1a. A small diner serves sandwiches and beverages. Which of the following is a variable cost with respect to the number of customers?

a. Rent

b.Soda

c.New dishwasher

d.All of the above

1b. A firm manufactures luxury automobiles. Which of the following is a product cost?

a.CEO salary

b.Sales commissions

c.Advertising

d.Windshields

1c.Within the relevant range, variable costs can be expected to:

a.increase on a per unit basis as the activity level decreases.

a.remain constant in total as the activity level changes.

c.increase on a per unit basis as the activity level increases.

d.vary in total in direct proportion to changes in the activity level.

1d.Which of the following is true at a firm's break-even point?

a.Profit is zero

b.Total revenue equals total cost

c.Total contribution margin equals total fixed cost

d.All of the above

1e.A corporation has provided the following contribution format income statement

Sales (1,000)                                 $50,000
Variable expense       $32,500
Contribution margin              $17,500
Fixed expenses                             12,250
Net Operating Income            $ 5,250

The break-even point in unit sales is closest to:

a.0 units

b.895 units

c.650 units

d.700 units

1f.A company has the following information:

Income tax rate                        25%
Selling price per unit         $8.00
Variable cost per unit       $5.00
Total fixed costs      $100,000

The contribution margin per unit is:

a.$3.00

b.$2.00

c.$5.00

d.$8.00

For a hypothetical country, assume the current unemployment rate is 3.8% and the NRU is 4.5%. Actual GDP is $612 billion but Potential (full-employment) GDP is $600 billion. Assume prices are flexible upward but inflexible downward. It has been noted that there is a $7.50 change in consumption spending for every $10 change in income (real GDP).

a. In what phase of the business cycle is this economy? Explain. What do you expect is occurring with the rate of inflation?

b. What specific (increase or decrease; $ amount) discretionary fiscal policy changes could Congress pass to achieve full employment GDP?

i. G:

ii. T:

iii. Combination

c. Under the original conditions, in what way would the built-in stabilizers (automatic fiscal policy) change the federal budget (toward deficit or surplus)?

d. What specific monetary policy changes might the Fed consider in order to stabilize the economy:

i. Open Market Transactions: Buy or Sell? As a result, what happens to the Fed Funds rate?

ii. Reserve Requirement: Increase or Decrease? How likely is the Fed to change this? Why?

iii. Discount Rate: Increase or Decrease?

iv. Interest on Bank Reserves Deposited at the Fed: Increase or Decrease?

e. Briefly describe how the open market transactions you chose (buy or sell) would work to affect the economy.

4) In addition to studying the mean monthly sales of the product, the analyst wishes to study the proportion of stores that have experienced a return rate of at least 20% of the product sold at its store within 90 days of the purchase of the item. Store policy requires any return of the shirt to be done at the store at which the shirt was purchased. What minimum numbers of stores need to be selected to estimate the desired population proportion under the following conditions? Explain the meanings of the minimum sample sizes you compute. a) The estimate is desired to within ±10% with 99% confidence when the population proportion of stores that has experienced at least this return rate has been thought to equal 15%. b) The estimate is desired to within ±10% with 99% confidence when the population proportion of stores that has experienced at least this return rate is unknown. c) The estimate is desired to within ±10% with 99% confidence when the population proportion of stores that has experienced at least this return rate has been thought to equal 5%. Comment upon the changes in the minimum sample sizes you have computed based upon the changes in the information in the parts of this problem. Again, compare your answers to the answer of the first part of the problem only. Do not use only mathematical justifications to explain why there are differences in the results at which you arrived for the parts of the problem.

In chapter 6 MKTG10 we have examined how the level of involvement in a purchase often determines the type of behavior exhibited by consumers. In this exercise you are asked to examine how consumer behavior changes as the level of consumer involvement changes. You will be given a series of scenarios. After each one, write how you would respond to the purchase situation. At work you are informed there is a “Secret Buddy” gift buying program for the holiday party. Each person’s name is entered into a hat and each person will draw one name. You choose the name of a person who works in another department that you do not know. What type of gift do you purchase? How much do you spend? How much time do you take choosing this gift? In the mail you receive an invitation to a favorite cousin’s surprise birthday party. You will not be able to attend, so you decide to send a gift. What type of gift would you send? How much do you spend? How much time do you take choosing this gift? You are recently engaged and have received an invitation to your future spouse’s mother’s birthday party. This will be the first family party you attended. What type of gift do you bring? How much do you spend? How much time did you take choosing this gift?

1. Explain the differences between fixed and random factors in Design of Experiments (DoE).

2. Explain the three pillars of DoE.

3. What are the differences between replication and repetition?

4. In plastic injection molding, temperature, time in mold, and injection pressure each play an important role in determining the strength of the part. At MAR Inc., experimenters are studying the effects on part strength when the temperature is set at either 250o, 275o, or 300oF; the time in mold is either 5, 7, or 9 seconds; and the injection pressure is either 200, 250, or 300 psi. Create a table show the factors and their levels for this information.

5. For the information in problem 4, how many tests would be necessary to test every possible treatment (a full factorial experiment)?.

6. A team is currently working to redesign a compressor assembly cell. The team has several design changes that they want to test using design of experiments. They want to decrease the cell’s assembly and packing throughput time. Currently, it takes 45 minutes to assemble and pack a compressor. The team is considering three changes: Reduce current 36 inch conveyor width to either 18 inch or 24 inch; Install new parts presentation shelving, either flat surfaced or angled Line form: either straight or curved Implement the first four steps of the experiment design process in slide 15. Comment on how to interpret and verify the results

a.) Abigail is a 27-year old female who suffers from depression. Her doctor has recommended moclobemide as treatment. As she is interested in the drug, she does some research on it. The oral bioavailability of moclobemide is initially 56% due to hepatic first-pass metabolism by CYP2C19 and CYP2D6, but the metabolism is saturated after continuous steady-state dosing. Moclobemide’s halflife is 2 hours. Explain i) what will happen to moclobemide’s plasma concentration when saturation occurs, ii) what will happen to the bioavailability thereof, and iii) how long it would take to reach steady state. (4)

b.) Over the course of a few weeks, Abigail experiences several emotional changes in her life, including losing her mother, getting fired from her job, picking up several kilograms, and breaking up with her partner. Given the distress, she takes three times the dose of her moclobemide in the hope that it would help her emotional state, and goes to a beer festival with friends. After a few drinks, Abigail experiences heart palpitations and is rushed to the hospital. Explain the underlying reasons and pathological changes leading to her hospitalisation. (5½)

c.) After recovering, Abigail decides to seek help controlling her weight, and obtains a prescription for Belviq. Comment on the appropriateness of her taking Belviq for weight loss.

The following cost functions apply to X Company's regular production and sales during the year:

Cost of goods sold: $7.00 (X) + $120,204

Selling and administrative expenses: $1.25 (X) + $73,776 where X is the number of units produced and sold.

During the year, X Company sold 63,600 units for $18.00 each. At the end of the year, a company offered to buy 4,820 units but was only willing to pay $11.00 each. X Company had the capacity to produce the additional 4,820 units

a.) If X Company had accepted the special order, firm profits would have increased by ______

b.) Consider the following three changes. Direct material costs on the special order would have increased by $0.85 per unit, direct labor costs on the special order would have decreased by $0.42 per unit, and X Company would have had to rent special equipment for $2,000. Independent of your answer to (5), the effect of these changes would have been to reduce profit on the special order by _______

c) In order to retain all of X Company's regular customers, it would have had to reduce the regular selling price by $0.37. If the selling price were reduced and next year's unit sales turned out to be the same as this year's sales, firm profits would have fallen by _______

The following cost functions apply to X Company's regular production and sales during the year:

  Cost of goods sold:   $6.91 (X) + $134,310

  Selling and administrative expenses:   $1.38 (X) + $64,130

where X is the number of units produced and sold. During the year, X Company sold 60,500 units for $19.00 each. At the end of the year, a company offered to buy 4,010 units but was only willing to pay $11.00 each. X Company had the capacity to produce the additional 4,010 units.

5. If X Company had accepted the special order, firm profits would have increased by

6. Consider the following three changes. Direct material costs on the special order would have increased by $0.76 per unit, direct labor costs on the special order would have decreased by $0.40 per unit, and X Company would have had to rent special equipment for $1,500. Independent of your answer to (5), the effect of these changes would have been to reduce profit on the special order by

7. In order to retain all of X Company's regular customers, it would have had to reduce the regular selling price by $0.36. If the selling price were reduced and next year's unit sales turned out to be the same as this year's sales, firm profits would have fallen by

A family practice that serves over 4,500 patients is owned by three brothers, all general practitioner medical doctors who have been closely watching how the new Patient Protection and Affordable Care Act (ACA or “Obamacare”) is developing, especially with the ongoing changes to the eligibilities of coverage for patients and reimbursements that now require their facility to change its systems and processes for compliance.

As a healthcare consultant, you have been retained by the family practice to perform a thorough audit and analysis of the facility, including its systems, processes, and procedures, with an emphasis on record keeping and coding/billing practices.

You have also spent some time with the owners of the family practice discussing what the future holds regarding the types of treatments, demographics of patients, and the effect of technology on the methodologies of patient treatment. Within this context, the client asks you to provide the following:

Questions:

When comparing the overall health care system in America, how does it compare to just 40

years ago?

Provide some examples of what specifically is critical for the healthcare organization to consider regarding how treatments are performed on patients.

What technological advancements do you predict in health care in the next 15 years, especially those that can be opportunities for a family medical clinic scenario?

What are the regulatory agency changes coming in the near future?

What are your predictions for the success of the ACA, especially in the next 5 years?