A local hospital claims that you will not wait longer than 45 minutes in the emergency room. You go out to test this claim and find a sample of 81 patients chosen at random from their emergency room, you find a sample mean of 52 minutes with a sample standard deviation of 23 minutes. Can you publicly debunk their claim (call their claim fraudulent) at the 1% significance level? Use a test stat and then a p-value to determine if your conclusion is weak or strong

What kind of forward and backward linkages would each of the following publicly funded program might have? Comment on the number, strength, and intrinsic profitability of the linkages. Do you recommend that this initiative should be funded by the government or should it be left to the private sector?

a. Construction of a big hospital in a rural area where is no such hospital for 200 miles.

b. Creation of a large public park that from purchasing private agricultural property from private landowners.

c. Discovery and development of large deposits of natural gas

Stock options are a popular way for large, publicly held companies to compensate managers and executives. Frequently, the value of stock options granted to executives can result in millions of dollars of additional compensation to executives already earning high six and seven figure salaries. Why do companies favor stock options to compensate executives? Do you see any potential problems with such a compensation program? Explain. Do you think that there should be limits on such compensation? Why or why not?

Pick 5 business

Each of one need:

1. Explain their revenue stream (type)

2. Explain when the revenue would be recognized ("earned") under the accrual method

3.Will there be a different gross and net sales?

4.Name 1 Cogs, if applicable

5.Name 1 variable operation expenses

6.Name 1 fixed operating expenses

Mesmerizing Marketers (MM) is a marketing company that offers a variety of marketing offerings to its customers. Specifically:

• MM will create a TV commercial for $1M, build an app for $500K, and build a Facebook page for $250K. These amounts represent MM’s charges for these items when MM sells them separately to customers. The TV commercial, the app, and the Facebook page are not interrelated; that is, each functions independently of the other offerings.

• If a customer purchases all aforementioned items together, the total cost is $1.5M. Payment terms are 50 percent consideration due at contract signing, with the remaining 50 percent due over the rest of the development period (25 percent at mid-point, 25 percent at completion).

• If the app is downloaded 500K times or more in the first month, there is a one-time bonus of $250K payable to MM.

Stone, a customer, approaches MM with the hopes of reinventing its image to a younger customer base. Stone has a verbal agreement with MM that is based on MM’s unsigned quote to Stone on November 30, 20X5, for one TV commercial, one app, and a Facebook page. The agreement creates enforceable rights and obligations pursuant to MM’s customary business practices. None of these items can be redirected by MM to another customer. MM performed a credit check on Stone and has determined that Stone has the intention and ability to pay MM for fulfilling its portion of the contract. Stone is required to pay MM for performance completed to date if Stone cancels the contract with MM for reasons other than MM’s failure to perform under the contract as promised.

Stone makes a payment on November 30, 20X5, in the amount of $750K pursuant to the agreement. From the date of the quote, it takes MM six months to develop and produce the TV commercial, two weeks to complete the Facebook page, and three months to complete a fully functioning app. MM does not think that the app will be downloaded 500K times in the first month because Stone’s customer base does not quickly accept newly developed technology. On the basis of its experience with similar technology, MM has determined that it takes over three months for Stone’s users to begin to download its apps.

Required

MM’s CFO is trying to understand the new revenue recognition model and has asked you to explain how MM would account for the above scenario under the new standard.

1. How should MM account for the above offering with Stone under the new revenue recognition model?

2. How would your conclusions change if: a. The app sold to Stone is actually downloaded more than 500K times in the first month?

Question 2
A department at Venta Technology has prepared the following report for 2020. This department has recently faced severe competitive pressures, which has resulted in falling sales and profits over the last 3 years.

Summarised data from the management accounts
Budgeted profit and loss account for 12 months

A new customer has placed an order for 10,000 units at £60 per unit. The current capacity of the factory is 90,000 units.

Note 1. Cost of goods sold includes fixed costs of £500,000. All other costs are variable.

Note 2. If the order is accepted there will be additional fixed costs of £50,000. Staff will receive a bonus of £10,000 if the order is completed on time.

Note 3. Sales commission is 10% of sales and is included in the total cost of £800,000. The sales commission on the new order is only 5%. All other costs are fixed

Required:

1. Advise managers whether or not the order will increase the department’s profits.

2. Calculate the minimum price the company should accept for the order.  

3. Assume that the company will lose 10% of current sales if the order is accepted. What is the lost contribution if the company loses 10% of current sales?           

4. Identify and evaluate what additional information management need about existing and potential customers before finally accepting or rejecting the order.   (14⅓ marks)

Problem I-A: Consider the following situation. There are M sellers of used cellphones on the market and many potential buyers who compete in Bertrand fashion to buy these cellphones. Assume cellphones can either be of good quality or bad quality. The reservation seller prices are $150 for a good quality phone, and $20 for a bad quality phone. Buyers are willing to pay up to $200 for a good quality phone, and up to $50 for a bad quality phone. The ratio of good phones to bad phones among these M sellers is 1/2. That means that for every good phone there are two bad phones or that the probability of dealing with a good phone is 1/3 and the probability of dealing with a bad phone is 2/3. a) What will happen if buyers can determine the exact quality of the phones before buying? What goods get traded, what are the prices, and what is the total market surplus in this full information case? Answer: (TS = 110 3 M) Please help me solve this problem in complete detail as I don't understand this subject too well. Thank you

Question 1

The following transactions for Carleton Company occurred during January 2016:

Show the total amount of revenue and expense recognized under both the accrual basis and cash basis of accounting.

Based upon market research, the Hawthorne Company has determined that consumers are willing to purchase 139 units of their portable media player each week when the price is set at $34.50 per unit. At a unit price of $10.40, consumers are willing to buy 380 units per week.

(a) Determine the weekly demand equation for this product, assuming price, p, and quantity, x, are linearly related.
p =

(b) Determine the weekly revenue function.
R(x) =

(c) Determine the number of units consumers will demand weekly when the price is $30.30 per portable media player.
units

(d) Determine the number of units consumers will demand weekly when the revenue is maximized.
units

(e) Determine the price of each unit when the revenue is maximized.
dollars

Based upon market research, the Hawthorne Company has determined that consumers are willing to purchase 132 units of their portable media player each week when the price is set at $132.00 per unit. At a unit price of $40.50, consumers are willing to buy 315 units per week.

(a) Determine the weekly demand equation for this product, assuming price, p, and quantity, x, are linearly related.
p =  

(b) Determine the weekly revenue function.
R(x) =  

(c) Determine the number of units consumers will demand weekly when the price is $94.50 per portable media player.
units

(d) Determine the number of units consumers will demand weekly when the revenue is maximized.
units

(e) Determine the price of each unit when the revenue is maximized.
dollars