US Auto Company would like to offer rebates to its customers in order to increase sales. If it lowers prices sales will increase.    This will depend on the price elasticity of demand. Assume that the price elasticity of demand is 1.5. This firm is considering a $400 rebate on its cars. Also assume the following information on prices and costs before the rebates:

          Average price per car                                   $9,000 per car

          Expected sales volume at $9,000) per car     1,000,000 cars

          Average total costs per car                           $8,200 per car

          Total variable cost                                         $6,400,000,000

• Calculate the present total fixed costs, average variable costs and average fixed costs.
• What is the present breakeven point?
• What is the change in revenue resulting from the $400 price reduction?
• What is the effect on the cost per car after the change? In other words what is the average cost per car after the change?
• Should the change be made?

Please show the calculation. Thank you.

1. The University is interested in determining if the number of people coming to work by pedal bicycle has changed from 2016 to 2017. Over the course of a week (Mon-Sun) they count the number of cyclists who enter campus at the North campus cycle path entrance between 8am-10am each day. The University have data from the same week in 2016. The counts for each day of the week for 2016 and 2017 are given in Table:

   	Mon	Tues	Wed	Thurs	Fri	Sat	Sun
   2016	243	175	255	187	241	53	32
   2017	254	242	250	263	235	51	35

   1. Describe one positive and one negative aspect of the University's sampling strategy
   2. Explain why a paired approach is appropriate for this test
   3. Write down appropriate null and alternative hypotheses for this test.
   4. Calculate the mean and variance of the differences di=xi-yi.
   5. What assumptions are required to conduct your hypothesis test from (c), does this data satisfy them?
   6. Using your answer to part (d), or otherwise, calculate a 90% confidence interval for the difference in the average number of cyclists.
   7. Using your answer to part (f), or otherwise, test your hypothesis from (c)  at the 10% level. You should clearly state the conclusion of your test.
   8. From Table 1 it looks like Tuesday and Thursday have the largest difference from one year to the next.  Why is it wrong to now testing the hypothesis  “2017 has more cyclists on Tuesdays and Thursdays than in 2016”?

Please explain part h) more details, thanks a lot.

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

a. State income taxes of $4,400. Federal tax withholding of $21,000.
b. Alimony payments to John's former wife of $10,000. (divorced on 12/31/2014).
c. Child support payments for John's child with his former wife of $4,100.
d. $12,200 of real property taxes.
e. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
f. $3,600 to Kid Care daycare center for Samantha's care while John and Sandy worked.

g. $14,000 interest on their home mortgage ( $400,000 acquisition debt).

h. $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and a new car.
i. $15,000 cash charitable contributions to qualified charities.
j. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

Required:
What is the Fergusons's 2020 federal income taxes payable or refund, Including any self-employment tax and AMT, if applicable?

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

The Fergusons reported making the following payments during the year:

State income taxes of $4,400. Federal tax withholding of $21,000. Alimony payments to John’s former wife of $10,000 (divorced on 12/31/2014). Child support payments for John’s child with his former wife of $4,100. $12,200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha’s care while John and Sandy worked. $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?

BUSI 1110

Summer 2020 Weekly Assignment

Assignment number

9
General Information

Description

Chapter

Motivating Satisfying and Leading Employees

Due date

Prior to start of following week’s session

Students will answer a list of assigned questions. In order to receive full credit for each question, students need to sufficiently support answers with relevant application of course concepts and theories. All sources should be correctly cited using APA guidelines.

Report guidelines

Students will require to submit their weekly assignments online (Moodle) on or before the due date to location created under each week. All files should be submitted using pdf extension labelling the file name using the format <last name>_<first name>_<assignment number>.pdf. Students could also create other modes of submission such as power point, graphics, video clips etc..., in such events please speak to the instructor for uploading instructions. All submissions should be properly formatted, checked for spelling, grammar and use professional language. Students will use Font style Times New Roman and size 11 with a spacing of 1.5

Assignment – Week 9

1. Reflecting the motivation theories discussed, which theory do you think is most suitable to motivate?

a. Fast food chain employee b. Accountant

Explain your reasoning by applying to the motivational theory for positions a) and b)? (8 points)

2. Identify the hygiene and motivational factors for following positions

   1. Accountant (3)

   2. University student following BUSI 1110 (3)

   3. Cashier at a super market (3)

3. Following assignment guidelines, reliable and sufficient research performed to support the argument. Sources cited to support statements. Clear and concise writing (5 points)

Total Points 22 – (Percentage 5%)

Revision May 2020

Page 1

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $671,000; Raw Materials Inventory, $67,000; Work in Process Inventory, $24,000; Finished Goods Inventory, $61,000; Common Stock, $601,000; and Retained Earnings, $222,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

Paid $31,000 of research and development costs.

Paid $59,000 for raw materials that will be used to make eBook readers.

Placed $89,000 of the raw materials cost into the process of manufacturing eBook readers.

Paid $73,000 for salaries of selling and administrative employees.

Paid $101,000 for wages of production workers.

Paid $90,000 to purchase equipment used in selling and administrative offices.

Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $10,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($90,000 – $10,000) ÷ 8 = $10,000.

Paid $154,000 to purchase manufacturing equipment.

Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $26,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($154,000 – $26,000) ÷ 8 = $16,000.

Paid $49,000 for rent and utility costs on the manufacturing facility.

Paid $76,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

Completed and transferred eBook readers that had total cost of $245,000 from work in process inventory to finished goods.

Sold 830 eBook readers for $428,000.

It cost Antioch $132,800 to make the eBook readers sold in Event 13.

Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indicated with a minus sign.)

Prepare a formal income statement for the year.

Prepare a balance sheet for the year.

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $660,000; Raw Materials Inventory, $67,000; Work in Process Inventory, $35,000; Finished Goods Inventory, $47,000; Common Stock, $590,000; and Retained Earnings, $219,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

1. Paid $29,000 of research and development costs.

2. Paid $64,000 for raw materials that will be used to make eBook readers.

3. Placed $98,000 of the raw materials cost into the process of manufacturing eBook readers.

4. Paid $69,000 for salaries of selling and administrative employees.

5. Paid $102,000 for wages of production workers.

6. Paid $66,000 to purchase equipment used in selling and administrative offices.

7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $16,000 salvage value and a five-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($66,000 – $16,000) ÷ 5 = $10,000.

8. Paid $157,000 to purchase manufacturing equipment.

9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $21,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($157,000 – $21,000) ÷ 8 = $17,000.

10. Paid $54,000 for rent and utility costs on the manufacturing facility.

11. Paid $77,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

12. Completed and transferred eBook readers that had total cost of $255,000 from work in process inventory to finished goods.

13. Sold 820 eBook readers for $421,000.

14. It cost Antioch $155,800 to make the eBook readers sold in Event 13.

c-1 Prepare a schedule of cost of goods manufactured and sold for the year. c-2. Prepare a formal income statement for the year. c-3. Prepare a balance sheet for the year.

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $667,000; Raw Materials Inventory, $62,000; Work in Process Inventory, $36,000; Finished Goods Inventory, $61,000; Common Stock, $603,000; and Retained Earnings, $223,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

Paid $26,000 of research and development costs.

Paid $61,000 for raw materials that will be used to make eBook readers.

Placed $83,000 of the raw materials cost into the process of manufacturing eBook readers.

Paid $63,000 for salaries of selling and administrative employees.

Paid $98,000 for wages of production workers.

Paid $139,000 to purchase equipment used in selling and administrative offices.

Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a six-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($139,000 – $19,000) ÷ 6 = $20,000.

Paid $118,000 to purchase manufacturing equipment.

Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $28,000 salvage value and a nine-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($118,000 – $28,000) ÷ 9 = $10,000.

Paid $58,000 for rent and utility costs on the manufacturing facility.

Paid $76,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

Completed and transferred eBook readers that had total cost of $244,000 from work in process inventory to finished goods.

Sold 1,000 eBook readers for $434,000.

It cost Antioch $170,000 to make the eBook readers sold in Event 13.

c-1. Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indicated with a minus sign.)

c-2. Prepare a formal income statement for the year.

c-3. Prepare a balance sheet for the year.

Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $673,000; Raw Materials Inventory, $65,000; Work in Process Inventory, $23,000; Finished Goods Inventory, $53,000; Common Stock, $594,000; and Retained Earnings, $220,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

1. Paid $23,000 of research and development costs.

2. Paid $58,000 for raw materials that will be used to make eBook readers.

3. Placed $85,000 of the raw materials cost into the process of manufacturing eBook readers.

4. Paid $78,000 for salaries of selling and administrative employees.

5. Paid $106,000 for wages of production workers.

6. Paid $179,000 to purchase equipment used in selling and administrative offices.

7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $19,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($179,000 – $19,000) ÷ 8 = $20,000.

8. Paid $188,000 to purchase manufacturing equipment.

9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $28,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($188,000 – $28,000) ÷ 8 = $20,000.

10. Paid $63,000 for rent and utility costs on the manufacturing facility.

11. Paid $74,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

12. Completed and transferred eBook readers that had total cost of $248,000 from work in process inventory to finished goods.

13. Sold 810 eBook readers for $425,000.

14. It cost Antioch $145,800 to make the eBook readers sold in Event 13.

1. c-1. Prepare a schedule of cost of goods manufactured and sold for the year. (Amounts to be deducted should be indicated with a minus sign.)

2. c-2. Prepare a formal income statement for the year.

3. c-3. Prepare a balance sheet for the year.

For the Disney Company, provide a brief detail of the lawsuit. Because the Beef lawsuit is included in the footnote, what does this tell you about the company belief regarding the merit of the lawsuit?

14 Commitments and Contingencies

Commitments

The Company has various contractual commitments for broadcast rights for sports, feature films and other programming, totaling approximately $51.0 billion, including approximately $0.4 billion for available programming as of October 1, 2016, and approximately $48.7 billion related to sports programming rights, primarily college football (including bowl games and the College Football Playoff) and basketball, NBA, NFL, MLB, US Open Tennis, various soccer rights, the Wimbledon Championships and the Masters golf tournament.

The Company has entered into operating leases for various real estate and equipment needs, including retail outlets and distribution centers for consumer products, broadcast equipment and office space for general and administrative purposes. Rental expense for operating leases during fiscal years 2016, 2015 and 2014, including common-area maintenance and contingent rentals, was $847 million, $859 million and $883 million, respectively.

The Company also has contractual commitments for two new cruise ships, creative talent and employment agreements and unrecognized tax benefits. Creative talent and employment agreements include obligations to actors, producers, sports, television and radio personalities and executives.

Contractual commitments for broadcast programming rights, future minimum lease payments under non-cancelable operating leases, cruise ships, creative talent and other commitments totaled $60.8 billion at October 1, 2016, payable as follows:

Certain contractual commitments, principally broadcast programming rights and operating leases, have payments that are variable based primarily on revenues and are not included in the table above.

The Company has non-cancelable capital leases, primarily for land and broadcast equipment, which had gross carrying values of $464 million and $469 million at October 1, 2016 and October 3, 2015, respectively. Accumulated amortization related to these capital leases totaled $216 million and $196 million at October 1, 2016 and October 3, 2015, respectively. Future payments under these leases as of October 1, 2016 are as follows:

Contractual Guarantees

The Company has guaranteed bond issuances by the Anaheim Public Authority that were used by the City of Anaheim to finance construction of infrastructure and a public parking facility adjacent to the Disneyland Resort. Revenues from sales, occupancy and property taxes from the Disneyland Resort and non-Disney hotels are used by the City of Anaheim to repay the bonds. In the event of a debt service shortfall, the Company will be responsible to fund the shortfall. As of October 1, 2016, the remaining debt service obligation guaranteed by the Company was $316 million, of which $51 million was principal. To the extent that tax revenues exceed the debt service payments in subsequent periods, the Company would be reimbursed for any previously funded shortfalls. To date, tax revenues have exceeded the debt service payments for the Anaheim bonds.

Legal Matters

Beef Products, Inc. v. American Broadcasting Companies, Inc. On September 13, 2012, plaintiffs filed an action in South Dakota state court against certain subsidiaries and employees of the Company and others, asserting claims for defamation arising from alleged false statements and implications, statutory and common law product disparagement, and tortious interference with existing and prospective business relationships. The claims arise out of ABC News reports published in March and April 2012 about a product, Lean Finely Textured Beef, that was included in ground beef and hamburger meat. Plaintiffs’ complaint sought actual and consequential damages in excess of $400 million (which in March 2016 they asserted could be as much as $1.9 billion), statutory damages (including treble damages) pursuant to South Dakota’s Agricultural Food Products Disparagement Act, and punitive damages. Trial is set for June 2017. At this time, the Company is not able to predict the ultimate outcome of this matter, nor can it estimate the range of possible loss.

The Company, together with, in some instances, certain of its directors and officers, is a defendant or codefendant in various other legal actions involving copyright, breach of contract and various other claims incident to the conduct of its businesses.

Management does not believe that the Company has incurred a probable material loss by reason of any of the above actions.

Long-Term Receivables and the Allowance for Credit Losses

The Company has accounts receivable with original maturities greater than one year related to the sale of television program rights and vacation ownership units. Allowances for credit losses are established against these receivables as necessary.

The Company estimates the allowance for credit losses related to receivables from the sale of television programs based upon a number of factors, including historical experience and the financial condition of individual companies with which we do business. The balance of television program sales receivables recorded in other non-current assets, net of an immaterial allowance for credit losses, was $0.9 billion as of October 1, 2016. Fiscal 2016 activity related to the allowance for credit losses was not material.

The Company estimates the allowance for credit losses related to receivables from sales of its vacation ownership units based primarily on historical collection experience. Estimates of uncollectible amounts also consider the economic environment and the age of receivables. The balance of mortgage receivables recorded in other non-current assets, net of a related allowance for credit losses of approximately 4%, was $0.7 billion as of October 1, 2016. Fiscal 2016 activity related to the allowance for credit losses was not material.