If optimal capacity of a university is 4000 students and the current students is 3500 students, implement the concept of economics to scale capacity strategy to determine the maximum number allowed to be accepted for the new academic year

Variable and Absorption Costing—Three Products Shoes R' Us, Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: Shoes R' Us, Inc. Product Income Statements—Absorption Costing For the Year Ended December 31, 2016 Athletic Shoes Casual Shoes Work Shoes Revenues $405,200 $239,100 $198,500 Cost of goods sold 210,700 117,200 133,000 Gross profit $194,500 $121,900 $65,500 Selling and administrative expenses 167,300 87,800 109,400 Income from operations $27,200 $34,100 $-43,900 In addition, you have determined the following information with respect to allocated fixed costs: Athletic Shoes Casual Shoes Work Shoes Fixed costs: Cost of goods sold $64,800 $31,100 $27,800 Selling and administrative expenses 48,600 28,700 27,800 These fixed costs are used to support all three product lines. In addition, you have determined that the inventory is negligible. The management of the company has deemed the profit performance of the work shoe line as unacceptable. As a result, it has decided to eliminate the work shoe line. Management does not expect to be able to increase sales in the other two lines. However, as a result of eliminating the work shoe line, management expects the profits of the company to increase by $43,900.

a. Are management’s decision and conclusions correct? Management’s decision and conclusion are incorrect . The profit will not be improved because the fixed costs used in manufacturing and selling work shoes will not be avoided if the line is eliminated.

b. Prepare a variable costing income statement for the three products. If a net loss is incurred, enter that amount as a negative number using a minus sign. Enter all other amounts as positive numbers

.c. Use the report in (b) to determine the profit impact of eliminating the work shoe line, assuming no other changes. If the work shoe line were eliminated, then the contribution margin of the product line would be eliminated and the fixed costs would not be eliminated. Thus, the profit of the company would actually decline by $_ ?

Tru-Green Industries has two product lines of sprinklers that it manufactures: Oscillating and Rotary. The following is an income statement for each of the two product lines and for the total company for the year ended December 31, 2019:

Tru-Green Industries has a desired rate of return of 10%. Operating assets for each product line and the total operating assets for the company for 2019 are as follow:

Required:

1. What is the return on investment for each product line and for the entire company?

2. What is the margin for each product line and for the company?

3. Which product line is most profitable and why?

4. What is the residual income of each product line and of the entire company?

Assuming you have been working with one of the Big4 as auditor for more than 7 years, Mr. Alex Chan is your close friend and he is the son of Mr. Derek Chan, the founder of Apple Ltd., a listed company with very successful track record. Derek and Alex are the chairman and vice chairman of the company respectively. As you are familiar with Alex and his family, you learn that most of the senior management are from the same family of the founder, the financial controller, is in charge of finance department with the assistance of his sister Miss Candy Lee, who was decided to immigrate to England next month. Mr. Alex Chan would like to invite you to replace her as an assistant financial controller helping his brother-in-law, Mr. Peter Lee. Will you accept the offer and justify your answer? (Hint: Identify FOUR features of a family controlled company which affect your decision)

Question 2.

Intergalactic Software Company went public three months ago. You are a sophisticated investor who devotes time to fundamental analysis as a way of identifying mispriced stocks.

1)Which of the following characteristics would you focus on in deciding whether to follow this stock?

• Market capitalization
• The average number of shares traded per day
• The bid-ask spread for the stock
• Whether the underwriter that brought the firm public is a top tier investment banking firm
• Whether the firm’s audit company is a Big Four firm
• Whether there are analysts from major brokerage firms following the company
• Whether the stock is held mostly by retail or by institutional investors

2) When you looked at the projection for Intergalactic Software Company’s revenue in the future, you found that most of analysts assume the revenue growth rate is mean-reverting over time. What is the rationale to assume that revenue growth rate is mean-reverting over time?

Phorwex Canada Inc. is a cleaning and hygiene catalogue company that accepts customer orders by phone, online, and mail. About 75% of customer orders are received by phone; salespeople complete the paper order and send it (by fax) to the main office for shipping. The remaining orders are mainly online with very few sent through postal mail.

The company has experienced many issues with customer orders in terms of delays in data entry, errors in customer information, incorrect order details, and so on. The firm decided to develop a real-time system for phone orders that can be used by salespeople who accept orders from customers.

You have been hired to assist the company as they design the new order system and recommend the set of controls required to solve these issues.

What key attributes need to be included in the new real-time order system?

What controls policies and procedures should be adopted?

Individual Problems 5-1

George's T-Shirt Shop produces 8,000 custom-printed T-shirts per month. George's fixed costs are $24,000 per month. The marginal cost per T-shirt is a constant $9.

George's break-even price is _______ per shirt.

Suppose George sells 50% more T-shirts per month.

At this quantity of shirts, George's break-even price is _______ per shirt.

Individual Problems 5-2

Suppose an initial investment of $80 will return $30/year for three years (assume the $30 is received each year at the end of the year).

At a discount rate of 25%, this investment ________ profitable.

Individual Problems 5-3

Perhaps the most important kind of capital is human capital. For example, most lawyers spend years learning to practice law. Lawyers are willing to make large investments in their human capital because they expect to be compensated for doing so when they begin work. Suppose the government nationalizes the market for legal services, resulting in lower compensation for lawyers. Assume lawyers cannot easily move to other countries.

True or False: The investment in human capital for lawyers is subject to post-investment hold-up.

True

False

Individual Problems 5-5

Last year, a toy manufacturer introduced a new toy truck that was a huge success. The company invested $2.50 million in a plastic injection molding machine (which can be sold for $2 million immediately) and $200,000 in plastic injection molds specifically for the toy (not valuable to anyone else). The cost of labor and materials necessary to make each truck runs about $4. This year, a competitor has developed a similar toy, significantly reducing demand for the toy truck. Now, the original manufacturer is deciding whether it should continue production of the toy truck.

If the estimated demand is 100,000 trucks, the break-even price is _______ per truck.

Please Typing this My Summary from reading Chapter  I need to fix My Words and make Clear for understanding at least 400 Words No Less than that Thanks

Section 4: Time The board

Section 4 discussions about how a lot of new understudies experience difficulty with time the executives, and what understudies ought to do to fix that. It begins discussing the three different ways to concentrate on time the board: investigating (seeing how you utilize your time, and what time can be utilized all the more proficiently), ordering (what you need to do), and organizing (concentrating on specific things dependent on desperation and gravity of the assignments). It discusses a decent method to monitor things are: watching the time, cell phones, schedules, versatile organizers, and having some other updates. It additionally goes into how organizing can be effectively done through making records for various significance of undertakings. Understudies despite everything need to permit themselves an opportunity to arrange for what they ought to accomplish for the assignment they're attempting to handle. The purpose behind that is it will make the assignment simpler to traverse, and the individual will spare additional time in the work stage than if they didn't prepare. It additionally permits the individual to set a calendar to move into accomplishing work, and will likewise permit an individual to switch around times they will and won't be working. It likewise addresses the difficulties, legends, and the brain research of dawdling. Making an enormous arrangement that about 90% of understudies tarry, and a couple of methods for handling the issue being to: Compose, locate an agreeable domain to work, plan work propensities, split huge work up, and attempt to complete nearly finished bits of work.

The part tackles a really large issue I've had before, and I think it makes an extraordinary moment that advising individuals to locate a decent domain to work. At the point when I inhabited home during my first semester at Volstate, I decided to go to the library for a considerable length of time I was nearby, and a bistro any day I wasn't nearby to contemplate. I truly cut down on interruptions. Another great method to plan work is with an organizer. They're convenient, they occupy room for you to see, and let you put down some other exercises other than contemplating/due dates. Something individuals don't concentrate on enough however is arranging. With regards to it, individuals should most likely save time and record how they're going to deal with a task. This will probably prompt a superior evaluation than somebody who just beginnings the task dazzle. A decent method to begin this off is to take the suggestion from the part of monitoring your exercises for half a month to perceive how you can utilize time all the more productively. This will permit you to play out the suggested 8 hours of work, rest, and different exercises.

at least 400 Words No Less than that Thanks

The work week for adults in the US that work full time is normally distributed with a mean of 47 hours. A newly hired engineer at a start-up company believes that employees at start-up companies work more on average then most working adults in the US. She asks 12 engineering friends at start-ups for the lengths in hours of their work week. Their responses are shown in the table below. Test the claim using a 5% level of significance. Give answer to at least 4 decimal places.

What are the correct hypotheses?

H₀: Select an answer p σ² μ s² x̄ p̂ s σ  ? > ≤ ≥ ≠ = <   hours

H₁: Select an answer p σ² p̂ σ μ s² x̂ s  ? > ≤ = ≥ < ≠   hours

Based on the hypotheses, find the following:

Test Statistic=

p-value=

The correct decision is to Select an answer Accept the null hypothesis Reject the null hypothesis Accept the alternative hypotheis Fail to reject the null hypothesis  .

The correct summary would be: Select an answer There is enough evidence to reject the claim There is not enough evidence to support the claim There is not enough evidence to reject the claim There is enough evidence to support the claim  that the mean number of hours of all employees at start-up companies work more than the US mean of 47 hours.

You have just joined a company as a new staff accountant. Your company is in an acquisition mode (acquiring 5 to 10 smaller companies each of the last 4 years). You are excited to hear that you are going with an acquisition team to facilitate another acquisition (Company X). You have been instructed to sit down with Company X’s controller and explain some pre-acquisition (before the acquisition is finalized) accounting expectations.

Expectations for Company X before the acquisition is finalized.

a) Company X is expected to accelerate the payment of liabilities

b) Company X is expected to delay recording the collections of revenue

d) Company X is expected to increase the estimated amounts in reserve accounts

As you are driving to the Company X headquarters, your gut is telling you something is not right? You pull your car over and call your old classmate who is now an auditor for Ernst and Young. You explain the “expectations” and your old classmate provides the following feedback…

(Old Classmate) There are ways that the three expectations could be managed within the rules provided by GAAP, but would be regarded by many as pushing the limits of GAAP.

Not satisfied with your old classmates answer you call your old accounting professor. Your accounting professor reminds you what he used to say in class,

(Old Professor) “There are gray areas in accounting that many accountants will be influenced to step into. Often, this results in unethical behavior (at a minimum) and in many cases results in illegal acts.” “It’s a dangerous path and I recommend that you stay away from gray.”

answer the following questions…

1) What effect does each of the three items have on the reported net income of the acquired company before the acquisition and on the reported net income of the combined company in the first year of the acquisition and future years?

2) What effect does each of the three items have on the cash from operations of the acquired company before the acquisition and on the cash from operations of the combined company in the first year of the acquisition and future years?

3) If you are the controller of Company X, how would you respond to these suggestions?