1. Recall the Blue Ridge Hot Tubs problem we discussed in class. Let x1 = no. of Aqua-Spas produced, x2 = no. of Hydro-Luxes produced, and x3 = no. of Typhoon-Lagoons produced. Suppose we change some of the original conditions in the problem, and solve it using Solver. Use the sensitivity report given to answer the questions below:

(a)What is the optimal decision? What is the value of the profit if this decision is implemented?

(b) What is the allowable set of values that the objective function coefficient of x3 can range over? How should this range be interpreted? Choose a value in that range, and calculate the value of the profit for that value.

(c) How much of each resource is being consumed to produce the optimal solution?

(d) What is the meaning of the shadow price for tubing?

(e) Why is the shadow price for labor equal to zero?

(f) What is the meaning of the reduced cost for Hydro-Luxes?

Part II Content of Marketing Plan As a marketer

, you will need a good marketing plan to provide direction and focus for your brand, product, or company. To deeper understand what to write in the marketing plan, one essential step is to know competitive advantage through well-informed segmenting, targeting, differentiating, and positioning decisions. Pay attention that unlike a business plan, a marketing plan has a more limited scope. It serves to document how the organization’s strategic objectives will be achieved through specific marketing strategies and tactics, with the customer as the starting point. Also, to develop successful strategies and action programs, marketers require up-to-date information about the environment, the competition, and the market segments to be served. Scenario: you are running a hypothetical start-up company – Link. The company’s first product is the Link H One, a multimedia, cellular/Wi-Fi-enabled smartphone. Link will be competing with Apple, Samsung, Huawei, HTC and other well-established rivals in a crowded, fast changing marketplace for smartphones that combine communication, entertainment, and storage functionality. Link is preparing to launch Link H One in a mature market. This product offers a competitive unique combination of advanced features and functionality at a value-added price. The company plans to target specific segments in the consumer and business markets, taking advantage of opportunities indicated by higher demand for easy-to-use smartphones with expanded communications, entertainment, and storage functionality. The primary marketing objective is to achieve first-year U.S sale of 500,000 units. The primary financial objectives are to achieve first-year sales revenues of $75 million, keep first-year losses under $8 million, and break even early in the second year.

Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:     

Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:

Required:
1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)



3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



4. If Blossom has only 247,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

Problem 9-4

Karam Inc. has compiled the following data in order to put together their first quarter operating budget for 2011:

Each unit requires three hours of direct labor.

Additional information:
Karam sells each unit for $95.
Company policy is to have 30 percent of next month's sales (in units) in ending finished goods inventory.
Company policy is to have 40 percent of next month's production needs in ending raw materials inventory. The production needs for April is 95,500.
It takes three pounds of material to produce each unit and the cost is $2.75/pound.

Required:

A. Prepare a sales budget for the January, February and March and for the first quarter in total.

B. Prepare a production budget for January, February and March and for the first quarter in total.

C. Prepare a direct materials purchases budget for January, February and March and for the first quarter in total.

Bakersfield Company makes and sells glare filters for microcomputer monitors. Steve Smith, the controller, is responsible for preparing Bakersfield’s master budget and assembled the following data for the upcoming year. The direct materials cost per unit was $18 in December of the current year. Labor saving machinery will be operational by March of the upcoming year. Also, as of March 1, the company plans to increase its direct labor rate. Direct labor for Bakersfield is considered variable because the company can call in its workers when needed and send them home when not needed. Bakersfield expects to have 5,600 filters in inventory on December 31 of the current year, and has a policy of carrying 35 percent of the following month’s projected sales in inventory. Information for the first four months of the upcoming year is as follows:

Requirements:

Prepare the following budgets for Bakersfield Company for each month in the first quarter (January through March) and for the entire first quarter of the upcoming year. Show supporting calculations.

Production budget

Direct labor cost budget

Direct materials usage budget in dollars

Sales revenue budget

Calculate the total budgeted contribution margin for Bakersfield by month (months of January through March) and in total for the first quarter of the upcoming year. Show supporting computations.

Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:     

Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:

Required:
1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



2. If Blossom has only 40,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)



3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



4. If Blossom has only 232,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

1. Kirkland Company provided the following information for the month ended July 31, 2015, based on selling 1,000 units of its bottled water.

What is Kirkland's margin of safety?

2. Chutes Company sells slides for $400 each. If their fixed costs total $300,000, how many slides must Chutes sell to breakeven if variable costs are $100 each?

3. Chutes Company sells slides for $400 each. If their fixed costs total $300,000, how much in sales revenue must Chutes achieve to breakeven if variable costs are $100 each?

4. Chutes Company sells slides for $400 each. If their fixed costs total $300,000, how many slides must Chutes sell to reach a target net income of $800,000 if variable costs are $100 each?

5. Chutes Company sells slides for $400 each. If their fixed costs total $300,000, how much in sales revenue must Chutes achieve to reach a target net income of $800,00 if variable costs are $100 each?

6. Chutes Company sells slides for $400 each. If their fixed costs total $300,000, what is the margin of safety ratio if chutes expects to achieve a net income of $800,000 when variable cost are $100 each?

7. A company sells a product which has a unit sales price of $10, unit variable cost of $2 and total fixed costs of $135,000. How many units must the company must sell to break even?

8. For Clifford Company, sales are $2,000,000 for the one product they sell. Fixed expenses are $700,000 and the contribution margin ratio is 40%. What are required sales in dollars to earn a target net income of $400,000?

9. Madden Company produces dongles for computers, which it sells for $20 each. Each dongle cost $4 of variable costs to make. During June, 4,000 dongles were sold. Fixed costs for May were $5 per unit for a total of $20,000 for the month. How much is the contribution margin ratio?

10. Based on the chart below, classify each of the costs ar variable, fixed or mixed. State how you came to your conclusion.

a. Drilling Costs

b. Smoothing Costs

c. Mining Costs

This Excel file DI Basketball Graduation Rates shows the graduation rates for the men's and women's basketball teams that participated in recent NCAA division I men's and women's basketball tournaments. There are data for 67 men's teams and 63 women's teams since Princeton had teams in both tournaments but does not report graduation rates. Use the data to calculate a 90% confidence interval for ?M - ?F, the difference in the mean graduation rates for all division I men's and women's basketball teams. Do not waste time entering this data into a graphing calculator! Use Excel or Statcrunch! Use 2 decimal places in your answers. lower bound of confidence interval upper bound of confidence interval Select the choice below that correctly interprets the confidence interval. Since the interval is entirely negative, it appears that their is no significant difference between the DI women's basketball mean graduation rate and the DI men's basketball mean graduation rate. Since the interval contains zero we can conclude that both graduation rates are too low. Since the interval is entirely positive it appears that both men's and women's mean basketball graduation rates are higher than the graduation rate for the general student body. Since the interval is entirely negative, it appears that the DI men's basketball mean graduation rate is higher than the DI women's basketball mean graduation rate. Since the interval is entirely negative, it appears that the DI women's basketball mean graduation rate is higher than the DI men's basketball mean graduation rate.

What is the arithmetic average time-weighted rates of return for the investor? (Do not round intermediate

calculations. Enter your answer as a decimal number rounded to four decimal places)

Arithmetic average time-weighted rates of return?