Exercise 1-7 Direct and Indirect Costs [LO1-1]

Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows:

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 24,500 units?

b. What is the total indirect manufacturing cost incurred to make 24,500 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 24,500 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $90,650 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.

a. When the company sells 24,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 24,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

what is the fixed portion of sales representatives' compensation?​

Lab 1 Write a C program for a grade calculation to run on ocelot.

The source file should have your name & PantherID included in it and it should have an affirmation of originality stating something like: “I affirm that I wrote this program myself without any help form any other people or sources from the internet.”.

Code should be nicely indented using a consistent style and commented appropriately.
An array should be used for each student, but it is not required as long as all values are in variables.

• Course is an array of characters.

• Credits is an integer.

• Grade is a floating point number.

• Grade Points earned should be calculated as you print not stored in a variable.

  There should be at least 6 courses listed.
  There is no user input, all values should be hard coded in the program Columns should be aligned as shown in the sample below.

• Course column left justified.

• Credits centered

• Grade right justified

• Grade Points Earned right justified

  The grade points earned should be calculated in a formula with multiplication right while printing it out. It should not be stored as a variable.

  Create a simple Makefile to compile your program into an executable called gpa.

  You should submit the source code and your Makefile file compressed into a zip file named FirstNameLastNameL1.zip. The Makefile should be called Makefile with no extension. I should be able to type make at the command line to compile your program. Do not include any other files or folders in the zipfile. This applies even if you are a Mac user.

  Programs that do not compile and do something useful when run will not earn any credit at all.

  Sample Output:

  Student Name: YourFirstName YourLastName
  Panther ID:
  

Grade Points Earned

Current GPA: 3.22

A company has started a phone service that uses overseas doctors to provide emergency medical consultations. The responding doctors are based in a country with low wages but with a highly skilled pool of physicians. Responding to each call takes on average 15 minutes. At any given moment in time, there are 4 doctors overseas on duty. Calls arrive every 5 minutes on average and standard deviation of the inter-arrival time is 5 minutes. If no doctor is available overseas, the call is rerouted to the U.S. where a local physician answers the question. A local physician is always available to take a call. In this case, the firm pays $50 to the local physician.​

Now assume that the demand has increased to 20 calls per hour for the overseas doctors. Responding to each call still takes on average 15 minutes. At any given moment in time, there are 4 doctors overseas on duty. The coefficient of variation of customers’ inter-arrival time is 1. If no doctor is available overseas, the call is rerouted to the U.S. where a local physician answers the question.

Q18. What is the number of calls directed to the doctors in the US every hour?

Q19. The company has set a new goal to direct no more than 2 calls per hour to the doctors in the US. How many doctors do they need overseas?

By the spring of 1934, a great deal was known about poliomyelitis. The mode of transmission was known to be person-to-person. The two-phase process of the disease was well understood, and mild non-paralytic infections or anterior poliomyelitis as well as paralytic infections were all understood to be major means of contagion. Animals and most insects were eliminated as vectors. It was known that some victims will die in a few days. Some would have crippling paralysis, and others would recover without a sign. The polio virus had been isolated and identified from most parts of the body---most importantly, the CNS; blood; saliva; gastrointestinal tract, especially the small intestine; mesenteric lymph nodes; and nasopharynx. The damage caused by the polio virus was known to be done in the spinal cord's anterior horn of the grey matter and in the brain tissue.*

When the poliomyelitis epidemic hit Los Angeles, many horror stories from past epidemics had been deeply planted in the minds of medical and nursing professionals. It appears that the medical professionals at the time were well informed about the facts of poliomyelitis, yet most ignored them and, moreover, failed to inform the public. The Contagious Unit of the Los Angeles General Hospital was responsible for most of the activities of the epidemic, and fear of the disease seemed to dominate its efforts, in spite of evidence that much of the sickness that occurred in June of 1934 was not poliomyelitis.*

Physicians and nurses were strained, worried, and terrified of contracting the disease themselves. By June 15, 50 cases a day were being admitted to most hospitals, yet by June 29, only 1 fatal case of poliomyelitis had occurred, producing a sample of the polio virus. A second case produced another sample on July 4.*

When the Poliomyelitis Commission arrived in Los Angeles from Yale University School of Medicine, headed by Dr. Leslie T. Webster of the Rockefeller Institute of Medical Science of new York City, a public meeting was held to review the situation of the epidemic. The meeting digressed to physicians and nurses discussing their risk of getting poliomyelitis and whether they might receive disability pensions if paralyzed by the disease and were disabled in the line of duty.*

New interns in training at the Los Angeles County Hospital were deprived of teaching and proper guidance because the attending physicians were afraid of getting the disease and stayed away, consulting by phone instead of going to the hospital. Doctors who worked at the County Hospital in the communicable disease wards were not welcome on house calls because their patients viewed the hospital as a pet house.*

No one knew how much of the disease that year was really polio. Nearly all adults, especially the nurses and doctors, were afraid of getting paralytic polio. In those who got the serious form of the disease, health care providers observed much pain and weakness, but very few deaths occurred. The number of cases of paralysis was much lower than one would expect. The question was this: Could it be another virus or different strain of the virus? Dr. Webster believed that 90% of the cases were actually not poliomyelitis.*

Researchers had little success in searching for the polio virus in the nasal passages of suspected victims through nasal washings. The disease could not be produced in monkeys or lab animals. Webster believed that the problem was complex and that the infantile part of the infantile paralysis was missing because most cases were in adults. The paralysis face of the disease was also missing, as no paralysis occurred in most cases.*

Oral washings with ropy (an adhesive, stringy-type thread that was soaked in a special solution and swirled around in the throat in order to capture samples of mucous tissue) were done routinely. Ropy washes were able to gather even a few flakes of mucous and the debris in it. The ropy washes used a special solution that helped save samplings of potential polio virus evidence and preserved the evidence for months (101) days for later study. Even after such a long time, the specimen could be spun in a centrifuge and yield the virus; thus, in future outbreaks, disease investigators would not need to take an army of public health workers along to gather specimens.*

Hysteria raged on in the main populace. Not only was the general public afraid of getting the disease, but a major part of the medical and nursing profession was also participating in the fear. Yet officials were not daring enough to tell the public that the disease was not polio. It was disclosed that half of the 1,301 suspected cases were not poliomyelitis. The actual attack rate was estimated to be from 4.4% to 10.7%.*

There was no doubt that Los Angeles was visited by the epidemic of poliomyelitis in the summer of 1934, but it was a mild one. Most of the people who were sick that summer were sick either from another disease (encephalitis, meningitis, or influenza) or from a mild form of a different strain of the poliomyelitis. Patients had atypical symptoms for polio, and the observed symptoms were rheumatoidal or influenzal with striking emotional tones of fear that they might get polio. It was observed by US Public Health Service officer Dr. A. G. Gilliam, of the Los Angeles County Hospital"s personnel, "Irrespective of actual mechanisms of spread and identity of the disease, this outbreak has no parallel in the history of poliomyelitis or any other CNS infections"*

As an unfortunate outcome of this epidemic and its resulting hysteria, patients who exhibited even a slight degree of weakness were immobilized in plaster casts. This was a common practice in the 1930s, and many were subjected unnecessarily to this treatment.

Answer the following three question below

Case Questions to Respond to

1. By 1934, a great deal was known about poliomyelitis. Summarize all that was known about all facets of the epidemiology of polio.

2. How serious was the polio epidemic of 1934?. What were the social, psychological, and political implications and their effects on the epidemiology of polio surrounding this case?

3. What were the final conclusions about the polio epidemic of 1934 in Los Angeles, and what were the implications for the future?

By the spring of 1934, a great deal was known about poliomyelitis. The mode of transmission was known to be person-to-person. The two-phase process of the disease was well understood, and mild non-paralytic infections or anterior poliomyelitis as well as paralytic infections were all understood to be major means of contagion. Animals and most insects were eliminated as vectors. It was known that some victims will die in a few days. Some would have crippling paralysis, and others would recover without a sign. The polio virus had been isolated and identified from most parts of the body---most importantly, the CNS; blood; saliva; gastrointestinal tract, especially the small intestine; mesenteric lymph nodes; and nasopharynx. The damage caused by the polio virus was known to be done in the spinal cord's anterior horn of the grey matter and in the brain tissue.*

When the poliomyelitis epidemic hit Los Angeles, many horror stories from past epidemics had been deeply planted in the minds of medical and nursing professionals. It appears that the medical professionals at the time were well informed about the facts of poliomyelitis, yet most ignored them and, moreover, failed to inform the public. The Contagious Unit of the Los Angeles General Hospital was responsible for most of the activities of the epidemic, and fear of the disease seemed to dominate its efforts, in spite of evidence that much of the sickness that occurred in June of 1934 was not poliomyelitis.*

Physicians and nurses were strained, worried, and terrified of contracting the disease themselves. By June 15, 50 cases a day were being admitted to most hospitals, yet by June 29, only 1 fatal case of poliomyelitis had occurred, producing a sample of the polio virus. A second case produced another sample on July 4.*

When the Poliomyelitis Commission arrived in Los Angeles from Yale University School of Medicine, headed by Dr. Leslie T. Webster of the Rockefeller Institute of Medical Science of new York City, a public meeting was held to review the situation of the epidemic. The meeting digressed to physicians and nurses discussing their risk of getting poliomyelitis and whether they might receive disability pensions if paralyzed by the disease and were disabled in the line of duty.*

New interns in training at the Los Angeles County Hospital were deprived of teaching and proper guidance because the attending physicians were afraid of getting the disease and stayed away, consulting by phone instead of going to the hospital. Doctors who worked at the County Hospital in the communicable disease wards were not welcome on house calls because their patients viewed the hospital as a pet house.*

No one knew how much of the disease that year was really polio. Nearly all adults, especially the nurses and doctors, were afraid of getting paralytic polio. In those who got the serious form of the disease, health care providers observed much pain and weakness, but very few deaths occurred. The number of cases of paralysis was much lower than one would expect. The question was this: Could it be another virus or different strain of the virus? Dr. Webster believed that 90% of the cases were actually not poliomyelitis.*

Researchers had little success in searching for the polio virus in the nasal passages of suspected victims through nasal washings. The disease could not be produced in monkeys or lab animals. Webster believed that the problem was complex and that the infantile part of the infantile paralysis was missing because most cases were in adults. The paralysis face of the disease was also missing, as no paralysis occurred in most cases.*

Oral washings with ropy (an adhesive, stringy-type thread that was soaked in a special solution and swirled around in the throat in order to capture samples of mucous tissue) were done routinely. Ropy washes were able to gather even a few flakes of mucous and the debris in it. The ropy washes used a special solution that helped save samplings of potential polio virus evidence and preserved the evidence for months (101) days for later study. Even after such a long time, the specimen could be spun in a centrifuge and yield the virus; thus, in future outbreaks, disease investigators would not need to take an army of public health workers along to gather specimens.*

Hysteria raged on in the main populace. Not only was the general public afraid of getting the disease, but a major part of the medical and nursing profession was also participating in the fear. Yet officials were not daring enough to tell the public that the disease was not polio. It was disclosed that half of the 1,301 suspected cases were not poliomyelitis. The actual attack rate was estimated to be from 4.4% to 10.7%.*

There was no doubt that Los Angeles was visited by the epidemic of poliomyelitis in the summer of 1934, but it was a mild one. Most of the people who were sick that summer were sick either from another disease (encephalitis, meningitis, or influenza) or from a mild form of a different strain of the poliomyelitis. Patients had atypical symptoms for polio, and the observed symptoms were rheumatoidal or influenzal with striking emotional tones of fear that they might get polio. It was observed by US Public Health Service officer Dr. A. G. Gilliam, of the Los Angeles County Hospital"s personnel, "Irrespective of actual mechanisms of spread and identity of the disease, this outbreak has no parallel in the history of poliomyelitis or any other CNS infections"*

As an unfortunate outcome of this epidemic and its resulting hysteria, patients who exhibited even a slight degree of weakness were immobilized in plaster casts. This was a common practice in the 1930s, and many were subjected unnecessarily to this treatment.

Answer the following three question below

Case Questions to Respond to

1. By 1934, a great deal was known about poliomyelitis. Summarize all that was known about all facets of the epidemiology of polio.

1. The current interest rate in the US is 8% per year, while it is 10% in the UK. Currently, in the spot market, US $1 can be exchanged for GBP 0.875. Calculate the amount of 120-days forward exchange rate between US $ and GBP? Do you think the GBP exchange rate is classified as a premium or discount?

2. Lanyala Corp is considering two alternatives to find funds: (1) issuing straight bonds, and (2) issuing bonds-with-warrant. Both types of bonds have a maturity of 5 years. Currently the government bond interest rate is 6% and Lanyala Corp wants to provide a premium of 4% above the interest rate on government bonds for straight bonds, and only 1% premium for bonds-with-warrant. Suppose each bond is sold at a face value of $ 100 million, and a corporate tax of 25% is known. Based on the data above, calculate what is the warrant value for the second alternative?

3. Dell Corp. is considering acquiring a startup company Asus Corp. Based on last year's financial statements, Asus Corp reported obtaining a free cash flow (FCF) of $ 400 million, and is expected to experience a constant growth of 5% every year. The acquisition will be funded with 60% equity, and the remainder with debt with a fixed interest of 12% per year. There is a market return of 15%, a government bond interest rate of 6%, and an Asus Corp beta amount of 0.8. Corporate tax is 25%. Calculate what is the fair value of Asus Corp as the target company to be acquired by Dell Corp.

4. A construction company is considering building a machine worth $ 200 million with an economic age of 4 years with two funding alternatives: (1) 100% debt with 14% interest annually for 4 years; (2) leasing. The following data are known:
- The economic life of the asset is 4 years, and will be depreciated using the straight-line depreciation method
- Maintenance costs per year: $ 30 million
- 25% corporate tax
- Annual lease rent of $ 60 million
- Net residual value of $ 25 million
Calculate which alternative is more efficient?

Based on information from a previous study, r1 = 40 people out of a random sample of n1 = 98 adult Americans who did not attend college believe in extraterrestrials. However, out of a random sample of n2 = 98 adult Americans who did attend college, r2 = 49 claim that they believe in extraterrestrials. Does this indicate that the proportion of people who attended college and who believe in extraterrestrials is higher than the proportion who did not attend college? Use α = 0.01.