Please answer part e,f,g,h and bonus.

Thank you.

Q1. Betty bakes and sells bagels all year round. Betty plans and manages inventories of paper take-out bags with her logo printed on them. Daily demand for take-out bags is normally distributed with a mean of 90 bags and a standard deviation of 30 bags. Betty’s printer charges her $10 per order for print setup independent of order size. Bags are printed at 5 cents ($0.05) each bag. It takes 4 days for an order to be printed and delivered. Betty has a storage room big enough to hold all reasonable quantities of bags. The holding cost is estimated to be 25% per year. Assume 360 days per year. (Use the H= i × C formula to compute the annual holding cost).

(a) What is the optimal order quantity per order for Betty?

(b) How many times per year does Betty need to order?

(c) How many days will elapse between two consecutive orders?

(d) What is Betty’s total annual inventory-related cost (cost of placing orders and carrying inventory)?  

(e) What is the total cost per bag?

(f) What is Betty’s monthly inventory turns?

(g) If Betty wants to make sure the bags do not run out with 99% probability during the order lead time, what is her optimal reorder point? (Use z=2.33 for 99% service level)

(h) If Betty’s printer charges her $12 per order irrespective of order size, what is the total annual inventory-related costs per bag?

(i) (Bonus) Assume that the print cost can be reduced to 3 cents per bag if Betty prints 9000 bags or more at a time. If Betty is interested in minimizing her total cost (i.e., purchase and inventory-related costs), should she begin printing 9000 or more bags at a time?

Suppose we wish to build a multiple regression model to predict the cost of rent (dollars) in a city based on population (thousands of people), and income (thousands of dollars). Use the alpha level of 0.05.

A. Is the whole regression model effective in predicting the cost of rent? Use alpha of 0.1. Make sure to show which values you use to make the decision.

B. Write down the multiple regression equation using actual names of IVs and DVs.

C. What is the value of the estimated intercept? Interpret the value in terms of rent (dollars) based on population (thousands of people), and income (thousands of dollars).

D. What is the values of the estimated slope for the variable “Income”? Interpret the value in terms of actual names of IVs and the DV.

E. What is the values of the estimated slope for the variable “Population”? Interpret the value in terms of actual names of IVs and the DV.

F. Does Income significantly influence the Rent at the alpha level of 0.01? Make sure to show which values you use to make the decision.

G. Does Population significantly influence the Rent at the alpha level of 0.01? Make sure to show which values you use to make the decision.

Data:

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

Additional Information

1. Sales and production data for these first two years follow.

2. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following.

3. Selling and administrative expenses consist of the following.

Prepare income statements for the company for each of its first two years under variable costing.

Early in 2019, Dobbs Corporation engaged Kiner Construction, Inc. to design and construct a new manufacturing facility for Dobbs. Construction began on June 1, 2019, and was completed on December 31, 2019. Dobbs made the following payments to Kiner during 2019: Date Payment amount June 1, 2019, $6,000,000 August 31, 2019, 9,000,000 December 31, 2019 7,500,000 In order to finance the construction, Dobbs issued a $5,000,000, 10 year, 9% bond, issued at par on May 31, 2019, with interest payable annually on May 31. In addition to the $5,000,000 bond issue, Dobbs also had the following additional debt outstanding during 2019: $1,250,000 note payable, the interest rate of 12%, a maturity date of January 1, 2020, interest payable annually on January 1st. $1,000,000 loan payable, the interest rate of 7%, maturing on January 1, 2025, with interest payable quarterly. Requirements Compute the following amounts: 1. Weighted-average accumulated expenditures qualifying for capitalization of interest cost in 2019. 2. Maximum interest incurred during 2019. 3. Total amount of interest cost to be capitalized (i.e., included in the total cost of the manufacturing facility) for 2019. 4. The total cost of the facility.

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($46 per unit) $ 1,150,000 $ 2,070,000 Cost of goods sold ($31 per unit) 775,000 1,395,000 Gross margin 375,000 675,000 Selling and administrative expenses 288,750 323,750 Net income $ 86,250 $ 351,250 Additional Information Sales and production data for these first two years follow. 2016 2017 Units produced 35,000 35,000 Units sold 25,000 45,000 Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following. Direct materials $ 5 Direct labor 8 Variable overhead 8 Fixed overhead ($350,000/35,000 units) 10 Total product cost per unit $ 31 Selling and administrative expenses consist of the following. 2016 2017 Variable selling and administrative expenses ($1.75 per unit) $ 43,750 $ 78,750 Fixed selling and administrative expenses 245,000 245,000 Total selling and administrative expenses $ 288,750 $ 323,750 2. What are the differences between the absorption costing income and the variable costing income for these two years? (Loss amounts should be entered with a minus sign.)

1.

Determine the unit cost of goods manufactured, based on (a) the variable costing concept and (b) the absorption costing concept.

2.

Analyzing Income under Absorption and Variable Costing

Variable manufacturing costs are $76 per unit, and fixed manufacturing costs are $218,400. Sales are estimated to be 8,000 units.

If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.

a. How much would absorption costing operating income differ between a plan to produce 8,000 units and a plan to produce 10,400 units?
$

b. How much would variable costing operating income differ between the two production plans?
$

The following budgeted information is available:                          
                          
   X-Rays   Ultrasound   CT Scan   MRI   Total      
Technician Labour   $61,440   $105,600   $96,000   $105,000   $368,040      
Depreciation   $32,240   $268,000   $439,000   $897,500   $1,636,740      
Materials   $22,080   $16,500   $24,000   $31,250   $93,830      
Administration                   $20,610      
Maintenance                   $247,320      
Sanitation                   $196,180      
Utilities                   $134,350      
Totals   $115,760   $390,100   $559,000   $1,033,750   $2,697,070      
                          
Number of Procedures   3,840   4,400   3,000   2,500   13,740      
Minutes to clean after each proceure   5   5   15   35          
Minutes for each procedure   5   15   20   45          
Sanitation Minutes   19,200   22,000   45,000   87,500   173,700      
Procedure minutes   19,200   66,000   60,000   112,500   257,700      
                          
YRC operates at capacity. The proposed allocation bases for overhead are as follows:                          
Allocation Base   Driver                      
Administration   Number of procedures                      
Maintenance (including parts)   Capital cost of equipment (depreciation)                      
Sanitation   Total cleaning minutes                      
Utilities   Total procedure minutes                      
                          
                          
REQUIRED:                          
1. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using the direct technician labour as the cost allocation base.                          
2. Calculate the budgeted cost per service for X-rays, ultrasounds, CT scans, and MRIs using activity-based costing (ABC)

Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows:

Required:
1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. (Do not round intermediate calculations. Round your final answers to nearest whole number.)

New Break Even Units: ______ Canoes

Break Even Sales Revenue: _______



2. If Sandy Bank sells 700 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.) (Round your answers to the nearest whole number.)

Margin of Safety: ______

Percentage of Sales : ________%



3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit. (Round your answer to the nearest whole number.)

Target Sales Unit: _____ Canoes

The table below presents durations, direct costs and immediate predecessors for each activity of a project executed by a contracting company, under both normal and crash conditions. The weekly indirect cost is L.E. 40.

The Critical Path is A-D-E-G = 25 week

If the contract entitles the contracting company L.E. 80 for each week below the 26-week contract duration limit, Calculate the optimum project completion time?