Day: April 26, 2018

Hancock Hoodies is considering a special order for 100 hoodies for a local company party. The normal selling price of a hoodie is $30 and its unit production cost is $16 as shown below.

Direct materials $6
Direct labor $3
Manufacturing overhead $7
Unit product cost $16

Most of he manufacturing overhead is fixed and unaffected by variations in how many hoodies are produced in a given period. However, $2 of the overhead is variable with respect to the number of hoodies produced. The customer who is interested in the special hoodie order would like a special silkscreen put onto the hoodies. This silkscreen would require additional materials costing $4 per hoodies and would require ordering of the design costing $100 that would have no other use once the special order is completed. This order would have no effect on the company’s regular sales, and the order could be fulfilled using the company’s existing capacity without affecting other orders.

What effect would accepting this order have on the company’s net operating income if a special price of $17 is offered per hoodie for this order? Should the company accept the order?

The Calibri Company produces three products: F,G and H. The selling price, variable costs, and contribution margin for one unit of each product follow:
Product
F G H
Selling price $40 $110 $50
Variable costs:
Direct materials $16 $25 $20
Direct labor $11 $20 $12
Variable manufacturing overhead $10 $10 $8
Total variable costs $37 $55 $40
Contribution margin $3 $55 $10
Contribution margin ratio 7.5% 50% 20%

One or two major machines used to produce these products has broken down and a new one is on backorder so the company is down to one machine. Product F takes 0.20 machine hours to produce one unit, Product G takes 11 machine hours to produce one unit, and Product H takes 2.5 machine hours. There are 1,000 machine hours available on the new machine.

a. What is the amount of contribution margin that will be obtained per machine hour on each product?
b. Which product would you recommend that the company work on next week – the orders for product F, product G, or product H? Show computations.

The John Company purchase a machine on Nov 1 ,2002 for $148,000. at the time of acquisition,the machine was estimated to have a useful life of ten years and an estimated salvage value of $4,000. John has recorded monthly depreciation using the straight line method.on July 1,2011,the machine was sold for $13,000.
What should be the loss recognized from the sale of the machine?

2. Five years ago,Goodwill purchase a patent for $110,000, lower demand for the product under the patent had an estimated useful life of eleven years. It currently has a remaining useful life of four years. the current fair value of the patent is $43,000. Company management estimate that the patent will generate future cash flow of $12,000 per year for the next four years.

What is the amount of the impairment loss to be recognized

3. On February 12, Laker Company purchased a tract of land as a factory site for $175,000.AN existing building on the property was razed and construction was begun on a new factory building in march the same year. additional data are available as follows:
cost of razing old building———–35,000
title insurance———– 12,500
artichect fees———————– 42,500
new building construction cost—- 875,000

What is the recorded cost of the completed factory building?

Hello,

I’m looking to flesh out some more inputs regarding the project I’m writing on (Impact of Uninsured and Unisured Population). I have Sharp Healthcare System in San Diego California as my case study. Im on Part 3 of my project. Can someone help me with the following criterias?

1.) Evaluate the overall risk to the organization if the rates of uninsured and underinsured continue to rise at 2-3% over the next five years. How is the risks being measured? (I guess, any not for profit hospital may be used as guideline).

2.) Give at least five key initiatives for building the organizational strength to meet these risks. The initiatives should detail the issue, the degree of risk, the internal and external environmental strengths and weaknesses, and your assessment of the ability of the organization to effectively respond to these risks. Factors that should be considered include the capacity of the organization to respond to change, the willingness of the leadership/ management to commit to organizational enhancement, and the barriers to organizational effectiveness.

I’m having a hard time setting up an Excel solver model for the problem below:
Owens-Wheat uses two production lines to produce three types of fiberglass mats. The demand requirements for each type of mat (in tons) for the next four months are as follows:

Month Mat Type
1 2 3
1 200 300 400
2 300 100 300
3 200 400 200
4 300 200 100

If it were dedicated to simply producing a mat of a single type, a single line 1 machine could produce either 20 tons of a type 1 mat or 30 tons of a type 2 mat. Similarly, a single line 2 machine could produce either 25 tons of type 2 mat or 28 tons of type 3 mat. Note that mat type 1 cannot be produced on line2, while mat type 3 cannot be produced on line 1. If costs $ 5,000 per month to operate a single machine on line 1, and $ 5,500 to operate a single machine on line 2. A cost of $ 2,000 is incurred each time a new machine is purchased for either line, while a cost of $ 1,000 is incurred when a machine is retired from service. At the end of each month, Owens would like a minimum inventory of 50 tons of each mat type and the cost of holding one ton on inventory for a month of any mat type is $ 5. At the beginning of month 1, the company has 5 line 1 machines, and 8 line 2 machines. Determine a minimum cost production schedule for each mat type of each production line.

ABC Company is a company that employs only people with physical or mental disabilities. One of the organization’s activities is to make cookies for its snack food store. Several years ago, ABC Company purchased a special cookie-cutting machine. As of December 31, 2010, this machine will have been used for three years.

Management is considering the purchase of a newer, more efficient machine. If purchased, the new machine would be acquired on December 31, 2010. Management expects to sell 300,000 dozen cookies in each of the next six years. The selling price of the cookies is expected to average $1.15 per dozen.

The ABC Company has two options:
1. Continue to operate the old machine, or
2. Sell the old machine and purchase the new machine.

No trade-in was offered by the seller of the new machine. The following information has been assembled to help management decide which option is more desirable.
Old New
Machine Machine
Original cost of machine at acquisition……………………..$80,000 $120,000
Remaining useful life as of December 31, 2010…… 6yrs 6yrs
Expected annual cash operating expenses:
Variable cost per dozen……………………………… $.38 $.29
Total fixed costs…………………………………….. $21,000 $11,000

Assume that all operating revenues and expenses occur at the end of the year.

Required:
1. Use the net-present-value method to determine whether the ABC Company should retain the old machine or acquire the new machine. The organization’s hurdle rate is 16 percent.
2. Independent of your answer to requirement (1), suppose the quantitative differences are so small between the two alternatives that management is indifferent between the two proposals. Write a memo to the president of SPI that identifies and discusses any non-quantitative factors that management should consider.

Please work the following problem on an EXCEL spreadsheet. An elegant solution is not required, Just provide all the steps so I will understand the concept and be able to replicate it for similar problems. Also, provide a written description leading me through the solution.

PROBLEM:

A Company must make decisions on weekly production. The Company makes two products; Patio bars and barstools. Each bar contributes $20 and each barstool contributes $8 toward profit. The Company can sell all the products it makes but market demand requires that they must make at least two barstools for each bar that they produce.

There are constraints on production. The Company will have available only 24,000 units of raw materials, 12,000 labor hours, and $20,000 for supplies. Each bar requires 6 units of raw materials, 2 hours of labor, and $3 in supplies. Each barstool requires 3 units of raw material, 4 hours of labor, $3 in supplies. According to the union contract, the Company must produce 4,000 items each week.

The Company plans to maximize profit contribution for the weekly production. How many bars and how many barstools should the Company produce each week?

1. Although France, Spain, and Germany ruined Italy politically with warfare in the 13th and 14th centuries, which country had the most impact on politics in Italy?
A) Spain
B) GermanyX
C) England
D) France
2. What term is used to describe the transition from the medieval world to the modern world?
A) humanism
B) Lower Middle Ages
C) Agriculture RevolutionX
D) Renaissance
3. Because Louis IX abolished serfdom in his domain, made the tax system more equitable, and gave his subjects the right of appeal from lower courts to higher courts, the French came to associate their king with justice and a national feeling.
A) True
B) FalseX
4. Aztec society was hierarchical, authoritarian, and militaristic; their society was made up of nobles and commoners.
A) TrueX
B) False
5. In the Middle Ages, the clergy was a type of open estate because membership was based on training rather than birth.
A) True
B) FalseX
6. It is said that Europe escaped its isolation from the rest of the world during the High Middle Ages (1000 to 1300). What mostly contributed to this?
A) the creation of a new, rich merchant class
B) the Crusades
C) trade along the Silk Road from Europe to China
D) both B and CX
7. Aztec women could inherit and own property.
A) True
B) FalseX
8. The domestication of what crop secured Mesoamerica and became one of the most important crops in North America because it could be used to feed livestock?
A) cotton
B) corn
C) beansX
D) squash
9. All of the religious people who lived and worked directly among the laity are called
A) regular clergy
B) secular clergy
C) priestsX
D) canons
10. Which group constructed over 14,000 miles of road and rope bridges?
A) Maya
B) AztecsX
C) Inca
D) Moche
11. Southern Mesoamerica in the 6th century included which modern day area(s. ?
A) Guatemala and the HondurasX
B) the Yucatan Peninsula
C) Belize and El Salvador
D) all of the above
12. The Maya had a calendar.
A) TrueX
B) False
13. Who had the largest population, estimated in the millions, before Europeans arrived in the 1500s?
A) MayaX
B) Aztecs
C) Inca
D) Moche
14. The largest and lowest social group in medieval society was a group who completely made the wealthiest and highest class possible. Who were they?
A) nobles
B) clergy
C) women
D) peasantsX
15. What is the term given to the fighting between France and England from the late 12th century to the early 13th century?
A) the Bacon Rebellion
B) Hundred Years War
C) Cluny Reform MovementX
D) the First Victory
16. The population of Europe did what from 1000 to 1300?
A) barely changed at all
B) remained stagnantX
C) decreased
D) doubled
17. Which of the following were the basic social groups of the Middle Ages?
A) knights or nobilityX
B) clergy
C) peasants
D) all of the above
18. The Black Death, or Bubonic Plague, was more than likely caused by
A) poor hygiene
B) rats brought from the Black Seas
C) lack of sewage and flowing water
D) none of the aboveX
19. How many designated popes were there during the Great Schism and remained as popes until the re uniting of the church in 1417?
A) 1
B) 2X
C) 3
D) 4
20. By the end of what century did kings become more powerful than popes?
A) 11th
B) 12thX
C) 13th
D) 14th
21. Who came into contact with the some 250,000 Aztecs in 1519?
A) the French
B) the SpanishX
C) the Maya
D) the Toltecs
22. By providing kings with the resources they needed to curb factious noblemen, what became a major force in the transition from feudal societies to national governments?
A) towns
B) cities
C) guildsX
D) serfs
23. Which of the following occurred during the Middle Ages?
A) the Black Death or Bubonic Plague
B) criticism of the nature of God and a great schism in the church
C) the invention of print
D) all of the aboveX
24. Mesoamerica covered what regions?
A) from central Spain into Central America
B) from northern Mexico to Guatemala
C) from central Mexico into Central America
D) from Spain into the Honduras
25. In 910, what movement started in order to free the church from secular, political influence and control?
A) the CrusadesX
B) the First Victory
C) the Investiture Struggle
D) the Cluny Reform Movement

During the last week of August, Apache Arts Company’s owner approaches the bank for an $100,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,250. The owner plans to increase the store’s inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank’s loan officer needs more information about Apache Arts’ ability to repay the loan and asks the owner to forecast the store’s November 30 cash position. On September 1, Apache Arts is expected to have a $4,500 cash balance, $108,000 of accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow.

Budgeted Figures* September October November
Sales $ 230,000 $ 455,000 $ 440,000
Merchandise purchases 230,000 225,000 202,000
Cash disbursements
Payroll 20,100 22,050 24,900
Rent 12,000 12,000 12,000
Other cash expenses 33,800 28,800 20,900
Repayment of bank loan 100,000
Interest on the bank loan 4,250

*Operations began in August; August sales were $150,000 and purchases were $105,000.

The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 28% of credit sales is collected in the month of the sale, 43% in the month following the sale, 23% in the second month, 5% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $64,500 of the $150,000 will be collected in September, $34,500 in October, and $7,500 in November. All merchandise is purchased on credit; 90% of the balance is paid in the month following a purchase, and the remaining 10% is paid in the second month. For example, of the $105,000 August purchases, $94,500 will be paid in September and $10,500 in October.

Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, re-nowned for her beauty and wealth. Now Ms. Balsan’s onetime Hamptons home is slated to hit the market priced at $28 million with Tim Davis of the Corcoran Group.

Located on Ox Pasture Road in Southampton, the shingle-style home was built around 1900 and is known as “Gardenside” or “Cara-Mia”. Ms. Balsan, the great-granddaughter of railroad magnate Cornelius Vanderbilt, owned the house until her death in 1964.

According to public records, the estate is owned by Robert G. Goldstein, executive vice president and president of global gaming operations at Las Vegas Sands Corp, and his wife Sheryl, who purchased the house in 2007 for $17.4 million.” (The Wall Street Journal, August 1, 2014, M2)

1. Calculate the annual compound growth rate of the house price during the period when the house was owned by Robert G. Goldstein (since 2007). (Round the number of years to the whole number).
2. Assume that the growth rate you calculated in question #1 remains the same for the next 20 years. Calculate the price of the house in 20 years.
3. Assume the growth rate that you calculated in #1 prevailed since 1900. Calculate the price of the house in 1900.
4. Assume the growth rate that you calculated in #1 prevailed since 1900. Which price was paid for the house in 1964?
5. You were using the time value of money concept to answer the question #3. What is the time point 0 is this problem?