Works Accessories assembles a computer networking device from kits of imported components. You have been asked to develop a quarterly and annual operating budget and pro- forma income statements for 2016. You have obtained the following information:

Beginning-of-year balances

Desired end-of-quarter balances

Fixed cost per quarter

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             $40,000.00

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              10,000.00

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            $50,000.00

Selling and administrative costs

Variable cost per unit. . . . . . . . . . . . . . . . . . . . . . .. . . . . . .

Fixed costs per quarter:

$6.00

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000.00

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   5,000.00

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000.00

Sales Forecast

Quarter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     First      Second       Third        Fourth

Unit sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2,400      1,500             2,000         3,100

Additional information

All cash payments except purchases are made quarterly as incurred.

All borrowings occur at the start of the quarter.

All repayments on borrowings occur at the end of the quarter.

All interest on borrowed funds is paid at the end of each quarter.

Borrowings and repayments may be made in any amount.

(a) A sales budget for each quarter and the year.

(b) A production budget for each quarter and the year.

c.   A purchases budget for each quarter and the year.

d.   A manufacturing cost budget for each quarter and the year.

e.   A selling and administrative expense budget for each quarter and the year.

f.    A cash budget for each quarter and the year.

g.   A pro-forma contribution income statement for each quarter and the year.

(Using R Scholar) For each of the distributions, begin by creating 1000 random samples, each of size ?. Then, for each of the 1000 samples, you will calculate the sample average, ?̅. After calculating 1000 different ?̅’s, you will be able to make a histogram and normal probability plot of the ?̅ values and thus visualize the distribution of ?̅. The goal is to see what value of ? is large enough for the distribution of ?̅ to become approximately normal. Notice that this value of ? depends on the population distribution. To determine the value of ? required, your simulations will start from a small ? and progress to larger ?'s. You will assess the normality based on the plots for each ? and continue until either you have finished the values of ? listed or increased the values until observing sufficient normality in the plots.

For each of the distributions below, you will complete the following: (0.2 points) Code: You only need to provide one code listing for each distribution (i.e. you don’t need to repeat the code for each choice of ?).

2. (0.5 points) Histogram/normal probability plots For each of the values of ?, submit a histogram (with the two colored curves) and a normal probability plot. For each of the graph pairs, indicate whether they appear sufficiently normal or not. No explanation is required. Make sure you increase ? until the distribution of ?̅ appears sufficiently normal.

3. (0.3 points) Summary table This table contains the experimental mean and standard deviation calculated from the data (output is required for each value of ?) and the theoretical mean and standard deviation calculated from Equations 1 (with work for one of the values for each distribution where ? ≠ 1). The format for this table for Part B is below. Make sure you increase ? until the distribution of ?̅ appears sufficiently normal.

A. (1 points) Standard Normal Distribution. ? = 1, 3, 7 and 15.

B. (1 points) Uniform distribution over the interval (0, 8). ? = 1, 3, 7 and 15.

C. (1 points) Gamma distribution with parameters ? = ?. ?? and ? = ?. ? = 1, 5, 10, 20, 40, and continue in intervals of 20 if needed until the shape becomes normal. This distribution has population mean and standard deviation of ? = 1.805, ? = 0.95.

D. (1 points) Poisson distribution with parameter ? = ?. ?. ? = 1, 5, 10, 20, 40, and continue in intervals of 20 if needed until the shape becomes normal.

ASP Pharmaceuticals has decided to go ahead and start clinical trials on a new
drug. The total R&D costs are estimated to reach $750,000,000 with clinical trials
mounting to $120,000,000. The current market size is estimated to be 2,000,000 and is
expected to grow at 3% every year. The market share ASP hopes to capture in the first year
is 8%, and is projected to grow by 20% each year for the next 4 years. A monthly
prescription is anticipated to generate revenue of $350 while incurring variable costs of
$150. A discount rate of 9% is assumed.

a. What is the net present value over the first four years?

b. By which year ASP can expect to realize a positive cumulative profit? What is the
cumulative profit of this year?

c. Conduct appropriate what-if analyses to investigate how the cumulative profit for
the next four years and the net present value change if unit price varies between
$250 and $450 with increment of $20 (the table below is to show the format of the
solution, you may submit your answers in the EXCEL file).
Unit Price Year 1 Year 2 Year 3 Year 4 NPV
250
270
290
310
330
350
370
390
410
430
450

d. Conduct appropriate what-if analyses to investigate the joint effect of unit cost and
market share growth rate on net present value. (For consistency, let unit cost vary
between $100 and $200 with increment of $10, and let market share growth rate
vary between 10% and 30%, with increment of 2%. The table below is to show the format of the solution, you may submit your answers in the EXCEL file).

format of the solution, you may submit your answers in the EXCEL file).

Market Share Growth Rate

Unit Cost 0.1 0.12 0.14 0.16 0.18 0.20 0.22 0.24 0.26 0.28 0.3
100
110
120
130
140
150
160
170
180
190
200

e. Use a tornado chart to identify the most important 3 variables that affect the NPV
(you may submit the tornado chart in the EXCEL file).

Hammering and shaping a hot steel block on an anvil is an example of: a) Open-die forging. b) Closed-die forging. c) Flashless forging. d) Impression die forging.

Resistance spot welding can be used to join sheets of _______ and_______. a) Rubber, steel. b) PVC plastics, copper. c) Stainless steel, leather. d) None of the above.

An advantage of forward extrusion over backward extrusion is: a) Lower pressure. b) Lower force. c) All of the above. d) None of the above.

In a rolling process, if both roller diameters reduce by 25%, then the required power to rotate the rollers would: a) Increase 25%. b) Decrease 25%. c) Increase 50%. d) Decrease 50%.

Which of the following bulk deformation processes are involved in the production of nails for lumber construction? a) Wire drawing, flashless forging, and impression die forging. b) Wire drawing, flashless forging, and rolling. c) Flashless forging, impression die forging, and upsetting. d) Extrusion, flashless forging, and wire drawing

The thickness of each of the two sheets to be resistance spot welded is 3.5 mm. It is desired to form a weld nugget that is 5.5 mm in diameter and 5.0 mm thick after 0.3 sec welding time. The unit melting energy for a certain sheet metal is 9.5 J/mm3 . The electrical resistance between the surfaces is 140 micro ohms, and only one third of the electrical energy generated will be used to form the weld nugget (the rest being dissipated), determine the minimum current level required.

A GTAW operation is performed on low carbon steel, whose unit melting energy is 10.3 J/mm3 . The welding voltage is 22 volts and the current is 135 amps. The heat transfer factor is 0.7 (convection heat loss of 30%) and the melting factor is 0.65 (conduction heat loss of 35%). If filler metal wire of 3.5 mm diameter is added to the operation, the final weld bead is composed of 60% volume of filler and 40% volume base metal. If the travel speed in the operation is 5 mm/sec, determine:

(a) The cross sectional area of the weld bead

(b) The feed rate (mm/sec) at which the filler wire must be supplied.

1.   The following data were obtained from 3 separate enzyme kinetic experiments using 3 different substrates S1, S2 and S3 forming products P1, P2 and P3 respectively. The amount of enzyme in each reaction is 1 µM. Find out the rate and graph the data using a Michaelis-Menton and Lineweaver-Burk plots and determine the values for Km, Vmax, Kcat, and Kcat/Km. Which among the 3 substrate is best substrate for this enzyme and why? (4 points)

[S] (mM)   [P1] (mM) in 60 min   [P2] (mM) in 240 min   [P3] (mM) in 30 min
2.5   0.170   0.126   0.194
2   0.201   0.135   0.213
1.5   0.167   0.129   0.206
1   0.162   0.131   0.203
0.6   0.159   0.135   0.174
0.3   0.148   0.131   0.163
0.15   0.122   0.111   0.122
0.2   0.095   0.117   0.114
0.1   0.075   0.072   0.104
0.05   0.049   0.040   0.071

2.   Use the Michaelis-Menton Equation to calculate the missing values of [S] given below if Vmax = 5 mmol/min. Plot [S] versus V (NOT the reciprocals!). Draw line parallel to the x-axis at Vmax and extend your plotted line to show its approach to Vmax. (2 points)

[S] (mM)   V0 (mmol/min)
10   1.2
[S]1       1.7
[S]2       2.1
[S]3       2.2
[S]4       2.5

3.   Plot the below data and determine the type of inhibition of an enzymatic reaction by inspecting the graph (give an explanation) (2 points)

[S] (mM)   V0 (mM/min)   V0 with Inhibitor present (mM/min)
1   1.3   0.8
2   2.0   1.2
4   2.8   1.7
8   3.6   2.2
12   4.0   2.4

4.   Plot the below data with and without inhibitor (I) and determine the type of inhibition of an enzymatic reaction by inspecting the graph (2 points)

[S] µM   V0 (µmol /min); [I] = 0 nM    V0 (µmol /min); [I] = 25 nM    V0 (µmol /min); [I] = 50 nM
0.4   0.22   0.21   0.20
0.67   0.29   0.26   0.24
1.00   0.32   0.30   0.28
2.00   0.40   0.36   0.32

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Required:

Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:

1. Direct materials price variance, direct materials quantity variance, and total variance.
2. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero.

2. The variance analyses should be based on the   amounts at   volumes. The budget must flex with the volume changes. If the   volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the   production. In this way, spending from volume changes can be separated from efficiency and price variances.

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

Required:

1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

     a. Direct materials price variance, direct materials quantity variance, and total variance.

     b. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

2. The variance analyses should be based on the   amounts at   volumes. The budget must flex with the volume changes. If the   volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the   production. In this way, spending from volume changes can be separated from efficiency and price variances.

Problem Set 2: (10 pts)

Research Scenario:Does distraction and/or amount of details affect the ability of people to make good decisions? In this fictitious scenario, researchers used a mixed design. Thirty participants were split into two groups – No Distraction or Distraction (n=15 per group). All participants were given TWO scenarios based on amount of details (4 or 12), and were asked to make an objective decision at the end of each scenario. Objective decision was the dependent variable and was quantified numerically using an interval scale of measurement.

Assume the data is parametric. Select and conduct the most appropriate statistical test to determine whether distraction and/or amount of details affect people’s ability to make good decisions. Hints:remember for a between subjects factor, there will be one column with arbitrary numbers to designate groups (e.g., 0 = no distraction; 1 = distraction and make sure you use the value labels in the Variable View!). For a within subjects factor, there will be a column per level (name these Detail4 and Detail12). Thus, you will have 3 columns of 30 rows of data in your SPSS data view. The order in which you input the data must match the table below, as it has a within-subjects component.

1. Paste appropriate SPSS output. (5 pts)

2. Write an APA-style Results section based on your analysis. All homework “Results sections” should follow the examples provided in the presentations and textbooks for that particular statistical test. Don’t forget to include a decision about the null hypothesis. (REMINDER: you don’t need to conduct post hocs if df = 1 but you still have to look at the means to interpret it). (5 pts)

Read each question carefully, make sure to answer all questions are answered and show your work:

5. Nast stores has derived the following consumer credit-scoring model after years of data collect Y=(0.20 x Employment) + (0.4 x Homeowner) + (0.3 x Cards)

Employment = 1 if employed part-time, and 0 if unemployed Cards= 1 if presently has 1-5 credit cards, 0 otherwise

Nast determines that a score of at least 0.70 indicates a very good credit risk, and it extends credit to these individuals. (each letter below is a separate question, answer a-d)

a. If Janice is employed part-time, is a homeowner, and has six credit cards at present, does the model indicate she should receive credit?

b. Janice just got a full-time job and closed two of her credit card accounts. Should she receive credit? Has her credit worthiness increased or decreased, according to model?

c. Your boss mentions that he just returned from a trade-association conference, at which one of the speakers recommended that length of time at present residence (regardless of homeownership status) be include in credit-scoring models. If the weight turns out to be 0.25, how do you think the variable would be coded (i.e., 0 stands for what, 1 stands for what, etc)?

d. Suggest other variables that associated might have left out of the model, and tell how you would code them (i.e., 0,1,2 are assigned to what conditions or variables?).

6. Firm X is evaluating a proposal to extend credit to a group of new customers. The new customers will generate an average of $30,000 per day in new sales. On average, they will pay in 60 days. The variable cost ratio (i.e., COGS) is 98% of sales, collection expenses are 1% of sales, and the discount rate is 5%. Assume that the variable costs occur upfront, while the collection costs occur on the date in which the customer’s payment is received. What is the NPV of one day's sales if Firm J grants credit? Assume that there is no bad debt loss.

A. $57.88 B. $1,043.56 C. -$239.67 D. -$319.57

1. Flexible Budgeting and Variance Analysis

   I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

   Standard Amount per Case
   	Dark Chocolate		Light Chocolate		Standard Price per Pound
   Cocoa	10 lbs.		7 lbs.		$4.20
   Sugar	8 lbs.		12 lbs.		0.60
   Standard labor time	0.3 hr.		0.4 hr.

   	Dark Chocolate		Light Chocolate
   Planned production	5,200 cases		13,700 cases
   Standard labor rate	$13.00 per hr.		$13.00 per hr.

   I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

   	Dark Chocolate		Light Chocolate
   Actual production (cases)	4,900		14,200
   	Actual Price per Pound		Actual Pounds Purchased and Used
   Cocoa	$4.30		149,100
   Sugar	0.55		204,400
   	Actual Labor Rate		Actual Labor Hours Used
   Dark chocolate	$12.50 per hr.		1,340
   Light chocolate	13.50 per hr.		5,820

   Required:

   1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

        a. Direct materials price variance, direct materials quantity variance, and total variance.

        b. Direct labor rate variance, direct labor time variance, and total variance.

   Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

   a.	Direct materials price variance	$
   	Direct materials quantity variance	$
   	Total direct materials cost variance	$
   b.	Direct labor rate variance	$
   	Direct labor time variance	$
   	Total direct labor cost variance	$

   2. The variance analyses should be based on the amounts at volumes. The budget must flex with the volume changes. If the volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the production. In this way, spending from volume changes can be separated from efficiency and price variances.