The mean cost of domestic airfares in the United States rose to an all-time high of $400 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $115. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $560 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $245 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $310 and $500 (to 4 decimals)?

d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)
$ or - Select your answer -morelessItem 5

5. Which of the following cost classifications would be the most useful for the managerial decision making purposes such as planning and control?

A. Manufacturing costs vs non manufacturing costs

B. Product costs vs period costs

C. Expired costs vs unexpired costs

D. Variable costs vs fixed costs

12. Limited human capacity to process a given job for a given period, combined with fixed compensation paid periodically, would MOST likely result in a:

A. Mixed cost

B. Step cost

C. Variable cost

D. Fixed cost

13. A disadvantage of the high-low method for cost analysis is:

A. It does not consider all the available observations

B. It cannot be used when there are a large number of observations

C. It is too time consuming to apply

D. It relies totally on the judgement of the person performing the cost analysis

15. Costs incurred to make products can be capitalized (inventoried) in asset accounts in the balance sheet until the products are actually sold. Which of the following accounting concepts or principles justifies the use of this deferral accounting procedure?

A. Historical cost principle

B. Matching principle

C. Going-concern principle

D. Accrual-basis accounting

23. Which of the following can NOT be regarded as the criticism for the "actual costing" (i.e. using an actual overhead rate instead of a predetermined overhead rate)"?

A. It does not have any overhead variance at the end of each period

B. It does not allow timely reporting or assignment of costs for specific jobs or products

C. It may not provide stable overhead rates if the market and production conditions change frequently

D. Identical products may be assigned different amounts of overhead costs if they are produced in different periods of time

Explain the (a) lower of cost or net realizable value (LCNRV) approach and the (b) lower of cost or market (LCM) approach to valuing inventory. please answer in your own words, do not use the outside resources

The president of Dronavation, Inc. has hired you to determine the firm's cost of debt and cost of equity capital. The stock is currently selling for $40 a share and the dividend per share is expected to be around $2. The company has total liabilities of $16 million and interest expense for the year of $2 million.

Discuss

The president makes the statement that it will cost $2 per share to use the stockholders' money, so the cost of equity is equal to 5 percent (2/40). Is this correct? How do you respond?

The president says to you that if the company owes $16 million and has only $2 million in interest, the cost of debt is 12.5 percent ($2 million / $16 million). Is this conclusion correct? Explain.

Based on his calculations, the president recommends the company increase its use of equity financing, because debt costs 12.5 percent, but equity only costs 5 percent. How do you respond?

Question 5

Alto Imports ending inventory was assigned a cost of $14,600 as a result of a physical stock-take on 30 June 2020.

A review of the company’s records revealed the following information:

• Alto Imports had recorded a $2,900 invoice (excluding GST) from a supplier for goods shipped ExW on 26 June 2020. The goods were not included in the physical inventory count because they had not yet arrived at the warehouse of Alto Imports by 30 June.
• Alto Imports had recorded a $1,900 invoice (excluding GST) from a supplier for goods shipped DPP on 28 June 2020. The goods were not included in the physical inventory count because they had not yet arrived at the warehouse of Alto Imports by 30 June.
• Alto Imports had goods valued at $3,600 (excluding GST) out on consignment on 30 June 2020 that were included in the physical inventory count.

Required:

1. For each of the above, determine the effects on Alto Imports 30 June inventory account balances.

2. What is correct value of inventory on hand at 30 June 2020?

The black color cost in hamsters is due to a dominant gene (B)..

A recessive allele (b) at this locus results in a brown coat when homozygous (b/b). However, neither coat color is expressed when the organism is homozygous for the allele (a) at a separate locus. The a/a genotype results in a white (albino) coat, regardless of the allele at the B locus. The wild-type allele (+) at the (a) locus allows normal coat coloration, whether the genotype is +/+ or +/a.

The following experiments were performed to better understand these relationships.

Experiment 1:

A female hamster with the genotype B/B; +/+ is crossed with a male hamster of genotype b/b; a/a.

Experiment 2:

Female offspring from the cross in Experiment 1 were backcrossed to the (b/b; a/a) parent. The distribution of coat coloration among the progeny was as follows; black (66), brown (34), and white (100).

2. A true-breeding strain of black hamsters is available. What is the genotype of this strain?

A. B/b; +/+

B. B/b; +/a

C. B/B; +/+

D. B/B; +/a

3. A strain of hamsters known to be homozygous (b/b; a/a) at both loci is available. What is the phenotype of these animals?

A. Black

B. Brown

C. White

D. A mixture of white and brown

4. What will be the phonotype(s) of the F1 animals resulting from the cross in Experiment 1?

A. All black

B. All brown

C. All white

D. Both black and brown

5. Experiment 2 suggests that the two genetic loci discussed in the passage are:

A. linked

B. unlinked.

C. recessive.

D. Not enough information to determine linkage.

6. Based on the results from Experiment 2, what is the genetic map distance (frequency of recombination) between the two loci discussed in the passage?

A. 17 centimorgans

B. 34 centimorgans

C. 68 centimorgans

D. Impossible to determine; they are unlinked.

In this make or buy problem, you should compute the total cost of making a particular part and the total costs of buying the same part. Try following the solutions steps:

Determine the parameters of the make cost function - the variable costs per unit and the fixed costs.

Determine the fixed costs that are avoidable and the fixed costs that are unavoidable.

Determine the buy price.

Determine the alternative use of the idle resources under the buy,

Note that the question does not ask for the total make costs and the total buy costs but instead asks for the difference between the two. Make sure that you submit the answer as a positive or a negative number as instructed.
______________________________________________________

BKF.com provides banks access to sophisticated financial information and analysis via the web, enabling them to instantly evaluate both personal and commercial loan applications. To better focus on its client services, BKF.com is considering outsourcing some of its internal functions. Its controller, Jenny Lee, suggests starting with the company's internal email system. She recently attended a conference and learned that GTE and NBC outsource their email function to companies such as Google and Yahoo. Lee began her analysis by identifying the total costs related to last month's in-house email operation, when there were 3,950 employee mailboxes:

Lee analyzed the computer hardware costs further and determined that:

41% were allocated costs that will continue even if the email system is abandoned.

20% were non-personnel direct costs that will be avoided if the email system is abandoned.

39% were monthly salaries for two, equally paid interns who worked only on the email system.

Mail.com, a leading provider of internet messaging outsourcing services, has offered to host BKF.com's email function for $14.10 per mailbox. BKF.com will still need to pay for the virus protection software, and it will need one of the interns to maintain the virus protection and quarantine suspicious emails. Also, a company has agreed to pay BKF.com $4,800 a month to use the computer storage space that will become available if BKF.com outsources its email function.

Finally, Lee estimates that 4,220 mailboxes will be required per month next year.

REQUIRED

By how much will BKF.com's monthly profits change if they decide to outsource its email function to Mail.com instead of managing the service internally?   (Note: if the buy costs are less than the make costs, enter the difference as a positive number; if the make costs are less than the buy costs, enter the difference as a negative number.)

Suppose that demand is given by P = 130 ? Q and marginal cost equals 10. Firms are Cournot competitors and play a supergame. The collusive agreement being considered is for each to produce half of the monopoly output. What is the critical discount factor to sustain collusion using grim punishment strategies if detection of deviation requires two periods?

Compute the NPV statistic for Project U if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)

Compute the PI statistic for Project Z if the appropriate cost of capital is 6 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)