Which is cheaper: eating out or dining in? The mean cost of a flank steak, broccoli, and rice bought at the grocery store is $13.04. A sample of 100 neighborhood restaurants showed a mean price of $12.60 and a standard deviation of $2 for a comparable restaurant meal.
| (a) | Choose the appropriate hypotheses for a test to determine whether the sample data support the conclusion that the mean cost of a restaurant meal is less than fixing a comparable meal at home. | ||||
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| (b) | Using the sample from the 100 restaurants, what is the p value? If required, round your answer to four decimal places. | ||||
| (c) | At α = 0.05, what is your conclusion? | ||||
| We -(reject or fail to reject)- the null hypothesis. We -(can or cannot)- conclude that the cost of a restaurant meal is significantly cheaper than a comparable meal fixed at home. | |||||
In: Statistics and Probability
If a project has a cost of $10,000, expected net cash flows of $1500 a year for 12 years and you use a discount rate of 6%, what is the following:
If another project has a cost of $10,000 and has expected life of 8 years and it will generate $3000 a year should you accept the project if your boss says the cost of capital is 5%?
In: Finance
“Changing a cost accounting system is likely to meet with little resistance in an organization since it is a technical matter of little interest to individuals outside of the accounting department.” Do you agree? Why or why not?
In: Accounting
The mean cost of domestic airfares in the United States rose to an all-time high of $370 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $120. Use Table 1 in Appendix B.
a. What is the probability that a domestic airfare is $550 or more (to 4 decimals)?
b. What is the probability that a domestic airfare is $245 or less (to 4 decimals)?
c. What if the probability that a domestic airfare is between $320 and $480 (to 4 decimals)?
d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)
In: Statistics and Probability
74
Productive efficiency means that the firm is producing at the lowest cost possible.
True or False
75
Which formula below best describes human behavior?
Multiple Choice
MC = MR
E > 1
E = 1
MB = MC
76
Costco, Wal-Mart, and Target probably control over 70 percent of the market share in the large superstore discount retailing industry. The ‘kinked’ demand curve is used to explain this industry is all part of the Monopolistic Competition market structure.
True or False
77
Suppose that Lockheed Martin (the military defense contractor) invented a very sophisticated fighter jet. If they could only sell this advanced plane exclusively to the U.S. government, then the U.S. government would be classified as a monopsony buyer.
True or False
In: Economics
Statement of Cost of Goods Manufactured and Income Statement for a Manufacturing Company
The following information is available for Shanika Company for 20Y6:
| Inventories | January 1 | December 31 |
| Materials | $427,050 | $533,810 |
| Work in process | 768,690 | 725,980 |
| Finished goods | 738,800 | 742,000 |
| Advertising expense | $362,460 | |
| Depreciation expense-office equipment | 51,250 | |
| Depreciation expense-factory equipment | 68,860 | |
| Direct labor | 822,070 | |
| Heat, light, and power-factory | 27,220 | |
| Indirect labor | 96,090 | |
| Materials purchased | 806,050 | |
| Office salaries expense | 281,320 | |
| Property taxes-factory | 22,420 | |
| Property taxes-headquarters building | 46,440 | |
| Rent expense-factory | 37,900 | |
| Sales | 3,774,040 | |
| Sales salaries expense | 463,350 | |
| Supplies-factory | 18,680 | |
| Miscellaneous costs-factory | 11,740 |
Required:
1. Prepare the statement of cost of goods manufactured.
| Shanika Company | |||
| Statement of Cost of Goods Manufactured | |||
| For the Year Ended December 31, 20Y6 | |||
| $ | |||
| Direct materials: | |||
| $ | |||
| $ | |||
| $ | |||
| Factory overhead: | |||
| $ | |||
| Total factory overhead | |||
| Total manufacturing costs incurred | |||
| Total manufacturing costs | $ | ||
| Cost of goods manufactured | $ | ||
2. Prepare the income statement.
| Shanika Company | |||
| Income Statement | |||
| For the Year Ended December 31, 20Y6 | |||
| $ | |||
| Cost of goods sold: | |||
| $ | |||
| $ | |||
| $ | |||
| Operating expenses: | |||
| Administrative expenses: | |||
| $ | |||
| $ | |||
| Selling expenses: | |||
| $ | |||
| Total operating expenses | |||
| $ | |||
In: Accounting
What is a firm's weighted-average cost of capital if the stock has a beta of 1.5, Treasury bills yield 3%, and the market portfolio offers an expected return of 8%? Debt that has a yield to maturity of 7.5%. The firm is in the 25% marginal tax bracket. The cost of preferred stock is 8%. The following are the market values of 1) debt $8million, 2) preferred stock $6million. The company has 1,500,000 shares and the current market price of common stock is $25 per share. Find the WACC
In: Finance
A high end steakhouse is the only real restaurant in town. They have a total cost function of ?(?) = ??? + ? ? and face a market demand for steak dinners of ??(?) = ??? − ??. a) Find the monopolist’s profit-maximizing price that they should charge. What profits would they earn?
b) Is the monopolist operating in the short run or the long run? Explain how you know. Illustrate the monopolist’s problem graphically.
c) Suppose the monopolist wants to increase their profitability. Come up with and explain two alternative pricing strategies that they could engage in.
In: Economics
Brown Inc. acquired a delivery van on October 1, 2017 at a cost of $45,000. The useful life of the van was 12 years with a residual value of $3,000. Assume that the company used straight-line method with fractional years rounded to the nearest whole month. The delivery van was traded-in with a new one as of end of the year of 2018 (December 31, 2018). The list price of the new delivery van was $56,000. The Brown Inc. accepted a trade-in allowance of $40,850 and paid the remaining amount in cash to get the new van. In recording the trade-in, which of the following is correct?(3 Points)
Accumulated depreciation of the old van is debited by $3,375
Accumulated depreciation of the old van is debited by $4,375
Accumulated depreciation of the old van is credited by $4,375
Accumulated depreciation of the old van is credited by $3,375
In: Accounting
Planet Enterprises is purchasing a $10.4 million machine. It will cost $54 000 to transport and install the machine. The machine has a depreciable life of five years using straight-line depreciation and will have no salvage value. The machine will generate incremental revenues of $4.2 million per year along with incremental costs of $1.1 million per year. Planet's marginal tax rate is 30%. You are forecasting incremental free cash flows for Daily Enterprises. What are the incremental free cash flows associated with the new machine?
The free cash flow for year 0 will be $ ............. (Round to the nearest dollar.)
The free cash flow for years 1–5 will be $ ............. (Round to the nearest dollar.)
In: Finance