating Zone Seats Available Ticket Price Mean Demand Standard Deviation First Level Sideline 15,000 $1000.00 14,500 750 Second Level 5,000 $90.00 4,750 500 First Level End Zone 10,000 $80.00 9,000 1,250 Third Level Sideline 21,000 $70.00 17,000 2,500 Third Level End Zone 14,000 $60.00 8,000 3,000 Determine the distribution of total revenue under these assumptions using 250 trials. Summarize the statistical results. The question is from following book and from Chapter 12 question 17 Textbook: James Evans, Business Analytics, 3nd edition, 2019, Pearson Education, Pearson. ISBN: 13:978-0-13-523167-8

You've identified a project that would require an initial investment this year of $1500, and would generate cash flows of either $2400 or $1200 depending on the economy, with either being equally likely. We're going to use our 'perfect world' approach and assume no taxes and no transaction costs. You demand an 8% market risk premium and the risk-free rate is 4%. What is the value of this project today and the expected return to equity holders? (company has no debt) You are considering borrowing $300 to help finance the project, and can borrow 6%. In this case, what should the price be for the equity portion of the company and what is the expected return to equity holders? You are interested in boosting your risk to earn a higher return, and you are considering borrowing $1200. In this case, what should the price be for the equity portion of the company and what is the expected return to equity holders?

The following information is available from the accounting records of Manahan Co. for the year ended December 31, 2016:

a. Calculate the operating income for Manahan Co. for the year ended December 31, 2016

B)

Calculate the company's net income for 2016.

We consider a population of cars from a given model year. A sample of 24 such cars

has been recently sold. The sale price as a function of the age of the car is in the Excel

file S4.XLSX (Car) in the Excel directory.

a. Try a linear regression and an exponential (non-linear) regression with Excel to

fit these data. Comment your results.

b. Which regression model seems to fit the data better and why?

c. Run the LINEST function in Excel. Provide the result table.