Dog Up! Franks is looking at a new sausage system with an installed cost of $312,000. This cost will be depreciated straight-line to zero over the project's 8-year life, at the end of which the sausage system can be scrapped for $48,000. The sausage system will save the firm $96,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $22,400. Required: If the tax rate is 33 percent and the discount rate is 9 percent, what is the NPV of this project?

1. Contribution margin is:

      A.    the excess of sales revenue over variable cost

      B.    another term for volume in the "cost-volume-profit" analysis

      C.    profit

      D.    the same as sales revenue

2. Salim’s fixed costs are RM41, 500, the variable cost is RM12 per unit. If Salim sells the product for RM22 per unit, the breakeven point is:

      A.    4,150 units

      B.    8,300 units

      C.    2,075 units

      D.    6,225 units

3. The fixed costs of Juara Co. are RM500, 000 and the unit contribution margin is RM40. If the fixed costs are increased by RM80,000, what is the break-even point?

      A.    14,500                                   

      B.    12,500

      C.    8,333                                     

      D.    9,667

4. The followings are underlying assumptions of CVP analysis EXCEPT:

A.          the changes in the activity are the only factors that affect costs

B.    the costs classifications are reasonably accurate

C.    the beginning inventory is larger than ending inventory

D.     sales mix is constant

5. Fatt Choo Sdn Bhd’s sales are RM820, 000, variable costs are 62% of sales, and operating income is RM260, 000, what is the contribution margin ratio?

A.    53.1%                                    

B.    38%

      C.    62%                                       

D.    32%

6. If fixed costs are RM500, 000 and the unit contribution margin is RM12, what amount of units must be sold in order to realize an operating income of RM100, 000?

A.    5,000                                     

B.    41,667

C.    50,000                                   

D.    58,333

7. If sales, variable costs and operating income are RM400, 000, RM200, 000 and RM100,000 respectively, what is the contribution margin ratio?

1. 75%
2. 50%
3. 25%
4. 0%

8. Titian Bhd had a contribution margin of RM300, 000 and a contribution margin ratio of 20%, what is the total variable cost?

1. RM1,500,000
2. RM1,200,000
3. RM240,000
4. RM60,000

9. Zaza West Sdn Bhd reported the following data in its Statement of Profit or Loss and Other Comprehensive Income:

Unit sold                                          8,000     

Sales revenue                                     RM9,600,000

            Variable costs                                  RM6,000,000

Fixed cost                                RM2,600,000

If the company desired to earn a target net profit of RM1,270,000, it would have to sell:

1. 5,778 units
2.   8,600 units
3.   10,160 units
4.   11,908 units

In an effort to determine the cost of air conditioning, a resident in College Station,TX, recorded daily values of the variables

Tavg = mean temperature

Kwh = electricity consumption

for the period from September 19 through November 4.

tavg kwh tavg kwh tavg kwh tavg kwh

77.5 45 77.5 55 68 50 75 41

80 73 79 57 66.5 37 75.5 51

78 43 80 68 69 43 71.5 34

78.5 61 79 73 70.5 42 63 19

77.5 52 76 57 63 25 60 19

83 56 76 51 64 31 64 30

83.5 70 75.5 55 64.5 31 62.5 23

81.5 69 79.5 56 65 32 63.5 35

75.5 53 78.5 72 66.5 35 73.5 29

69.5 51 82 73 67 32 68 55

70 39 71.5 69 66.5 34 77.5 56

73.5 55 70 38 67.5 35

(a) Give and interpret a 98% confidence interval for ?.

(b) Give and interpret a 90% confidence interval for ?1.

(c) Give and interpret a 90% interval for the average electrify consumption for days that are 79 degrees Fahrenheit.

(d) Tomorrow it is supposed to be an average of 67 degrees Fahrenheit in College Station, TX. Predict tomorrow's electricity consumption using a 90% interval.

(e) Run an appropriate hypothesis test to determine if there is statistically significant evidence that the average electricity consumption changes with the mean daily temperature.

Draw the graph for a monopoly with demand, marginal revenue, and marginal cost curves. Identify the profit-maximizing output level (Qm) and price (Pm). Suppose the monopolist sells Qm units of output at the regular price and then puts the product on sale at a lower price, Ps. Show the new price and quantity. Identify the consumer surplus of the additional sales. What happens to the firm’s profits and Does price discrimination lead to a more efficient or less efficient outcome? Why or why not?

1. Given the following information: a. Parent sells Sub inventory with a cost of $45,000 for $55,000. Sub then sells this inventory to outsiders for $70,000. b. Parent sells Sub inventory with a cost of $15,000 for $20,000, which remains on hand in Sub’s ending inventory.

a.Calculate unrealized profits .

b.Pass eliminating entry in both the cases:

1.Parent sells to Sub and Sub to Outsider

2. Parent sells to Sub, but Sub not yet to Outsider

c.How would it effect Parents gross profit and Sub’s inventory?

The mean cost of domestic airfares in the United States rose to an all-time high of $385 per ticket (Bureau of Transportation Statistics website, November 2, 2012 ). 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 $110.

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 $250 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $300 and $500 (to 4 decimals)?

d. What is the cost for the 3% highest domestic airfares? (rounded to nearest dollar)

A manufacturing company allows employees to purchase, at cost, manufacturing materials such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form which then must be approved by the employee's immediate supervisor. The assistant cost accountant then charges the employee an amount based on the manufacturing company's net purchase cost.

An employee, who happens to be the assistant cost accountant, is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, the employee (the assistant cost accountant) reviewed all the purchase invoices for the past year. The employee then used the lowest price to compute the amount due for the company for the lumber.

Discuss whether this is a good company policy, include if there are proper internal controls in place. Discuss if the assistant cost accountant behaved in an ethical way. Discuss if there should be any type of corrective action. How should the company management handle this situation? Feel free to share any situations that sound similar in the real world.

A small monopoly manufacturer of widgets has a constant marginal cost of ​$15 . The demand for this​ firm's widgets is Q equals 105 minus 1 P . Given the above​ information, compute the social cost of this​ firm's monopoly power. The social cost is ​$ . ​ (Round your response to the nearest​ penny.)

Question 17 1 pts A researcher claims that the average cost for a new home in the South is greater than the average cost for a new home in the Midwest. 40 houses were randomly selected from each region with the following results South Midwest Sample Size 40 40 Sample Mean $261,500 $248,200 Population Standard Deviation $10,500 $12,000 Compute the p-value for test correct to 3 significant decimal places .0953 .181 .214 .0825 .100

Dog Up! Franks is looking at a new sausage system with an installed cost of $504,253. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $77,475. The sausage system will save the firm $174,403 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,998. If the tax rate is 36 percent and the discount rate is 11 percent, what is the NPV of this project?