The sales of certain products in three cities are given in the 4 by 3 matrix below. City 1 City 2 City 3

Tablets 61 68 37

Laptop Computers 51 66 39

Cell Phones 58 77 65

Personal DVR 38 76 40

The cost of the items depend if they were sold "Retail" or "Wholesale". The Retail costs were: $182 for tablets, $301 for laptops, $434 for cell phones, and $1,657 for DVRs. The Wholesale costs were: $349 for tablets, $425 for laptops, $161 for cell phones, and $1,657 for DVRs. To get the total revenue at each city for Retail and Wholesale, we would need to put the information above (on retail and wholesale costs) into a matrix that has rows and columns and multiply it by the 4 by 3 matrix on sales at each city for each item. After multiplying these two matrices, we would have a matrix that has rows and columns. The total wholesale revenue from city 2 would be in row and column

How many units would I need to sell to make a 30% profit for year 2 and a 40% profit for year three

Year 1 year 2 year 3

Sales Units 2500 2750 2900

sales Price Unit $150.00 $150.00 $150.00

REVENUE $375,000 $412,500 $435,000

Variable Costs:

Direct Materials $20.00 $20.50 $26.01

Direct Labor $17.15 $17.60 $19.22

Variable OH $2.50 $2.53 $2.55

Fixed Costs:

Rent 80,000 $80,000 $80,000

Supervision 200,000 $205,000 $210,250

Mixed Costs:

Utilites-Fixed 20,000 20,000 20,000

Utilities-Variable $2.50 $2.50 $2.50

Total Costs:

Variable cost per unit $42.15 $43.13 $50.28

Fixed Costs $300,000 $305,000 $310,250

Contribution Margin $107.85 $106.87 $99.72

72% 71% 150%

Breakeven:

Sales Units $2,781.64 $2,853.93 $3,111.21

Sales Revenue 375,000 412,500 435,000

Margin of Safety: $0 $0 $0

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 percent of capacity. Worried about the company's performance, the company president is considering dropping the Strawberry flavor. If Strawberry is dropped, the revenue associated with it would be lost and the related variable costs saved. In addition, the company's total fixed costs would be reduced by 15 percent.

Segmented income statements appear as follows:

Required:

a. Prepare a differential cost schedule.

b. Should Cotrone drop the Strawberry product line?

Government is considering building a public park in a small town ìBelleî. The cost of building this park is 120. There are three people in this town, Arnold, Ben, and Carrol. Each personís valuation of the park is 20, 30, and 80 respectively. But, government does not know these valuations.

(a) The government decides whether to build this park by majority voting. If majority supports building the park, then cost will be equally shared. What will be the outcome of majority voting?

(b) Government suggests that the cost of building the park will be financed through the government revenue in other towns. But government will only take this project when the benefit is higher than the cost. Government want survey these three to know the benefit of the park. Do you think this is the right plan to get the benefit of the park? Explain why or why not.

(c) Government suggests another plan. Government will survey these three to get the valuation of the park. If the sum of benefit is greater than the cost, cost will proportionately shared among three according to the reported valuation. For example, the reported valuation is 50, 60, and 70, then each cost share will be 50/(50+60+70), 60/(50+60+70), and 70/(50+60+70). Do you think this is the right plan to get the true valuation? Explain why or why not.

(Q.5 As a student of corporate valuation ,You have been asked to estimated the value of Nomad limited, aprivate company using the discounted cash flow approach .You have been provided with the following information to enable you carry out the assignment.

On 31st December 2016,Nomad Limited earned Kenya shillings Five(5,000,000) million in earnings Before interest and Tax on revenue of Kenya shillings 30 million.The following extracts on data has also been provided for the financial year 2016.

(i) Total amount of debt outstanding in book value terms was three (3) million kenya shillings.The pre-tax interest rate on debt is ten percent.You have also established that book value and market value of debt is same.

(ii)The value of equity shown in the statement of financial position is five (5)million kenya shillings.Market value of equity for this firm should be based on the similar publicly listed companies relationship between book values and market values.

(iii)The amount for capital expenditure and depreciation was two(2)million and one(1)million respectively.

(iv) Amount of working capital investment for 2016 estimated as two percent of total revenue.

You have also been provided with the following information in respect of five comparable companies listed at the Nairobi securities exchange.

(a)The average beta has been estimated at 1.5

(b) The average debt-equity ratio based on the market value of equity is 0.25

(c)It is estimated that:

Market value of equity=3*Book value of equity

(d) Tax rate for all companies is 30%

You have also been provided with the following additional data:

(i)The average return on Nairobi securities exchange all share index(NASI) Is ten percent.

(ii) Average return (yield) on a ten year treasury bond has been estimated as six percent.

(iii) Revenues,Earnings before interest and tax,fixed capital investment,depreciation and working capital investment are expected to grow at an annual rate of five percent for ten years and two percent thereafter,forever except for fixed capital investment and depreciation which will offset each other at the steady state.

Required:

(i) Explain two challenges valuers experience when valueing private companied like Nomad.

(ii) Estimated the enterprise value for Nomad Limited (use three decimal places)

A factorial experiment was designed to test for any significant differences in the time needed to perform English to foreign language translations with two computerized language translators. Because the type of language translated was also considered a significant factor, translations were made with both systems for three different languages: Spanish, French, and German. Use the following data for translation time in hours.

Test for any significant differences due to language translator, type of language, and interaction. Use α = 0.05.

Find the value of the test statistic for language translator. (Round your answer to two decimal places.)

Find the p-value for language translator. (Round your answer to three decimal places.)

p-value =

State your conclusion about language translator.

Because the p-value > α = 0.05, language translator is not significant.Because the p-value ≤ α = 0.05, language translator is not significant.     Because the p-value ≤ α = 0.05, language translator is significant.Because the p-value > α = 0.05, language translator is significant.

Find the value of the test statistic for type of language. (Round your answer to two decimal places.)

Find the p-value for type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of language.

Because the p-value > α = 0.05, type of language is significant.Because the p-value ≤ α = 0.05, type of language is not significant.     Because the p-value > α = 0.05, type of language is not significant.Because the p-value ≤ α = 0.05, type of language is significant.

Find the value of the test statistic for interaction between language translator and type of language. (Round your answer to two decimal places.)

Find the p-value for interaction between language translator and type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between language translator and type of language.

Because the p-value > α = 0.05, interaction between language translator and type of language is not significant.Because the p-value ≤ α = 0.05, interaction between language translator and type of language is significant.     Because the p-value > α = 0.05, interaction between language translator and type of language is significant.Because the p-value ≤ α = 0.05, interaction between language translator and type of language is not significant.

A factorial experiment was designed to test for any significant differences in the time needed to perform English to foreign language translations with two computerized language translators. Because the type of language translated was also considered a significant factor, translations were made with both systems for three different languages: Spanish, French, and German. Use the following data for translation time in hours.

Test for any significant differences due to language translator, type of language, and interaction. Use α = 0.05.

Find the value of the test statistic for language translator. (Round your answer to two decimal places.)

Find the p-value for language translator. (Round your answer to three decimal places.)

p-value =

State your conclusion about language translator.

Because the p-value ≤ α = 0.05, language translator is not significant. Because the p-value > α = 0.05, language translator is not significant.     Because the p-value > α = 0.05, language translator is significant. Because the p-value ≤ α = 0.05, language translator is significant.

Find the value of the test statistic for type of language. (Round your answer to two decimal places.)

Find the p-value for type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of language.

Because the p-value ≤ α = 0.05, type of language is significant. Because the p-value > α = 0.05, type of language is not significant.     Because the p-value ≤ α = 0.05, type of language is not significant. Because the p-value > α = 0.05, type of language is significant.

Find the value of the test statistic for interaction between language translator and type of language. (Round your answer to two decimal places.)

Find the p-value for interaction between language translator and type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between language translator and type of language.

Because the p-value > α = 0.05, interaction between language translator and type of language is not significant. Because the p-value ≤ α = 0.05, interaction between language translator and type of language is significant.     Because the p-value > α = 0.05, interaction between language translator and type of language is significant. Because the p-value ≤ α = 0.05, interaction between language translator and type of language is not significant.

A mail-order catalog firm designed a factorial experiment to test the effect of the size of a magazine advertisement and the advertisement design on the number of catalog requests received (data in thousands). Three advertising designs and two different-size advertisements were considered. The data obtained follow.

Use the ANOVA procedure for factorial designs to test for any significant effects due to type of design, size of advertisement, or interaction. Use α = 0.05.

Find the value of the test statistic for type of design. (Round your answer to two decimal places.)

Find the p-value for type of design. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of design.

Because the p-value ≤ α = 0.05, type of design is not significant.

Because the p-value ≤ α = 0.05, type of design is significant.    

Because the p-value > α = 0.05, type of design is significant

.Because the p-value > α = 0.05, type of design is not significant.

Find the value of the test statistic for size of advertisement. (Round your answer to two decimal places.)

Find the p-value for size of advertisement. (Round your answer to three decimal places.)

p-value =

State your conclusion about size of advertisement.

Because the p-value ≤ α = 0.05, size of advertisement is not significant.

Because the p-value ≤ α = 0.05, size of advertisement is significant.   

Because the p-value > α = 0.05, size of advertisement is significant.

Because the p-value > α = 0.05, size of advertisement is not significant.

Find the value of the test statistic for interaction between type of design and size of advertisement. (Round your answer to two decimal places.)

Find the p-value for interaction between type of design and size of advertisement. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between type of design and size of advertisement.

Because the p-value ≤ α = 0.05, interaction between type of design and size of advertisement is not significant.

Because the p-value ≤ α = 0.05, interaction between type of design and size of advertisement is significant.    

Because the p-value > α = 0.05, interaction between type of design and size of advertisement is significant.

Because the p-value > α = 0.05, interaction between type of design and size of advertisement is not significant.

A factorial experiment was designed to test for any significant differences in the time needed to perform English to foreign language translations with two computerized language translators. Because the type of language translated was also considered a significant factor, translations were made with both systems for three different languages: Spanish, French, and German. Use the following data for translation time in hours.

Test for any significant differences due to language translator, type of language, and interaction. Use α = 0.05.

Find the value of the test statistic for language translator. (Round your answer to two decimal places.)

Find the p-value for language translator. (Round your answer to three decimal places.)

p-value =

State your conclusion about language translator.

Because the p-value ≤ α = 0.05, language translator is significant.Because the p-value ≤ α = 0.05, language translator is not significant.    Because the p-value > α = 0.05, language translator is not significant.Because the p-value > α = 0.05, language translator is significant.

Find the value of the test statistic for type of language. (Round your answer to two decimal places.)

Find the p-value for type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of language.

Because the p-value > α = 0.05, type of language is not significant.Because the p-value ≤ α = 0.05, type of language is not significant.    Because the p-value > α = 0.05, type of language is significant.Because the p-value ≤ α = 0.05, type of language is significant.

Find the value of the test statistic for interaction between language translator and type of language. (Round your answer to two decimal places.)

Find the p-value for interaction between language translator and type of language. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between language translator and type of language.

Because the p-value > α = 0.05, interaction between language translator and type of language is not significant.Because the p-value ≤ α = 0.05, interaction between language translator and type of language is not significant.    Because the p-value ≤ α = 0.05, interaction between language translator and type of language is significant.Because the p-value > α = 0.05, interaction between language translator and type of language is significant.

A mail-order catalog firm designed a factorial experiment to test the effect of the size of a magazine advertisement and the advertisement design on the number of catalog requests received (data in thousands). Three advertising designs and two different-size advertisements were considered. The data obtained follow.

Use the ANOVA procedure for factorial designs to test for any significant effects due to type of design, size of advertisement, or interaction. Use α = 0.05.

Find the value of the test statistic for type of design. (Round your answer to two decimal places.)

Find the p-value for type of design. (Round your answer to three decimal places.)

p-value =

State your conclusion about type of design.

Because the p-value ≤ α = 0.05, type of design is not significant.Because the p-value > α = 0.05, type of design is not significant.    Because the p-value > α = 0.05, type of design is significant.Because the p-value ≤ α = 0.05, type of design is significant.

Find the value of the test statistic for size of advertisement. (Round your answer to two decimal places.)

Find the p-value for size of advertisement. (Round your answer to three decimal places.)

p-value =

State your conclusion about size of advertisement.

Because the p-value ≤ α = 0.05, size of advertisement is significant.Because the p-value > α = 0.05, size of advertisement is not significant.    Because the p-value > α = 0.05, size of advertisement is significant.Because the p-value ≤ α = 0.05, size of advertisement is not significant.

Find the value of the test statistic for interaction between type of design and size of advertisement. (Round your answer to two decimal places.)

Find the p-value for interaction between type of design and size of advertisement. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between type of design and size of advertisement.

Because the p-value > α = 0.05, interaction between type of design and size of advertisement is not significant.Because the p-value ≤ α = 0.05, interaction between type of design and size of advertisement is significant.    Because the p-value > α = 0.05, interaction between type of design and size of advertisement is significant.Because the p-value ≤ α = 0.05, interaction between type of design and size of advertisement is not significant