The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,700 per month plus $42 per course plus $7 per student. The company’s sales should average $890 per student.

The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B − A.)

(a) What is the level of significance?
State the null and alternate hypotheses.

(b) What sampling distribution will you use? What assumptions are you making?

What is the value of the sample test statistic? (Round your answer to three decimal places.)

(c) Find the P-value. (Round your answer to four decimal places.)

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

(e) Interpret your conclusion in the context of the application.

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $710. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

QUESTION 21

Of the following fiscal programs, which has the biggest effect, per dollar, on aggregate demand?

QUESTION 22

One lesson of the Great Depression was that potential GDP could

QUESTION 23

Prior to the Great Depression, the principal fiscal policy was a balanced budget.

QUESTION 24

Raising taxes as an element of discretionary fiscal policy is intended to reduce aggregate demand, but it can also reduce aggregate supply if

QUESTION 25

Supply-side economics emphasized government policies to

1. Assume x and y are functions of t. Evaluate dy/dt with 4xy-5x+6y^3=-126, with dx/dt=-18, and x=6,y=-2

2. A retail store estimates that weekly sales and weekly advertising costs x​ are related by s=50,000-30,000e^-0.0004x. The current weekly advertising costs are ​$2,500​, and these costs are increasing at a rate of ​$400 per week. Find the current rate of change of sales per week.

3. Use implicit differentiation to find y’ for the equation below and then evaluate y’ at the indicated point, (-4,4). y^2+5y+9x=0

4. Find the indicated derivative and simplify. Y’ for y=3x-8/x^2+6x

5. Use implicit differentiation to find y’ and evaluate y’ at ​(-2​,-3​). 3xy+y-15=0

6. f(x)=8√ 2x^2+3

7. The demand x is the number of items that can be sold at a price of​ $p. For x=p^4-6p+1000, find the rate of change of p with respect to x by differentiating implicitly. The rate of change of the price p with respect to the demand x is?

8. Suppose that for a company manufacturing​ calculators, the​ cost, revenue, and profit equations are given by C=80,000+30x, R=200x-x^2/20, where the production output in 1 week is x calculators. If production is increasing at a rate of 600 calculators per week when production output is 4,000 calculators. Find the rate of increase in​ cost, revenue, profit.

1. The purpose of posting is to:

   		record the transactions in chronological order in the journal.
   		provide an explanation of the transaction.
   		update the account balances in the ledger.
   		correct a previous entry.

QUESTION 2

1. Posting is performed by transferring information from the journal to the:

   		balance sheet.
   		trial balance.
   		ledger.
   		income statement.

QUESTION 3

1. The general ledger:

   		lists the customer names.
   		is the book of final entry.
   		lists the transactions in chronological order.
   		is before the general journal.

QUESTION 4

1. "PR" in the general journal and general ledger stands for:

   		per reviewer.
   		posting reference.
   		prior receipt.
   		post review.

QUESTION 5

1. The posting reference column in the ledger is:

   		used to record the journal and page number the transactions originated.
   		used to record the ledger number.
   		used to record the date.
   		not used.

QUESTION 6

1. A credit to a liability account was posted to the capital account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		owner's equity to be understated.
   		net income to be overstated.

QUESTION 7

1. A credit to an asset account was posted to a revenue account. This would cause:

   		assets to be understated.
   		liabilities to be overstated.
   		capital to be understated.
   		revenue to be overstated.

QUESTION 8

1. A credit to an asset account was posted to an expense account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be understated.
   		expenses to be understated.

QUESTION 9

1. A debit to an expense account was posted to an asset account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be understated.
   		expenses to be overstated.

QUESTION 10

1. A debit to the Capital account was posted to an expense account. This would cause:

   		assets to be overstated.
   		liabilities to be understated.
   		capital to be overstated.
   		expense to be overstated.

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 63 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,800 per month plus $40 per course plus $4 per student. The company’s sales should average $860 per student.

The company planned to run four courses with a total of 63 students; however, it actually ran four courses with a total of only 61 students. The actual operating results for September were as follows:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Problem 9.4 - variation – The Internal Rate of Return is the interest rate that makes the present value (P) of a series of future values equal to a specific dollar value. It is used in engineering work to determine the financial viability of an investment (eg., cost of purchasing a piece of equipment) by looking at the annual revenue generated from the investment. The future annual revenue values must be brought back to present time by "discounting". For example, the present value of a single payment of $1000 (F) that occurs 2 years into the future, with an annual interest rate of 5% is found as follows: P = F/( 1 + i )^n where n = number of periods (yrs in this example), i = interest rate/period so P = ($1000)/( 1 + 0.05 )^2 = $907.03 Thus, if you invested $907.03 today at an interest rate of 5%/yr, you would have $1000 at the end of 2 years. Determine the internal rate of return for the situation below.

Set up the calculation of the present value for each year's income and then the sum of these values. The correct value for the IRR will make the sum of the present values of income equal to the investment. Set up an "objective" or target cell for Σ(Pi) – Inv. Use Solver to find the interest rate that brings this objective cell to zero. DO Not use any of Excel’s financial functions in doing this problem. The point is to use iteration.

Problem 9.4 - variation – The Internal Rate of Return is the interest rate that makes the present value (P) of a series of future values equal to a specific dollar value. It is used in engineering work to determine the financial viability of an investment (eg., cost of purchasing a piece of equipment) by looking at the annual revenue generated from the investment. The future annual revenue values must be brought back to present time by "discounting". For example, the present value of a single payment of $1000 (F) that occurs 2 years into the future, with an annual interest rate of 5% is found as follows: P = F/( 1 + i )^n where n = number of periods (yrs in this example), i = interest rate/period so P = ($1000)/( 1 + 0.05 )^2 = $907.03 Thus, if you invested $907.03 today at an interest rate of 5%/yr, you would have $1000 at the end of 2 years. Determine the internal rate of return for the situation below.

Set up the calculation of the present value for each year's income and then the sum of these values. The correct value for the IRR will make the sum of the present values of income equal to the investment. Set up an "objective" or target cell for Σ(Pi) – Inv. Use Solver to find the interest rate that brings this objective cell to zero. DO Not use any of Excel’s financial functions in doing this problem. The point is to use iteration.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys debt securities, intending to profit from short-term differences in price and maintaining them in an active trading portfolio. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Required Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments. (Amounts to be deducted should be indicated with a minus sign.) Income statement: Interest revenue $ 75,200 Investment revenue Net income $ 75,200 Statement of comprehensive income: Net income Balance sheet: Assets Current Assets Interest receivable Investments $ 0 Shareholders’ Equity Required 1 Required 2