A manufacturer of microwaves has discovered that female shoppers have little value for microwaves and attribute almost no extra value to an auto-defrost feature. Male shoppers generally value microwaves more than women do and attribute greater value to the auto-defrost feature. There is little additional cost to incorporating an auto-defrost feature. Since men and women cannot be charged different prices for the same product, the manufacturer is considering introducing two different models. The manufacturer has determined that men value a simple microwave at $67 and one with auto-defrost at $124, while women value a simple microwave at $57 and one with auto-defrost at $67.

Suppose the manufacturer is considering three pricing strategies:

For simplicity, assume there is only 1 man and 1 woman and that if the price of a microwave is equal to an individual's willingness to pay, the individual will purchase the microwave.

Strategy

Revenue from Men

Revenue from Women

Total Revenue from Strategy

1. Auto-Defrost Microwave only at $67

2. Auto-Defrost Microwave only at $1243. Simple Microwave at $57, Auto-Defrost Microwave at $113

Suppose that, instead of one man and one woman, the market for this microwave consisted entirely of men. For simplicity, you can assume this means that there are two men, and no women.

Under these conditions, pricing strategy   would maximize revenue for the manufacturer.

ForestLand Wood Products manufactures lumber and wood components. The company has two main product lines: Hardwood and Softwood. Hardwoods are used for flooring, cabinetry, paneling, doors and trimwork. Softwoods are used for wall studs, joists, planks, rafters, beams, stringers, posts, decking, subflooring and concrete forms. ForestLand also sells a by-product, wood shavings and saw dust. Shavings are purchased for farm and industrial use as well as for further processing into wood pellets and fiber board. The revenue is allocated to each product line based on the percentage of thousand board feet produced by the product line.

Your accounting firm has been retained by ForestLand for three years. You have been assigned to properly allocate support department costs. Your manager wants the allocation to be as accurate as possible and has instructed you to use the reciprocal services method. She reminds you that revenue from by-products are used to offset costs.

You begin your research and learn that there are four production departments: log yard, milling, drying, and packaging. The Hardwood line produces 300 thousand board feet of product while the Softwood produces 900 thousand board feet. The milling department direct costs, direct labor and overhead per thousand board feet for Hardwood is two times that of Softwood. You have been instructed to use the weighted average method to allocate the costs in the milling department between the two product lines. The remaining department costs are the same for both product lines, per thousand board feet.

There are two support departments: maintenance and administration. The maintenance department is responsible for maintaining all equipment and janitorial duties. Because the equipment is used more extensively for hardwoods, the department cost driver is hours worked. The administration department includes the company president and his staff. Their duties include accounting, human resources, and information technology. The cost driver for the administration department is number of employees.

In your first step, you determine the costs traced to each department and the usage of the support department cost drivers. You have created the following table:

Your next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Complete the following tables.

Using the cells below, create the formulas that will simultaneously allocate support department costs among the departments. "M" represents Maintenance and "A" represents Administration.

M = $ + (%  )

A = $ + (%  )

Solve the equations, If required round any decimal to three places in your computations. For example, .0183 would be rounded to .018. Round your final answer to the nearest dollar.

M = $

A = $

Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0".

Using the rounded amounts from the support cost allocation table (previous task), complete the following table to allocate the production department costs to each product line. Round allocated amounts to the nearest whole dollar.

Forest Land earns revenue of $100,000 from selling its by-products, wood shavings and saw dust. Allocate the revenue to each product line in the following table and determine the final cost per product line.

ForestLand Wood Products manufactures lumber and wood components. The company has two main product lines: Hardwood and Softwood. Hardwoods are used for flooring, cabinetry, paneling, doors and trimwork. Softwoods are used for wall studs, joists, planks, rafters, beams, stringers, posts, decking, subflooring and concrete forms. ForestLand also sells a by-product, wood shavings and saw dust. Shavings are purchased for farm and industrial use as well as for further processing into wood pellets and fiber board. The revenue is allocated to each product line based on the percentage of thousand board feet produced by the product line.

Your accounting firm has been retained by ForestLand for three years. You have been assigned to properly allocate support department costs. Your manager wants the allocation to be as accurate as possible and has instructed you to use the reciprocal services method. She reminds you that revenue from by-products are used to offset costs.

You begin your research and learn that there are four production departments: log yard, milling, drying, and packaging. The Hardwood line produces 300 thousand board feet of product while the Softwood produces 900 thousand board feet. The milling department direct costs, direct labor and overhead per thousand board feet for Hardwood is two times that of Softwood. You have been instructed to use the weighted average method to allocate the costs in the milling department between the two product lines. The remaining department costs are the same for both product lines, per thousand board feet.

There are two support departments: maintenance and administration. The maintenance department is responsible for maintaining all equipment and janitorial duties. Because the equipment is used more extensively for hardwoods, the department cost driver is hours worked. The administration department includes the company president and his staff. Their duties include accounting, human resources, and information technology. The cost driver for the administration department is number of employees.

In your first step, you determine the costs traced to each department and the usage of the support department cost drivers. You have created the following table:

Your next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Complete the following tables.

Using the cells below, create the formulas that will simultaneously allocate support department costs among the departments. "M" represents Maintenance and "A" represents Administration.

M = $ + (% A )

A = $ + (% M )

Solve the equations, If required round any decimal to three places in your computations. For example, .0183 would be rounded to .018. Round your final answer to the nearest dollar.

M = $

A = $

Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0".

Using the rounded amounts from the support cost allocation table (previous task), complete the following table to allocate the production department costs to each product line. Round allocated amounts to the nearest whole dollar.

Forest Land earns revenue of $100,000 from selling its by-products, wood shavings and saw dust. Allocate the revenue to each product line in the following table and determine the final cost per product line.

Question: ForestLand Wood Products manufactures lumber and wood components. The company has two main produc...

ForestLand Wood Products manufactures lumber and wood components. The company has two main product lines: Hardwood and Softwood. Hardwoods are used for flooring, cabinetry, paneling, doors and trimwork. Softwoods are used for wall studs, joists, planks, rafters, beams, stringers, posts, decking, subflooring and concrete forms. ForestLand also sells a by-product, wood shavings and saw dust. Shavings are purchased for farm and industrial use as well as for further processing into wood pellets and fiber board. The revenue is allocated to each product line based on the percentage of thousand board feet produced by the product line.

Your accounting firm has been retained by ForestLand for three years. You have been assigned to properly allocate support department costs. Your manager wants the allocation to be as accurate as possible and has instructed you to use the reciprocal services method. She reminds you that revenue from by-products are used to offset costs.

You begin your research and learn that there are four production departments: log yard, milling, drying, and packaging. The Hardwood line produces 300 thousand board feet of product while the Softwood produces 900 thousand board feet. The milling department direct costs, direct labor and overhead per thousand board feet for Hardwood is two times that of Softwood. You have been instructed to use the weighted average method to allocate the costs in the milling department between the two product lines. The remaining department costs are the same for both product lines, per thousand board feet.

There are two support departments: maintenance and administration. The maintenance department is responsible for maintaining all equipment and janitorial duties. Because the equipment is used more extensively for hardwoods, the department cost driver is hours worked. The administration department includes the company president and his staff. Their duties include accounting, human resources, and information technology. The cost driver for the administration department is number of employees.

In your first step, you determine the costs traced to each department and the usage of the support department cost drivers. You have created the following table:

Your next step is to determine the proportional usage of each support department's cost driver by the other departments to which its costs are to be allocated. Complete the following tables.

Using the cells below, create the formulas that will simultaneously allocate support department costs among the departments. "M" represents Maintenance and "A" represents Administration.

M = $ + (%  )

A = $ + (%  )

Solve the equations, If required round any decimal to three places in your computations. For example, .0183 would be rounded to .018. Round your final answer to the nearest dollar.

M = $

A = $

Use the following table to allocate the support cost departments. Round allocated amounts to the nearest whole dollar. If an amount is zero, enter "0".

Using the rounded amounts from the support cost allocation table (previous task), complete the following table to allocate the production department costs to each product line. Round allocated amounts to the nearest whole dollar.

Forest Land earns revenue of $100,000 from selling its by-products, wood shavings and saw dust. Allocate the revenue to each product line in the following table and determine the final cost per product line.

The owner of Showtime Movie Theaters, Inc., would like to predict weekly gross revenue as a function of advertising expenditures. Historical data for a sample of eight weeks follow.

a. Use  to test the hypotheses

and/or  is not equal to zero

for the model , where

television advertising

newspaper advertising

Compute the  test statistic (to 2 decimals). Use F table.

What is the -value?

- Select your answer -less than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 2

What is your conclusion?

- Select your answer -The overall model is not significantThe overall model is significantItem 3

b. Use  to test the significance of . Compute the  test statistic (to 2 decimals). Use t table.

What is the -value?

- Select your answer -less than .01between .01 and .02between .02 and .05between .05 and .10between .10 and .20between .20 and .40greater than .40Item 5

What is your conclusion?

- Select your answer -No significant relationship between television advertising and revenueSignificant relationship between television advertising and revenueItem 6

Should  be dropped from the model?

- Select your answer -No, x1 should not be dropped from the modelYes, x1 should be dropped from the modelItem 7

c. Use  to test the significance of . Compute the  test statistic (to 2 decimals). Use t table.

What is the -value?

- Select your answer -less than .01between .01 and .02between .02 and .05between .05 and .10between .10 and .20between .20 and .40greater than .40Item 9

What is your conclusion?

- Select your answer -No significant relationship between newspaper advertising and revenueSignificant relationship between newspaper advertising and revenueItem 10

Should  be dropped from the model?

"Time headway" in traffic flow is the elapsed time between the time that one car finishes passing a fixed point and the instant that the next car begins to pass that point. Let X = the time headway for two randomly chosen consecutive cars on a freeway during a period of heavy flow (sec). Suppose that in a particular traffic environment, the distribution of time headway has the following form.

f(x) =

(a) Determine the value of k for which f(x) is a legitimate pdf.


(b) Obtain the cumulative distribution function.
F(x) =

(c) Use the cdf from (b) to determine the probability that headway exceeds 2 sec. (Round your answer to three decimal places.)


Use the cdf from (b) to determine the probability that headway is between 2 and 3 sec. (Round your answer to three decimal places.)


(d) Obtain the mean value of headway and the standard deviation of headway. (Round your answers to three decimal places.)

(e) What is the probability that headway is within 1 standard deviation of the mean value? (Round your answer to three decimal places.)

Because friends and neighbors frequently praise her baking skills, Becky plans to start a new business baking cakes for customers. She wonders how to determine the cost of her cakes. Assume financial statement data are prepared in accordance with GAAP.

1. Identify the three components of product cost incurred in producing cakes and give examples of each. Also classify the costs as fixed, variable, or mixed. Explain any assumptions you use in determining your costs and classifying them.

2. Explain why measuring product cost for a bakery (or other manufacturing company) is more complex than measuring product cost for a retail store.

An insurance company has an online help service for its customers. Customer queries that take more than 5 minutes to resolve are categorized as​ "unsatisfactory" experiences. To evaluate the quality of its​ service, the company takes 10 samples of 100 calls each while the process is under control.

p values (n = 100)

0.06

0.14

0.13

0.05

0.16

0.08

0.17

0.04

0.19

0.16

a. calculate the p̄ and S_p values and set up control limits so that future sample p values should fall within the control limits 99.7% of the time

The p̄ value is _____. (enter your response rounded to three decimal places.)

The controller of a large retail chain is concerned about a possible slowdown in payments by customers. The controller randomly selects a sample of 10 accounts, with the following ages (in days):

40, 45, 50, 65, 70, 75, 78, 80, 82, 85

The sample standard deviation (s) is 15.53.

The controller wants to determine if the population mean number of days that the company must wait to get paid exceeds 65, which is the historical average. If it does, the company must take some action to ensure they are paid in a more timely manner

Calculate the test statistic (round to three decimal places, e.g. 2.0155 becomes 2.016).